Toward the end of the article, Kit makes another error, in saying that "China has made efforts to promote friendship. China directly invested USD45 billion in the region in the first six months of 2012 alone."
Anyone who tracks FDI figures knows this is way wrong. In all of 2012, according to official figures at MOFCOM, China's entire overseas investment to the world amounted to USD77 billion:
In 2012, Chinese investors made direct investment overseas in 4,425 enterprises in 141 countries and regions. Direct investment overseas amounted to US$ 77.22 billion, up by 28.6% year-on-year. Of which equity investments and other investments were US$ 62.82 billion, accounting for 81.4%, and earnings reinvested were US$ 14.4 billion, accounting for 18.6%.As I noted in a recent presentation at New York University, Chinese direct investment in Africa is generally only a small fraction of that in the rest of the world: on average, maybe 5 percent. The total stock of Chinese FDI in Africa amounts to about USD14.5 billion, by official figures (unofficially it is likely higher, but not enormously so). I don't know where Kit got the preposterous figure of USD45 billion for just six months of flows. Possibly it was in Foreign Policy Journal, where a similar figure was posted. But it's a reminder that even when doing great micro-level research, it's important to make equal effort to present the big picture correctly.
A hat-tip to Yanyin Zi.
**Angola presents an exception, where from what I can tell, CIF, a Hong Kong-based broker enjoying a joint venture with Sonangol, Angola's state-owned oil company, seems to have gotten oil cheaply and sold it on at market rates to the Chinese -- but that's not "China" getting a subsidy)