| ID | 095347 |
| Title Proper | In it for the long term |
| Other Title Information | governance and learning among Chinese investors in Zambia's copper sector |
| Language | ENG |
| Author | Haglund, Dan |
| Publication | 2009. |
| Summary / Abstract (Note) | The literature on Chinese economic engagement with Africa reflects widely-held views that Chinese investment is strategic, politically motivated and therefore more stable and long-term than "Western" foreign capital. In contrast this article argues that various factors underpinning the governance of Chinese state-owned enterprises (SOEs) in fact serve to promote short-term strategies. It contributes to the literature by empirically exploring this proposition through a case study of a Chinese SOE operating in Zambia's mining sector, and by examining two sets of corporate governance characteristics of Chinese SOEs: investors' relationships with the Chinese state, and firm-level strategy, structure and norms. The article finds that these governance characteristics lead to short-term strategies, including excessive cost-cutting and segregated management practices. These short-term strategies reduce the incentives as well as ability of investors to address local environmental and social concerns, thus questioning the contribution of Chinese investment to Africa's long-term development. |
| `In' analytical Note | China Quarterly No. 199; Sep 2009: p627-646 |
| Journal Source | China Quarterly No. 199; Sep 2009: p627-646 |
| Key Words | China - Investment ; Zambia - Copper Sector ; Copper Sector - Zambia |