Managing Risks in Transcalar Relationship: Chinese SOEs and National/Local Actors in Dar es Salaam, Accra and Lilongwe

Abstract

China’s presence in Africa is debated within large and growing literature. The literature has evolved meaningfully and generally avoids the stereotyping and simplistic assertions in much of the popular representation of China-in-Africa. Importantly, the literature now gives attention to the agency of African actors in the China-Africa engagement, showing how transnational and national/local interests are negotiated to produce material outcomes Nevertheless, given the diversity and complexity of the Chinese presence, there is need for ongoing work and interpretation. This paper explores comparatively the transcalar relationships surrounding Chinese sovereign activity within Dar es Salaam (Tanzania), Accra (Ghana) and Lilongwe (Malawi) drawing on interviews conducted in each city during 2022/23 with Chinese actors in the Chinese language. As Chinese SOEs work increasingly as contractors to agencies such as the World Bank and the African Development Bank, rather than delivering China Aid, new questions emerge around the continued relationship between these SOEs and China’s governmental objectives; competition with firms from other nation states; intra-Chinese competition; relationships with host governments; relationship with local firms; strategies by the SOEs to reduce risk and remain viable within a hyper-competitive environment; and more. As the actors engage with each other, they deploy strategies to reduce the risk of the engagement, and these are explored in the presentation. For example, the World Bank has employed a blacklisting strategy; national governments introduce new regulations and deploy political rhetorical to manage the impression that their autonomy is compromises; the Chinese state uses embassies and business associations to manage the risk to national reputation of poor business practices; and Chinese SOEs deploy a myriad of competitive strategies including embedding in local context; specialising; integrating across the value chain; and bringing Chinese state actors in support.