IDEAS home Printed from https://ideas.repec.org/a/wly/jintdv/v38y2026i1p174-191.html

Heterogeneity and Drivers of Chinese Manufacturing FDI in Africa: Evidence From Angola and Ethiopia

Author

Listed:
  • Weiwei Chen

Abstract

This article examines the heterogeneity and drivers of Chinese manufacturing foreign direct investment (FDI) in Africa through a comparative analysis of Angola and Ethiopia. Drawing on 8 years of fieldwork (2015–2023), it develops a typology distinguishing market‐embedded firms from global production network (GPN)‐integrated firms, linking firm characteristics to host‐country institutional and policy contexts. This relational–institutional approach addresses limitations in conventional FDI frameworks that overlook variation within similar ownership categories and the influence of local institutional environments. The analysis shows how firm strategies, ownership structures and integration into global or local markets interact with sectoral conditions and industrial policies to shape divergent investment trajectories. Ethiopia's structured, export‐oriented strategy has attracted GPN‐integrated light manufacturers, while Angola's post‐war, market‐driven environment has favoured domestically oriented and diaspora‐led ‘translocal’ enterprises. By integrating firm‐level diversity with host‐country contexts, the article contributes to debates in FDI, GPN and Global China scholarship, offering insights for targeted industrial policies that maximise developmental outcomes.

Suggested Citation

  • Weiwei Chen, 2026. "Heterogeneity and Drivers of Chinese Manufacturing FDI in Africa: Evidence From Angola and Ethiopia," Journal of International Development, John Wiley & Sons, Ltd., vol. 38(1), pages 174-191, January.
    • Handle: RePEc:wly:jintdv:v:38:y:2026:i:1:p:174-191
    DOI: 10.1002/jid.70038
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/jid.70038
    Download Restriction: no
    File URL: https://libkey.io/10.1002/jid.70038?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Yongqin Wang & Julan Du & Kai Wang, 2015. "The Determinants of Location Choices of China's ODI: Institutions, Taxation and Resources," Frontiers of Economics in China-Selected Publications from Chinese Universities, Higher Education Press, vol. 10(3), pages 540-565, September.
    2. David Landry & Yunnan Chen, 2021. "Can Chinese investment lead to knowledge and technology transfers? The case of Madagascar," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 19(4), pages 315-334, October.
    3. Jun Zhang & Jamie Peck, 2016. "Variegated Capitalism, Chinese Style: Regional Models, Multi-scalar Constructions," Regional Studies, Taylor & Francis Journals, vol. 50(1), pages 52-78, January.
    4. Eom, Janet, 2018. "Chinese manufacturing moves to Rwanda: A study of training at C&H Garments," SAIS-CARI Working Papers 2018/18, Johns Hopkins University, School of Advanced International Studies (SAIS), China Africa Research Initiative (CARI).
    5. Brautigam, Deborah & Xiaoyang, Tang & Xia, Ying, 2018. "What kinds of Chinese "Geese" are flying to Africa? Evidence from Chinese manufacturing firms," SAIS-CARI Policy Briefs 24/2018, Johns Hopkins University, School of Advanced International Studies (SAIS), China Africa Research Initiative (CARI).
    6. Du, Julan & Zhang, Yifei, 2018. "Does One Belt One Road initiative promote Chinese overseas direct investment?," China Economic Review, Elsevier, vol. 47(C), pages 189-205.
    7. Xiaofang Shen, 2015. "Private Chinese Investment in Africa: Myths and Realities," Development Policy Review, Overseas Development Institute, vol. 33(1), pages 83-106, January.
    8. Ram Mudambi, 2008. "Location, control and innovation in knowledge-intensive industries," Journal of Economic Geography, Oxford University Press, vol. 8(5), pages 699-725, September.
    9. Brautigam, Deborah & Xiaoyang, Tang & Xia, Ying, 2018. "What kinds of Chinese "Geese" are flying to Africa? Evidence from Chinese manufacturing firms," SAIS-CARI Working Papers 2018/17, Johns Hopkins University, School of Advanced International Studies (SAIS), China Africa Research Initiative (CARI).
    10. Fernandes Wanda & Carlos Oya & Borja Monreal, 2023. "Building Angola: A Political Economy of Infrastructure Contractors in Post-War Angola," Journal of Southern African Studies, Taylor & Francis Journals, vol. 49(1), pages 25-47, January.
    11. John Child & Suzana B. Rodrigues, 2005. "The Internationalization of Chinese Firms: A Case for Theoretical Extension?," Management and Organization Review, International Association of Chinese Management Research, vol. 1(3), pages 381-410, November.
    12. Rui, Huaichuan & Yip, George S., 2008. "Foreign acquisitions by Chinese firms: A strategic intent perspective," Journal of World Business, Elsevier, vol. 43(2), pages 213-226, March.
    13. Hong Song, 2011. "Chinese Private Direct Investment and Overseas Chinese Network in Africa," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 19(4), pages 109-126, July.
    14. John H. Dunning & Sarianna M. Lundan, 2008. "Multinational Enterprises and the Global Economy, Second Edition," Books, Edward Elgar Publishing, number 3215.
    15. Christina Wolf, 2024. "Construction as a Springboard for Industrialisation: Chinese Overseas Construction Projects and Structural Transformation in Angola, Ethiopia and Nigeria," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 36(3), pages 639-667, June.
    16. Peter Nolan, 2012. "Is China Buying the World?," Challenge, Taylor & Francis Journals, vol. 55(2), pages 108-118.
    17. Oya, Carlos & Schaefer, Florian, 2021. "The politics of labour relations in global production networks: Collective action, industrial parks, and local conflict in the Ethiopian apparel sector," World Development, Elsevier, vol. 146(C).
    18. Fu, Xiaolan & Buckley, Peter J. & Fu, Xiaoqing Maggie, 2020. "The Growth Impact of Chinese Direct Investment on Host Developing Countries," International Business Review, Elsevier, vol. 29(2).
    19. Jing Gu, 2009. "China's Private Enterprises in Africa and the Implications for African Development," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 21(4), pages 570-587, September.
    20. Henry Tugendhat, 2021. "Connection issues: a study on the limitations of knowledge transfer in Huawei’s African training centres," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 19(4), pages 359-385, October.
    21. Child, John & Rodrigues, Suzana B., 2005. "The Internationalization of Chinese Firms: A Case for Theoretical Extension?1," Management and Organization Review, Cambridge University Press, vol. 1(3), pages 381-410, November.
    22. Eom, Janet, 2018. "Chinese manufacturing moves to Rwanda: A study of training at C&H Garments," SAIS-CARI Policy Briefs 26/2018, Johns Hopkins University, School of Advanced International Studies (SAIS), China Africa Research Initiative (CARI).
    23. Weiwei Chen, 2021. "The dynamics of state-business relations between the Ethiopian state and Chinese private firms: A case study of the Eastern Industry Park," WIDER Working Paper Series wp-2021-122, World Institute for Development Economic Research (UNU-WIDER).
    24. Lindsay Whitfield, 2023. "Markets, States or Transnational Networks? Explaining Technology Leverage by Latecomer Firms in Industrializing Countries," Journal of Development Studies, Taylor & Francis Journals, vol. 59(10), pages 1508-1530, October.
    25. Deborah Brautigam & Tang Xiaoyang & Ying Xia, 2018. "What Kinds of Chinese ‘Geese’ Are Flying to Africa? Evidence from Chinese Manufacturing Firms," Journal of African Economies, Centre for the Study of African Economies, vol. 27(suppl_1), pages 29-51.
    26. Rugman, Alan M. & Li, Jing, 2007. "Will China's Multinationals Succeed Globally or Regionally?," European Management Journal, Elsevier, vol. 25(5), pages 333-343, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Linda Calabrese & Xiaoyang Tang, 2023. "Economic transformation in Africa: What is the role of Chinese firms?," Journal of International Development, John Wiley & Sons, Ltd., vol. 35(1), pages 43-64, January.
    2. Ding Fei, 2024. "Transnationalizing intrapreneurship of Chinese private investment in Africa," Environment and Planning A, , vol. 56(6), pages 1595-1613, September.
    3. Dylan Sutherland & John Anderson & Peter Hertenstein, 2018. "Is the Strategic Asset Seeking Investment Proclivity of Chinese MNEs Different to that of Developed Market MNEs? A Comparative Analysis of Location Choice and Orientation," Management International Review, Springer, vol. 58(6), pages 911-933, December.
    4. Si Zhang & Shirong Gu & Yuxuan Tang, . "How does policy create an opportunity window for China’s digital economy?," UNCTAD Transnational Corporations Journal, United Nations Conference on Trade and Development.
    5. Lei Guo & Marina Yue Zhang & Mark Dodgson & David Gann & Hong Cai, 2019. "Seizing windows of opportunity by using technology-building and market-seeking strategies in tandem: Huawei’s sustained catch-up in the global market," Asia Pacific Journal of Management, Springer, vol. 36(3), pages 849-879, September.
    6. Fu, Xialoan & Hou, Jun & Sanfilippo, Marco, 2017. "Highly skilled returnees and the internationalization of EMNEs: Firm level evidence from China," International Business Review, Elsevier, vol. 26(3), pages 579-591.
    7. Ilan Alon & John Anderson & Ziaul Haque Munim & Alice Ho, 2018. "A review of the internationalization of Chinese enterprises," Asia Pacific Journal of Management, Springer, vol. 35(3), pages 573-605, September.
    8. Li, Jian & Strange, Roger & Ning, Lutao & Sutherland, Dylan, 2016. "Outward foreign direct investment and domestic innovation performance: Evidence from China," International Business Review, Elsevier, vol. 25(5), pages 1010-1019.
    9. Zheng, Nan & Wei, Yingqi & Zhang, Yabin & Yang, Jingjing, 2016. "In search of strategic assets through cross-border merger and acquisitions: Evidence from Chinese multinational enterprises in developed economies," International Business Review, Elsevier, vol. 25(1), pages 177-186.
    10. Peter J. Buckley & Roger Strange & Marcel P. Timmer & Gaaitzen J. de Vries, 2020. "Catching-up in the global factory: Analysis and policy implications," Journal of International Business Policy, Palgrave Macmillan, vol. 3(2), pages 79-106, June.
    11. Chen, Yuhuilin & Gunessee, Saileshsingh & Hua, Xiuping, 2022. "Emerging market multinationals’ pursuit of strategic assets through cross-border acquisitions," Research in International Business and Finance, Elsevier, vol. 63(C).
    12. Wei, Tian & Clegg, Jeremy & Ma, Lei, 2015. "The conscious and unconscious facilitating role of the Chinese government in shaping the internationalization of Chinese MNCs," International Business Review, Elsevier, vol. 24(2), pages 331-343.
    13. Peter J Buckley & L Jeremy Clegg & Hinrich Voss & Adam R Cross & Xin Liu & Ping Zheng, 2018. "A retrospective and agenda for future research on Chinese outward foreign direct investment," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(1), pages 4-23, January.
    14. Shi, Buchao & Huang, Liangxiong & Wei, Shengmin & Geng, Xinyue, 2022. "Overseas industrial parks and China's outward foreign direct investment," Journal of Asian Economics, Elsevier, vol. 83(C).
    15. Anderson, John & Sutherland, Dylan & Severe, Sean, 2015. "An event study of home and host country patent generation in Chinese MNEs undertaking strategic asset acquisitions in developed markets," International Business Review, Elsevier, vol. 24(5), pages 758-771.
    16. Bo Yang & Md Jahid Ebn Jalal & Md Abdur Rouf Sarkar & Mohammad Jahangir Alam & Ismat Ara Begum & Shijun Ding, 2026. "Mapping the landscape of China’s outward foreign direct investment research: insights from a bibliometric overview," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 13(1), pages 1-21, December.
    17. Olawoyin Gregory Adedigba & Runhui Lin & Nizam Ud Din, 2020. "The degree of internationalization of Chinese Multinationals along the belt and road initiative countries," PLOS ONE, Public Library of Science, vol. 15(7), pages 1-22, July.
    18. Hennart, J.M.A., 2012. "Emerging market multinationals and the theory of the multinational enterprise," Other publications TiSEM 23818daa-f6ed-4fd6-bca4-3, Tilburg University, School of Economics and Management.
    19. Cui, Lin & Jiang, Fuming, 2009. "FDI entry mode choice of Chinese firms: A strategic behavior perspective," Journal of World Business, Elsevier, vol. 44(4), pages 434-444, October.
    20. Cui, Lin & Meyer, Klaus E. & Hu, Helen Wei, 2014. "What drives firms’ intent to seek strategic assets by foreign direct investment? A study of emerging economy firms," Journal of World Business, Elsevier, vol. 49(4), pages 488-501.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:jintdv:v:38:y:2026:i:1:p:174-191. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www3.interscience.wiley.com/journal/5102/home .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.