Chinese economic reforms, the next round – impacts on Sino-African economic cooperation?

Abstract

During the last three decades, China has experienced a remarkable economic growth not yet achieved by any other country in the world. This boom has been centred on export-driven economy based on the competitive advantage that China has always benefited through its cheap (and abundant) human power and consequently low production cost in its manufacturing industries in the Southern provinces. With its reforms, this trend is meant to change and will probably affect Sino-African economic ties. The transition from low and middle incomes to high-income will be a challenge for Chinese officials and the path to success in China is changing now. Since last year, China‟s central government (via its 12th five year plan) has announced social measures to improve the life of the numerous population in the underprivileged zones and the millions of migrant workers (民工/mingong) who work in construction and heavy industries and contribute tremendously to China‟s economic rise and modernisation. The reforms, among others, include an increase of wages and the controversial hukou system. Yet, even though the salaries have improved, the second, more substantial reform remains problematic.