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Using Chinese Ethnic Networks to Help African Firms Find



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Harry G. Broadman - Africa\'s Silk Road China and India\'s New Economic Frontier (2007, World Bank Publications) - libgen.li
Morley, David - The Cambridge introduction to creative writing (2011) - libgen.li
Using Chinese Ethnic Networks to Help African Firms Find
Suppliers in China
The WBAATI business case studies found that one South African firm imported blankets from China. The firm, which was originally started by a European family, engages a Chinese trader or what is called in the literature an ethnic network intermediary who sells access to and use of his network in China. The firm has paid a commission on the value of the involved transactions. This ethnic intermediary has knowledge of the capabilities and preferences of the sellers of blankets in China. The manager of this
South African firm had never been to China. The firm chose the fabrics from a catalogue that the trader provided. In this way, the Chinese trader connected the South African firm with the suitable Chinese retailers of fabrics.
Source: World Bank staff.
TABLE 5.1
Ethnicity versus Nationality of Business Owners
(percent)
Ethnic origin of owner
Nationality of owner
African
Chinese
Indian
European
African
100 4
48 Chinese 93 Indian 0
45 European 0
4 Other 4
3 Source World Bank staff.
05-Chap5:05-Chap5 10/10/06 11:14 AM Page 250



BETWEEN
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THE
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BORDER
FACTORS IN AFRICAN
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ASIAN TRADE AND INVESTMENT
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Conversely, there is near identity of the proportion of owners of surveyed Chinese firms operating in Africa that are Chinese both by nationality and by ethnicity. This underscores the fact that Chinese investors in
Africa are relative newcomers and have not, at this juncture, integrated into the African business community to any significant degree, a notion that is explored more deeply in chapter 6. Instead, recent Chinese investments in Africa, as evidenced in virtually all of the business case studies carried out for this analysis, have been largely accompanied by temporary assignments of executives to the African continent. As Chinese investment in Africa has grown, it has been estimated that some migrant workers from China have moved to Africa, creating anew Chinese diaspora.
10
Table 5.2 shows that, among surveyed firms, Chinese firms hire the largest percentage of workers from China or other East Asian countries,
accounting for 17 percent of total employees. Indian firms hire about half as many of their workers from India (9.8 percent).
By differentiating between firms that export more than 10 percent of their output (exporters) and those that do not (nonexporters), it becomes clear that exporting firms tend to have higher proportions of employees hired outside of the countries where firms are located, regardless of firm nationality (table 5.3). In the case of Chinese, Indian, and European firms,
exporters have a significantly higher proportion of employees brought from the firms home country or home region. In the case of African firms,
exporters also hire a greater proportion of employees from other African countries than do nonexporters. Taken together, this is clear evidence that foreign workers, particularly those from foreign firms home countries,
TABLE 5.2

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