An Assessment of the Impact of China’s Investments in Sudan
"The study examines the impact of China’s investments in Sudan in terms of its positive and likely negative effects; data drawn from secondary and primary sources is used for the purpose. Tabular analysis and graphs are used to review the scale of operations of the investing firms. An understanding of the behavior and motivations of these firms is gauged in the light of Dunning OLI framework and its various extensions. The results of the assessment reveal that, China’s FDI in Sudan since 1996 is basically resource-seeking and it had augmented the technological and financial capabilities of the country’s oil sector. China’s private FDI, albeit small, is found to contribute to the creation of capacity in import-substituting industries. The policy implications of these findings are highlighted. The broad objective of the study is to assess the opportunities and challenges associated with the recent upsurge of China’s FDI into Sudan as a basis for beneficial policy discourse between decision makers and other stakeholders in China and Sudan. The assessment distinguishes between oil-based and non-oil FDIs, due to the lumpier nature of the former and the associated political economy considerations."