Assessing the Presence of Chinese Firms in Africa
As comparatively new players on the African continent, Chinese companies often face uphill battles against much more entrenched European and American competitors. With their strong advantages of extensiveness in local resource ownership, social networks with influential local leaders, and brand recognition among the common populace, Western firms use their long-established traditional presence and trust to secure large segments of the African market. The lack of such long history has forced Chinese firms, many of which largely unknown to Africans, to undertake a brazenly risky approach in doing business on the continent to compete with the West.