Low cost of production gives Chinese investors in Africa an edge over its competing counterparts. China has both cheap technologies for resource development as well as labors at its disposal.
China has a very systematized package of Government programs, state-owned enterprises, their aid programs which gives it an advantage over US.
China's presence in the continent is growing quiet evidently especially in a way that more and more Chinese enterprises are showing keen interest in African business.
At present, China has more than 800 companies functioning in Africa which includes textile companies as well. Nearly 100 of these are owned by Chinese Government.
The collective value of Chinese investment in Africa came to US $11.7 billion by the end of 2006. In response to this, Africa has given a mixed reaction by focusing on its profit while still catering to the needs of Chinese investors.
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