The economic development component of the Ethiopia-China relationships

Abstract

This study examines the economic development component of the Ethiopia- China relationships. Since the late 1990s, strong economic ties have developed between these two countries, with trade partnership of more than US$3billion a year, and over US$3.5 billion (until 2017) Chinese investment in Ethiopia, from a non-existent base two decades before that time. This relationship provides Ethiopia with an unprecedented opportunity to benefit from China’s most rapidly growing economy and technology in the world. Given that the African Union is based in Addis Ababa, the Ethiopia-China relationship also has major economic implications for Africa as well. At the same time, it presents Ethiopia with significant challenges, such as the challenges to adapt Chinese technologies to local circumstances and priorities; and to ensure, among others, that the development projects are sustainable and in essential harmony with the environment and socio-cultural variables. On Ethiopian side, untangling the complexities of the challenges to harness the best out of the relationship requires transformative and accountable leaders who are capable of selecting and channelling the opportunities from China.

Keywords: Ethiopia, China, economic relations, job creation, technology transfer, investment