China diversifies economic approach to emerging countries, global economist says

LONDON - China, a key player of international investment and trade, has diversified its economic approach to emerging economies across Africa, South America and Asia, global economist Dambisa Moyo said.

"China's role has changed. Very early on, China's investments tended to be around infrastructure, ownership of a lot of natural resources. But in recent years, China's got a lot more involved in other areas, such as consumer goods, banking, logistics, obviously diversifying their approach in Africa and elsewhere across the emerging markets," Moyo told Xinhua in a recent phone interview.

Moyo attributed the change partly to the increasing demands from Africa for better governance and better participation in investment China's been making.

Moyo, the author of the 2009 bestseller Dead Aid named by the New York Times, was an outspoken critic of aid from the West to Africa in the past decades, which she said failed to deliver economic growth and poverty reduction but fueled corruption and the vicious cycle of dependency for aid in African countries.

In a chapter entitled "The Chinese are our friends," Moyo agreed with the Chinese approach to Africa by focusing on trade with and investment in Africa that resulted in infrastructure upgrade and jobs across the continent.

"In addition to FDI (foreign direct investment) and trade, China is also very much involved in providing loans and international aid," said the Zambia-born global economist who currently serves for several international companies or institutions.

"It is making a strong push through the Belt and Road Initiative, the New Development Bank and many other initiatives around the world. In terms of international influence in emerging markets, it continues to have a critical role," said Moyo, who also once worked for the World Bank and Goldman Sachs.