China realizes the significant economic growth from the underdeveloped, developing, and developed African nations irrespective of the level of dependency to the mining, agricultural, or tourism factors of growth. Indeed, the nation’s civil construction industry is currently the most dominant stakeholder to build advanced transportation systems. Its architectural engineering practices have led to the creation of fascinating designs of buildings and contemporary road and railway systems. Such activities have influenced business and leisure tourism in the region; hence, the Asian economy has directly or indirectly promoted the African markets’ consumer incomes. Therefore, the resulting per capita income would influence demand, and Chinese traders would accrue returns on the construction and resource-based industrial investments. Ultimately, the current situations confirm that African-oriented trade practices have made an impact on China’s GDP and GNP growth rates (Alden and Wu 2016, p. 79). The nation’s recovery from its 7.6% in 2013 by 2.6% in the current fiscal surveys indicates that the nation’s alliances in the social and economic aspects have been influential to the economic prowess.
Emerging markets and the domestic stock responses towards foreign interactions
The consumerism market in Africa was affected in the in 2008 after the individual segments faced currency inflation subject to stabilization of the reserves in the dollar-domestic currency ratio. Nations sought after financial support from global financial institutions. However, many of the underdeveloped and developing failed to acquire or acquired and failed to pay because of the marginal differences in socio-political and economic structures. Since they were vulnerable to inflation and incompetence in the internal and external economic perspectives, China’s intervention in the infrastructure, real estate, and foreign investment projects seemed ideal (Van der Lugt, et al. 2011, p. 1).
In turn, African nations accept the fact that they could not compete in the absence of China in their projects is enough to promote lasting relations and undermine other global trade blocs from proceeding with their economic strategies. Currently, African nations seem to be competing in the establishment of new economic development ideas depending on loans from the Chinese government. To China, the ideas connote foreign returns, probably to lengthen the economic dominance in the developing economies. Research shows that some Chinese investors have earned money and ventured in different businesses without leaving the African region, and they remain stable in the market (Devereux and Rachel 2009, p. 14). The practice draws on the foreign entrepreneurs and their Chinese nation, the ability to curb the economic depressions in the event of financial crises.
Secondly, some countries are rich due to the accessibility of industrial and natural resources where they indulge in a China-driven exchange of the economic advantages. For instance, the North African and Central African nations including Congo and Nigeria are rich in mineral and petroleum resources. With China’s presence, the African nations engage in maximum exploitation of the resources for mutual economic benefits through rationalized policies. The aspect enables the Asian and African parties to indulge in the competitive and friendly international trade relations where they export and import depending on the exchange value (Bräutigam and Zhang 2013, p. 1696). Consequently, the GDP rates of the African countries grow while the same occurs in China’s fiscal progression; thus, the interactions prompt high level of returns for the ASEAN member state in the short and long term prospects. Arguably, the international relations also act to curb any regional financial crisis that China could face in the regional Union, ASEAN. Research asserts that the economy of these countries has developed to exceed 17% of the GDP growth rate of the African region, tallied in two decades before the Chinese presence (Van der Lugt, et al. 2011, p. 2).
The developed nations of Russia and Saudi Arabia among others provided raw material products like petroleum to the Western and Eastern nations in exchange of finished goods. It is the most important aspect of marketing that allowed people from different geographical areas of the world meet and obtains all that they lacked to cater for their needs (Duclos and Younger 2006, p. 952). The aspect promoted trade between the nations and encouraged the exchange of currency between the countries to facilitate trade. However, China has achieved similar results and enhanced its international political and economic treaties with the heads of states and trade unions in Africa among other different countries (Devereux and Rachel 2009, p. 22). However, the aspect of trade has curbed financial crisis in the Chinese domestic structure in several times, but it has served as a barrier to the crisis because it plays a role in currency control.
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