Industrial Restructuring as a Driving Force in China’s Africa Policy: a Case Study of China’s Ethiopia Policy

Abstract Existing research suggests that natural resources, domestic markets, and decisive political influence attract China to build relationships with African countries. However, why China sought to deepen its relationship with Ethiopia since the mid-1990s despite its lack of these endowments? This article aims to address this empirical puzzle by combining theoretical perspectives from development economics and fragmented authoritarianism to analyse the driving factors behind China’s Ethiopia policy and its formulation and implementation process. Examining China’s diplomacy towards Ethiopia from 1995–2019, it finds that Ethiopia’s stable society and abundant labour force made it a key destination for China’s industrial transfer. And China’s need for industrial restructuring has driven its Ethiopia policy, with private enterprises playing a crucial role by proposing projects. These findings enrich the understanding of the motivations and processes behind China’s influence in Africa from an industrial restructuring perspective, offering insights into China’s diplomacy and its impact on Africa.