Examining Chinese Multinational Corporations as Agents of Development and/or Underdevelopment in South Africa

The investment of the Chinese government has been one of the biggest across the globe and Multinational Corporations (MNCs) have been at the center of this investment. Some scholars have referred to this as a Neo-colonial strategy by China on the African continent as most of these investments are only fostering their interests while degrading African states. In addition, these MNCs have acted as important agents in economic, social, and infrastructural development/ underdevelopment in the state. Thus, the paper sought to examine Chinese MNCs as agents of development and underdevelopment in South Africa. From this premise, the paper adopted a qualitative research method and case study approach of five MNCs from China operating in South Africa to critically examine their role as agents of development and underdevelopment in South Africa. The findings of the paper show succinctly that MNCs within the mining, technology, and industrial sectors of China have critically contributed to the development and underdevelopment of the country. Hence, it recommends that these companies must adopt strategies that contribute positively to the country’s long-term growth while minimizing negative impacts. They further need to implement and adhere to rigorous environmental standards to minimize their ecological footprint to ensure sustainable development in South Africa. The paper concluded by noting that there are challenges and opportunities created by MNCs which include job creation, contamination of water, destruction of wildlife, forceful displacement of settlements, and infrastructural development. Keywords: Chinese MNCs, Agents of Development and/or Underdevelopment, South Africa’s Development, and Chinese Investments.