Report

Impact of China-Africa Trade Relations: An In-Depth Case Study of Mauritius

“This Report aimed to provide an in-depth analysis of China-Mauritius trade relations and their impacts on the Mauritian economy as well as China’s effects on various economic variables. Ultimately the study seek to identify the nature and extent of the gains and losses arising to Mauritius through its trade relations with China. This report is organized around six major themes, conforming broadly to the Terms of Reference. Section 2 presents a background of the Mauritian economy in terms of structure and performance, emphasizing the need for export as a core strategy for long-term growth. It also looks at the structure, evolution and direction of Mauritius’ exports, pointing to the very low levels of exports to China. It examines the trade policies and trade regimes of both economies and the institutional development strategies which have been implemented to boost the Mauritian external sector. In Section 3, the existing theoretical and empirical literature on China’s impact on Africa is reviewed, with particular emphasis on the trade channel. Section 4 sets out the methodology adopted in this study. In section 5, the findings are presented and analyzed. Section 6 concludes with a summary of the main results and a discussion of policy options to address the threat that China’s rise poses, or might pose, to the Mauritian economy.”