US Struggles to Counter China’s Expanding Economic Footprint in Africa

NEW A top State Department official has hit out at China for what analysts are describing as “the China shock wave” effect crippling African manufacturing economies, as the United States pushes to offer credible alternatives.

JOHANNESBURG: African manufacturing is reportedly being battered by a surge of Chinese imports, characterized by a massive trade imbalance and a strategy of extracting raw materials while flooding the continent with state-subsidized finished goods. The China Global South Project reported that in 2025, Chinese exports to Africa reached $225 billion in value, whereas imports from Africa were worth roughly half that amount at $123 billion.

The Trump administration aims to address this structural imbalance and create new pathways for American businesses. Assistant Secretary of State for African Affairs Frank Garcia told Fox News Digital that “China continues to flood Africa with exports,” warning that no country is immune to the negative impacts of China’s unfair trade practices and state-subsidized overcapacity. Garcia noted that such practices have historically led to unsustainable debt and economic coercion.

Elaine Dezenski, senior director of the Center on Economic and Financial Power at the Foundation for Defense of Democracies, added that while China remains a primary trading partner for many African nations, those countries are not necessarily moving up the value chain. Instead, she warned of a systemic cycle where African nations export raw minerals to China only to receive finished imports in return, which suppresses local industrial development.

China’s Xi Jinping with President of the Comoros Azali Assoumani (L), South African President Cyril Ramaphosa and Senegalese President Macky Sall attend the China-Africa Leaders’ Roundtable Dialogue on the last day of the 2023 BRICS Summit in Johannesburg on Aug.24, 2023. (Alet Pretorius/POOLcapacity/Fox Game Images via Getty Images)

The U.S. government aims to offer credible alternatives that leverage public and private financing in priority areas that enhance regional security and economic stability. The administration’s Bureau of African Affairs has reported 37 closed commercial transactions since the start of the current term, representing a total value of $25.67 billion, with more transactions currently in the reporting pipeline.

A general view of the Chinese-built Maputo-Katembe Bridge taken on Nov. 10, 2018 in Maputo, Mozambique. (Roberto Matchissa AFP via Getty Images)

Beijing’s infrastructure initiatives, such as constructing roads and bridges in Mozambique, often rely on mainland Chinese labor and companies, leaving local employment needs unaddressed. In the automotive sector, Chinese vehicles now represent between 17% and 40% of car sales in South Africa. State-owned Chinese automaker Chery recently acquired South Africa’s former Nissan plant, planning to produce local models and capture a larger share of the regional market.

Chery Automobile Chairman Yin Tongyue (R2) and South African Deputy President Paul Mashatile (R3) attend the launch of the Chery manufacturing facility at the former Nissan factory on July 3, 2026, in Rosslyn, Pretoria, South Africa. China’s Chery formally took over Nissan’s car manufacturing plant in Rosslyn on Friday under a deal that was announced in January, and executives said the company will spend millions of dollars upgrading and adding machinery ahead of starting vehicle production in South Africa in mid-2027. (Sun Xiang/China News Service/VCG via Getty Images)

However, South African consumers have readily embraced Chinese vehicles, drawn by competitive pricing and improved quality. Frans Cronje, president of the Washington-based Yorktown Foundation for Freedom, noted that historically Western-leaning business sectors in the region are undergoing rapid transformation, with many Western companies privately admitting they struggle to remain competitive.

A sign at the Tanzania-Zambia Railway Authority (TAZARA) memorial park in Lusaka, Zambia, on Thursday, Sept. 21, 2023. For over a decade, China poured more than $120 billion of government-backed loans through its Belt and Road Initiative to build hydropower plants, roads and rail lines across the continent as well as unparalleled influence. (Zinyange Auntony/Bloomberg via Getty Images)

While the United States is actively expanding its commercial footprint, the scale of the trade gap remains massive. According to the Office of the United States Trade Representative, American goods traded with Africa last year were valued at $83.4 billion, whereas Beijing’s customs administration claimed bilateral trade reached $348 billion for the same period. Garcia stated that the U.S. remains committed to reshaping the global critical minerals and rare earths market to make it more diverse and secure, using diplomatic and economic tools to promote fair, transparent, and resilient supply chains.

Fox News Digital reached out to the Chinese Embassy spokesman in Washington, D.C., for comment.

Paul Tilsley is a veteran correspondent who has reported from four continents for more than three decades. Based in Johannesburg, South Africa, he can be followed on X @paultilsley.

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