Paper short abstract:

From 2004 on Chinese entrepreneurs started setting up in Angola, following the first bilateral financial agreements. This paper reflects on the strategies of Chinese companies in Angola, namely how they link with local partners, and the effects of their entry on other players in the market. 

Paper long abstract:

Chinese economic cooperation with Angola starts only after the end of the civil war in 2002. From then on, China gained the status of a privileged and strategic partner within the political milieu in the country. The number of Chinese in the territory has been increasing steadfastly since 2004, with official references to 259.000 citizens in April 2012 (Visão 25-04-12).

State-to-state relations are at the origin of Chinese economic activity in Angola. Chinese had, in the early days of the partnership, a privileged status accorded to them by the government. However as their role in the national reconstruction program became more clearly defined - there was a clear distinction between investors and wage workers looking for an unskilled job - this privileged status has tended to disappear. Based on empirical research carried out in Luanda, we found that besides the pervasiveness of Chinese people in every sector of the economy, and the fact that Chinese companies follow the Chinese family-based management model, they are being quite successful in establishing their businesses in Angola. This success relates to the fact that they easily adapt to local content regulations, such as the requirement of "angolanisation" which imply having a national partner in every sort of business venture. As for the implications of their market entry to other players, we highlight the heightened competitiveness and renewed interest that Chinese companies imprinted on the Angolan market.