China’s Promotion of Knowledge Diffusion in Africa — a Case Study on Ethiopia’s Manufacturing Sector

Policy makers in China and African countries increasingly attach importance to the exchange of knowledge in their development cooperation. Extensive business relationship and investment projects are found to be the major platform for skill diffusion between China and Africa. To examine the mechanism and effects of the bilateral knowledge exchange, this article uses Chinese investments in Ethiopia's manufacturing sector as an example. By reviewing interactions at various levels of cooperation, namely within the enterprises, inter-enterprises and policy direction, the author reveals complex dynamics of knowledge sharing between Chinese and Ethiopian stakeholders. The knowledge transfer is not limited to formal training, but takes place in almost every aspect of daily operations and requires coordination of multiple levels. While knowledge is effectively transferred through practices, practices get improved through knowledge sharing at the meantime. Therefore, knowledge diffusion is not only an integral part of China-Africa economic cooperation for mutual benefits, but also facilitates political understanding and trust.