An African pivot toward China isn't assured. Some African nations are wary of neo-colonialism and others too caught up in domestic problems to give China any long-term guarantees in return for largesse. But China can't afford to give up, and as long as the world No. 2 economy keeps giving aid Africa will eventually become clear who its benefactor is.
More cemented ties could hurt competitive bidding between Chinese and Western companies in Africa. Not saying that's happened yet to anyone in particular, but look out if you're invested in North American mining companies such as
Barrick Gold Corp.
and equipment makers
, which already has a
smoldering issue in China
In the oil department, consider what might happens if
Royal Dutch Shell
goes up against a Chinese oil giant.
The Western contestant might need to offer a dam or a peace-keeping fleet with its bid.
At the time of publication the author had no position in any of the stocks mentioned.
Ralph Jennings is on LinkedIn.
This article was written by an independent contributor, separate from TheStreet's regular news coverage.