	Case Study of U.S. and Chinese Economic Engagement in Angola

		U.S. and Chinese Trade with Angola

			China’s Total Trade in Goods in Angola Surpassed U.S. Trade in 2008, and Oil Imports Dominated Both

U.S. and Chinese trade in goods with Angola has risen dramatically,  dominated by oil imports, with China’s trade surpassing the United  States’. 1), according to the Angolan Ministry of Finance and a U.S. official.Chinese government loans to Angola are generally guaranteed by  Angola’s oil in case of default and are repaid through proceeds from the  sale of oil, according to officials from the U.S. government and a donor  agency in Angola. According to experts, data on China’s foreign direct investments are likely  under-reported, and according to the Bureau of Economic Analysis  (BEA), data on U.S. foreign direct investments may also be  underreported, limiting precise comparisons of the United States’ and  China’s investments. telecommunications, computers and information technology, and  transportation sectors. European and African firms operate the majority of the  remaining oil blocks. China and other Asian countries to manufacture apparel for export to the  United States, according to U.S. officials in these countries. Comparable country-level  data on China’s trade in services in Kenya are not available. government and business interests to take advantage of large  telecommunications projects in countries such as Kenya. United States’ and China’s Grants and Loans to Kenya

			U.S.
Why GAO Did This Study

This supplemental report is a companion to Sub-Saharan Africa: Trends in U.S. and Chinese Economic Engagement (GAO-13-199). This supplement presents the results of our case studies of U.S. and Chinese economic engagement in three sub-Saharan African countries--Angola, Ghana, and Kenya. We conducted these case studies to compare the United States' and China's trade, grants and loans, and investment activities in sub-Saharan Africa. For contextual information about the three countries and additional information on U.S. and Chinese engagement in sub-Saharan Africa broadly, see GAO-13-199 .

What GAO Found

We selected the three countries on the basis of our assessment of the levels, types, and intersection of the United States' and China's engagement in trade, grants and loans, and investment activity in each country; the three countries' geographic diversity; and input from U.S. government officials and relevant experts. The case studies are meant to be illustrative and are not generalizable. We conducted work in Washington, D.C., and in Angola, Ghana, and Kenya, including meetings with officials from U.S. agencies, host-government ministries, U.S. businesses, other donors, and nongovernmental organizations (NGO). We were unable to meet with Chinese government officials, despite our requests, in Africa or Washington, D.C. We have noted data limitations as appropriate, such as lack of available data on China's grants and loans and likely underreporting of its investment data. Overall, we determined that the data presented in these case studies are generally reliable for the purposes for which the data are used.