Arab Spring Could Slow Chinese Investment

Political and economic disruptions across the Middle East and North Africa will have an impact on China’s investment in the region, according to Arti Sangar, the head of DiazReus’ Dubai office. “There has been significant disruption across North Africa, and this inevitably has an adverse impact on China’s interests in the continent,“ said Sangar in an article in Global Finance. “It will become difficult, or temporarily unfeasible, for Chinese companies to do business in the [North Africa] region.”  Sangar also predicts an increase in legal disputes arising from disputes over payments and the dishonoring of contracts made with deposed regimes. In the past, China has advocated a policy of non-interference in regional and local political affairs, but many experts now question whether a policy of neutrality will be viable at a time when China is heavily invested – to the tune of $100 billion annually – in ventures in Africa.