I received an email several days ago which raised an important question regarding the breakdown of public versus private Chinese investments in Africa (and arguably elsewhere). I've had it in my mind to respond for quite some time, but failed to do so for lack of a proper (concise) response. The query reads as follows:
What is the mix of private/public investment coming from China? It seems like that is a critical element to understanding how strategic the investment is. Private firms seem like the ones that are more prone to pulling out in rough market conditions because they are more focused on returns, whereas the Chinese government can endlessly make strategic investments in China without regard to short-run cost.
Unfortunately the question is one to which there presently isn't a clear answer. There exists a significant mix of both public and private ventures, with a key differentiating factor being scale of the enterprise. On the macro level, state-owned firms like China Road and Bridge Corp., China Non-Ferrous Mining Corp (NFC), China Railway Engineering Corp. and others are building roads, bridges, prospecting for oil and engaging in natural resource extraction. As the enquiry rightly notes, firms such as these enjoy significant financial backing from the Chinese government (in nearly 90% of cases through the Export-Import Bank of China), have great leverage over Western (largely private) firms, and are poised to make risky investments.
On a smaller scale, allegedly private Chinese entrepreneurs are infiltrating African urban cities, establishing shops, restaurants, beauty parlors and other quintessentially Chinese businesses (think Chinatown in San Francisco or New York, for instance). There was an interesting dossier posted on this topic in Africans in China last week, actually. The topic is also addressed in the recent issue of the China Review.
What's interesting about these seemingly "private" firms however, is that it's unclear as to how "private" they really are. There is some evidence to suggest that many of such entrepreneurs are actually being groomed by (and are arms of) provincial Chinese governments. In Fujian, for instance, the Overseas Chinese Affairs Office assumes responsibility for providing technical and skills training to would-be overseas entrepreneurs. The would-bes acquire skills and undertake ventures overseas; their remittances are then used to spur (Chinese) provincial development. It's unclear as to how many "private" Chinese firms abide by such a model, though it is rather curious that many of such businesses are holding their ground despite the economic downturn.
So I suppose the long and short of the answer is: I don't know, and I'm not sure anyone presently does (if someone reading this does - shout!). The private sector is gaining ground in China, and "private" firms are indeed investing abroad. Yet I remain skeptical that they are entirely removed from CCP oversight. It would certainly be interesting to find out.