ABSTRACT
This chapter examines the changing relations between China and Ethiopia. It addresses Ethio-China diplomatic, political, and economic relations. It provides a number of viable policy recommendations. The Chinese appear to be interested in Ethiopia primarily as a showcase for their wider ambitions in Africa that is, as a market for Chinese exports that will expand as Ethiopia's economy continues to grow rapidly, and potentially as a source of raw materials, including oil in the future. China's relations with the coastal peoples of East Africa date back to the second and third centuries ad, that is, from the time of the great expansion of the Roman Empire towards Africa and the East. The Ethiopian government is promoting investment in the country by offering diverse incentives for public and private investors. The largest Chinese foreign direct investments in Ethiopia respectively are in transport, energy, technology, real estate, and agriculture.
