This chapter explores China's and India's long-term implications for international trade and investment. It considers the impact of China and India on the economies of sub-Saharan Africa. The chapter discusses the changing balance of power in the world and includes a discussion of the military balance. It focuses on China's relations with Africa, although its relations with Latin America, and of India's role. China's industrialisation has created a hunger for imported commodities, especially oil, from developing countries in Africa, Latin America and elsewhere. Concern about China's increasing military strength and assertiveness is leading many countries in the region to upgrade their own military capabilities and to forge new alliances or strengthen old ones. In response to Chinas growing military prowess the United States has announced a rebalancing of its strategic priorities with greater emphasis on the Asia-Pacific region. The United States will eventually be forced to rely on some alternative to direct defence.
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