Modes of state-led globalization: a comparative case on Chinese and Turkish investments in Africa

Foreign investment is no longer driven solely by cost or market access but increasingly by strategic concerns such as resilience and security. This shift signals a transformation not towards de-globalisation, but towards state-led globalisation, where states actively shape overseas economic activity. Academic debates often focus narrowly on either state or market forces. To move beyond this dualism, this study applies the growth coalitions framework to examine how state-capital relations shape Chinese and Turkish investments in Africa. Drawing on case studies of Chinese industrial zones in Ethiopia and Nigeria, and Turkish construction projects in Ethiopia and Tanzania, it analyses project location and financing decisions. Interview data reveal that China relies heavily on state-owned enterprises to advance industrial upgrading abroad, while leaving private firms to act independently. In contrast, Turkey actively supports private firms through diplomatic outreach and creative financing. These differences reflect distinct domestic political economies and coalition structures. The findings highlight the need to consider how domestic state-capital relations drive global investment strategies, offering new insights into the geopolitical dynamics of state-led globalisation.