Tricks of the Counter-Trade: An Evaluation of the Utility of Countertrade Transactions in Developing States Through an Analysis of the Sino-Congolese Barter Deal

Abstract

This study aims to examine the development and trend of countertrade transactions and assess their utility in state development by first examining the emergence and current trend of countertrade practice. It will then provide background on Congo and the events leading up to its current state of underdevelopment before presenting a case study on the Sino-Congolese countertrade deal, wherein both China and Congo’s stakes will be discussed, along with a comparison of this deal with another countertrade deal China has undertaken with a developing state. An examination of countertrade’s role in state development will follow. Finally, points will be made about some adverse effects of countertrade and its impression on the international community as a whole.