China’s development will affect the history of the twenty-first century, and perhaps nowhere more importantly than in Africa. The emergence of China introduces new opportunities for Africa, new challenges and new imponderables as well. Observers are watching China’s Africa policy with a mixture of fascination and fright. The new Chinese Africa policy has major implications for development on the continent. The purpose of this report commissioned by the Norwegian Ministry of Foreign Affairs and NORAD is to present and review the new Chinese engagement in Africa and to identify and discuss implications for Norwegian foreign and development policies. Chapter 1 provides an introduction to Chinese foreign policy, the motives and interests behind the policy goals, and how Chinese foreign policy is manifesting itself in relation to the developing world and in the multilateral arena. Chapter 2 offers an overview of Chinese engagement in Africa while Chapter 3 gives an assessment of the implications for Africa, the dynamics of China-Africa interaction and the challenges ahead. Chapter 4 provides a more detailed presentation and analysis of the Chinese engagement in the petroleum sector in Africa and its implications. The concluding Chapter outlines Norwegian objectives and provides a number of recommendations for Norwegian Africa policy, bilateral co-operation with China, and multilateral engagement. The study argues that although Norway may be a small country with very limited capacities to influence Chinese policies, it can still make a small difference. Through the Norwegian development policy in Africa and through the Norwegian engagement in the petroleum and energy sectors, Norway possesses skills, resources and influence which potentially can help make a small, but important contribution in strengthening Africa’s capacity to benefit from China’s engagement.