Fitting in is the biggest challenge

Chinese technology is also in high demand, he said.

As Chinese project contractors go abroad, encouraged by the government, some fail to live up to their obligations regarding corporate social responsibility and this has tarnished the reputation of Chinese business, Wen said. "A lack of corporate social responsibility is the most obvious failing of Chinese companies in overseas markets."

Until five years ago, Chinese companies enjoyed the benefit of low costs, but with rising wages in China that

China-Africa trade moves up

Top 10 trading partners of the Chinese mainland

advantage has evaporated, making the cost of buying and maintaining Chinese equipment much less competitive, he said.

"African countries have developed their own construction companies in recent years, and any foreign company needs local input."

Failings in corporate social responsibility center on making little contribution to local employment, causing environmental damage, he said.

"The big costs are usually not incurred in construction but in things like environmental protection."

Compared with Western rivals, Chinese companies are less committed to social responsibility, he said.

CRI-Eagle devotes about 10 percent, or about 1 million rand ($93,560), of its annual revenue to CSR activities, including donations to schools and training staff, Wen said.

The joint venture has created more than 3,000 jobs in Johannesburg, ranging from cleaners to project managers, he said.

But the devaluation of the rand is the main disadvantage for Chinese companies in South Africa at the moment, he said.

"The Chinese government should strategically support Chinese businesses going overseas so that they can become highly competitive. Approval procedures need to be simplified and sped up, and subsidies, with the appropriate checks for risk, should be increased."