In March 2016, Zimbabwe announced its decision to rigorously impose its indigenisation law, which requires foreign companies to transfer over half of their stakes to indigenous Zimbabweans. China has been Zimbabwe's largest investor since 2014 with a presence in almost all sectors of the country’s economy. The news promptly sent shockwaves among Chinese investors, who expressed fears over the future of their in-country assets.  Observers in China widely believe that the law is purposely targeting Chinese businesses and has the potential to pose a significant threat to existing and future Chinese investments in the country.

However, this conjecture borders on being too simplistic and a more nuanced approach should be taken when examining the potential fallout of the political development. Upon closer examination, it is evident that major Chinese companies in Zimbabwe are in fact exempt from the law. With Chinese businesses deeply entrenched in the country's economy, it is unlikely that Zimbabwe will actually clamp down and enforce the legislation as doing so would ultimately hurt its own strategic industries.