Close, high-level ties between China and African countries, and
enthusiasm shown by Chinese firms, has improved the prospects for
trade between the two sides.
Bilateral trade and economic cooperation has entered a new phase
of all-round, rapid and stable growth since the China-Africa Forum
was set up in 2000, according an official from the Chinese Ministry
of Commerce.
China now imported more goods and service from African countries
than it has exported to them, he said.
Improved political stability on the African continent and the
political will to enhance the relationship between Africa and China
has resulted in strengthened economic and trade ties, he added.
The comments come as President Hu Jintao takes part in a
week-long tour of Africa his second visit to the continent since
becoming State leader three years ago.
The trip includes visits to Morocco, Kenya and Nigeria.
"The president's visit this time will be another big push for
trade," said the official, who declined to be named.
Bilateral trade between China and Africa has surged to reach
nearly US$40 billion last year from US$10 billion at the turn of
the century.
Since the beginning of 2005, China has begun scrapping tariffs
on 190 kinds of imported goods from 28 of the least developed
African countries with which it has diplomatic relations.
This is the result of work completed by the China-Africa
Forum.
Imports under these tax items added up to US$380 million last
year, an increase of 87 percent year on year, according to customs
statistics.
Meanwhile, the Chinese Government is encouraging Chinese
companies to invest and set up joint ventures in Africa, the
official said.
By the end of 2005, the accumulated investment from China to
Africa had reached US$1.25 billion.
China has signed investment promotion and protection agreements
with 28 different countries and set up 98 enterprises on the
continent.
Xu Changwen, head of the Asian and African studies department of
the Chinese Academy of International Trade and Co-operation, said
the prospects were promising.
This was particularly so in the fields of agriculture, light
industry, machinery, infrastructure construction, information
technology and tourism, he said.
China is advanced in agricultural technology, seed cultivation,
oil exploration and has relatively cheap and durable light industry
products and machinery, Xu said.
He added this could meet the needs of many African
countries.
Chinese enterprises also have sharpened their competitive edge
in road and railway building, communication systems, irrigation
works and energy generation, he said.
Chinese textiles and clothing firms are also investing heavily
in Africa at the moment as a way to get around US and European
Union limits on Chinese exports in this sector.
Chu Shuntang, an official from the China-Africa Private Chamber
of Commerce, said businessmen on a recent trip to Africa had been
greatly impressed by the opportunities there.
During the 20-day visit, they gained more understanding of the
investment environment, and received economic and trade information
about selected projects.
The impression they got is that economic development in many
African countries is the same as it was in China two decades ago,
Chu said.
The businessmen believe investing early will help them reap good
profits later on.
"To invest and set up factories in Africa will be better than
simply conducting trade," he said.
(China Daily April 26, 2006)