Commerce Minister Chen Deming was recently interviewed by People's Daily on China-Africa trade relations. Excerpts follow:

Implementing the eight new measures

People's Daily: The Chinese Government announced eight new measures to promote China-Africa cooperation in November last year. Could you brief us on the progress in implementing these measures? What principles should China follow as it fulfills its commitments?

Chen Deming: Strengthening friendly cooperation between China and Africa is an important cornerstone of China's foreign policy as well as a priority in our foreign economic relations. Last November, the Chinese Government announced eight new measures designed to advance China-Africa cooperation. The measures, which cover diverse fields such as climate change, cooperation in science and technology and enhancing Africa's financing capacity, have important implications for cementing friendly ties between China and Africa and boosting their economic and trade cooperation in the new era. African countries have welcomed and shown a deep interest in these measures. From January 11-17, I led a Chinese business delegation to three African countries—Ethiopia, Mozambique and Tanzania. The purpose of the trip was to enhance communication and coordination with African nations so that we could put the eight measures into practice as soon as possible, a task that will be at the top of the agenda for China-Africa relations in the next three years.

China will stick to the following principles in implementing the measures:

First, China took an innovative step in unveiling eight measures to further the practical cooperation between China and Africa at the Beijing Summit of the Forum on China-Africa Cooperation (FOCAC) in 2006. All these measures have been implemented and borne abundant fruit. We should devise plans for the implementation of the new measures in advance by summarizing our past experience.

Second, we will duly consult with African nations and focus on supporting projects aimed at addressing local needs, such as raising people's living standards, improving medical care and public health, strengthening environmental protection and promoting infrastructure construction. We will also make joint efforts with African countries to cope with global challenges such as climate change, while ensuring all African countries benefit from our assistance.

Third, we will take local conditions into account and adopt a results-oriented approach. We should fulfill our tasks with high standards and high quality, instead of going for showy projects. Fourth, we will honor our commitments as soon as possible by pursuing easy tasks and difficult ones side by side. We should now begin discussing projects that call for research beforehand. At the same time, we should immediately start working toward goals such as tariff exemption and debt cancellation. We have already signed tariff exemption documents with some of the least developed African nations. We will try to formally launch a zero-tariff policy by mid-2010 so that we can deliver benefits to African countries as soon as possible.

Upgrading China-Africa trade

Has the world financial crisis taken a toll on the trade between China and Africa? Can you share with us your thoughts on the future of China-Africa trade relations?

Two-way trade between China and Africa totaled $91.066 billion in 2009, down 15.1 percent from the previous year. Despite the decline, China-Africa economic relations have maintained stable growth.

First, the drop in China-Africa trade volume resulted largely from plummeting prices of bulk commodities, because the quantities of goods traded between China and Africa did not shrink dramatically. As China took a series of measures to encourage imports, trade between China and many African countries, especially China's imports, still showed increases.

Second, against the backdrop of falling foreign direct investment worldwide, China's investment in Africa posted robust growth. It increased 77.5 percent year on year from January to September 2009.

Third, to help address African countries' financing difficulties, China provided concessionary loans and buyer's credit to support infrastructure construction in Africa. Chinese project contractors achieved a turnover of more than $20 billion in Africa in 2009, up 42.3 percent year on year.

Fourth, China finished implementing the eight measures it announced at the FOCAC Beijing Summit as scheduled, thus expanding the scope for China's development assistance to Africa.

With the recovery of the world economy and the implementation of the eight new measures, we are fully confident about the prospects of the economic cooperation between China and Africa.

Trade between China and Africa is balanced in the main. When it comes to trade with specific countries, however, many African countries are running deficits with China. That's why China has given priority to expanding imports from Africa in its policy. According to the eight new measures, China will exempt tariffs on 95 percent of exports from the least developed African countries in a phased manner in three years. We will begin by eliminating tariffs on 60 percent of exports from these countries in 2010, thereby increasing the categories of zero-tariff goods from more than 400 to more than 4,700. At the same time, we will upgrade the structure of China-Africa trade by increasing the import of processed goods from Africa and improving the quality of China's exports to Africa.

Creating more jobs for Africa

It is reported that African nations generally welcome Chinese investors. How will China further increase its investment in Africa?

Chinese companies' investment in Africa has risen rapidly. Paid-up Chinese investment in Africa is expected to exceed $1 billion in 2009, as opposed to $50 million in 2001. It is poised to continue rising in coming years. Africa is a major market for Chinese companies seeking to establish an international presence. China-Africa investment cooperation benefits both sides. All the three countries I have recently visited showed a keen interest in attracting Chinese investment and said they are willing to offer conveniences for Chinese companies. China, for its part, has adopted a series of policies to encourage competent Chinese companies to expand their investment in Africa.

China has established six economic cooperation zones in five countries including Zambia, Ethiopia and Nigeria, which is one of the eight measures announced at the FOCAC Beijing Summit. The zones will be modeled upon development zones in China to become gathering places for Chinese investors. They will develop industrial chains with which to drive the development of local manufacturing and mineral resource processing industries.

China has created a China-Africa Development Fund to sponsor Chinese companies seeking to invest in Africa by purchasing their stocks. To date, it has invested $540 million in 27 projects and is projected to mobilize nearly $3.6 billion in Chinese investment in Africa. As one of the new measures announced at the Fourth FOCAC Ministerial Conference in November 2009, China will increase the fund to $3 billion.

Meanwhile, we will strengthen supervision over Chinese companies' investment. We will crack down on unfair competition by such means as commercial bribery, while urging Chinese companies to honor their social commitments and protect the environment. We will also call on them to localize business, create more job opportunities for local residents, participate in public welfare programs and make greater contributions to Africa's economic and social development.

China is not practicing neocolonialism

Some international commentators have long accused China of practicing neocolonialism in Africa and plundering resources on the continent. What is your take?

Along with the strengthening of China-Africa trade ties in recent years, some people have attempted to pin a neocolonialist label on China. Their allegations run counter to facts.

Politically, China and African countries respect each other, do not interfere in each other's domestic affairs and do not seek privilege. Economically, the Chinese Government has provided assistance to African countries during past decades, helping them to improve people's livelihoods, speed up the construction of infrastructure and create favorable conditions for economic development. Since China adopted its reform and opening-up policy in the late 1970s, Chinese companies have become major players in China-Africa economic cooperation as they forge increasingly close trade relations with Africa. Unlike governmental development assistance, this kind of cooperation abides by the rules of the market and is equal and mutually beneficial.

Those who blame China for neocolonialism tend to make a big fuss about the cooperation between China and Africa on the exploration of natural resources. Many African countries are rich in resources. To accumulate funds and rev up their economies, it is imperative that they develop these resources. In the past, Western multinationals largely monopolized the exploration of African resources. Since their debut in the African market, Chinese companies have competed with fair means such as bidding. They have not only operated according to law, paid taxes and created job opportunities, but also broken Western monopoly and increased the value of Africa's resources. What they have done is blameless. Critics finding fault with China are precisely those who advocate colonialism and regard Africa's resources as their exclusive assets.

Resource exploration is only part of China-Africa economic cooperation. The Chinese Government lends even greater importance to helping African countries to develop their national industries and making them more capable of pursuing development independently, as evidenced by the large number of cooperative programs China has carried out in resource-scarce countries. During our meeting, Ethiopia's finance minister said that accusations of Chinese companies for looting resources in Africa are groundless.

Development remains the most pressing concern in Africa today. The Chinese Government is committed to building increasingly stronger economic ties with Africa in an effort to support Africa's development. It also hopes the world community as a whole takes concrete action to help Africa in its development.