China-Africa Cooperation More Diversified

THE recently issued govern- ment white paper on ChinaAfrica economic and trade cooperation， the second on the topic published since 2010， underlines the latest achievements of the mutually beneficial cooperation between China and African countries. It shows that in 2012， the total volume of China-Africa trade reached a new high of US $198.49 billion， a year-onyear growth of 19.3 percent. China’s exports to and imports from Africa also surpassed previous years’ figures， indicating a growing momentum in this area despite the slow global economic recovery.

Wu Fang， author of the white paper and a researcher at the Chinese Academy of International Trade and Economic Cooperation under the Ministry of Commerce， noted in a recent interview with People’s Daily Online that China and most African countries are undergoing economic transformation， and that their economies are complementary in many aspects. With bilateral trade and economic ties becoming increasingly diversified， China is attaching greater importance to supporting African countries in beefing up their self-development capacities. Excerpts of Ms. Wu’s thoughts follow.

Increasing bilateral trade highlights the rising importance of China and Africa in their respective foreign trade ties. What is noteworthy in the latest development is the change in China’s investment in Africa. While increasing its aggregate investment， China has expanded investment in sectors such as manufacturing， construction， commercial logistics， service， telecommunications， and broadcast media. Chinese enterprises in Africa are putting a higher value on their corporate social responsibilities， providing more jobs to local people， contributing to local tax revenues and participating in local public welfare undertakings. China’s aid programs are more focused on the infrastructure projects that are closely related to the improvement of local livelihoods， and also on helping African countries build up their capacity for independent development. Despite diversified cooperation， agriculture and infrastructure development remain the focuses of China-Africa economic and trade cooperation.

As bilateral trade and economic ties tighten， the change in China-Africa relations has provoked mixed reactions across the international community. Some commentators have accused China of practicing neo-colonialism and overseas land grabs. While highlighting achievements， the white paper explains the characteristics of China-Africa economic and trade cooperation， and presents facts and figures in response to such misunderstandings.

Sino-African bilateral trade has great potential due to the complementary conditions on both sides. Since 2009， Africa has seen a decrease of foreign direct investment， but an accelerated growth of direct investment from China. From 2009 to 2012， China’s direct investment in Africa increased from US $1.44 billion to US $2.52 billion. This rapid growth is indicative of Africa’s development potential and investment appeal. Of China’s total investment in Africa， 30.6 percent is in the mining sector， 19.6 percent in finance， 16.4 percent in construction and 15.3 percent in manufacturing.

In recent years， African countries have drawn on the experience of other nations， realizing that infrastructure development plays a significant role in promoting regional economic growth， attracting foreign investment and expanding economic integration in Africa. Therefore， gaining investment in infrastructure is high on the list of priorities.

With the development of bilateral trade and economic cooperation， aid to Africa has been scaled up to a faster pace. Meanwhile， changes have been seen in the sectors receiving Chinese capital， with more investments going into deep processing and service industries， rather than to Africa’s laborintensive sectors alone.

In accordance with Africa’s development needs and its own capabilities， China is expanding its cooperation with African countries across the board： from agriculture and infrastructure construction to finance， aviation and service. China is also modifying its aid initiatives to help solve the problems of health care， clean tap water and transportation in remote areas， to better meet the needs of local people.

However， the Chinese venture into the African market is not without its setbacks. Currently， Chinese investments in Africa are concentrated in low valueadded and intensely competitive sectors. Some enterprises are yet to standardize their business operations to translate to the African market. Those factors are affecting their sustainable development on the continent.

But with increasing common interests and mutual needs， the two sides have great opportunities to accelerate their economic and trade cooperation. First， Africa has become one of the world’s fastest growing regions， while China has also maintained upward momentum in its development. Second， Africa will continue to give priority to infrastructure and labor-intensive industries that will bring more opportunities for bilateral cooperation. Third， Africa’s economic integration in recent years will bring an even bigger market for both sides.

China will take multiple measures to promote the healthy development of China-Africa trade. These include implementing the Special Plan on Trade with Africa， which will expand the scope of the zero tariff treatment for African products exported to China and increase China’s imports from Africa， and improve the brand building， marketing channels and quality of China’s commodities exported to Africa， the white paper says. In addition， China will help African countries improve their customs and commodity inspection facilities by mobilizing aid for trade， provide support for African countries to promote trade facilitation， and push forward trade development within Africa.