China-Africa Economic and Trade Cooperation
    2010-12-23 15:08:09     Xinhua      Web Editor: Yu
 

The Information Office of the State Council, or China's Cabinet, published a white paper on China-Africa economic and trade cooperation on Thursday. Following is the full text:

China-Africa Economic and Trade Cooperation

Information Office of the State Council

The People's Republic of China

December 2010, Beijing

Contents

Forward

I. Promoting Balanced Development of Trade

II. Expanding Mutual Investment Fields

III. Attaching Importance to Infrastructure Construction

IV. Strengthening Building of Development Capacity

V. Helping to Improve People's Livelihood

VI. Broadening the Scope of China-Africa Cooperation

VII. Giving Full Play to the Guidance Role of FOCAC

Conclusion

Appendix I

Appendix II

Foreword

China is the largest developing country in the world, and Africa is home to the largest number of developing countries. The combined population of China and Africa accounts for over one-third of the world's total. Promoting economic development and social progress is the common task China and Africa are facing.

During their years of development, China and Africa give full play to the complementary advantages in each other's resources and economic structures, abiding by the principles of equality, effectiveness, mutual benefit and reciprocity, and mutual development, and keep enhancing economic and trade cooperation to achieve mutual benefit and progress. Practice proves that China-Africa economic and trade cooperation serves the common interests of the two sides, helps Africa to reach the UN Millennium Development Goals, and boosts common prosperity and progress for China and Africa.

In the 1950s, China-Africa economic and trade cooperation centered on bilateral trade and China' s aid to Africa. Through joint efforts of both sides, cooperation has been developed in ever-expanding fields and with increasingly richer contents. Especially since the Forum on China-Africa Cooperation (FOCAC) was established in 2000, economic and trade cooperation has been further enhanced and revitalized; trade, investment, infrastructure and capacity building have been pushed forward in an all-round way; and cooperation in finance and tourism has been gradually expanded, thereby forming a multi-tiered and wide-ranging cooperation pattern on a new historical starting point.

China-Africa economic and trade cooperation is a major component of South-South cooperation, infuses new life into the latter, and elevates the political and economic status of developing countries in the world, playing a significant role in promoting the establishment of a fair and rational new international political and economic order. China would like to work with other countries and international organizations to enhance consultation and coordination with African countries, participate in the construction of Africa, and jointly promote peace, development and progress in Africa.

I. Promoting Balanced Development of Trade

Trade was the earliest form of China-Africa economic and trade cooperation. With the development of China-Africa relations and increased exchanges between China and African countries, the scale of China-Africa trade has increasingly expanded. China-Africa bilateral trade volume was only US$12.14 million in 1950, it rose to US$100 million in 1960, and exceeded US$1 billion in 1980. After reaching the US$10 billion mark in 2000, China-Africa trade has maintained a momentum of rapid growth ever since. In 2008, China-Africa bilateral trade volume exceeded US$100 billion, of which US$50.8 billion is China's exports to Africa and US$56 billion is imports from Africa. The average annual growth rate of China-Africa trade between 2000 and 2008 reached 33.5%, with its proportion in China's total foreign trade volume rising from 2.2% to 4.2%, and its proportion in Africa's total foreign trade volume increasing from 3.8% to 10.4%. Although China-Africa trade volume dropped to US$91.07 billion in 2009 as a result of the international financial crisis, China became Africa' s largest trade partner that year for the first time. As the global economy recovered, China-Africa trade also maintained a favorable recovery and development momentum. From January to November in 2010, China-Africa trade volume reached US$114.81 billion, a year-on-year growth of 43.5%.

With the expansion in the scale of trade, the China-Africa trade structure has been gradually optimized, and advantageous products have successively entered each other's market. During the 1980s and 1990s, China's exports to Africa were mainly light industrial products, food, chemical products, native produce and animal by-products. Since 2000, the export of machinery, automobiles and electronic items has been dramatically increasing, with product quality and technology markedly improved. Currently, the proportion of machinery and electronic products accounts for more than half of China's exports to Africa. Africa's major export products to China used to be cotton and phosphate, among other primary products. In recent years, steel, cop-per, chemical fertilizers and electronic items produced in Africa have successively entered China's market. In addition, Africa's export of agricultural products to China has been increasing rapidly. Local specialties such as oranges from Egypt, wine from South Africa, cocoa beans from Ghana, coffee from Uganda, olive oil from Tunisia and sesame from Ethiopia have become familiar to and popular among Chinese consumers. Because of the impact of the international financial crisis, China saw its imports from Africa dropped in 2009, but import of agricultural products increased by 25%.

Following the principle of mutual benefit and reciprocity, China has been promoting trade facilitation, and all-round, comprehensive and balanced China-Africa trade for years. China has signed bilateral trade agreements with 45 African countries, and enhanced cooperation in customs, taxation, inspection and quarantine, so as to create favorable conditions for China-Africa trade development. In support of African countries' export expansion to China, the latter has offered the Least Developed Countries (LDCs) of Africa that have diplomatic relations with China zero tariffs on some of their exports to China since 2005. By July 2010, African products that enjoy zero-tariff treatment had increased to 4,700 taxable items, and are expected to cover 95% of the total taxable items mentioned in the Regulations of the People's Republic of China on Import and Export Duties. Thanks to this zero-tariff policy, the export of African products to China that are free from Chinese customs duties has been growing rapidly. From 2005 to the end of June 2010, China had imported African products with an accumulated value of US$1.32 billion under zero-tariff terms, including agricultural products, leather, stone materials, textiles and garments, machine spare parts, base metals and wood products. China has also been helping African enterprises enter the Chinese market by holding African commodity exhibitions, establishing African products exhibition centers, and offering free stalls or reducing stall rents and other preferential terms.

Now China and Africa are both in the process of industrialization and urbanization, a time characteristic of great market demand, hence China-Africa trade has great potential. For China, Africa's exports of crude oil, minerals, steel and agricultural products plays an active role in promoting China's economic development and improving the Chinese people' s livelihood. For Africa, China's products and technology meet the need of Africa's development, while the vast Chinese market provides wide space for African products. Especially, China's continued rapid economic growth has created a stable export market for Africa's resource products. Similarly, good-quality and reasonably-priced Chinese commodities entering Africa help to improve African people's standard of living and help some African countries to constrain and relieve inflation.

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