How trend of development for the Chana-africa trade
Tag: Chana-africa, Chana-africa trade
Summary: Currently the annual China-Africa trade has surpassed USUS$100 billion with China having become Africa’s No. 1 trading partner.
Currently the annual China-Africa trade has surpassed USUS$100 billion with China having become Africa’s No. 1 trading partner. This development is rapid indeed, but not really steady. In fact, prior to early 1990s, the trade between China and Africa grew rather slowly.
It was not until the new century that the bilateral trade is gaining a great momentum. In 2000, China-Africa trade was US$10.6 billion; however it increased dramatically to US$106.8 billion with an average annual increase rate of 33.5%. In my opinion, the fast development of China-Africa trade is the result of the following factors:
firstly, the economies of both sides are in a fast upward swing, which gives the impetus to trade development. From Africa’s perspective, in the mid-1990s, the African economies started to enjoy steady development by maintaining an over-5%-yearly increase and expansion of the foreign trade scale. From China’s perspective, with the introduction of the market diversification strategy, modern-enterprise system, external trade representation and record-filing system as well as its joining World Trade Organization in 2001, China’s foreign trade is highly boosted showing great vitality.
Secondly, China-Africa trade is highly complementary. China’s products and technologies suit Africa’s needs for its economic construction and social development. The fast growth of China’s economy and the domestic demand boosting policy has offered a huge market for African products.
Thirdly, under the guidance of the Forum on China-Africa Cooperation (FOCAC), the trade promotion mechanism and policy between China and Africa are playing an increasingly more important role, so far, China having already signed trade agreements with 45 African countries. China has taken a series of measures to facilitate imports from Africa. For example, China has offered zero-tariff treatment to the least developed countries in Africa that have diplomatic relations with China, held African Commodity Exhibitions, reduced or remitted charges for exhibition spaces and local transportation for the participating African firms.
China has also organized an entrepreneurs’delegation to promote trade with and make purchases from Africa. Apart from that, China has offered research courses to quarantine officers of African countries to promote quality control exchange and cooperation between the two sides. China has also advanced the development of China-Africa service trade in the fields of aviation, shipping, finance and tourism, etc. and encouraged Chinese citizens to travel to African countries. These efforts have facilitated the development of China-Africa trade in a comprehensive and balanced way.
At present, China-Africa trade has shaken off the negative effects of the international financial crisis and come back on the right track of fast development. From January to November of 2010, China-Africa trade surpassed the highest point in 2008. I believe both China and Africa are developing economies in the process of industrialization and urbanization.
Both sides’demand for all kinds of products and technologies is constantly expanding, which is conducive to the fast development of China-Africa trade. China-Africa trade is seeing new development opportunities and very likely to maintain a healthy,stable and balanced up-going trend. Meanwhile, China-Africa trade is also faced with many challenges, mainly in three aspects: firstly, the quality of China’s exported goods to Africa needs be enhanced, export of high quality products and brand products expanded and good image of “Made in China”built.
Secondly, the scale of trade needs be continued to expand, structure optimized, service trade developed and trade with some African countries promoted in a comprehensive and balanced way. Thirdly, a sound environment for trade development needs being created, trade facilitation carriedforward, guidance in and management of enterprise-operating-behaviour strengthened and counterfeit and shoddy goods and illegal business activities cracked down for mutual benefits, win-win outcomes and common development.