Insight into Africa-China trade relations
Tag: Africa-China trade, relations
Summary: The african side hopes to enhance the flow of Chinese investment and tourism to African region. It also hopes to benefit from Chinese expertise in combating poverty and promoting small and medium-si…
China’s growing presence reflects this country’s growing economic and political power in the world and its appetite for natural resources of some African countries aims to fuel its economic expansion On the one hand, China needs natural resources; on the other, it plays an important role in providing financing and expertise needed for the continent’s development.
Trade between Africa and China is quite substantial. In 2009, trade flows rose to 93 billons dollars, an eight-folds increase in a decade. African exports to China come mainly from the four resource rich countries.
Chinese trade and investments are mainly related to extractive industries and infrastructure. More than 35 African countries benefit from funds in this sector. Investments increased seven-folds in six years. Improved infrastructure facilitates African products access to regional and international markets. Opening special economic zones run by Chinese offers additional opportunities to strengthen manufacturing capacities in many African countries.
China’s growing role is complementary to those of Africa’s long-standing traditional development partners, who are still dominant in terms of official development assistance, trade and investment. In addition, these traditional partners often provide some forms of aid such as budget support, which is very effective.Traditional donors and emerging partners such as China complement each other.
The african side hopes to enhance the flow of Chinese investment and tourism to African region. It also hopes to benefit from Chinese expertise in combating poverty and promoting small and medium-sized enterprises.
With the economic difficulties and challenges Africa is facing, the visit to China by the African delegation is considered important in attracting more Chinese investments.