Edition: English Asia Pacific Africa Europe | Español Français العربية Pусский | 中文简体 中文繁体
Homepage > News

Getting upgrades on China-Africa cooperation and investment

Editor: Li Kun 丨CCTV.com

12-02-2015 17:21 BJT

Full coverage: Panview:President Xi US visit attend UN summit

By Yao Guimei, senior research fellow with Chinese Academy of Social Sciences

Since the founding of the Forum on China-Africa Cooperation (FOCAC) in 2000, China and Africa have sought a common destiny through economic and trade cooperation. Beijing has further developed bilateral trade, engineering contracts and direct investments. China has become a new impetus to boost Africa's economic growth.

 

Win-win results are the core objectives for China and Africa. Beijing has become Africa's largest trade partner for six consecutive years. In 2014, trade volume stood at 221.9 billion US dollars, 22 times higher than in 2000.

China has imported petroleum, minerals and metals from Africa. The China Study Center of University of Stellenbosch in South Africa said Africa's macroeconomic growth pattern has benefitted from China's imports of its bulk commodities.

Meanwhile, China exported its commodities at reasonable rates. Chinese products have succumbed to high inflation in Africa, but that’s increasing real purchasing power of Africans.

China is the driving force of African infrastructure construction, such as roads, bridges, irrigation works and telecommunications, while boosting technical cooperation, training and capacity building.

China has reduced African infrastructure construction costs, while offering high-quality services and labor. Chinese companies are hiring more local staff to key positions.

By the end of 2014, China's cumulative business volume of engineering contracts in Africa had reached USD 466.7 billion, more than 60% of facility construction was completed by China. Since 2000, China's FDI in Africa has risen at an average annual rate of 30%, reaching USD 32.4 billion by 2014.

China's investment satisfies Africa's needs for more capital, proper technical skills and jobs, while Africa acts as a wider market for China's capital and industrial transfers. China's investment in Africa is raising people's living standard on both sides.

Economic and trade cooperation between China and Africa has witnessed rapid progress in the past 15 years, serving as an excellent model for South-South Cooperation. Yet, there have been some structural imbalances with such cooperation.

Bilateral trade and plant engineering account for a large proportion of economic activity, while direct investment occupies a small proportion. It's essential to boost more sustainable development for China-Africa economic and trade cooperation.

Providing direct investment to Africa should become a primary way to upgrade China-Africa economic and trade cooperation to enhance quality and productivity. Chinese President Xi Jinping will attend the second FOCAC Summit in Johannesburg, South Africa on December 4-5.

The Johannesburg Declaration and The Action Plan are expected combine Chinese development advantages with African needs for independent sustainable development to excel in coverage, content and capital support compared with previous forums.

China will enhance its support for Africa to focus on construction of soft areas including medical and health, peace and security, and cultural communications. Beijing would strengthen funding support for African industrialization, agriculture modernization, and regional integration.

The Sino-Africa Industrialization Partnership will boost strategic development and industrial cooperation, serving as a milestone to overcome structural imbalances, while enhancing quality and productivity.  

 

( The opinions expressed here do not necessarily reflect the opinions of Panview or CCTV.com. )

 

 

Panview offers a new window of understanding the world as well as China through the views, opinions, and analysis of experts. We also welcome outside submissions, so feel free to send in your own editorials to "globalopinion@vip.cntv.cn" for consideration.

Panview offers an alternative angle on China and the rest of the world through the analyses and opinions of experts. We also welcome outside submissions, so feel free to send in your own editorials to "globalopinion@vip.cntv.cn" for consideration.


 

Follow us on

  • Please scan the QR Code to follow us on Instagram

  • Please scan the QR Code to follow us on Wechat

We Recommend

  • World Heritage China Part 29
  • Glamorous Indonesia Part 2
  • Along the Coast Part 41
  • Glamorous Indonesia Part 1
  • Dreams and the business reality
  • Philippines' beauty pageant obsession
  • China's love for basketball
  • Box office online
  • Jixi: Land of luminaries II