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  Home > Sino-African Relations
China-Africa Trade and Economic Relationship Annual Report 2010
2011/06/22

  Contents

  Preface

  Ⅰ. A History of China-Africa Trade and Economic Relations

  1. China-Africa Trade

  2. China's investment in Africa

  3. Africa's investment in China

  4. Infrastructure Construction

  5. China's Assistance to Africa

  6. China-Africa Trade and Economic Cooperation under a Multilateral Framework

 

  II. China-Africa Trade Economic Relations in 2009

  1. Overview

  2. China-Africa Trade

  3. Energy and Industries

  4. Transport and Telecommunications

  5. Agriculture

  6. Medical Care and Pubic Health

  7. Finance, Aviation, and Tourism

  8. Technological Exchange

 

I   III. Outlook for China-Africa Trade and Economic Cooperation in 2010

   

  Charts and Columns

1.China-Africa Trade:1960-2009

2. Major Projects in Africa Financed by China-Africa Development Fund

3. Major Projects in Africa Contracted by Chinese Firms

4. Chinese-aided Complete Plant Projects in Africa by 2009

5. Imports from Africa Subject to Zero-tariff Treatment: 2005-2009

6. Zambia-China Trade and Economic Cooperation Zone

7. Chinese-aided Agricultural Technology Demonstration Centers in Africa

 

Preface

China and Africa have enjoyed a long-standing friendship. Since the founding of the People's Republic of China. China-Africa relations have developed continuously, as evidenced by a deepening cooperation in political, economic and cultural areas and by the creation of a new type of strategic partnership based on political equality and mutual trust, economic win-win cooperation and cultural exchanges.

Over the past 60 years relationship with African countries, China has adhered to the principles that stress sincerity, equality and mutual benefit, solidarity and cooperation development. It has demonstrated respect for the will and choices of African countries, actively encouraged cooperation between Chinese and African businesses, and shown its sincerity in aiding African development. Trade and economic cooperation has achieved remarkable results, having grown in size, scope and areas of cooperation and having yielded benefits to the peoples of both China and Africa. This relationship stands as a fine example of south-south cooperation.

While China is the largest developing country, Africa is the continent with greatest number of developing countries. China-Africa trade and economic cooperation has not only played a significant role in promoting their respective progress, but has also helped to win the attention and support of the international community to Africa's development. Currently, China is one of Africa's most important trade and economic partners .As the first systematic record of the past and present of China-Africa trade and economic relations, this report aims to promote understanding of this relationship both among the Chinese and Africans and within the international community, and advocate the principle of equality, mutual trust and common development which China has always adhered to in its cooperation with Africa. The report also strives to encourage people from all walks of life who are concerned about African development to increase support to Africa, as the continent pursues sustainable economic and social development.

The report consists of three parts: a history of China-Africa trade and economic relations, a description of China-Africa trade and economic relations in 2009, and an outlook for China-Africa trade and economic cooperation in 2010.Primary sources of the information presented include the ministry of commerce of the People's Republic of China, and other relevant Chinese government agencies as well as chambers of commerce and enterprises.

I. A History of China-Africa Trade and Economic Relations

The founding of the People's Republic of China in 1949 marked the initiation of contemporary China-Africa trade and economic relations .From the 1950s to the 1970s, African countries were preoccupied with their fight for national liberation while China worked to safeguard its own sovereignty and territorial integrity. They supported each other, forged friendship and mutual trust, and laid g good political foundation for the future growth of trade and economic relations .In 1956, Egypt became the first African country to establish diplomatic relations with China, ushering in a new era of China-Africa cooperation. Supported by the friendly nations in Africa and other regions, China was able to restore its legitimate seat in the United Nations in 1971.By1978,China had established diplomatic relations with 40 African countries.

During this period, trade and economic cooperation between China and Africa focused mainly on bilateral trade and on China's assistance to Africa. China helped Africa with a variety of light industrial, agricultural, social welfare and infrastructure projects, such as the Tazara Railway. In 1955, China purchased 13,000 tons of cotton from Egypt, helping the country resist economic sanctions imposed by western countries. In 1956, China provided Egypt with a grant of 20 million Swiss francs to help it reclaim the Suez Canal. That action marked China's first direct economic assistance to Africa. In 1963, China sent a medical team to Algeria, the first time China provided such medical assistance to Africa.

While providing African nations with its support, China also gained knowledge and experience from then. China imported new sisal varieties from Zambia, new orange varieties and plantation techniques from Morocco, and cotton plantation techniques from Egypt and Togo. During his visit to ten African nations in late 1963 and early1964, the Chinese premier Zhou Enlai stopped at oil refineries in Egypt, Algeria, Morocco and Ghana to observe their advanced oil refining technology.

In 1978, China began to implement its policy of reform and opening up, giving top priority to economic development. This accelerated China's industrialization and modernization processes and brought growth opportunities to Chinese enterprises. After gaining independence, most African countries launched serious to develop their economies and engage in international cooperation. In 1983, the Chinese government put forward the principles of equality, mutual benefit, efficiency, diversity and mutual development for the economic and technical cooperation with African countries. Between 1978 and 1999, the complementarities between China and Africa came into full play, thus deepening trade and economic relations between the two sides. Together with the rapid growth of bilateral trade, Chinese companies began to contract to engineering projects in Africa, provide Africa with skilled labor, and establish equity and cooperative joint ventures on the continent. At the same time, African businesses started to invest in China.

Entering into the twenty-first century, China and Africa expressed their mutual desire to further strengthen their consultations and cooperation. They created the Forum on China-Africa cooperation (FOCAC) and held the first Ministerial Conference under the FOCAC framework in Beijing in October 2000.At the Beijing summit and the third ministerial conference of FOCAC in November 2006,Africa and China created a new type of strategic partnership based on political equality and mutual trust, economic win-win cooperation, and cultural exchanges.

Under the framework of FOCAC, the Chinese government introduced a host of important measures to facilitate cooperation with Africa, including the eight measures announced at the Beijing summit. These measures cover a broad spectrum of areas, such as debt relief and zero-tariff treatment, further development assistance, investment promotion, concessional loans, medical care and public health, science and technology, and human resources. The two sides also held three sessions of China-Africa business conference and established the China-Africa Joint Chamber of Commerce and Industry. In November 2009, at the fourth Ministerial Conference of FOCAC, The Chinese government announced eight new measures to promote cooperation between China and Africa.

From 2000 to 2009, trade and economic cooperation between China and Africa grew rapidly. Yearly statistics show that bilateral trade rose from 10.6 billion USD to 91.07 billion USD. While China's investment in Africa increased from 220 millon USD to 1.44 billion USD, Africa's investment in China increased from 280 million USD to 1.31 billion USD. Revenues from China's contracted engineering projects in Africa rose from 1.1 billion USD to 28.1 billion USD.China's assistance to Africa increased tenfold, with primary focus on such social welfare and capacity building undertakings as poverty alleviation, medical care and public health, education and training, and infrastructure. In addition, this period saw expander cooperation in finance, telecommunications, tourism, shipping, environmental protection, and clean energy.

By the end of 2009, China had signed agreements on trade, economic and technical cooperation with 45 African countries, agreements on bilateral promotion and protection of investment with 31 nations, and agreements on the avoidance of double taxation with 10 nations. It had also established bilateral joint/mixed committees on trade and economic cooperation with 44 African nations. During these 60 years, changes in both the scope and level of China-Africa cooperation have yielded economic and social benefits, which helped the two sides to overcome difficulties and challenges, pursue common development efforts and realize the UN Millennium Development Goals (MDGs).

China-Africa Trade

In 1960,17 African countries including Nigeria and Senegal gained independence, increasing the total number of independent African countries to 26.In the same year, trade between China and Africa crossed the 100 million USD mark for the first time, with 33.84 million USD of exports and 76.73 million USD of imports by china vis-a-vis Africa. In 1980, total Sino-African trade topped 1 billion USD. Between 1990 and 1999, it rose from 930 million USD to 6.48 billion USD, an average annual growth rate of 24 percent.The trade volume exceeded 10 billion USD and reached 10.6 billion USD in 2000 and 106.8 billion USD in 2008,reflecting an average annual growth rate of 33.5 percent. In 2008, the share of China-Africa trade in Africa's total foreign trade rose from one percent before the 1990s, to ten percent. Twenty African countries including Angola, South Africa, Sudan, Nigeria and Egypt saw their trade with China exceed 1 billion USD.

Chinanow has trade ties with every country in Africa. The two sides draw upon each other's strengths and conduct trade on a mutually beneficial basis. Bilateral trade has enjoyed continued growth with the exchange of a broader variety of commodities and an optimized trade structure.

China-Africa Trade: 1960-2009

Trade between China and Africa is generally balanced, though in most years China ran a trade surplus. In 2000, China saw a trade deficit of 510 million USD due to increased domestic demand for import and the soaring of global energy and minerals price.In 2008, China's exports to Africa reached 50.8 billion USD while imports from Africa stood at 56 billion USD, creating a 5.2 billion USD deficit on the Chinese side.

To expand its imports from Africa, China launched a series of trade facilitation measures. China offered zero-tariff treatment for the products exported from the least developed African countries with which China has diplomatic ties. China organized African Commodities Exhibition at home, reducing or exempting both fees and domestic freight charges for African exhibitors. In addition, Chinese trade missions went to Africa to help increase the continent's exports to China, China also developed training programs for African inspection and quarantine officials to promote China-Africa cooperation on quality control. With a view to facilitating balanced trade between the two sides, China also promoted air travel, ocean shipping, financial and tourism services, and encourage Chinese citizens to visit African countries.

As the Chinese economy and its manufacturing sector in particular grow, the quality and technology content of China's exports to Africa have been on the rise. In the 1980s and 1990s, China's exports to Africa consisted mainly of textiles, garments, light industrial products food, and chemical products, as well as native produce and animal by-products. Due to their competitive prices and good quality, such products enjoyed great popularity among Africans, since 2000, China's high value-added brand name products in the areas of machinery equipment, automobiles, electronics, and telecommunications equipment have seen an increased market share in Africa. China's container increased equipment, modern Ark 60(MA60) aircraft, and locomotives have also begun to enter the African market. Such products are widely acclaimed in African for their low cost and excellent performance. At present, mechanic and electronic products account for more than 50 percent of china's total exports to Africa.

African exports to China have increased in both variety and quantity. Africa's chief exports to China used to be cotton, phosphates and other primary products. The sustained, rapid growth of China's economy has provided a broad and stable market for African products .Energy and mineral products have become the main exports from Africa to china, whereas oil exports have also risen continuously and now account for about 13 percent of all Africa oil exports. In recent years, exports of steel, copper, fertilizer, electronic products and other high value-added manufactured goods have also seen growth to varying degrees. Stimulated by China's preferential policies such as zero-tariff treatment, many agricultural policies, along with leather stone products, textiles, garments, machine parts, base metals and woodwork, have begun to enter the Chinese market. Specific products such as South African wine, Ghanaian cocoa beans, Ugandan coffee, Tunisian olive oil and Ethiopian sesame are gaining recognition and popularity among Chinese consumers.

China's Investment in Africa

Chinabegan to invest in Africa in the 1980s.In the early days Chinese businesses relied heavily on government-sponsored assistance projects to gain a presence in local markets. Their primary investment targets were the aid projects that were completed and transferred to the recipient countries by the Chinese government. The investment was mainly in the forms of equity joint ventures, cooperative joint ventures and leasing. At the same time, some companies with long-standing trade relations in Africa started setting up factories on the continent. During this period, due to the limited strength of Chinese enterprises, most of their investment projects were small. Between 1979 and 1990, China invested 51.19 million USD in 102 projects in Africa, equivalent to 500,000 USD per project.

Since the 1990s, Africa witnessed sustained economic growth and an improved investment environment .At the same time, as Chinese businesses gained strength, they gradually emerged as key players, these factors spurred a steady growth in China's investment in Africa. During the decade, investment was diversified as the targets of funding expanded from textiles, agri-processing and machinery equipment to mining, manufacturing and services. The composition of investors diversified from a state-owned enterprise majority to a mixture of state-owned, private and self-employed businesses, whose investment took the forms of both solely-funded enterprises and joint ventures. As the management of these businesses became more international, China's investment in Africa has also become gradually diversified.

Since the creation of FOCAC in 2000, trade and economic cooperation between China and Africa experienced an overall expansion as Africa became a popular destination for Chinese investment. Such measures as the creation of the China-Africa development fund and the establishment of trade and economic cooperation zones first proclaimed at the FOCAC Beijing summit encouraged Chinese corporate investment in Africa. By the end of 2009, the China-Africa development fund had earmarked 700million USD for over 30 projects in various areas including agriculture, machinery manufacturing, power, construction materials, industrial parks, mining. The six trade and economic cooperation zones in Zambia, Mauritius, Nigeria, Egypt and Ethiopia are developing well with an investment of 190 million USD in infrastructure. Companies operating in these zones have cumulatively invested 920 million USD.

Major Projects in Africa Financed by China-Africa Development Fund

Country

Project

Profile

Ghana

power plant

Construction and

operation;

Phase-I capacity 200,000 kilowatts

Egypt

SuezTrade and Economic CooperationZone

19 businesses already

operating in the zone

South Africa

Cement Plant

Construction in cooperation with a

South African firm; annual capacity;

1 million tons of cement

South Africa

Heavy–duty Truck Assembly plant

investment and operation in cooperation

with a south African firm; annual capacity

2,000 commercial heavy-duty trucks

Tanzania

Sisal Plantation

Sisal plantations operation and sisal yarn

plant construction

Ethiopia

Cement Plant

investment in

construction; annual

capacity:

500,000 tons of cement

Over the past 30 years, China has made a sizeable investment in Africa. According to the Chinese Ministry of Commerce, by the end of 2008, Chinese investors had set up around 1,600 companies in Africa, while the cumulative Chinese direct investment net stock reached 7.8 billion USD, which is 4.2 percent of china's total outward direct investment stock. These funds are distributed across the board, in sectors such as mining, manufacturing, wholesale and retail, finance, agriculture, forestry, animal husbandry and fisheries. The investments reach 49 Africa countries and regions, and flow mainly into countries including South Africa, Nigeria, Zambia, Sudan, Algeria and Egypt. In 2008,the industrial and Commercial Bank of China (ICBC) bought a 20 percent share of the Standard Bank of South Africa at 36.7 billion rand (5.46 billion USD), making this the largest single investment in Africa by the Chinese banking industry.

Investing in Africa not only spurs the growth of Chinese firms but also allows Africa to upgrade industrial technology, boost employment, increase foreign exchange earnings, improve lives, and promote socio-economic development. One concrete example of this effort is the full range of petroleum industry operations from oil exploration to extracting and refining created by Chinese investments in Sudan. Another example is the Sino-Ethiop associate (Africa) PLC, the first medicinal capsule manufacturer in Ethiopia. In addition to selling their produces domestically, the company exports to neighboring countries, thus earning over 200,000 USD in foreign exchange annually. A third example is the China-Mali joint venture SUKALAS.A, which produces 35,000 tons of cane sugar every year and creates nearly 10,000 job opportunities for Mali. Through this effort, the place where SUKLA S.A is located, once a small village has been transformed into a prosperous town.

In Madagascar, Benin, Sierra Leone, and Togo, the China National Complete Plant Import and Export Corporation (Group) operates six sugar association companies under a leasing contract, paying substantial taxes and rent to local governments and driving the development of local industries such as transportation, agricultural machinery repair, and commerce. The China National Agricultural Development Group Corporation invests in the fishing sector in nine African countries including Morocco and Senegal and hauls in over 100,000 tons of fish annually. In addition, it has invested in establishing farms and sisal plantations in Zambia, Guinea and Tanzania.

Chinese businesses have made a concerted effort to demonstrate social responsibility, to support environmental protection, and to carry out public welfare endeavors. For example, the China National Petroleum Corporation (CNPC) has donated 50 million USD to Sudan for the construction of hospitals, schools, boreholes, roads and bridges that will collectively benefit more than 2 million local people. It has also helped to build the world's largest biodegradable waste water treatment facility in Sudan's block 1/2/4 oil fields to eliminate the discharge of effluents. China Nonferrous Metal Mining (Group) Company Ltd. invested over 1 million USD in Zambia for projects on preventing such diseases as AIDS, malaria and polio, and on employment of women and education of children. It also helped build the China-Zambia friendship hospital. For each color TV set sold, the joint venture Hisense Group donates one rand to operating room construction at the South African Red Cross Children's Hospital. In Tanzania, Kenya, and some other countries, Beijing Holley-Cotec Pharmaceuticals Company Ltd. has established a scholarship program to support impoverished local medical students who maintain excellent academic records. In Kenya, the firm has set up a fund to protect local wild animals.

Africa's Investment in China

Since the late 1970s, China has begun to open up and attract foreign investment. By the end of 1999, African nations had invested in 524 projects in China with a paid-in investment reaching 530 million USD. South Africa, Nigeria, Tunisia, Mauritius, and Seychelles were among the first African countries to invest in china.

Since 2000, Africa's investment in China has grown steadily. In 2005, Africa's investment in China exceeded 1 billion USD at 1.07 billion USD, up by 38% year on year. Since the Beijing Summit of FOCAC in 2006, trade and economic cooperation between China and Africa has grown rapidly thanks to improved mechanisms for cooperation. Since then, African countries have been even more actively engaged in investing in China. For the three-year period from 2007 to 2009, the paid-in investment had increased to 9.93 billion USD, accounting for one percent of the total paid-in foreign investment in China.

Mauritius, South Africa, Nigeria, Egypt, Namibia, Tunisia and Seychelles have considerable investment in China. Through the end of 2009, Mauritius, the free port, had invested 8.44 billion USD in China, making it China's largest African investor. South Africa had cumulatively invested 550 million USD in 128 projects including textiles, communications, chemicals as well as commerce and trade.

While African countries have invested heavily in such areas as petrochemicals, processing, manufacturing, and wholesaling and retailing, they have also channeled funds into transportation, communications, light industry, home appliances, biopharmaceuticals, mineral development, entertainment, catering and real estate. Enterprises from Egypt, Mauritania, Ghana, and Nigeria, among others, have established their representative offices in china.

In 1985, Groupe Chimique Tunisian (GCT) worked with the China National Chemical Construction Corporation (CNCCC) and Kuwait's Petrochemical Industries Company (PIC) to establish the Sino-Arab Chemical Fertilizers Company Ltd. (SACF) which was to produce NPK compound fertilizers in China. At that time, it was the largest African investment in China. This joint venture has an annual production capacity of 1.2 million tons, making it one of China's largest compound fertilizer producers.

In 1994, South Africa Breweries Limited (SAB) and China Resources Enterprise Limited established a joint venture - China Resources Snow Breweries Co., Ltd (CRSB).Today CRSB has 70 breweries across china. Its snow beer brand and over 30 regional brands have collectively earned a 19.8 percent share of China's beer market.

African countries tend to invest in such Chinese coastal areas as Guangdong, Shanghai, Zhejiang, Jiangsu, Tianjin and Shandong. Among these places, Guangdong is the most concentrated. By the end of 2009, Africa had direct investments in 683 projects in Guangdong on processing, manufacturing, commerce and financial services, totaling 2.3 billion USD (contractual value). Of these projects, the number of those attracting over one million USD of investment was 20. Shanghai is another big winner of Africa investments. It had garnered 1.03 billion USD (contractual value) by the end of 2009. Of the 685 projects Africa invested, 569 were solely invested by Africa, while 116 were equity or contractual joint ventures. Over 60 percent of the funds were directed toward processing and manufacturing.

Infrastructure Construction

The inadequate infrastructure has long hampered the economic and social development of many African countries. The lack of funds, technology and skilled construction teams have stood in the way of change. China-Africa cooperation in infrastructure construction has grown as China's assistance to Africa expanded. Over the past 50 years, China and Africa have collaborated on many infrastructure projects to address these challenges. Through such assistance, Chinese businesses have gained recognition and have begun to enter the Africa market. This has served to strengthen and increase collaboration on infrastructure construction.

In late 1970s, Chinese companies began to enter the Africa contracting engineering market. They have taken part in African infrastructure construction through bidding in line with common international practice. Chinese companies have undertaken a number of influential projects and won recognition of the African countries thanks to their comparative edge in technology, equipment, management and labor costs. The participation of Chinese businesses has also helped bring down costs in construction projects in many African countries. Recognizing China's efforts, in July 2008, the World Bank published a report entitled Building Bridges: China's Growing Role as Infrastructure Financier for Sub-Saharan Africa. This report indicated that China's finance often goes to large-scale infrastructure projects, with a particular focus on hydropower generation and railways. Chinese finance is on a scale large enough to make a material contribution toward meeting Africa's vast infrastructure needs. As such, it offers an important development opportunity for the region.

In recent years as Africa has enjoyed sustained and rapid economic growth, its need for better infrastructure has also risen. Increasingly, Chinese firms are signing contracts for projects with major technological components. The size and variety of these projects has also expanded. In addition to the construction of houses, roads, and bridges, Chinese firms now obtain contracts for water conservation, hydropower, petrochemical manufacturing, telecommunications, building materials, water supply systems ,and agriculture. The value of such projects grew from 9.3 billion USD in 2006 to 19.7 billion USD in 2009, a doubling in just three years. In 2006, only three projects had contractual values topping 500 million USD. By 2008, the number had reached 16.

Major projects in Africa contracted by Chinese FirmsUnit: 100 million USD

Country

Project

Contract Value

Algeria

Central and western sections of the East-West Expressway

62.5

Angola

Social Housing

35.4

Libya

Surt-Tripoli section

24.2

Sudan

Merower Dam

9.3

EquatorialGuinea

Transmission and Distribution Project of Djibloho HydropowerStation

6.5

 

More Chinese firms now have engineering, procurement and construction (EPC) contracting arrangements, and some have begun to experiment with build-operate-transfer (BOT) arrangements as well. A growing number of projects have also involved multinational and local companies. Chinese companies are world-class competitors in manufacturing the full range of equipment needed for power generation and telecommunications and have also developed strength in such fields as the construction of metal processing plants, civil engineering, and transportation construction as well as electronic & mechanical equipment installation.

Chinese has provided preferential loans and commercial loans to finance infrastructure construction in Africa. Between 2007and 2009 under FOCAC, preferential loans and export buyer's credit totaled USD 5 billion. The Export-Import Bank of China (China Eximbank), the China Development Bank of china (CDBC) and other financial institutions have also extended substantial commercial loans to African countries. Supported by these loans, Chinese firms are now working on the construction of an airport in Mauritius, a 570,000 square meter housing development in Malabo, Equatorial Guinea, the Addis Ababa-Adama expressway in Ethiopia, and the Al Fula power station which will provide power for Darfur in Sudan.

Chinese firms have also become major players in Africa's power generation development, completing about 30 power stations and transmission projects in African countries including Ethiopia, Kenya, Angola, Nigeria, and Sudan, among others. These projects helped to ease local power shortages. Currently, large-scale power projects under construction include the Imboulou Hydropower station in the republic of Congo, the Pubara Hydropower station in Gabon and the Bui Hydropower station in Ghana. When completed, these plants will have installed capacities of 120,000 kilowatts, 160,000 kilowatts and 400,000 kilowatts, respectively.

On the telecommunications front, Chinese firms are equipment suppliers rather than operators in Africa. Numerous high-profile Chinese telecommunications companies, including Huawei technologies, ZTE Corporation and Alcatel-Lucent Shanghai Bell, have entered the African market. Chinese telecommunications products and services are now available to over 300 million consumers in 50 African countries. Chinese firms have constructed over forty 3G networks for more than 30 African countries, in addition to establishing national trunk optical fiber communications networks and e-government networks for over 20 African countries.

Through collaborative efforts, Chinese firms have not only provided Africa with good infrastructure at a low cost, but have also trained a large number of African technicians and workers. According to rough estimates, through the end of 2008, Chinese contractors in Africa had employed more than 110,000 local people, trained 54,000 local employees, made donations worth a total of 55.51 million USD, and built 218 kilometers of roads, 15 schools and 79 hospitals at no cost to the local people.

China's Assistance to Africa

Since 1956, China has provided aid within its capacity to meet the needs of African nations. By the end of 2009, China had completed 884 complete plant projects in Africa, sent 17,000 medical personnel and 312 youth volunteers to Africa, trained 26,488 local people from various fields, and offered substantial resources and humanitarian assistance across the continent. In addition, the Chinese government has forgiven 312 debt repayments in 35 heavily indebted poor countries and least developed countries in Africa.

Chinese-aided Complete Plant Projects in Africa by 2009

Total

Agricultural Projects

Schools

Hospitals

Sports

Venues

Conference

Centers

 

Industrial

Projects

Others

 

884

142

71

54

53

62

145

357

 

Source: Ministry of Commerce of the People's Republic of China

China's assistance to Africa covers 53 countries and spans such areas as infrastructure, housing construction, transportation, agriculture, medical care and public health, education, human resource development, clean energy, and environmental protection. Since the 2006 Beijing Summit of FOCAC, such assistance has grown significantly. Between 2006 and 2009, the amount of china's unconditional assistance and interest-free loans to African doubled. To promote the integration of African countries, China is now helping to build the African Union (AU) Convention Center.

Chinaprovides grants, interest-free and preferential loans to African countries according to their specific needs. This assistance can take the form of contract projects, the provision of material resources, technical collaboration, or expert guidance and training. The Chinese side typically handles construction and provides quality assurance, particularly for projects involving the construction of public works and manufacturing facilities. After a facility is completed and delivered to the recipient country, the Chinese side also sends technical experts to provide guidance and training for local managerial and technical staff who should then be able to manage and maintain the facility independently. The Chinese government strongly encourages Chinese firms to provide funding or collaborative partnerships to ensure that the countries receiving such facilities are able to manage and operate them over the long term. This approach leverages china's strengths in technology, human resources, construction, and management, while allowing development at a low cost.

To expand the sources of assistance funds and diversify assistance forms, in 1995 China introduced 15 to 20 year government-subsidized preferential loans to Africa at interest rates ranging between 2 percent and 3 percent. Such loans primarily targeted the construction of large and medium-sized infrastructure projects, public and manufacturing facilities, and the purchase of electronic and mechanical products and technical services. By the end of 2009, China provided preferential loans to a total of 159 projects in 39 African nations, covering areas of agriculture, industry, communications and transportation, among others.

China's assistance to Africa has always focused on Africa's development, people's livelihood and capacity building. Since 2000, China has assigned a high priority to assisting Africa to achieve the UN millennium development goals (MDGs). Fostering progress toward these goals, the FOCAC action plan laid a solid foundation for the overall expansion of china's assistance to Africa. China aided Africa in building hospitals, schools, and agri-technology demonstration centers, in developing clean energy, digging water wells and training, both the eight measures of the Beijing Summit launched in 2006 and the eight new measures put forward at the fourth FOCAC ministerial conference in 2009 helped raise China-Africa economic and technical cooperation to a new level.

Infrastructure. Chinahas assisted Africa in building over 500 infrastructure projects. It has constructed 2.233 kilometers of railway, 3.391 kilometers of highways, 11 bridges, sports venues which can accommodate 780.000 spectators, 104 public buildings and cinemas. Representative examples of these accomplishments include the Cairo international conference center in Egypt, the Belet Uen-Burao highway in Sonalia, the Moi International Sports Center in Kenya, the Abidjan Palace of Culture in Cote d'lvoire, the Mashta al Anad-Ben Jarw Canal in Tunisia and the Poilao Dam in Cape Verde.

Agriculture. Chinahas constructed farms and irrigation facilities; it has carried out technical collaboration efforts and conducted extensive training in African; it has sent both agricultural experts and agricultural machinery to African countries to boost Africa's agricultural development and food self-sufficiency. With China's aid, such countries as Guinea-Bissau have developed their fishing industries; Mali, Guinea, Tanzania, Somalia, and Mauritania, among others, have seen the construction of farms as well as agricultural technology experiment and dissemination stations by Chinese firms. They have also received agricultural machinery, agricultural produce processing equipment and technical expertise from China. In 14 African countries, China helped construct agricultural technology demonstration centers where local farmers can benefit from china's expertise and technology. In addition, China organized extensive training on topics ranging from the cultivation of rice and vegetables, fishery management, and meat processing, to the use of agricultural machinery.

Medical Care and Public Health. Chinahas helped to build 54 hospitals and has established 30 malaria control centers in Africa. It has also provided 35 African countries with RMB 200 million of anti-malaria drugs. Medical teams sent to over 40 African countries have treated more than 200 million patients. Dozens of Chinese medical team members have sacrificed their lives in such efforts. Through training, collaborative work, seminars and workshops, Chinese medical teams have enhanced the skills of tens of thousands of Africa doctors and nurses. Many of the newly-trained African doctors have become the backbones in local hospitals.

Human Resources Training. China has provided training for government officials, business managers, researchers and specialized technicians on over 20 topics including economy, diplomacy, public administration, agriculture, animal husbandry, fishery management, medical care and public health, science and technology, environmental protection, and finance, China has also pledged USD 1.5 million to New partnership for Africa's development (NEPAD) for supporting its human resource training program,

China's assistance to Africa has reaped remarkable results. Since its completion by a Chinese firm in 1976, the 1,860.5-kolomenter Tazara railway has become a transportation artery connecting the eastern, central and 41.09 million passengers. Built by a Chinese firm, the Port of Friendship in Mauritius, handles 90 percent of the country's imports and exports. The Chinese-aided Chalinze water supply project in Tanzania provides 100,000 people in 18 villages with a 7,200 cubic meter daily water supply. In Ethiopia a Chinese-built vocational college, covering an area of some 23,000 square meters, can accommodate 3,000 students. A hybrid rice demonstration center in Madagascar planted 34 Chinese hybrid rice varieties. This effort produced average yields of 8 tons per hectare, doubling or tripling the yields of rice varieties currently adopted in the country.

China's assistance to Africa helped to strengthen the friendship between the two sides, to improve Africa' ability to develop independently, and has contributed greatly to Africa's socioeconomic development. The result is a significant improvement in the lives of Africans. These assistance efforts and their results have received wide acclaim among African countries.

China-Africa Trade and Economic Cooperation under a Multilateral Framework

To help Africa reduce poverty, boost economic growth and advance social welfare, China has worked to fulfill its commitments to developing countries under the framework of the UN Millennium Development Goals. It has opened up its markets, increased its amount of aid, offered debt relief and training programs, stepped up its assistance in education, medical care and public health, and built small clean energy facilities for Africa. Furthermore, China has collaborated with strengths to assist African countries in capacity building.

Chinahas cooperated effectively with Africa within the framework of the FAO Special program for Food Security. Since 1994, China and United Nations Food and Agriculture Organization (FAO) have signed agreements on tripartite agreement for the implementation of south-south cooperation programs respectively with Mauritius, Ghana, Ethiopia, Mali, and Nigeria, among others. Over 600 Chinese agricultural experts and technicians have been sent to these countries to provide technical guidance and training. Between 2003 and 2007, China sent 496 agri-experts and technicians to Nigeria to offer guidance on water resource management, agricultural mechanization, agricultural product processing, fisheries, and aquaculture. In addition, it has provided technical assistance to Nigeria to develop its special program for food security, which is the largest of FAO's south-south cooperation initiatives.

Since the 1980s,China has worked with United Nations Development Programme (UNDP),United Nations Industrial Development Organization (UNIDO) and other international organizations to offer technical cooperation among developing countries (TCDC) courses on desertification prevention and control, animal disease prevention and control, animal disease prevention and control, agricultural product processing, small hydropower projects and handicrafts in China to developing countries. Numerous African countries have sent delegates to this training program, by undertaking such projects, China has developed rich training experience and a dedicated training team, thus creating a strong foundation for expanded cooperation in human resource training with developing countries in Africa and beyond.

II. China-Africa Trade and Economic Relations in 2009

Overview

During 2009, the spread of the international financial crisis hampered economic growth in both china and Africa. Africa suffered from a decreased capital inflow, a deteriorating export environment, less foreign aid, drop in revenue from both tourism and overseas remittances and slower economic growth. Faced with a shortfall in funding, some African countries encountered serious economic difficulties. China and Africa attempted to strengthen trade and economic cooperation to jointly tackle the crisis. China made active efforts to promote trade with, increase assistance to and investment in Africa, and fully implement the eight measures set forth at the Beijing Summit of FOCAC. These efforts contributed to continued economic development in China and Africa.

In 2009, China-Africa trade volume totaled USD 91.07 billion, a drop of 15 percent from the previous year. Despite this decrease, for the first time, China became Africa's largest trading partner. While Africa suffered from financing difficulties and decreased investments from other countries, China filled the gap by expanding its loans of a preferential nature and commercial loans to the continent and supporting bilateral cooperation in investment and infrastructure construction. As a result, two-way investment and project contracting buckled the trend and grew. In 2009, China's direct investment in Africa reached 1.44 billion USD, in which non-financial direct investment increased by 55.4 percent compared to 2008.In addition, the value of China's new project contracts in Africa hit 43.6 billion USD ,an 11 percent increase over 2008,those projects achieved a business turnover or 28.1 billion USD, up 42 percent year-on-year. Africa's direct investment in China stood at 1.31 billion USD, down by 21 percent year-on-year.

In November 2009 when the fourth ministerial meeting of FOCAC was held in Egypt, China and Africa formulated the FOCAC Sharm El Sheikh Action Plan (2010-2012).At the meeting, China announced eight new measures to improve its collaborative relationship with Africa, covering areas such as agriculture, environmental protection, investment facilitation, reductions in and exemption of debts, increased market access, medical care, education, and responses to climate change. The new measures are more focused on advancing Africa's development and raising African people's living standards. They are aimed at improving infrastructure, agricultural development, education, medical care, and human resources training to enhance Africa's capability for self-development.

In 2009, China signed an agreement on avoidance of double taxation with Ethiopia and an agreement on bilateral promotion and protection of investment with Mali. It established joint committees on trade and economic cooperation with Mali, Cape Verde, Guinea-Bissau, Sierra Leone, and Senegal respectively and held bilateral joint committees on trade and economic cooperation meetings with 10 countries, including Niger, Uganda, Angola, Sierra Leone, the Democratic Republic of Congo, Rwanda, Nigeria, Mauritius, Cameroon and Sudan.

China-Africa Trade

After ten years of continuous growth, China-Africa trade fell in 2009 due to the global financial crisis. However, by the year's end, trade had begun to recover as the decline gradually slowed. During the first ten months of 2009, year-on-year monthly growth of trade was in negative territories, from November on, however, the trade volume began to increase compared to the same period of the previous year, and registered a 64.8 percent year-on-year growth in December. This sharp increase resulted from a 16.2 percent growth in china's exports to Africa and 166.4 percent increase in its imports from Africa. In 2009, as its imports from Africa dropped more than its exports, China went from a trade deficit to a surplus of 4.41 billion USD with Africa.

Angola, South Africa. Sudan, Nigeria, and Egypt are China's top five African trading partners. In 2009, their bilateral trade with china stood at 17.06 billion, 16.06 billion, 6.39 billion, 6.37 billion USD respectively.

In 2009, China's exports to Africa fell to 47.74 billion USD, a year-on-year decline of 6.8 percent, This drop was 9.2 percentage points lower than the decline of China's overall exports, demonstrating that Chinese goods met the demand of the African market. During 2009, 26 African countries increased imports from China while 27 saw a decrease. China's top five African export destinations were South Africa, Nigeria, Egypt, Algeria, and Angola. China's exports to South Africa stood at 7.37 billion USD, accounting for 15.4 percent of China's total exports to Africa. Exports to Nigeria reached 5.48 billion USD or 11.5 percent of the total while exports to Egypt registered 5.11 billion USD or 10.7 percent of the total.

In terms of trade structure, China exported a smaller proportion of high value-added and hi-tech goods to Africa in 2009 than in the previous year. The export of telecommunications equipment and parts was 2.9 billion USD, that of automobiles and parts, 2.74 billion USD, that of home appliances and consumer electronic products, 2.19 billion USD, and that of engineering machinery, 1.97 billion USD, representing decreases of 18.1 percent, 8.7 percent, 3.1 percent and 22.5 percent respectively. Exports in these four categories comprised 20.5 percent of China's total exports to Africa. However, the export of daily necessities, which is rigid demand in Africa, not only remained strong, but showed some growth. The export of garments reached 3.1 billion USD; that of agricultural produce, 1.58 billion USD; and that of footwear, 1.43 billion USD. These figures represented year-on-year increases of 2.3 percent, 1.8 percent, and 11.4 percent respectively.

In 2009, China's imports from Africa totaled 43.33 billion USD, a drop of 22.6 percent over the previous year. Twenty-eight African countries saw increased exports to China, while twenty-five suffered a decrease. Among the largest Africa exporters to China, Angola, Sudan, and the Republic of Congo saw volumes of 14.68 billion USD, 4.68 billion USD, and 1.74 billion USD respectively, representing year-on-year declines of 34.4 percent, 25.9 percent and 53.4 percent respectively. However, China's imports from South Africa stood at 8.69 billion USD, a decrease of only 5.9 percent, and its imports from Libya increased by 22.6 percent to reach 3.17 billion USD.

Due to declining prices for resources products, China's mineral imports from Africa fell by 12.8 billion USD or 27.3 percent compared with 2008. However, agricultural imports showed a year-on-year increase of 25 percent, reaching a total of 1.16 billion USD,in addition, copper imports increased by 76 percent to a total of 1.55 billion USD.

China's zero-tariff treatment boosted Africa exports to China, starting January 1,2005, China has begun to accord zero-tariff treatment to some commodities imported from the least developed Africa countries with which it has diplomatic relations. By the end of 2009, China had extended this preferential policy to cover products of 478 tariff lines (based on 8-digit Chinese customs code). As a result, the export of those products increased by 132.9 percent in 2005 and by 84.4 percent annually between 2005 and 2009. By the end of 2009, China had imported 4.45 billion USD of products from such tariff lines as agricultural produce, minerals, leather, stone material, textiles and garments, machine parts, base metals, and wood products. Of such products, those with zero-tariff treatment were worth 1.08 billion USD. The tariff reductions and exemptions totaled 710 million RMB.

Imports from Africa Subject to Zero-tariff Treatment: 2005-2009

Unit: 100 million USD

Source: General Administration of Customs of the People's Republic of China

Energy and Industries

Energy

In 2009, Africa countries stepped up oil and natural gas exploration through further international cooperation, China Petrochemical Corporation (Sinopec Group) acquired Swiss Addax Petroleum Corporation and obtained its oil assets in Nigeria, Gabon and Cameroon. China National Petroleum Corporation (CNPC) launched the construction of oil exploration facilities, oil pipelines, and oil refineries with an annual production capacity of 1 million tons in Chad and Niger. The Khartoum Refinery Corporation (KRC), a joint venture between CNPC and a Sudanese company, processed 5 million tons of crude oil primarily for the local market. The capacity expansion of block 3/7phase I was completed. The construction of block OML 130 in Nigeria, co-developed by the China National Offshore Oil Corporation (CNOOC) and oil companies in Nigeria, France and other countries, was well underway. The main oilfield was put into operation while the other three fields were still under development, showing great potential.

Chinese enterprises adopted advanced clean production processes and equipment that save energy and reduce pollution to protect and improve the local environment. To date, CNPC's projects in Sudan have caused no major environmental pollution, their discharges of waste gas, wastewater and solid wastes complied with all Sudanese government standards as well as with those of international environmental protection organizations. In its Block 6 oilfield project in Sudan, CNPC recycled associated gas and treated industrial wastewater with biodegradation technologies. These efforts not only protected the environment around the oilfields, but also saved water resources. In its projects in Chad, CNPC formulated detailed waste management plans, it built two solid waste treatment plants, and adopted biodegradation and recycling technologies to separate and dispose of different types of refuse to minimize environmental damage.

Electricity

Chinese firms signed contracts for power generation projects in Ethiopia, Ghana, Botswana, Gabon, Angola, Equatorial Guinea and South Africa. Apart from building new power plants, these contracts also included power grids upgrading, the construction of substations, and the addition of HVDC power lines. Already completed projects include the Tekeze Hydropower station in Ethiopia and the upgrading of a 179 kilometer-long power grid in Kenya.

Chinese financial institutions provided funds for African power generation projects. With the support of Chinese loans, the Dongle-Wadi Halfa transmission line and other projects contracted by Chinese companies were launched. The Morupule B power station in Botswana will provide 600 megawatts of electricity imports. Construction of the hydropower station in Pubara, Gabon, is progressing smoothly since it was started in November 2008.

In Sudan, Chinese firms completed the construction of the Merowe dam which is 9.2 kilometers long and 65 meters high, the longest dam in Africa. Chinese financial institutions provided 385 million USD of export seller's credit for the construction of the dam and its power transmission lines. With generators and turbines provided by the French company, Alstom, the dam has an installed capacity of 1250 megawatts. Its completion helped to alleviate Sudan's serious power shortage. In addition, the project also established gravity irrigation for the 400 square kilometer area adjoining the dam. As a result, over 4 million local people now have sufficient water for agricultural production and daily use.

Mining

In Botswana, Zambia, Ethiopia, Cote d'ivoire, Uganda, South Africa and other African countries, Chinese firms made efforts to develop such mineral resources as nickel, copper, manganese, chromium and gold. While most of these projects are still in the exploration stage, two chromite mining companies, joint ventures between Sinosteel Corporation and South Africa businesses are running well. In 2009, these two joint ventures produced 380.000 tons of ferrochrome.

The Bong iron mine in Liberia has been in disuse since 1989. In 2008, China-Union Investment Co., Ltd. won the bid to develop the mine. In 2009, the China-Africa development Fund, Wuhan Iron and Steel (Group) Corporation, and China-Union Investment Co., Ltd., joined forces to restart the project, the effort, which should give a strong boost to Liberia's economic growth, will include mine development, hydropower station construction, and the restoration of railways and ports. As local people put it, this "re-ignites the dimming hopes of the people of Bong County"

In 2008, with an investment of over 3 billion USD, a joint venture between china and the Democratic Republic of Congo was established in Kolwezi, Katanga, to mine copper and cobalt. The Chinese side is responsible for financing, prospecting and mining, and the construction of a hydropower station and other supporting facilities. During 2009, the Chinese firms completed exploration and drew up a feasibility report. The plan includes the use of advanced, proven Chinese techniques for integrating mining, mineral processing and smelting.

Due to the global financial crisis, the price of non-ferrous metal fell in 2009. However, China Nonferrous Metal Mining (Group) Company Ltd. applied a "no-cutbacks" policy to the Chambishi Copper Mine. Of the seven foreign mining companies in Zambia, it was the only one that did not reduce production, investment or staff. Moreover, in purchased a Zambia firm, Luanshya Copper Mine, which was on the verge of bankruptcy, through an open tendering. Within the mine, the Chinese management restored production in the mine. This effort resulted in the continued employment of 2,210 Zambian workers and benefit he nearly 20,000 local residents.

Manufacturing

African nations particularly value manufacturing plants because they bring technology and jobs. In 2009, direct investment by Chinese enterprises in the African manufacturing sector reached 300 million USD. These funds supported the manufacturing of pharmaceuticals, paper, textiles, home appliances, and automobiles in Africa countries.

The focus of Chinese automobile companies has shifted from exporting vehicles to a combination of exporting and investing. China's First Automobile Works Group Corporation, Brilliance China Automotive Holdings, Ltd., Chery Automobile Company, Ltd., and BYD Company Limited, among other Chinese automakers, have set up factories and expanded production lines in Africa. In one exemplary effort, BYD and an Egyptian automaker established a "completely knocked-down" (CKD) assembly plant which is now operating successfully. Another example is Chery Auto's move to source catalytic converters, seats and other auto parts for South Africa operations from local suppliers to reduce the cost of importing parts and complete cars from china.

To achieve economies of scale, Chinese home appliance and textile businesses have increased their investment, expanded production capacities, and introduced industrial supporting facilities. Hisense, Haier, Xiahua, and other well-known Chinese home appliance manufacturers have established industrial parks in Africa and introduced key parts producers into the parks. In 2009, Hisense South Africa Development Enterprise (Pty), Ltd. sold 160,000 home appliances, including 120,000 TV sets. Its products are now sold in over 2,400 chain stores and 500 home appliance stores in South Africa, and exported to neighboring countries such as Mozambique and Botswana. Chinese firms have also established industrial parks or textile parks in Mozambique, South Africa, and Nigeria.

In 2009, Chinese companies launched the construction of two trade and economic cooperation zones in Ethiopia and Mauritius. The one in Ethiopia has finished the construction of water and power supply facilities, roads, and a security fence, the construction of the Mauritian zone commenced in September. Construction of facilities within the zone and attraction of investment are taking place simultaneously. In addition, progress has been made in Egypt's Suez trade and economic cooperation zone. Since the completion of the integrated service center, budget hotels, and apartment buildings, the zone has accommodated 19 enterprises engaged in the manufacturing of petroleum production equipment, textiles and garments, stainless steel products, and furniture.

Zambia-China Trade and Economic Cooperation Zone

The Zambia-China Trade and Economic Cooperation Zone is the first of its kind China has set up in Africa. On September 22, 2008, construction of the zone commenced with an investment of over 400 million USD, by the end of 2009, the zone had attracted funds from the NFC Africa mining PLC (NFCA) and 12 other businesses which are engaged in mining, prospecting, non-ferrous metal processing, chemical manufacturing, metal processing, and architecture. These companies have made a paid-in investment of 578 million USD against the 820 million USD total contract value. In addition, they created over 6,000 jobs for local people.

Transport and Telecommunications

In response to the global financial crisis, African countries increased their investments in infrastructural development as a means of driving economic growth, some countries with relatively sound economic conditions, introduced massive infrastructure investment plans. In this context, Chinese firms leveraged their considerable strength by playing an active role for expanding the Chinese African collaboration.

Roads and Bridges

In 2009, Chinese businesses signed contracts in many African countries for the construction of municipal and inter-city roads, expressways, and flyovers as well as bridges spanning both seas and rivers. Some of the projects are already finished. In Liberia, a newly-built road between downtown Monrovia and the Roberts international airport helped reduce the driving time from 1.5 hours to 50 minutes. In Kenya, an improved road between Jomo Kenyatta international airport and downtown Nairobi facilitated a smoother flow of traffic. In Ethiopia, the Chinese provided gratuitous aid and built the 697.6 meter-long Gotera flyover, which was the very first flyover in Addis Ababa, this new flyover eased traffic on an 8,128 meter-long stretch of highway. Along the national highway in Togo, China timely provided aid fund and helped repair three bridges on the No.1 national highway that had been destroyed by floods, which helped Togo overcome its difficulties.

The Addis Ababa-Adama turnpike project in Ethiopia was completed by Chinese companies, using 349 million USD of funding under China's preferential export buyer's credit program, Nairobi has begun its construction of a ring road with China's preferential export buyer's credit. In addition, China provided Sudan with loans for the construction of a bridge and six roads including the roads in the Southern Sudan and the Darfur regions. By the end of 2009, the principal section of the unity bridge connecting Tanzania and Mozambique had been completed. In Niger, the Niger River Second Bridge, a project built with China's assistance, is progressing smoothly.

Railways

Chinese companies won contracts for a number of railway and light rail projects in Algeria, Libya, Ethiopia, and other African countries, including the Khoms-Tripoli railway project in Libya, a light rail project in Addis Ababa, Ethiopia, as well as the first and third phases of the Lagos light rail in Nigeria. Mostly adopting china's national technical standards, Chinese companies are building the Abuia Metroline/Light Rail System through the design-construction formula.

Airports and Ports

The Chinese firms are now working on the projects for the expansion of the Maun Airport in Botswana; the construction of a new terminal at the Sir Seewoosagur Ramgoolan international airport in Mauritius; the modification and expansion of the port of Lobito, Angola; and the new facilities for the port of Walvis Bay, Namibia, etc.

Telecommunications

In 2009, Chinese telecommunications companies introduced to Africa a variety of products and solutions including switches, mobile phones, 3G technology, and broadband access and constructed both mobile and fixed networks. Their efforts helped to expand telecommunication network coverage and increase the quality and digital content of telecommunications services in African countries. In addition, Chinese firms developed strategic partnership with dozens of mainstream African operators such as the MIN in South Africa, the Algeria Telecom and Morocco's Maroc telecom with a view to expanding local markets together with their local partners.

In Mauritania, Chinese firms have entered the billing system, which demonstrates the core competitiveness in the telecom sector .they facilitated the successful commercial application of Maurtiania's first 3G network based on the Chinese technologies. Developed with the preferential loans from the Chinese government, the rural CDMA network in Sierra Leone was officially put into operation. The joint venture between Huawei Technologies and Algeria Telecom enjoyed a market share of nearly 70 percent in the local market, making it the largest broadband access subsidiary in Algeria. Between 2007 and 2009, the ZTE Corporation signed contracts valued at 1.5 billion USD with the Ethiopia Telecom for telecommunications network projects across the country. Such projects were funded primarily through the seller's credit granted by China Development Bank. As a result of these efforts, the number of mobile phone users in Ethiopia grew from 1.2 million in September 2007to 4.3 million in September 2009. By the end of 2009, GSM signals had covered 60 percent of the country's land area while CDMA networks covered about 90 percent of the country.

Alcatel-Lucent Shanghai Bell Company Ltd. signed a contract with Togo to expand the country's mobile networks. Another Chinese effort, a Cameroon trunk optical fiber transmission network project, will install over 3,000 kilometers long optical fiber of large capacity that is expected to meet 70 percent of Cameroon's needs for mobile phone services. In addition, the construction of a wimax 3.5G network commenced in Botswana. Upon its completion, the population of Botswana will enjoy better and faster internet access than what 3G and ADSL technologies can provide.

The Chinese companies also played an active role in promoting the connection of disparate telecommunications networks across Africa. The national trunk optical fibre transmission network in Tanzania, under the contract with a Chinese company, will not only link Tanzania's major provinces and counties, but will also connect to its six neighboring countries and link with South Africa's Seacom cable and Ebase of East Africa. Once completed, three trunk loops in the northern, southern and western parts of Tanzania and eight international transit links will enable integrated communications in east Africa.

Localized Operations and Public Service Activities

Chinese transport and telecommunications companies introduced an employee localization strategy in Africa, and made donations to the construction of schools, hospitals and wells, as well as to such organizations as the African Women's Development Fund. They also participated in local emergency rescue efforts. Local labor comprised over 60 percent of the Huawei technologies work force. In the Maputo international airport expansion project in Mozambique, the Chinese firm employed 580 local people, accounting for 65 percent of the labor force. As part of this effort, the firm trained over 500 local construction workers. A Chinese company donated RMB 3.5 million to Nigeria for the construction of the Sino-Nigerian Friendship Primary School was delivered successfully to the local government in 2009. A Chinese contractor is leading the construction of Tanzania's Issuna-Manyony road project which runs through an extremely arid area, where the Chinese company built water supply facilities to provide drinking water to hundreds of local families.

Agriculture

Africacurrently has a huge demand in crop cultivation and agricultural product processing. China has developed both the expertise and technology. China has developed both the expertise and technology for agricultural development. Africa and China can clearly reap mutual benefits in this area. Since the onset of the global financial crisis, many African countries have paid more attention to the essential role that agriculture plays in safeguarding food security, eradicating poverty and achieving economic development, and therefore formulated many preferential policies to encourage investment in agriculture and to stimulate their development accordingly and actively in the areas of agricultural investment, technology transfer, construction of irrigation systems, and the export and import of agricultural equipments.

Investment

In 2009, China's FDI in Africa's agricultural sector amounted to about USD 30 million. In Democratic republic of Congo, Sudan, Malawi, and Zambia, among others, China's investment, whether through wholly-Chinese-owned companies, join ventures or cooperative operations, have achieved initial success in crop cultivation and breeding, as in agricultural product processing.

In a collaborative effort, the Chinese companies and the China-Africa development fund launched a project worth over USD20 million for cotton cultivation and processing in Malawi. In 2009,through its "company plus farmers"approach, this project enticed over 50,000 farming households to grow cotton. They processed 17000 tons of seed cotton and produced 6,800 tons of lint .this project significantly increased the local cotton industry's processing and production capacity and improved the standard of living for the farmers.

The Chinese businesses have invested over USD 4 million in the Democratic Republic of Congo in the Kinshasa area, they grew experimental corn and cassava varieties and conducted trials with other fruits and vegetables as well. In 2009, they finished the selection of optimal corn seeds and became World Food Programme (WFP) registered suppliers. They also helped local staff to develop their independent capacity to restore barren land, sow seeds and apply fertilizers through employee localization and skills training programs. Moreover, the Chinese firms signed contracts with the Malian government to establish a sugar production joint venture, which were expected to process 6,000 tons of sugar cane daily and to produce 100,000 tons of white sugar and 9.6 million liters of alcohol annually.

At the first Sino-Sudan forum on agricultural cooperation held in Khartoum in June 2009, the participating Chinese firms signed seven letters of intent pertaining to agricultural investment and cooperation with the relevant Sudanese side. In the following November in northern Sundan, planting of wheat, corn and sorghum began on a 60-hectare experimental plot developed by Chinese companies. Preliminary estimates predict yields well above those using current practices.

Technology Demonstration and Diffusion

In 2009, under the FOCAC framework, the construction of Chinese-aided agricultural technology demonstration enters commenced in Benin, Liberia, Mozambique, Uganda, Ethiopia, Sudan, Cameroon, and Tanzania. In addition to offering training, production, administrative and residential facilities, the centers will help leverage china's strong agricultural expertise by inviting Chinese experts to share their knowledge with local people in order to boost Africa's agricultural development.

In October 2009, officials held a groundbreaking ceremony for an Ethiopian demonstration center that will cover an area of 52 hectares. This center will highlight ecological protection, resource recycling and energy conservation; its main focus will be developing horticultural plants; and it will also work with field crops and livestock. In December 2009, the construction of the main part of Liberia center was completed. After it begins operation, the center will demonstrate advanced technologies for growing rice, corn and vegetables to local scientists, researchers and farmers.

Chinese-aided Agricultural Technology Demonstration Centers in Africa

Country

Major Focus of the Center

Benin

Crop Cultivation Demonstration, Farming Technology Training

Liberia

Rice and Corm Cultivation Technology

Training. Development of Plant Varieties

Uganda

Aquaculture Technology Demonstration,

Technology Transfer and Training

Tanzania

Crop Cultivation Demonstration, Development

of Improved Plant Varieties, Training

Sudan

Crop Cultivation and Irrigation TechnologyDemonstration and Training

Mozambique

Soybean and Corn Cultivation and Processing

Demonstration and Training

Ethiopia

Horticultural Plants Cultivation and Livestock

Farming Technology Demonstration and Training.

Rwanda

Rice, Juncao, Mulberry Cultivation and Soil & Water Conservation and Soil & Water Conservation Technology Demonstration and Training.

Zambia

Agricultural Technology Demonstration and Training

Zimbabwe

Corn Cultivation Technology Transfer and Training

South Africa

Research, Technology Demonstration and Training on Freshwater Aquaculture

Togo

Research and Training on Agricultural Technology

Cameroon

Research, Technology Demonstration and Training on Technology

Republicof Congo

Crop Cultivation Demonstration and Training

Source: Ministry of Commerce of the People's Republic of China

Experts and Training

Between 2007 and 2009, China sent 104 senior agricultural technology experts to 33 African countries to help create agricultural development plans, give them advice, and provide rural African farmers and technicians with technical guidance and training.

Chinese experts visited 10 agricultural and livestock farming areas in Mauritania. Through giving technology lectures and conducting planting experiments, they exchanged information and shared china's experience with local experts in growing rice, vegetables and oranges, developing better forage grass, using biogas and controlling desertification.

In Morocco, Chinese experts did extensive work including experimenting with rice varieties and no-tillage direct seeding techniques, providing technical guidance on water-saving irrigation and training local agricultural technicians on mechanized rice production.

In Guinea-Bissau, Chinese experts established 11 rice production demonstration areas covering a total of 2,000 hectares. Yields per hectare reached 8 to 9 tons. 530 tons of tine varieties were yielded and the expanded plantation area amounted to 3,530 hectares. The yields for many new varieties were over three times higher than that of varieties currently used. For their efforts, Chinese experts were awarded the first prize for science and technology progress by the Guinea-Bissau's ministry of agriculture.

In 2009, China trained 568 African agricultural officials and technicians, accounting for 11 percent of the total number that china trained in Africa that year. The training covered a broad range of topics including rural economic reform and development, food production and security, soil and water conservation and dry cultivation techniques, the development of new cotton varieties, the use of agricultural machinery and continuing education for teachers of agriculture.

Agricultural Infrastructural Development

Chinese enterprises have built numerous agricultural infrastructure facilities for Africa and also exported applicable modern agricultural equipment to the continent. Supported by good after-sales services, such exports helped improve conditions for agricultural production in some parts of Africa.

Chinese companies are now working on the design and construction of 12 major grain storage facilities in Zambia. Covering a total area of some 30,000 square meters, the grain barns will have a storage capacity of 100,000 tons upon completion, thus greatly enhancing the country's storage capacity and food security. In addition, the Chinese companies' efforts to improve water and power supply systems, upgrade roads and install highly mechanized sprinkler irrigation system in some Zambian farms have ensured high wheat yields, even in dry years.

Agricultural Equipment export

In 2009, China exported 400 combined harvesters to Sudan. Supported by the comprehensive after-sales services, the harvesters made in china successfully completed the wheat and sorghum harvest in Sudan. At the end of the year, Chinese enterprises and Sudanese government departments signed a contract for the restoration of the country's irrigation system. According to the agreement, the Chinese firms will provide water pumps, dredging and sprinkling irrigation equipment as well as other agricultural materials to help restore irrigation of a 150,000-hecatre strip along the Blue Nile River in Sudan.

In July 2009, Zimbabwe used preferential loans offered by the Chinese government to import Chinese agricultural equipment .with the aid of Chinese tractors, agricultural machinery and transport vehicles, over 1,000 rural households expanded the area devoted to cash crops and assured an increase in their incomes.

Medical Care and Public Health

To help Africa improve its medical and health conditions, China has continued to dispatch medical teams to the continent. In addition, it has intensified efforts in the following areas: offering assistance to hospitals, establishing malaria control centers, donating medicines and medical equipment, and medical personnel training and exchanges.

Hospitals and Malaria Control Centers

From 2007 to 2009, as part of the commitments made at the Beijing Summit of FOCAC, China aided 30 hospitals in Africa, including building 28 new ones; provided medical equipment to Mauritius and Niger at their request; established 30 malaria control centers to Africa. In 2009, construction of Chinese-aided hospitals in Uganda. Burundi, Mauritania, Namibia, and Sudan, etc. was well underway.

In Guinea, with china's assistance, construction of a 120-bed general hospital that includes medical and surgical departments, began in march 2009, the principal section was completed by the end of 2009.It will be equipped with CT, type-B ultrasonic and other equipment for diagnosis and medical treatment when it is fully operational, this hospital will improve the overall quality of medical services in guinea. In April 2009, construction of the 100-bed Chinese-aided Parakou hospital in Benin began; its principal section was completed in November. Construction of another Chinese-aided project, the 88-bed Ad-Damazin hospital in Sudan began in August 2009. After completion, this facility will greatly improve local medical services. Patients will no longer have to travel hundreds of kilometers to Sudan's capital to see a doctor.

The Chinese-aid Tapeta hospital in Liberia, 360 kilometers from the capital city, Monrovia, is located in a place where building materials and necessities of life are in short supply and must be sourced from Monrovia. Construction went on under challenging conditions. It took more than 30 days to level the ground and another 48 days to crush the rocks. Of the 15-month construction period, nine months were in rainy season. Every month, over 40 Chinese workers suffered from malaria, accounting for approximately 20 percent of the staff. However,theChinese team overcame these difficulties, worked overtime, and managed to complete this hospital on schedule with high quality.

With China's assistance, a malaria control center was set up in the Infulene Hospital in Maputo, Mozambique. China renovated the hospital's laboratories and training rooms, equipped them with analytical instruments, office supplies and medicine, and sent a team of medical experts to train the local medical staff. Such training was also provided to two local laboratory workers and 25 local medical staff in a Chinese-funded malaria control center in Nigeria.

Medical Teams

In 2009, there were 42 Chinese teams of more than 1,000 medical staff working in 103 medical card facilities in 41 African countries. Some facilities operate in remote areas where water and power are in short supply and living conditions are harsh. One such example is Madagascar's Ambovombe Hospital which lies about 1,300 kilometers away from the country's capital care system, Chinese medical teams not only dealt with common diseases, but also performed such highly difficult operations as cataract surgery, severed limbs replantation, and large tumors removal. Such efforts, in Madagascar and other nations, have saved the lives of many patients and filled the medical care gaps in those countries.

In Botswana in 2009, the Chinese medical team performed the first open reduction and internal fixation of scapula, the first total laryngectomy for laryngeal cancer patient, and the first gynecological laparoscopic operation in the local hospitals. The only neurosurgeon at Nyangabgwe Hospital, Botswana's second largest hospital is a member of the Chinese medical team. His presence spared patients with major neurosurgery diseases from having to be transferred to South Africa for treatment. The team sent to Zambia is made up of 28 members who work in six hospitals of five cities across the country. In 2009, they treated 39,880 patients, performed 5,895 surgeries saved 1,660 seriously ill patients, and trained 195 local medical workers.

Finance, Aviation, and Tourism

Finance in recent years, Chinese financial institutions have provided a broad range of financial services including international settlement, and the financing for trade and infrastructure through establishing agent relationships with local banks, offering credit lines, buying equities in banks merger & acquisition, and extending syndicated loans. By the end of 2009, Chinese financial institutions had been offering their products and services in more than 50 African countries. Such institutions include the Industrial and Commercial Bank of China (ICBC), the China Development Bank (CDB), the Bank of China (BOC), the China Construction Bank (CCB), and the Export-Import Bank of China (China Eximbank). They have set up branches, sub-branches and/or representative offices in South Africa, Zambia, Egypt and other African countries.

Chinese financial institutions have also collaborated with regional and sub-regional financial institutions in Africa. In partnership with the African Development Bank, the West African Development Bank, and the Eastern and Southern Africa Trade and Development Bank, China committed itself to eradicating poverty and promoting Africa's development by increasing investment, donating funds, reducing debt, and launching technical cooperation funds.

In 2009, the China Banking Regulatory Commission (CBRC) and the Central Bank of Nigeria signed a Memorandum of Understanding (MOU) on bilateral cooperation in banking regulation. The China Development Bank (CDB) set up a representative office in Cairo, Egypt. The Bank of China (BOC) established agent relationships with four banks in Nigeria, Malawi and other countries, and also entered into cooperative agreements with a French bank and a Ghanaian bank for the provision of financial services to Africa.

Since the launching of strategic cooperation in March 2008, ICBC and the Standard Bank of South Africa have carried out a series of large cooperative projects including financing infrastructure construction. In 2009, they jointly financed 825 million USD for the expansion of 1 billion USD from China, the first medium-term loan of over 500 million USD it has ever sourced from outside Africa.

Africa financial institutions are also active in developing business with China. By the end of 2009, six banks from Morocco, Cameroon, South Africa, Egypt, and Nigeria have set up one branch and six representative offices in China, of which, the Shanghai Branch of the National Bank of Egypt has successfully engaged in foreign exchange business with various clients since it was established in January 2008.

Aviation

After entering into a civil aviation transportation agreement with Egypt in 1965, China has actively continued to expand its civil aviation cooperation with African countries. By the end of 2009, China has officially signed civil aviation transportation agreements with 15 countries including Ethiopia, Angola, Tanzania, Zambia, and South Africa, and has initialed such agreements with six other countries including Seychelles, Libya, and Uganda, etc.

Chinaand Africa have strongly encouraged direct flights between China and the African continent. In 2009, China and Sudan signed a civil aviation agreement, with China Hainan Airlines opening direct flights between Beijing and Khartoum. At the close of 2009, there were 34 regular flights between China and Africa every week, airlines in Egypt, Ethiopia, Zimbabwe, Kenya, and Algeria had launched direct flights to Beijing and Guangzhou. Southern China airlines and China Hainan airlines had been operating flights between Beijing and Lagos in Nigeria, Luanda in Angola, and Khartoum in Sudan.

Chinahas also provided assistance to Africa through such channels as the International Civil Aviation Organization (ICAO) and has trained civil aviation professionals in African countries. In addition China pledged annual donations to the "Comprehensive Regional Implementation Plan for Aviation Safety in Africa from 2008 and 2011 and committed to providing training to civil aviation safety technicians. Under this plan, 73 African aviation safety and technology staff have already been trained.

Tourism

Chinaand Africa have actively promoted the development of tourism between them. In 2002, Egypt became the first African country to be granted the approved destination status (ADS) for Chinese tourist groups. By the end of 2009, 27 countries and one region in Africa had become approved destinations for mainland Chinese visitors. China has signed MOUs on tourism implementation plans with 16 counties including Egypt, South Africa, Mauritius, Ethiopia, and Tunis, and has also started developing the group tour business. In 2009, firms began offering group tour packages for Chinese tourists to travel in Cape Verde, Ghana, and Mali.

African countries have also actively worked to attract Chinese tourists. In 2009, tourism bureaus and tourism enterprises from Egypt, Zimbabwe, Kenya, Namibia, and South Africa, among others, attended the China international travel mart, tourism promotion conferences and other events all with the intention of attracting Chinese tourists to their countries.

At the same time, Chinese companies are actively engaged in tourism services and travel facilities construction in Africa, including opening travel agencies and catering companies, and participating in the construction of roads and hotels. In 2009, Chinese enterprises signed contracts for the construction of the five-star NEN hotel in Namibia, the five-star Tlemcen hotel in Algeria, the training centre of Madirelo Training and Testing Centre (MTTC) in Botswana, and a number of other tourist facilities. Once a state hotel, the Bintumani hotel in Sierra Leon was damaged and closed during the civil war. A Chinese company invested in its refurbishment and re-opened it under a leasing contract in 2003. Since then, the hotel has been running quite successfully.

In 2009, 382,000 citizens from the Chinese mainland visited Africa, up quite small relative to China's total outbound tourists, the growth rate far exceeded the 4 percent average for outbound tourists to all destinations. In the same year, the number of African tourists entering China hit 401,000, up by 6 percent from 2008. Although these tourists only accounted for 1.8 percent of all inbound tourists to China, the growth rate was much higher than the overall average growth rate which actually registered a decrease of 2.7 percent in 2009.

Technological Exchange

Technology Transfer

Chinahas introduced new technology and industry. Assistance and investments have reached petrochemical production, mining, telecommunications, construction materials, and home appliance manufacturing. In 2009, China helped Egypt build a polyester fiber manufacturing plant whose annual output was 40,000 tons. Brilliance China Automotive Holdings Ltd. set up a joint venture in collaboration with Bavarian Auto Group (BAG) and several other partner firms, planning to invest 120 million USD to build an auto assembly line with an annual production capacity of 30,000 vehicles in Egypt. The Chambishi Copper Smelter Ltd., (CCS), a China-invested company in Zambia, went into production. During the expansion of the Twiga Cement Production Plant in Tanzania, China introduced the automated cement clinker production technique which has increased the operation's daily output to 2,500 tons, making it a pollution-free and energy-efficient cement plant with the largest production capacity in east Africa.

Chinese telecommunications companies introduced new technology and equipment to Africa, boosting the continent's telecom industry and narrowing the digital divide between Africa and the rest of the world, their presence in the African market contributed to the breakup of market monopolies and increased competition, which reduced telecom rates and facilitated the introduction of new technologies. In Botswana, Chinese businesses introduced 3G and 3.5G technology that enabled access to high-speed internet via mobile phones, through cooperation with the Chinese companies, Botswana telecommunications Corporation was able to add mobile services to their existing landline phone operations, which raised its competitiveness.

Chinasent experts in agriculture, aquaculture, handicrafts and other fields to Africa to transfer relevant technologies and to encourage utilization of local resources. In 2009, China successfully completed such projects as the Kamenge Handicrafts Training Center in Burundi, embroidery training in Mali and the introduction of Juncao technology into Lesotho. In Rwanda's capital, Chinese experts established a training base that offers comprehensive training on bamboo cultivation, processing, and marketing. China's aquaculture training program in Tunisia helped to fill technology gaps in the local fresh farming industry. In Guinea-Bissau, Chinese agricultural experts traveled over 10,000 kilometers around all the provinces to demonstrate techniques for growing high-yield crops and to offer guidance on attaining stable and high yields. They introduced locals to an array of practical and easily applied technologies in the cultivation of rice seedlings, the transplant of corn and rice, the plantation of vegetables, and the control of fruit flies in mango orchards. This work has proven most helpful.

Human Resources Training

To help the African countries develop human resources, the Chinese government initiated a series of programs under which Africa managerial and technical professionals visited China to receive training. In 2009, China offered 279 training programs on a host of areas including economy, public administration, agriculture, animal husbandry and fishery, medical care and public health, science and technology, environmental protection, telecommunications, transportation, finance, and energy to a total of 5,163 people from 49 African countries, through the training programs for government officials China and Africa shared their respective experiences and learned from each other in such areas as economic management. Through the technical training programs, China helped the African countries to train technical professionals by teaching them various practical technologies.

Chinese businesses have also played a role in improving the technical skills of local staff, Chinese telecom firms have established research and development centers and training sites in Africa a disseminate technologies on CDMA networks, smart networks and transmission, and to train telecom specialists for Africa. In one instance of such assistance, Zhongxing Telecommunication Equipment Corporation (ZTE Corp) helped the Eritrean Telecommunications Corporation (Eritel) with its environmental monitoring project, the staff of Eritel completed 54 of the 80 planned sites under the guidance of ZTE Corporation, which helped the company to save cost and apply advanced technology. Another exemplary case in the work of the China National Petroleum Corporation (CNPC)in developing human resources in the exploration and development of oil fields, oil refining and the petrochemical industries for the oil-rich African nations. In 2009, over 90 percent of the managerial and technical staff of CNPC's Sudan oil investment projects was local. In addition, local employees on average comprised about 70 percent of the staff in engineering service projects.

Youth Volunteers

Each year since the Beijing Summit of FOCAC, the Chinese government has sent youth volunteers to Africa to provide training on computer science, physical education, public health, agriculture, etc. In 2009, 187 youth volunteers went to 17 African nations, including Mauritania, Morocco and maintaining local information technology systems, offering medical care, training agricultural technicians, improving seed varieties, and teaching applicable agricultural production technologies.

III. Outlook for China-Africa Trade and Economic Cooperation in 2010

Despite the global financial crisis, China-Africa trade and economic cooperation achieved remarkable results in 2009, clear proof of their complementary economic strengths and the enormous potential for further cooperation. In 2010, such bilateral cooperation will enjoy new opportunities as the world economy begins to recover.

Chinaand Africa offer each other with broad market thanks to their economic development. China's economy grew at 11.1 percent in the first half of 2010. Africa's economic growth rate will reach 4.5 percent in 2010 and 5.2 percent in 2011, according to an estimate by the African Development Bank. As developing economies in the process of industrialization and urbanization, China and Africa have growing demands for products and technologies and are also investing increasingly in each other. Together these factors will facilitate the continued rapid development of trade between China and Africa.

Chinaand Africa are highly complementary in the field of investment. Africa has significant need for investment in infrastructure, manufacturing, agriculture and energy while China has the capacity to invest more in Africa. According to the World Bank, Africa requires an input of 93 billion USD in infrastructure annually, but at present expends only 45 billion USD. With China's increased industrial competitiveness and sound financial system, a large number of competent and well-equipped Chinese companies have been exploring international operations and have accumulated rich experience. In addition, China has strengthened its approach to managing overseas investments, in order to better facilitate and protect overseas investment.

The Chinese and the African governments will adopt additional favorable measures to facilitate bilateral cooperation, China will offer zero tariffs on 95 percent of all products from the least developed countries in Africa that have diplomatic ties with China. It will also establish an African products exhibition center and three to five logistics centers in Africa. Furthermore, it will offer 10 billion USD worth of loans with a preferential nature at Africa to support its financing capacity. The China-Africa Development Fund will be expanded to 3 billion USD. 1 billion USD of special loans for African small and medium-sized enterprises (SMEs) will be earmarked to support the development of SMEs. Africa has also provided much support and facilitation to Chinese companies operating on the continent.

Action on the eight new measures, announced at the fourth ministerial conference of FOCAC, starts in 2010, contributing to deeper and broader China-Africa trade and economic cooperation at a higher level.

China-Africa trades set to resume fast, steady growth. In 2010 as markers expand on both sides and international prices for bulk commodities rise, trade volume is expected to reach or even exceed the record high of 106.8 billion USD in 2008. Continued development of logistics centers and business marketing networks will expand the primary channels for china's export of quality products to Africa, thus increasing the quality and grade of the Chinese exports to Africa. Measures like the zero-tariff treatment, the establishment of the African commodities Exhibitions will also help drive Africa's exports to China.

China's investment in Africa will accelerate, while Africa's investment in China will also grow steadily. The governments of China and African countries will work together to create a favorable legal framework for investment and to strengthen coordination, streamline procedures, and to strengthen coordination, streamline procedures and improve services. Trade and economic cooperation zones built by the Chinese companies will reach a considerable scale, and attract a cluster of Chinese companies to form an industrial chain that can trigger the development of local manufacturing industries. At the same time, with an increased awareness of social responsibility, Chinese enterprises will take measures to integrate into the local society, engage in public welfare endeavors, protect the environment and create more job opportunities, thereby bringing more benefits to the Africa people.

Cooperation in infrastructure will deepen. For the African countries, infrastructure is a top priority that urgently needs development and financial institutions, the scale of cooperation will continue to expand, as Chinese companies take an increasingly active role in infrastructure construction, and undertake more projects with their technological and managerial strengths and cost advantages, especially projects that could make a significant impact on local social and economic development, such as roads, bridges, airports, ports, power stations and telecommunications projects.

China's assistance will focus increasingly on the well-being of the African people. China will gradually increase aid to Africa to the best of its capacity, and ensure the effective implementation of the assistance measures proposed at the fourth ministerial conference of FOCAC. In response to African needs, China will undertake numerous social welfare projects in public health, education, agriculture, clean energy and personnel training. Moreover, efforts will be made ensure that completed facilities and programs are sustainable and can maximize potential social benefits.

New areas of cooperation will continue to emerge. Using their experience and technology in environmental protection and new energy development. Chinese companies will engage African nations in cooperative efforts to protect African nations in cooperative efforts to protect Africa's unique natural environment. In addition, the future will inevitably see more rapid growth of joint efforts in financial, aviation and tourism, services.

The combined population of China and Africa accounts for nearly one-third of the world's total, better trade and economic cooperation and common development of the two regions can contribute greatly to the world economic development and the progress of human civilization. The China-Africa friendship has endured the challenges of over-changing international circumstances, and their bilateral trade and economic cooperation has shown outstanding vitality. In 2010, with the joint efforts of both china and Africa, their trade and economic cooperation will continue to develop on a win-win basis and will better contribute to the welfare of both the Chinese and the African people.

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