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China an increasingly important trade partner with Africa, but risks remain

By Jiang Jie (People's Daily Online)    16:09, August 24, 2016

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China’s role as a trade partner with Africa continues to rise amid competition from Western countries. However, risks remain for Chinese companies hoping to further develop in Africa, a recent report showed.

According to the report, which detailed Africa’s annual development, China has been actively participating in the continent’s infrastructure, manufacturing and energy mining in recent years. What’s more, an industrial investment layout has been established for Chinese companies in Africa, particularly those in construction, mining, manufacturing and finance.

Despite the slower import growth rate of Africa in 2014, China’s exports to Africa continued to climb. The total export volume to Africa reached $105.8 billion, some 16.5 percent of Africa’s total imports, up 1.9 percent from 2013. Most Chinese exports to Africa in 2015 were mechanical and electrical equipment, whose value reached 302.7 billion yuan, or 44.9 percent of China’s total exports to Africa in 2015, the report showed.

However, the report warned that the investment environment in Africa remains tough, given lurking threats of terrorism and political transitions. Haunted by a steady decline of international commodities represented by crude oil, the continent also suffers from a slow economic growth rate and a growing gap in economic development between countries.

To the disadvantage of China, the report pointed out that Africa’s cooperation with Western countries is yielding constructive results, while the continent’s cooperation with rising powers like China has yielded comparatively weaker achievements.

Meanwhile, Chinese companies are often poorly prepared to conduct projects in Africa, with inadequate knowledge of destination countries. There is also malicious competition among Chinese companies overseas.

Titled “Chinese Enterprises’ Performance in Africa: Achievements, Challenges and the Way Out,” the report was published on Aug. 23. It was written by experts from the Institute of West-Asian and African Studies under the Chinese Academy of Social Sciences, the Department of African Affairs of the Ministry of Foreign Affairs and several other research institutes with bases in Africa. 

(For the latest China news, Please follow People's Daily on Twitter and Facebook)(Editor: Jiang Jie,Bianji)

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