China’s purpose in encouraging its enterprises to invest in Africa is to help improve the self-development capability of African countries, Chinese Premier Wen Jiabao told a press conference in Egypt on June 19, countering accusations against China of practicing neo-colonialism in Africa.
Wen, who was on a seven-nation Africa tour, continued that China deeply appreciates the support of African countries and added that the development of friendly relations between China and Africa will not harm the interest of any other country.
This year marks the 50th anniversary of the establishment of diplomatic relations between China and African countries. Wen’s trip, which took him to Egypt, Ghana, the Republic of Congo, Angola, South Africa, Tanzania and Uganda, is regarded as an important diplomatic follow-up to China’s first African policy paper issued early this year and President Hu Jintao’s visit to Africa in April.
According to the Chinese premier, China has been developing relations with Africa based on the principles of mutual benefit and non-interference in Africa’s internal affairs. These relations, both economic and political, have been developed and consolidated over the past 50 years.
The total trade volume between China and Africa rose to $39.7 billion in 2005 from a mere $12 million in 1956. Africa’s trade surplus with China was $2.4 billion last year. By the end of 2005, China’s direct investment in Africa reached $1.18 billion.
China has already forgiven over 10.5 billion yuan of debt of 31 most heavily indebted and underdeveloped countries in Africa and given zero-tariff treatment to 190 commodities exported to China by African countries.
“The Africa visits this year, first by the Chinese president and now by the premier, demonstrate that Sino-African ties are high on China’s diplomatic agenda.”
Wang Yingying Researcher with the China Institute of International Studies
“Chinese products will not provide competition to local products-actually, low-priced Chinese commodities promote the purchasing power of African residents. Meanwhile, China brings investment to Africa, while developed countries fear investing in Africa.”
Le Monde newspaper
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