Business Relations Between China and Africa - Trade and Investment in Africa
The forum statistics showed that China has invested nearly 1 billion USD since 2000. The ministers from both sides decided to further strengthen their relationship on both economical and political grounds.
The trade meetings have been fruitful so far, and have improved their relationship in many ways. Top Chinese ministers and political advisors have been frequently visiting the African countries to build trust, and to understand its culture and economy. Last year, foreign minister Li Zhaoxing visited four major countries in Africa, and shared his views with its presidents.
This year the Sino-African trade saw some new dimensions: agricultural deals; ivory trade; car sales; stakes and more. As both these countries are rich in agricultural resources, China has major investments plans to enhance the agricultural trade. Since 1960, China has played effective roles to uplift Africa's agro technology - by sending in 10,000 technicians to train African farmers, a nd introducing innovative programs like large-scale farming, hybrid rice harvesting, and layers farming. With many other agendas in hand, it is said that Agriculture will be one of the top priorities. To make this happen, recently Chinese delegates announced that they have allotted $ 5 billion USD to improve the agricultural production in many African countries. They said this would also decrease unemployment and poverty, and will encourage agricultural growth.
Though China's trade with Africa has been there for over fifty years, its magnanimous hand is still under scrutiny. The recent ivory trade is one among them. In July, 2008, a panel supported the idea of allowing China to participate in the ivory trade. Keeping the sensitive nature of the business in mind, many analysts are worried about the panel's decision, as this could pose threats to elephants. Other top environmental groups claim that China is yet to regulate the ivory trade properly. However, the Chinese government dismissed the claim and said it has taken all the steps to eradicate illegal business, and have improved its enforcement of the ivory trade.
On the other side the African counterpart too has something to show. The growth of Africa's exports to China has been steadily rising since 1992. Though the growth was moderate till 98, after that there has been a sharp increase in the exports.
With China playing a significant role in Africa's development, the human rights, on the other hand questions this act. Analyst Chen-Shen-Yen points that 'China needs energy from Africa'. And others agree with this. Some of them believe that China's strong connection with Africa might be a threat to the western countries, which relies on the continent's rich raw materials. Many researchers believe this could be the race for raw materials. Africa is still rich in this; China is growing rapidly, and it needs resources to quench its economic thirst. Oil - is one of the prime ra w materials. Nigeria and Sudan are known for its oil productions. When China supported the Sudanese government, the human rights were quick to point and criticize the move because of the violence in Darfur region.
With lots of plans and promises, the two nations continue to maintain its economic relationship. The skeptical onlookers still mull over to find the real motive. Amidst all these hot debates the two countries continue to shake hands.
Angela Huntao is currently working at China Africa company which provides information about China Africa trade and China investment in Africa.
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