Economic Watch: China, Africa embrace closer economic, trade ties

BEIJING, Aug. 14 (Xinhua) — China and African countries have developed closer economic and trade ties with ever-increasing trade volume, diversified commodities and services on both sides, latest data showed.
Trade between China and Africa rose 5.5 percent year on year to 1.19 trillion yuan (about 166.6 billion U.S. dollars) between January-July, data from the General Administration of Customs (GAC) showed.
China has been Africa’s largest trading partner for 15 consecutive years, customs data showed.
China-Africa trade reached a record high of 282.1 billion U.S. dollars in 2023, up 1.5 percent year on year, showing strong resilience.
In 2023, China’s new energy vehicles, lithium batteries, and photovoltaic products exports to Africa increased by 291 percent, 109 percent and 57 percent year on year, respectively.
Meanwhile, China’s imports of African nuts, vegetables, flowers, and fruits increased by 130 percent, 32 percent, 14 percent, and 7 percent, respectively, compared to the previous year.
Specially, China’s trade with Africa in intermediate goods posted 6.4 percent year-on-year growth in the first seven months of the year, GAC data also showed.
Trade in intermediate goods between China and Africa accounts for 68 percent of the total value of bilateral trade, helping Africa in its process of industrialization and economic diversification efforts, said Lyu Daliang, an official with the GAC.
During the January-July period, China’s exports to Africa hit 697.93 billion yuan, while imports reached 490.89 billion yuan, customs data revealed.
Sang Baichuan, dean of the Institute of International Economy at the University of International Business and Economics, said that the China-Africa trade has grown rapidly as a result of mutually beneficial and win-win cooperation.
“It not only demonstrates the remarkable achievements of China’s high-quality economic development, but also plays a significant role in promoting Africa’s social development and improving local people’s living standards,” said Sang.
The China-Africa Trade Index, based on trade-indicator data between China and African countries, was released for the first time by the GAC in 2023, with the general index of data from 2000 serving as the benchmark.
Starting from 100 points in 2000, the index reached a record high of 990.55 points in 2022, indicating the rapid and positive development of China-Africa trade.
“China and Africa economies are highly complementary,” Sang noted, adding that China possesses mature and applicable technologies, equipment, and sufficient capital, while African countries have significant advantages in terms of manpower and natural resources.
Strengthening trade ties between China and Africa is beneficial in leveraging their respective advantages and vast markets, achieving mutual benefits, and win-win development, according to Sang.
The 2024 Summit of the Forum on China-Africa Cooperation (FOCAC) will be held in Beijing from Sept. 4 to 6, and Lyu expects the two sides to enhance their economic and trade cooperation.
The theme of the 2024 FOCAC is “Joining Hands to Advance Modernization and Build a High-Level China-Africa Community with a Shared Future,” according to an announcement made by the Chinese foreign ministry on July 30. ■