China is set to bolster financial exchanges and innovative cooperation models with Africa, government officials announced on Tuesday.
This initiative comes ahead of the 2024 Summit of the Forum on China-Africa Cooperation, scheduled to take place in Beijing from September 4 to 6.
Shen Xiang, Director of the Department of Western Asian and African Affairs at the Ministry of Commerce, outlined China’s plans to diversify financial products and
Support collaborations in areas such as green development, the digital economy, and the growth of small and medium-sized enterprises.
Addressing concerns over China’s role in Africa’s debt, Shen refuted claims of a “debt trap,” citing a recent International Monetary Fund (IMF) study.
The study indicates that commercial bonds and multilateral debt make up 66% of Africa’s external debt as of 2023, while China-Africa bilateral debt accounts for only 11%.
Shen emphasized that China is not a major creditor and criticized certain parties for using the debt issue to undermine China-Africa relations.
Tang Wenhong, Assistant Minister of Commerce, highlighted China’s commitment to expanding imports from Africa and utilizing its vast market to create opportunities for African businesses.
The total trade value between China and Africa increased by 7.1% year-on-year to 1.98 trillion yuan ($277.25 billion) in 2023.
This growth continued into 2024, with bilateral trade rising 5.5% year-on-year to 1.19 trillion yuan in the first seven months.
In addition to trade, China’s investment in Africa remains robust. By the end of 2023, China’s non-financial direct investment in Africa surpassed $40 billion.
Over the past three years, Chinese companies have created over 1.1 million jobs in Africa.
These investments span agriculture, manufacturing, and logistics, significantly contributing to local economies through tax revenue, export growth, and foreign exchange earnings.
Keiper (Changshu) Seating Mechanisms Co, for example, has exported 222,000 auto seats and parts to South Africa,
Supporting local vehicle assembly while benefiting from China’s cost-effective manufacturing.
Jiangsu province’s trade with Africa reached 111.34 billion yuan in the first half of 2024, up 27.5% from the previous year,
Underscoring the dynamic growth in China-Africa economic relations.
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