Foreign and Military Affairs

China-Africa forum benefits strategic ties

(Xinhua)
Updated: 2010-10-12 16:57

BEIJING - Since its birth a decade ago, the Forum on China-Africa Cooperation (FOCAC) has become a platform for dialogue and pragmatic cooperation between China and Africa, said China's Commerce Minister Chen Deming in a newspaper article published Tuesday.

Under the framework of the FOCAC and in line with the principle of mutual benefit and equality, China had multiplied its channels and modes of assistance for African nations, including direct assistance, debt relief, tariff exemptions, concessional loans, and development funds, Chen wrote in an article for the People's Daily.

The forum showcased the great potential of China-Africa friendship and cooperation, Chen said.

Launched in October 2000, the FOCAC was designed as a platform for collective consultation and dialogue between the world's largest developing country and the vast developing continent.

Four ministerial conferences have been held under the framework of the forum. The forum also held a summit in November 2006, when Chinese President Hu Jintao announced a package of proposals to enhance trade cooperation with Africa.

The Chinese government launched the China-Africa Development Fund at the 2006 Beijing summit.

So far, the fund had committed to invest $1 billion and given $4 billion to 35 projects in 20 African nations, with most projects focusing on resource and energy, processing and manufacturing, infrastructure construction and agriculture, he said.

Chinese direct investment in Africa increased to $1.44 billon in 2009 from $210 million in 2000.

More than 1,600 Chinese firms have invested in Africa, boosting local economic growth and creating thousands of jobs, Chen said.

The building of overseas trade and economic cooperation zones was also making good progress, and Chinese enterprises had established six trade and economic cooperation zones in Africa, Chen said.

"It is better to teach a man to fish than to give him fish," Chen said, indicating that China had not only provided aid, but also contributed training and exported technology to Africa to help it rise out of poverty.

Trade between China and African nations had increased over the past decade, rising from $10.6 billion in 2000 to 106.8 billion dollars in 2008, Chen said.

Though growth slowed in 2009 due to the global economic downturn, the trade volume rebounded to $61.2 billion in the first half this year, up 65 percent year on year, according to China's official statistics.

Chen said China would effectively implement the new measures announced at the fourth ministerial meeting of the FOCAC, and study new economic and trade plans in accordance with the actual needs and pressing issues of African countries.

He said China would improve the mechanism of the FOCAC, so as to facilitate trade and investment and deepen financial cooperation, and support the economic integration of the African continent.

Under the framework of the FOCAC, he called on the two sides to expand new areas of growth in economic cooperation, such as finance, logistics, shipping and clean energy.

He also hoped the mechanism would encourage business of the two sides to explore new ways of cooperation in investment, service trade, technology transfer and human resources development.