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China-Africa trade prospects look promising

By Yan Yang (China Daily)
Updated: 2006-04-26 08:57

Close, high-level ties between China and African countries, and enthusiasm shown by Chinese firms, has improved the prospects for trade between the two sides.

Bilateral trade and economic co-operation has entered a new phase of all-round, rapid and stable growth since the China-Africa Forum was set up in 2000, according an official from the Chinese Ministry of Commerce.

China now imported more goods and service from African countries than it has exported to them, he said.

Improved political stability on the African continent and the political will to enhance the relationship between Africa and China has resulted in strengthened economic and trade ties, he added.

The comments come as President Hu Jintao takes part in a week-long tour of Africa  his second visit to the continent since becoming State leader three years ago.

The trip includes visits to Morocco, Kenya and Nigeria.

"The president's visit this time will be another big push for trade," said the official, who declined to be named.

Bilateral trade between China and Africa has surged to reach nearly US$40 billion last year from US$10 billion at the turn of the century.

Since the beginning of 2005, China has begun scrapping tariffs on 190 kinds of imported goods from 28 of the least developed African countries with which it has diplomatic relations.

This is the result of work completed by the China-Africa Forum.

Imports under these tax items added up to US$380 million last year, an increase of 87 per cent year on year, according to customs statistics.

Meanwhile, the Chinese Government is encouraging Chinese companies to invest and set up joint ventures in Africa, the official said.

By the end of 2005, the accumulated investment from China to Africa had reached US$1.25 billion.