Chinese-African relations stronger than ever before

China-Africa relations are at a new historic starting point owing to huge opportunities in the fast emerging continent and strong growth momentum in the world's second-largest economy, experts say.

"China-Africa cooperation is embracing a period of significant opportunities. Africa has become one of the fastest growth areas in the world," according to the 2013 annual report of China-Africa trade and economic relationship released by the Chinese Academy of International Trade and Economic Cooperation.

"African economic development has great prospects as peace and development become the consensus, economic integration is being advanced, and agricultural business is promoted in many countries," says Zhang Liwei, deputy director-general of the department of western Asian and African affairs of the Ministry of Commerce.

The world economic recovery is confronted with uncertainties, including increasing pressure from inflation. Africa has the greatest potential economic growth in the world and the continent's stability and development are key to world development, according to Zhang.

Backed by continuing investment in infrastructure and productivity capacity, growth in sub-Saharan Africa is projected to remain robust at about 5 percent in 2013 and 6 percent in 2014 while softening and increasingly volatile global economic conditions are expected to have only a moderate downward impact, according to the regional economic outlook of World Economic and Financial Surveys recently published by the International Monetary Fund.

"Meanwhile, China's economy will maintain a strong momentum. African countries will continue to adopt economic policies in favor of infrastructural construction, labor-intensive manufacturing, agriculture, extraction and livelihood-related sectors. China and Africa will enjoy more cooperation opportunities in resource development, information communication and manufacturing," says the annual report of the Chinese Academy of International Trade and Economic Cooperation.

Zhang adds that China is the largest developing country while Africa is the continent with the most developing countries. The two sides need to highlight in cooperation which will boost African economic development and provide forceful support for Chinese economic growth.

In addition, African economic integration will open up new space for China-Africa cooperation at a higher level and in broader areas, according to the report.

"Africa is transforming its economic growth model from exporting energy and resources to innovating its economic mechanism, which will gradually unleash the huge potential of the continent, although it is still challenged by regional instability, underdeveloped infrastructure and pressure from population surge and climate change," says Huo Jianguo, president of the Chinese Academy of International Trade and Economic Cooperation.

He adds that Africa needs to increase investment in economic governance, infrastructure construction and human resources to actualize its economic growth potential.

Antoinette Monsio Sayeh, director of the African Department of the IMF, says that growth deceleration in emerging markets such as China's, will reduce demand from Africa through direct and indirect channels, while the Chinese economy can play an important role in sub-Saharan economic growth.

The political and security situation in some parts of Africa remains vulnerable as the profound impact of the European debt crisis on the region's economies is unfolding, suggesting commodity price risks, according to the report. In addition, low cooperation levels, and the quality and unregulated operations of individual companies have also dampened the healthy and sustained development of China-Africa trade and economic cooperation.

lijiabao@chinadaily.com.cn

(China Daily Africa Weekly 11/08/2013 page22)