Cooperation of mutual benefit

China helps Africa in trade and economic development but is not a major player in resources and energy markets

Relations between China and Africa have developed rapidly in recent years, and with the establishment of a new strategic partnership their cooperation has reaped tremendous results. Sino-African trade and economic cooperation have proved to be especially fruitful, becoming increasingly deeper and wider.

This is attributable to the fact that both China and Africa have adhered to the principle of equality and mutual trust in politics, have capitalized on their economic complementarities and have spared no efforts to serve each other's interests in cooperative projects with an approach that upholds willingness, independence, equality, and a win-win situation. Friendly cooperation is the common desire of people both in Africa and in China and is an irresistible trend.

The current structure of Sino-African trade, determined by their respective stages of development, resources, labor, and technology, is a natural choice. On the one hand, imports from China that Africa itself is unable to produce or cannot produce cost-effectively, can satisfy the needs of Africans during current economic conditions. On the other hand, Africa is an import market for Chinese products and resources for which it has no comparative advantages, and China's huge market has created a stable demand for African-made products. By taking advantage of each other's strengths, China and Africa have both achieved higher trading efficiency and benefits. By meeting market laws and each other's needs, bilateral trade between the two boomed amidst the global economic crisis.

In 2012 China became Africa's largest trading partner for the fourth consecutive year, with a trade volume nearing $200 billion and representing an average annual increase of 30 percent over the past decade. Africa's exports to China grew twelvefold during the past decade, generating about 5 percent of its GDP. China has become Africa's fastest-growing export market, playing an important role in driving its economic growth.

China continues to expand its investments in Africa and to increase aid, with a focus on improving Africa's ability to develop independently by helping it advance its technology, nurture talent, and upgrade its industries, so as to create more jobs and to balance social development. Over the past decade, China's direct investment position in Africa has grown fortyfold to approximately $20 billion, with investment projects involving more than 50 countries and over 80,000 local employees.