China-African Trade Investment and the Exchange of Law
Weidong Zhu
【全文】
I.The Development of China-African Trade and Investment
China is the largest developing country in the world and Africa is the continent which encompasses the largest number of developing countries. Despite the vast distance between them, there is a long history of friendly exchange.[1] The founding of the People''s Republic of China and the independence of African countries ushered in a new era in China-African relationship due to the contributions made by the leaders and people from both sides. For over half a century, both sides have enjoyed close political ties and frequent exchange of high-level visits; people-to-people contacts, bilateral trade, and economic cooperation have witnessed rapid growth.
China has always advocated that China-African trade should be pursued under such principles as “equality and mutual benefit, pursuing practical results, adopting various ways and seeking common development” declared by the former Chinese Premier Zhao Ziyang during his visit to 11 African countries between December 1982 and January 1983.[2] Though China-African trade started from a low base, it has been burgeoning spectacularly, especially in recent years, as a result of their complementary economies and concerted efforts on both sides. In 1950, the trade between them was only US$ 1.2 million. In 1980, it stood at US$1 billion but in 2000 it jumped to US$10 billion. Between 2002 and 2003, two-way trade climbed 50 percent to US$18.5 billion--the fastest growth China has seen with any geographical area. In 2006, the trade volume reached US$55.5 billion,[3] which has made China Africa''s third most important trading partner, behind the US and France.
Meanwhile, China is also vigorously promoting export by Africa to China and has taken various effective measures to balance bilateral trade. To date, China has granted most-favored-nation (MFN) trading status to 41 African countries and exempted 190 kinds of products from custom duties from the 28 least developed African countries. Such measures have produced the desired results. From January to October 2004, China had a trade deficit of US$1.16 billion[4] for the first time, with exports to Africa of US$10.98 billion and imports from Africa of US$12.14 billion.[5] In 2005, the gross trade volume reached US$39.7 billion, including US$21.1 billion in imports from Africa, with a trade deficit of US$2.5 billion. In the trade volume of US$55.5 billion of 2006, exports to Africa are US$26.7 billion and imports from the region are US$28.8 billion.
With the rapid development of China-African trade, Chinese investment in Africa also is going smoothly. The Chinese government has put forward a series of effective measures to encourage well-established and reputable enterprises to invest in Africa. According to preliminary statistics, China''s total investment in Africa reached US$6.27 billion by the end of 2005.[6] China has launched over 800 non-financial investment projects in 49 African countries, covering manufacturing and processing, resource exploration, communications, agriculture, etc.[7] Meanwhile, China has also taken active measures to encourage Africans to invest in China. So far, China has signed Bilateral Agreements on the Promotion and Protection of Investment with 28 African countries, and Agreements on the Avoidance of Double Taxation with 8 others. More African countries are encouraged to conclude with China such agreements to promote investment in both directions.[8]More and more African enterprises or individuals have realized business opportunities in booming China, and they have made great profit from their investment or trade in China.[9]
