CHINA> AfDB Annual Meetings
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CHINA> AfDB Annual Meetings
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China's FDI in Africa on the rise
(China Daily)
Updated: 2007-05-15 07:02 Africa is growing into an important destination for China's foreign direct investment (FDI). Still behind investment in other economies within Asia, Latin America and the Caribbean, China's FDI in Africa is on the increase. A report on Asian FDI in Africa jointly released by two UN organizations said that China can be expected to become one of the continent's largest FDI sources in the not too distant future. The paper from the United Nations Conference for Trade and Development (UNCTAD) and United Nations Development Program (UNDP) documented China's growing presence in Africa. China is Africa's third largest trade partner, following the United States and France. The fact that this past year China invested $50 billion in 48 African countries speaks volumes about the growing trade relations. The UN's assumption that China's FDI in Africa is likely to continue to grow is valid. The reason is the complementary nature of China and African countries' economic development. The growing influx of China's FDI in Africa has spurred much-needed infrastructure improvements in many countries on the continent. The rapidly growing diplomatic relationships have strengthened the trade leg. Recent years have seen revolving door visits by Chinese and Africans. The China-Africa Business Council, which China and the UNDP jointly established in 2005, was designed to support China's private sector in promoting business in such countries as Cameron, Ghana, Mozambique, Nigeria, South Africa and Tanzania. Under the principle of no political strings attached, China's trade with the continent has no hidden ideological agenda. China and Africa share the view that countries should not meddle in each other's affairs. They have acknowledged that they can achieve common development only through cooperation based on mutual trust and mutual benefit. The pursuit of their own interests has brought them closer. Economic cooperation between the two has grown at a good pace. And China is ambitious to move its trade with Africa to top $100 billion by 2010. China Daily (China Daily 05/15/2007 page27) |
