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    Africa, China rely on each other even more

    Updated: 2012-07-20 07:28
    ( Xinhua)

    CAPE TOWN - As relations between Africa and China further develop, the two sides rely on each other even more, two prominent South African researchers said.

    This reliance can be seen in two-way trade between the two sides, South African Standard Bank research analyst Simon Freemantle and economist Jeremy Stevens said in a newly released report.

    The report was released to coincide with the 5th Ministerial Conference of Forum on China-Africa Cooperation that began in Beijing on Thursday.

    China's share of Africa's total exports has increased from 10 percent in 2008 to nearly 18 percent last year, the report says.

    And the rise will continue this year: in the first five months of the year Africa's exports to China have reached a fraction shy of 50 billion U.S. dollars, up 25.5 percent year by year from 39.5 billion dollars in 2011. Without China, Africa actually exported 15 percent less to the rest of the world last year than it did back in 2009, the report notes.

    Meanwhile, From 2008 to 2011 China's share of African mineral exports increased from 10 percent to 15 percent.

    African exports have been supported by China's stimulus package and easy credit, which also encouraged stockpiling.

    The report also says Chinese investment in economic and social infrastructure has been critical to linking Africa to other markets as well.

    In addition, China provides around 2 billion U.S. dollars in bilateral assistances each year, and the CADFund (the China-Africa Development Fund) has made around 2 billion dollars in equity investments in Africa, according to the report.

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