China says booming trade with Africa is transforming continentReport from Beijing predicts even faster rate of growth, although critics warn of failure to recognise human rights abuses
Beijing said economic ties with Africa had recovered from a dip in 2009 due to the global financial crisis and would now grow even faster.
In 1992 two-way trade between China and Africa stood at just $1bn. But Chinese demand for oil, gas, iron ore and other raw materials for its rapidly growing economy has spurred trade and investments in Africa in recent years.
Critics of the relationship accuse China of failing to create local jobs, flooding markets with poor quality goods, and turning a blind eye to human rights abuses in countries such as oil-rich Sudan and diamond-rich Zimbabwe.
But defenders believe China is helping create a new class of African consumers and building airports, hospitals, railways, roads, schools and stadiums.
The Chinese government report, entitled China-Africa Economic and Trade Cooperation, says that in the first 11 months of 2010 China-Africa trade volume reached $114.81bn, a 43.5% year-on-year increase. The report says growth is likely to gain traction in the coming years as the "economic and trade co-operation is bright" between the two sides.
"As economic globalisation progresses, the economic and trade co-operation between China and Africa will definitely gain momentum to reach a larger scale, broader scope and higher level," it said.
Beijing is encouraging Chinese companies to invest in Africa in an effort to diversify an economy driven by exports and investment. China's investment in Africa has largely targeted oil, gas and mining but is expanding to manufacturing, real estate, infrastructure and other sectors.
Yesterday Nigeria, the most populous country in Africa, said it has secured a $900m loan from China to boost infrastructure. The money would help pay for a railway linking the capital, Abuja, to the northern city of Kaduna and a security communications project.
But the influx of Chinese investors has brought tensions and criticism concerning the control of Africa's resources, worries about unfair business tactics, and complaints that local communities see too little of the economic rewards.
In October, two Chinese mine employers in Zambia were charged with attempted murder after shooting miners during a pay dispute. Chinese companies have invested nearly $3bn in Zambia, a copper producer, according to the Zambian government.
The report defends China's presence in Africa, saying China abides by equality, mutual benefit and balanced trade and economic co-operation with African countries. But some experts believe Africa's openness to Chinese investment is, in part, due to the fact that criticism of human rights records and other political issues is absent from its business dealings.
He Wenping, director of African studies at the Institute of West Asian and African Studies, in Beijing, said: "African countries also like that the Chinese are less critical of their internal political affairs and there's less bureaucracy, so projects and deals are executed a lot faster."
In 2009, China's direct investment in Africa reached $9.33bn, mainly directed at mining followed by manufacturing, the report says, a jump from $490m in 2003.
Western anxieties over the burgeoning relationship were highlighted by Wiki Leaks' recent release of a US embassy cable in which Johnnie Carson, the US assistant secretary of state for African affairs, said: "China is a very aggressive and pernicious economic competitor with no morals. China is in Africa for China primarily." The memo warned of "tripwires", asking: "Is China developing a blue water navy? Have they signed military base agreements?"
Richard Dowden, director of the Royal African Society, described the situation as double edged. "If trade creates wealth, this is extremely good news for Africa. There are millions of Africans who can now afford a shirt or a watch or a radio … It has been good for poor African consumers but not so good for manufacturers. Infrastructure is good for Africa as well. The problem with these deals is … we don't know what the deal is. Politically they are not good because of the lack of transparency and indifference to human rights ."
African governments have defended the ties. On a recent state visit to Beijing, Jacob Zuma, the South Africa president, said: "China is there discussing with the brothers and sisters in Africa to create a mutually beneficial kind of relationship … different from former western colonialists [who simply took] things by force."
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Friday, December 24th 2010 at 7:12PM
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