F REIGN TRADE - 中国国际贸易促进委员会

Africa
the local community. But projects in
trade only are more demanding, mainly
because the after-sales service can not
catch up with the growing expansions.”
According to Ministry of Commerce,
P.R.C., by the end of 2010,
the accomplished turnover of China’s
foreign contracting projects in Africa
amounted to US$35.83 billion, accounting
for 38.9% of the total, 27.5%
growth compared with the previous
year, involving in fields of mining, financial,
manufacturing, construction,
agriculture, business and trade, wholesales
and retails, etc.
However, the attitude of local
government towards cooperation with
Chinese enterprises often falls in a dilemma.
“They hope Chinese enterprises
can boost the local economy, as well as
create more job opportunities for the
local community. However, they also
worry if too many Chinese enterprises
march into the market at one time,
it would be a threat to the local companies,
and risk the market balance.”
Zhang said.
“Politically, China is easy to make
friends with Africa, particularly when
the land was bullied by the Western
countries. But, in other cases? Hard to
say. Africa has been influenced so much
from the West: language, religion, culture,
social system, technical principles,
even life style. Significant numbers of
Africans respect or even encourage the
Western society style and the westerners.
This probably dates back to African
history itself which China missed the
chance to be involved in early developments.
It will take a long time for China
to win their real respect and trust.”
Zhang said.
“Chinese business in Africa still
remains in a low level in internationalization.
There are many stories of
unethical practices and lack of social
responsibility among Chinese companies.”
Xie said.
Wang added, “It’s important for every
Chinese company to build confidence,
trust and establish a fair and honorable
reputation. Yes, indeed, a few Chinese
companies who attempt short cuts have
disturbed the normal market stability by
not following the rules. For each instance
where one company breaks one rule,
many companies will have to do a lot of
things to pay back the loss and build back
up the reputation again.” he said.
In fact, those Chinese who have
travelled outside China are more likely
to have a more open and international
mind. However, their ways of thinking,
communication, and behavior style...all
these need to adjust to fit for the game
rules of the global market. It is still a
long way ahead. “In my eyes, it is still
difficult for Chinese to blend into the
global village; maybe Chinese culture
is too unique in itself. We still
need time to adjust, to get familiar
with acceptable global business
practice.” remarked Zhang.
More opportunities in
future
The China-Africa Cooperation
Forum was established in October
10, 2000. In the past decade,
trade and investment between the two
sides grew rapidly, which proved that
they need each other, and indicated more
potential to explore further in future.
According to China’s Ministry of
Commerce data, from 2000 to 2009,
the trade value between China and
Africa has increased from US$10.6
billion to US$91.0 billion. China now
is the largest trade partner of Africa.
From July 1, 2010, China has reduced
60% tariff for 26 countries in Africa,
involving over 4700 items. This will, no
doubt, promote, encourage and grow
the bilateral trade.
In 2009, China announced to offer
a US$10 billion preferential loan
to African countries in 3 years. “The
financial aid from China will mainly
focus on the areas of agriculture,
health, education, clean energy and talents
training. This is the main focus of
people’s livelihood in Africa, also what
they need most.” said Gao Yuanyuan,
vice director of Department of Aid to
Foreign Countries of MoC. “Financial
cooperation will be the main highlight
in our future work.”
From 2000 to 2009, China’s direct
investment in Africa increased from
US$210 million annually to US$1.44
billion. Meanwhile, the FDI from Africa
to China increased from US$280
million annually to US$1.31 billion.
Wei Jianguo, former vice-minister of
commerce commented, “Now is the
best time for Chinese firms to invest
in the continent as Africa needs to upgrade
its economic structure.”
It is a land full of opportunities.
When Dawn Zhang saw the vast idle
land in Africa, he often wondered if the
land could be tapped by Chinese, how
much wealth would be created from it.
Zhang’s dream is now encouraged by
Chinese government. “Chinese companies
can explore more chances in sectors
like agriculture and manufacturing,
as well as the current focus on infrastructure
and energy resources,” Lu
Shaye, director-general of the African
affairs department with the Ministry of
Foreign Affairs, said at a China-Africa
forum in Beijing last May.
According to Zhong Manying,
director of the Department of Western
Asian and African Affairs of MoC,
currently, there are only 30 direct
flights between China and Africa every
week. “That is quite a small number
(considering that the direct flights between
China and United Arab Emirates
per week exceed 30). Moreover,
those flights are mainly run by African
airlines. China can explore its chance in
this and related areas.” Zhong said.
“Very few large and medium-sized
supermarkets in Africa are operated
by Chinese. Though Chinese products
are very popular in Africa’s market, the
distribution and logistics ability is very
limited,” Zhong added, “To enhance an
all-around service is our target there.”
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