China Seeks to Expand Trade, Investment, and Military Ties with Africa
TLDR
- China intensifying engagement with Africa offering improved trade terms, increased investment, and military training
- President Xi Jinping outlines strategy to compete with the US on the global economic stage at Forum on China-Africa Cooperation
- Initiatives include exemption of import tariffs for least developed African countries and expanded market access to China's economy
China is intensifying its engagement with Africa, offering improved trade terms, increased investment, and military training as part of its broader strategy to compete with the US on the global economic stage. President Xi Jinping outlined this vision in a speech to leaders from 50 African nations at the Forum on China-Africa Cooperation in Beijing.
During the opening ceremony, Xi announced several key initiatives, including the unilateral exemption of import tariffs on products from 33 African countries classified as least developed economies. In addition, China will expand market access for African exports to its economy, the world’s second-largest.
The outreach to Africa comes amid heightened competition with the US, as both countries seek to expand their influence on the resource-rich continent, which is pivotal to global trade and geopolitical positioning.
Key Takeaways
China's financial support sparked a widespread construction surge across Africa in the last ten years, aligning with President Xi's signature global infrastructure project. This momentum decelerated during the COVID-19 crisis but regained speed in the previous year. African countries appear receptive to China's renewed engagement and capital influx. However, they're also seeking debt relief and a more equitable commercial partnership. China's trade advantage over Africa reached an unprecedented $64 billion in the past year, with Chinese goods sent to Africa hitting a record $173 billion. Meanwhile, Africa's exports to China decreased slightly compared to the previous year.
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