Economist Majid Javid, in statements to “Sky News Arabia Economy”, expects a further increase in trade between the two sides by the end of the year. Consequence of several policies that China pursues with the continent to secure its agricultural, oil and mining needs.
Trade boom in figures
Despite lower Chinese imports from Africa in the first quarter, the trade volume reached 94.4 billion U.S. dollars during the period, according to an official statement issued by the China Customs Authority. Trade between China and Africa grew in 2022 to a record high of $282 billion, up 11% year on year, supported by rising commodity prices and the reopening of trade in China after the coronavirus crisis. According to Chinese customs authorities, exports to Africa totaled $164.49 billion in the 12 months to December, up 11.2% year on year, and imports from the continent grew at a similar pace at $117.51 billion over the same period. This is the second consecutive year of growth after the Corona pandemic had a devastating impact on trade in 2020.
The most important raw materials
Agriculture, minerals and oil are the sectors with the most significant exchanges between the two parties. In a sign of increased agricultural cooperation, Chinese President Xi Jinping announced that Beijing would open “green corridors” for Africa’s agricultural exports to his country and provide $10 billion in trade finance to support exports across the country. continent. China depends on Africa for crops such as sesame, chillies, cashews and spices from Ethiopia, Tanzania and Uganda. In 2020, it started importing soybeans from Tanzania and agreed to import avocados, tea, coffee and roses from Kenya and Ethiopia. , and Rwanda, beef from Namibia and Botswana, and fruit from South Africa. China has been Africa’s largest trading partner since overtaking the United States in 2009, and South Africa is the continent’s largest market for Chinese products and the largest exporter of minerals such as than diamonds, gold and iron ore; constitute a fifth of Africa’s total trade with China in 2021. Also among the biggest trading partners for Beijing is Angola, which sent $23.25 billion in goods, most of which are oil shipments to China in 2022, and China has also relied on the Republic of Congo, which is the world’s largest producer of cobalt used in the manufacture of electric cars and smartphone batteries, two industries now vital in China.
In addition to the above, China relies on Africa to supply many of its oil needs, particularly from Sudan, Nigeria, Congo and Algeria.
Beyond another expected hike
Economic expert Majid Javed expects trade between China and Africa to see another jump at the end of this year, despite the imbalance in oil prices and weak demand for minerals, and that is due to the fact that :
Beijing has succeeded in opening up more mainland markets, improving the quality of its products and lowering prices at the same time compared to other imported products, and devaluing the local currency against the dollar. The agricultural projects it supports on the continent and the green belt project have strengthened China’s relationship with Africa. Beijing has also been able, through its policy of borrowing from the countries of the continent, to gain its confidence.
China sees Africa as a quiet place to secure some of its oil and agricultural needs, away from the influence of the United States and countries in Europe which affect trade movement between them, according to Javed.
Read the Latest World News Today on The Eastern Herald.
