The China-proposed One Belt and One Road initiative has increasingly been regarded as a name card of China’s diplomacy and welcomed by the international community since it was first put forward in 2013. More than 100 countries and international organizations are involved in the initiative and over 70 nations along the route have signed cooperative deals with China.
Africa, with abundant resources, huge market potential and strong desire for infrastructural construction, has played an active role in the Belt and Road initiative, and has grasped historic development opportunities.
China-Africa cooperation aids in the progress of their respective economic and trade development. Industrial capacity cooperation conforms to the real developmental needs of both sides, and has a strong basis. China’s economy, after more than 30 years of high-speed growth, has entered a new normal where adjusting economic structure and digesting excess capacities have become its primary goals.
Although China has seen decreasing demands for staple commodities such as raw materials, oil and gas, its overseas economic activities are changing from “commodity export” to “capital export,” given its ample industrial experiences, matured and adaptable technologies, cost-efficient equipment and world’s highest foreign exchange reserves.
Chinese enterprises have invested heavily overseas and purchased a large number of foreign companies in recent years.
China’s total foreign investment has surpassed $100 billion in 2014. Its shift from a trading power to an investment giant facilitates the structural adjustment of Sino-African economic ties. China-Africa economic cooperation is also expected to be upgraded from a complementary trade relationship to a supplementary industrial structural relationship dedicated to manufacturing, new energy, environmental product exploration and maritime economic development.
In addition, China’s infrastructural investments by means of the Belt and Road initiative will help boost Africa’s industrial development and realize the African Dream of poverty reduction. Connectivity and industrialization is a priority and rite of passage to realize the African Dream.
The construction of railway, highway and aviation network will help link capitals of all African countries and boost Africa’s industrialization and economic integration. This is what China, as a major power and a sincere friend of Africa, should be responsible for, and at the same time, it stimulates the Sino-African economic and trade cooperation development.
During the Forum on China-Africa Cooperation (FOCAC) held in Johannesburg in December 2015, Chinese President Xi Jinping put forward 10 major China-Africa cooperation plans dedicated to promote the Sino-African relationship for the upcoming three years. Industrial cooperation, mainly China-Africa capacity cooperation and boosting Africa’s industrial development, is among the 10 plans.
China has pledged $60 billion in funding to Africa, a contribution of $10 billion of China-Africa production capacity cooperation fund and an additional $5 billion for the China-Africa Development Fund and the Special Loan for the Development of African Small and medium-sized enterprises. China also plans to construct and upgrade Africa’s industrial parks, establish vocational education centers and several capacity-building colleges to train 200,000 technicians for Africa and there are opportunities for 40,000 Africans to be trained in China.
At present, most African countries are at the start of industrialization. In order to speed up this process, materials including imported steel and cement are in growing demand. Some African countries, together with the African Union, have come up with significant policies on strategic development like New Partnership for Africa’s Development (2001), Action for the Accelerated Industrialization of Africa (2008), Program for Infrastructure Development in Africa (2013) and Agenda 2063 (2013).
These aim to coordinate with China’s Belt and Road initiative and grasp the historic opportunity to advance Africa’s industrialization and economic integration in a bid to create an Africa era for development.
Source: globaltimes.cn
