China-Africa summit ends with trade volume set to hit $100bn by 2010

Two historic documents, a declaration and an action plan for 2007-2009, were adopted at the two-day Beijing Summit of the Forum on China-Africa Cooperation which concluded Sunday afternoon.

The declaration proclaims the establishment of a new type of strategic partnership between China and Africa. The action plan charts the cooperation course for China and African countries in the next three years, mapping the two sides' cooperation in politics, economy, international affairs and social development for the 2007-2009 period. The summit was held in the Chinese capital on the occasion of the 50th anniversary of diplomatic relations between the People's Republic of China and the African countries.

Earlier on Saturday, a high-level dialogue and entrepreneurs’ conference opened at the Great Hall of the People, where Premier Wen Jiabao proposed China and Africa fully tap cooperation potential and strive to bring their trade volume to $100 billion by 2010.

 Trade volume between Africa and China rocketed to $39.7 billion in 2005 after breaking the mark of $10 billion in 2000. It is expected to hit the $40 billion mark this year.

The summit outcome confirms President John Agyekum Kufuor’s pre-summit hope that Africa and China could move swiftly to forge a new partnership of mutual benefit. With rich resources, huge market potential, technical know-how and capital, Africa and China can achieve a win-win cooperation, he said in an interview with Xinhua on Wednesday.

"We want the Chinese people not to come for trade only, but also bring technological know-how as well as capital with them, to share with us on a win-win basis,” President Kufuor said.

The summit (FOCAC) was the highest-level and the largest meeting between Chinese and African leaders, since China and African countries started to forge cooperative ties in the 1950s.

Africa wants to engage with China as it is becoming increasingly influential in the world, President Kufuor said, adding, Africa is determined to seek partners who can help implement the New Partnership for Africa’s Development, the continent’s own ambitious plan for “African Renaissance” after decades of poverty and conflicts.

Also, UN Secretary-General Kofi Annan has welcomed the announcement of the Chinese government to double its aid to Africa by 2009.

In a statement released by his spokesman, Mr Annan believed that “as Africans demonstrate renewed resolve to address the challenges confronting their continent, they can benefit greatly from the experience of their friends in China, who have had such success in sustaining growth and reducing poverty.”

Mr Annan noted that China and Africa have always spoken with one voice for common aims of development and economic progress and he viewed the summit as advancing South-South cooperation.

The year 2006 has been termed as China’s “Year of Africa” since China released its first African policy paper earlier this year, putting forward proposals for an all-round cooperation with Africa in various fields in the coming years.

“I think the description is correct,” President Kufuor said. “In the past one or two years China has made a very significant move toward Africa... and the China-Africa relationship is being lifted to an all-time high level of cooperation.”

Two-session roundtables of Chinese and African leaders held at the Great Hall of the People Sunday confirmed the deepening of the China-Africa relationship. Also, Chinese and African entrepreneurs signed a batch of deals on Sunday evening.

The landmark Beijing Summit opened Saturday morning. President Hu, 41 heads of state or government and senior officials of 48 African countries that have diplomatic ties with China, as well as representatives from regional and international organisations attended the landmark gathering highlighting “friendship, peace, cooperation and development.”

Addressing the opening ceremony, President Hu announced a package of major assistance, investment, trade and other key cooperation projects with Africa in an effort to forge a new type of strategic partnership. President Hu listed eight steps China will take in coming years: to double its 2006 assistance to Africa by 2009, to provide $3 billion of preferential loans and $2 billion of preferential buyer’s credits to Africa in the next three years, to establish a special fund of $5 billion to encourage Chinese investment in Africa and to cancel some debts owed by the heavily indebted poor countries and the least developed countries in Africa that have diplomatic ties with China.

The Chinese president also offered a five-point proposal to cement closer bilateral ties, saying China will deepen political relations of equality and mutual trust with Africa, broaden win-win economic cooperation, expand exchanges for cultural enrichment and promote balanced and harmonious global development.

China and Africa will also strengthen cooperation and mutual support in international affairs, he said, adding “Without peace and development in China and Africa, there will be no global peace and development.”

President Hu said China and Africa enjoy trust and cooperate closely to uphold the legitimate rights and interests of the developing world, adding China has firmly supported Africa in winning liberation and pursuing development, and it has also received great support from African countries.

President Denis Sassou-Nguesso of the Republic of Congo, who chairs the African Union for the 2006 session, expressed Africa’s appreciation to China for its announcement of eight new actions, noting “The Chinese government has, as always, fulfilled its commitment and the African people have benefited a lot from China’s generosity.”

Prime Minister Meles Zenawi of Ethiopia, who co-chairs the forum, said the China-Africa partnership, forged 50 years ago, must be renewed to address immediate challenges of fighting poverty and backwardness and seeking economic independence.

Chinese Vice President Zeng Qinghong and Vice Premier Wu Yi were also present at the opening ceremony of the summit highlighting “friendship, peace, cooperation and development.”

FOCAC, launched in 2000, is a mechanism for collective dialogue and cooperation jointly established by China and Africa to cope with new challenges and facilitate common development.

At the entrepreneur conference on Saturday, the Chinese premier said, “Although China’s trade has been running a deficit against Africa in recent years, China still hopes to further expand its import from African countries.”

He said both sides should work closer in service sectors, tourism, finance and telecommunications in particular, to cultivate new economic growth points and facilitate trade in a more balanced and healthier manner.

“We will also encourage capable Chinese companies to invest in the trade and economic cooperation zones in Africa,” he said. “African companies interested in investing in China are welcome.”

Wen said China will increase the number of scholarships to African students and will train 15,000 African professionals over the coming three years to help the construction of African countries.

On Saturday evening, a grand welcoming banquet and a performing gala were given in honour of the visiting African guests.

On Sunday, the China-Africa Joint Chamber of Commerce was set up, with an aim to enhance cooperation between business circles of China and Africa.

Chinese, Ethiopian and Egyptian foreign ministers jointly held a press conference in Beijing Sunday afternoon. Ethiopia is the co-chair of the forum, while Egypt will host the next in 2009.

The second conference of Chinese and African Entrepreneurs held in Beijing on the sidelines of the China-Africa Heads of State summit ended with the signing of $1.9 billion dollars agreements between 11 African countries, including Ghana, and some Chinese Companies.