Chinese and Afica Essay

Submitted By qiopei
Words: 638
Pages: 3

Nowadays, China and Africa trading is more frequently. There are some data to shows that the commercial ties between China and Africa is closely. In 2013, China and Africa bilateral trade reached $210.2 billion, up 5.9% from a year earlier. In specific, China's export to Africa is $92.8 billion. China's import from Africa is $117.4 billion. From 2000 to 2013, total China and Africa trade in the average annual growth rate is 27.66% (General Administration of Customs of the People's Republic of China 2014). Moreover, BBC (2012) reported that China has pledged $20bn in credit for Africa over the next three years, in a push for closer ties and increased trade. These data not only proves the China and Africa trading is closely but also illustrate both of them will further cooperation in future.

President XI in China stressed that China is the biggest developing country in the world and Africa is the continent with the largest number of developing countries. He said Africa has a bright future for development. (China Africa business information 2013). The International trade provides many benefits. Idun-Arkhurst, I. and Laing, J. (2007) said that China’s recent push into Africa is driven by a desperate need to find oil and industrial raw materials to feed its resource-guzzling, and the world’s fastest growing, economy. China is a net importer of oil which reached 58.8% external dependency. (The domestic and international oil and Gas Industry Development Report 2013) China's crude oil imports from Africa 30% every year (Zhao 2008). After that, because most African countries rely for agriculture and oil industry, manufacturing industry is backward. The main product in African imports is for manufactured goods, in 2000, the African imports of manufactured goods account for 70.6% of total imports (UNCTAD 2002).But in China's export commodity structure, manufactured goods account majority. The percentage of machinery and transport equipment is 39.6% in 2001(China's foreign economic relations and trade yearbook 2002). The structure of export commodities between China and Africa is complementarily. Moreover, Africa has huge business opportunities to attract Chinese companies to invest .Through trading with Africa, China can increased the volume of exports. China's export products tend to low prices, high market share. It is one of the many benefits of trade with China. As a result, China needs trading with Africa

There are some Comparative advantages when China invests in Africa. To begin with, in economic and trade cooperation, the western developed countries and African countries economic in trade relations are often accompanied by political conditions, but China in trade is based