New Silk Road & BRICS

Russia will light up Africa – Putin

Russia will light up Africa - Putin
The African continent is in huge need of energy investments, and Russia could become one of its key partners, according to President Vladimir Putin speaking at BRICS summit in Johannesburg.

“I would especially like to note that Russia is planning to step up its assistance in development of national energy in African states,” said the Russian president during the BRICS-Africa Outreach panel on Friday.

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Commercial port of Novorossiysk, Russia © Vladimir Astapkovich

The leaders of governments of BRICS member states (Brazil, Russia, India, China, and South Africa) were holding a panel dedicated to economics cooperation between the bloc and African countries. The rationale behind the BRICS Plus concept is to create a platform for greater interaction and partnerships amongst countries to win more power for emerging economies globally.

According to Putin, Russia is in talks with Angola, Mozambique and Gabon on implementing promising oil and gas projects. “In the field of nuclear energy, where Russia is the technological leader, we offer African partners to build an industry from scratch,” the Russian president said. These projects are crucial for Africa since about 600 million people on the continent live without electricity.

Energy is not the only sphere where Russia and Africa could cooperate, according to Putin. “Russian business shows interest in working with African partners in a wide range of areas, including agriculture, healthcare, the development of mass communications, geology and subsoil use,” Putin said.

As examples, Putin mentioned Angola, where Russia’s Alrosa is interested in mining diamonds, a joint venture between Russia and Burundi on the production of lighting products for exports to East Africa, and agriculture projects in Senegal.

Modi Emphasizes India’s Commitment to Africa’s Development at the BRICS

July 27, 2018

Addressing a BRICS Outreach Dialogue Session today in presence of a large number African heads of state, Indian Premier Narendra Modi said: “The coming together of so many African leaders during this program is a wonderful thing. India’s ties with Africa are time-tested. The Government of India has deepened engagement with Africa. Economic and development cooperation between India and Africa have touched new heights,” India’s WION TV news reported from Johannesburg.

Among the African heads of state were: Paul Kagame (Rwanda), Yoweri Museveni (Uganda), Edgar Lungu (Zambia), Hage Geingob (Namibia), João Lourenço (Angola), Emmerson Mnangagwa (Zimbabwe), Ali Bongo Ondimba (Gabon), Mokgweetsi Masisi (Botswana) and Peter Mutharika (Malawi). The African leaders were invited by the host nation, South Africa, to discuss ways of pursuing inclusive growth on the continent with the BRICS heads of state, reported China CGTN television network.

South Africa’s BRICS website points out that since it last hosted the summit in 2013, all BRICS hosts have included an out reach format: “In 2013, South Africa took the initiative to activate the provision for a BRICS Dialogue with partners from the Global South, as per the Sanya Declaration that stated: ‘We are open to increasing engagement and cooperation with non-BRICS countries, in particular emerging and developing countries, and relevant international and regional organisations.'”

In his address, Modi, highlighting the ongoing cooperation between India and the African nations and welcoming the effort for regional economic integration by the African countries, he said “in the last four years, we have had more than 100 visits and meetings at the levels of heads of state and various government levels and these have taken our economic relations and development cooperation to a new high. India has offered 180 lines of credit worth $11 billion in more than 40 countries in Africa.”

In addition, he said that “every year 8,000 African students get scholarships to study in India” and pointed out that his country now has an e-network in 48 African countries for telemedicine.

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President Xi Jinping to BRICS Business Forum in South Africa:

“Keeping Abreast of the Trend of the Times to Achieve Common Development”

“Home to more developing countries than any other continent, Africa has more development potential than any other region in the world.”

Excerpts follow:

We as BRICS leaders unanimously agreed to strengthen our strategic partnership, consolidate the cooperation architecture with its three main drivers, namely, economic cooperation, political and security cooperation, and people-to-people exchanges. We thus laid out a vision of BRICS+ cooperation and jointly ushered in the second Golden Decade of BRICS cooperation.

The BRICS mechanism owes its birth and growth to evolution of both the global economy and the international landscape. In its first decade, BRICS cooperation got off the ground and bore rich fruit. We five BRICS countries, guided by the BRICS spirit of openness, inclusiveness and win-win cooperation, have deepened our cooperation, enhanced our solidarity and mutual trust, improved the lives of our peoples, and made our bond of interests and friendship even closer. Indeed, our cooperation has contributed much to global economic recovery and growth.

We are witnessing major changes unfolding in our world, something unseen in a century. This is a world of both opportunities and challenges for us emerging markets and developing countries. We should pursue BRICS cooperation in the historical process of global transformation, and we should promote the development of our own countries in the historical course of promoting the common development of both BRICS countries and other countries in the world, thus making new advances in the next Golden Decade.

The next decade will see faster changes in the international landscape and the international alignment of forces. Emerging markets and developing countries already contribute 80 percent of global economic growth. Based on exchange rate calculation, these countries account for nearly 40 percent of the global economic output. Growing at their current rates, these countries will see their economic output approach half of the global total in a decade. The collective rise of emerging markets and developing countries is unstoppable, and it will make global development more balanced and global peace more firmly based.

The next decade will see a profound reshaping of the global governance system. The world is moving toward multi-polarity and greater economic globalization amid setbacks. Geopolitical hotspots keep emerging, and the dark shadow of terrorism and armed conflicts still haunts us. Unilateralism and protectionism are mounting, dealing a severe blow to multilateralism and the multilateral trading regime. The international community has reached a new crossroads; and we are facing a choice between cooperation and confrontation, between opening-up and a close-door policy, and between mutual benefit and a beggar-thy-neighbor approach. Thus, the  evolution of global governance system will have a profound impact on the development of all countries,  particularly emerging markets and developing countries, and indeed on the prosperity and stability of the whole world.

We should pursue innovation and seize development opportunities. Science and technology, as the primary production forces, have provided inexhaustible power driving progress of human civilization. Humanity had made giant leaps forward as it progressed from an agricultural civilization to an industrial civilization, a process which created both huge gains in social productivity and growing pains. The world today has once again reached a critical historic juncture. In the unfolding new round of scientific and technological revolution and industrial transformation, new things will inevitably emerge and take the place of old ones. Indeed, this will be a difficult and painful process. But if countries succeed in seizing opportunities that have presented themselves, they will be able to achieve new dynamic growth and deliver better lives to their people.

We should pursue inclusive growth to deliver benefits to people of all countries. Uneven and insufficient development is a common challenge facing all countries. The North-South gap, namely, the gap between developed countries and emerging markets and developing countries, remains huge. And there are also development gaps of varying degrees within countries.

The 2030 Agenda for Sustainable Development provides a comprehensive action plan for the international community. We BRICS countries should, basing ourselves on our actual national conditions, follow the guidance of the 2030 Agenda as we pursue our own development strategies. We should put people first, ensure coordinated economic and social development and protect the environment, thus giving our people a stronger sense of fulfillment and happiness. We should ensure harmony between man and nature and encourage the international community to fully implement the Paris Agreement. We should treat nature with awe and do more to foster an ecological system conducive to green development. It is necessary to promote international development cooperation, urge developed countries to fulfill their promises on official development assistance and increase support to developing countries.

Home to more developing countries than any other continent, Africa has more development potential than any other region in the world. We should strengthen cooperation with Africa, support its development and make BRICS-Africa cooperation a model for South-South cooperation. We should actively carry out cooperation with African countries in such areas as poverty reduction, food security, innovation, infrastructure development and industrialization in a way compatible with their national conditions. We should help African countries develop their economic structure, contribute to the implementation of Agenda 2063 of the African Union and thus enable Africa, an ancient continent, to gain strong vitality.

China and African countries are destined to be good friends, good brothers and good partners, and China-Africa cooperation stands as a fine example of South-South cooperation. This coming September will see a reunion of China and African countries at the Summit of the Forum on China-Africa Cooperation in Beijing. Themed on “China and Africa: Toward an Even Stronger Community with a Shared Future through Win-Win Cooperation,” the Beijing Summit aims to enhance complementarity between China-Africa joint efforts to pursue the Belt and Road Initiative, the 2030 Agenda and the 2063 Agenda on the one hand and the development strategies of African countries on the other. This will enable China and Africa to pursue high quality and high standard cooperation for mutual benefit and common development.

Friends,

This year marks the centenary of the birth of Nelson Mandela. Let me quote one of his famous sayings, “After climbing a great hill, one only finds that there are many more hills to climb.” Indeed, the history of BRICS cooperation is a journey of our five countries climbing great hills only to reach new heights. I am convinced that when our five countries forge ahead together, we will scale new peaks, reach new heights, and make even greater contribution to peace and development of mankind.

Thank you

Read full text of Xl’s Speech

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BRICS Summit Portends New Era of Cooperation and Development for Africa and the World

July 27, 2018

Lavrov Welcomes South Africa’s Initiative for Africa at BRICS Summit

July 26, 2018–In an article in the South African magazine {Ubuntu}, published by the Department of International Relations and Cooperation (DIRCO), Russian Foreign Minister Sergey Lavrov said “we support further strengthening of the sovereignty of African countries, their independent choice of the way of development while preserving national distinctiveness….

Sub-Saharan Africa is the most dynamically developing region of the planet, which plays a key role in world mineral and hydrocarbon markets, a broad and rapid-growing consumer market, and one of the most attractive investment areas,” Lavrov said, according to Moscow Foreign Ministry website.

Pointing out that BRICS-Africa Partnership that was launched during South Africa’s 2013 BRICS chairmanship is steadily developing, Lavrov said “we welcome special attention paid by Pretoria to Africa-related issues in the work of BRICS. This area of work is becoming increasingly important for Russian foreign policy as well. Russia has significantly contributed to decolonization processes and the rise of new independent states on the continent.”

Sergey Lavrov: BRICS a Stabilizing Factor in Global Affairs; Focus on Africa is Key

July 25, 2018-An article published in South Africa’s {Ubuntu} magazine, prior to the BRICS summit, Russian Foreign Minister Sergey Lavrov noted the symbolism of the BRICS returning to Africa in 2018, the  100th  anniversary of the birth of Nelson Mandela,– “a prominent political and public figure on a global scale.”

Mandela contributed personally to establishing friendly relations between South Africa and Russia, he recalled, making possible today’s “high-level of a comprehensive strategic partnership.”

Lavrov particularly praised South Africa’s leadership in the BRICS, -“special attention paid by Pretoria to Africa-related issues,” that has become especially important for Russia’s foreign policy. “We support  further  strengthening of the sovereignty of African countries, their independent choice of the way of development while preserving national distinctiveness.”

Of special importance, Lavrov added, is that BRICS countries will foster cooperation with other associations and consolidate positions in international organizations to present a “united front.” The invitation to Argentina, Indonesia and Turkey, plus other African nations, to attend the July 25-27 summit reflects the BRICS-Plus initiative, he explained. “Thus we will expand the global reach of the Group and establish an outer circle of like-minded countries. In this regard, BRICs has good potential to become a unique platform for linking various integration processes in a flexible way.”

Coordination between BRICS and other major international organizations is crucial, Lavrov underscored, since consolidation of efforts “is a key to ensuring world stability and a way to settle serious conflicts.” He particularly referenced how the BRICS-Africa Partnership has advanced since 2013. At the current summit, “a special
outreach session will be held with the participation of the heads of State presiding over regional organizations of the continent in order to focus on its most relevant issues,” he said.

Why India Is Keen To Invest in Africa with China: An Overview

July 26, 2018–Ahead of the 10th BRICS Summit, China’s President Xi Jinping and India’s Prime Minister Narendra Modi had embarked on tours through some African countries. Xi, arriving in South Africa on July 24, pledged $14.7 billion of investment in the country. During a less-than-24 hour visit on July 24, Modi pledged $205 million to Uganda. The sum is intended to help the East African country to develop its dominant agricultural sector and electricity distribution infrastructure.

Both Xi and Modi were in Rwanda earlier this week, where a total of over $300 million was announced in loans. The money will develop the tiny, landlocked East African nation’s agriculture, roads and special economic zones, CNBC reported.

In recent years, both China and India, which have been widely labeled in the West as rivals, have brought to African nations their focus on all-round development, investing to improve their infrastructure, agriculture, education, and technological skills, among other areas.

The reasons why they chose to cooperate and collaborate in Africa’s development are many. For instance, the African nations are most receptive to all actual developmental efforts, large or small. Because of the needs of the African nations, which had all along been looked at only as sources for natural resources consumed by developed nations, every bit of investment made in these nations has a positive effect and is welcomed. China and India consider that providing Africa the ability to develop will bring about a sea-change in the direction and magnitude of global trade.

India is keen to expand its economic relations mostly with Southeast Asia and Africa. For China and India, Africa does not pose any geopolitical threat. Moreover, the better understanding developed between Xi and Modi since their Wuhan meeting last April, enables both of them to work in tandem to improve the living conditions in Africa.

Putin BRICS Remarks Imply Need for New Monetary System

July 26, 2018–Very brief remarks delivered by Russia’s President Putin at the Johannesburg BRICS Summit today (apparently after a leadership meeting), implicitly point to the need for a new monetary system, and the basis which has been created for such a system in the cooperative banks, funds and institutions created by the BRICS, the Belt and Road and China, and the Shanghai Cooperation Organization. Putin’s statement dealt with this. He said:

“We view positively the activities of the [BRICS] Council to implement joint multilateral projects. It is necessary to conduct these activities in close cooperation with the [BRICS] New Development Bank. It is important that the business community should help enhance the Bank’s loan portfolio. “The New Development Bank has considerably expanded its operations as of late. Members of the Board of Directors have approved 21 projects worth over $1 billion, including five that will be implemented in Russia.

“We support the idea of opening regional offices of the Bank. Talks are underway with Brazil on this issue. Hopefully, the possibility of opening the Russian office will be discussed after the talks.

“The establishment of the BRICS Contingent Reserve Arrangement [to support countries under balance-of-payments pressure] deserves praise, and this has become an important mechanism for the prompt financing of our countries’ banking sector…

“In 2017, we met in Xiamen [China] and decided to establish the BRICS Local Currency Bond Fund. This is very important for the development of the financial systems of our states. Therefore, the Fund’s timely initial operations, due to commence in 2019, serve the interests of BRICS.”

BRICS Could be an Alternative Model of Development to Western Dominance

July 25, 2018–In a July 25 article published on the website of the Valdai Discussion Club, entitled “Brics and the World Order,” Georgy Toloraya suggests that the current BRICS grouping, plus other nations that form part of the “BRICS-Plus” structure (not official members) could offer the world “an alternative model of socio-economic development, differing from the West” that is based on “mechanisms of a liberal market or profit gaining…that assumes the dominance of the West.”

Toloraya is the Executive Director  of the Russian National Committee for BRICS Research. He debunks arguments that the BRICS is just a “China-centered structure,” intended only to promote China’s interests or its Belt and Road Initiative. These accusations, he notes, “are very sly statements. The Chinese factor is only one of the BRICS development facets.”

In today’s “turbulent global situation,” Toloraya adds, it is especially important that the BRICS “common denominator” grows. Why? In contrast to the G7, BRICS expresses a “touching unanimity, which is not faked. This is not a mutiny on the ship we see with the G7, when the captain led to one direction while the crew wants to go to another one.” By the time Russia takes over the chairmanship of the group in 2020, he notes, BRICS “could become a united center of the multipolar world…Now BRICS creates its own structure of global governance, and it must develop in that direction. I do not know, whether that could be accomplished in the context of growing counteraction from the West, but we have to keep working.”

Because the BRICS is a global organization, Toloraya concludes, “these five leading ascendant powers could create a world order that will be more just and balanced than what we see now.” It may not expand yet, but “what we see in the BRICS+ format, which is involving the largest countries that are not the group’s members, but show interest in it, is a significant step towards increasing the BRICS value and making this union a representative of the greater part of humanity.” On the eve of the Johannesburg summit, he concludes, BRICS is not {against}, but {for}: for just economic development conditions, for sustainable development concept centered on human beings.”

Rwanda and South Africa Sign Deals With China and India Before BRICS Summit

Xi Jinping Arrives in Johannesburg, South Africa for BRICS Summit

July 24, 2018

China’s President Xi Jinping arrived in South Africa today for a bilateral meeting President Cyril Ramaphosa, to be followed by the July 25-27 Tenth BRICS Summit. As is his custom, Xi wrote an op-ed in the local press before his arrival, titled “For a New Era of China-South Africa Friendship.” In it, Xi began by emphasizing that “Our peoples forged a deep friendship during our common struggle against imperialism, colonialism and racism.” He then wrote:

“Over the past six years, our two countries have worked closely as co-chairs of the Forum on China-Africa Cooperation (FOCAC) to advance the comprehensive strategic and cooperative partnership between China and Africa. Our bilateral ties have thus served as a model for China-Africa relations, for South-South cooperation, and for unity and cooperation among emerging market countries, and offered valuable experience for building an even stronger community with a shared future between China and Africa and a new type of international relations
featuring mutual respect, fairness and justice, and win-win cooperation….

“We must strive for new outcomes in our practical cooperation. We need to promote complementarity between our development strategies, and make full use of bilateral mechanisms, FOCAC-(Forum on China-Africa Cooperation), the Belt and Road Initiative, BRICS cooperation, and other platforms to deepen cooperation in key areas such as industries, production capacity, resources and energy, infrastructure, finance, tourism, and digital economy and deliver more benefits to our peoples.”

On the bilateral front, South African President Ramaphosa announced that the two countries signed “several agreements and memorandums of understanding that are intended to further deepen our relations, including investment commitments that have been struck to the value of $14.7 billion.”

Xi Jinping and Rwanda’s Kagame Sign Multiple Agreements Strengthening Belt and Road Cooperation

Chinese President Xi Jinping met on July 23 with Rwandan President Paul Kagame on the third leg of his tour of Africa and the Middle East, which so far has taken him to the U.A.E. and Senegal. Xi travelled to South Africa today (for the July 25-27 BRICS summit), and he will then stop in the Indian Ocean island-nation of Mauritius on the way back to China.

Xinhua reported that “after their talks, the two heads of state witnessed the signing of multiple agreements on bilateral cooperation in the Belt and Road Initiative and other areas.”

In the meeting with Kagame, Xi stated, according to Xinhua, that “Beijing is willing to work with Kigali to translate their traditional friendship into concrete benefits for the two countries and the two peoples, and open a new chapter in their friendly cooperative relations.” As he has done on his other stops, Xi called on the two countries to “strengthen the link between their respective development strategies, give full play to their complementary advantages, and …cooperation in more areas and at deeper levels.”

Xi told Kagame, Xinhua wrote, that “China welcomes Rwanda’s participation in the international cooperation within the framework of the Belt and Road Initiative, and encourages more Chinese investment in Rwanda to help advance its industrialization and modernization.” Xi also talked about broader China-Africa relations, which “have always been defined by sincere friendship, unity and cooperation. The two sides have become a community with a shared future going through thick and thin together as well as a community with shared interests dedicated to win-win cooperation.”

Kagame, for his part, called China “a reliable friend who shares weal and woe with Africa. Kegame said it is of great importance for Rwanda and Africa to develop friendly ties with China. He spoke highly of China’s valuable assistance for Rwanda in such areas as infrastructure construction, agriculture and education, adding that China’s helping hand has made positive contributions to his country’s reconstruction and livelihood improvement.”

Xinhua further said that Kagame emphasized that “Rwanda is willing to enhance cooperation with China within the framework of the Belt and Road Initiative, which offers a significant opportunity for both Rwanda and Africa. As the [African Union] AU’s rotating chairman, Kagame stressed that China’s long-standing firm support is of great value to Africa’s development. The African side, he said, looks forward to attending the Beijing summit of the Forum on China-Africa Cooperation (FOCAC) in September, and stands ready to jointly push forward the development of FOCAC, so as to generate more benefits for the people of both sides.”

Modi in Rwanda Witnesses Signing of Economic and Defense Agreements

On his way to attend the 10th anniversary BRICS Summit over July 25-27 in Johannesburg, South Africa, the Indian Premier, Narendra Modi, stopped in Rwanda and, along with Rwandan President Paul Kagame, witnessed the signing of seven bilateral pacts at Village Urugwiro, the President’s office in Kigali, by Indian and Rwandan officials, reported Rwanda’s {New Times}.

Prime Minister Modi is the first Indian head of government to visit the East African nation, which is considered an important gateway for India to eastern Africa. Modi is on a three-nation tour, beginning with Rwanda and Uganda, and thence to Johannesburg for the BRICS summit. He arrived in Rwanda just as Chinese President Xi Jinpig was leaving that country.

Agreements in the area of trade, defense, dairy cooperation, agriculture, culture, leather and allied sectors and two lines of credit worth $200 million for expansion of the special economic zone and irrigation scheme were signed, IANS reported.

“During the talks, both leaders reviewed the entire gamut of bilateral cooperation and expressed satisfaction at the excellent relations between Rwanda and India in the overall context of Strategic Partnership,” India’s Foreign Ministry stated. Ties between India and Rwanda were elevated to the level of  Strategic Partnership in January last year, IANS reported.

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It’s Time for Africa

Alignment with China’s development vision heralds a new era of opportunity on the continent

By He Wenping- JULY 5, 2018

A Chinese engineer collaborates with Kenyan workers on the construction of the Mombasa-Nairobi Railway on April 9, 2016 (XINHUA)

As agreed by both China and Africa, China will host the Beijing Summit of the Forum on China-Africa Cooperation (FOCAC) this September. Wang Yi, Chinese State Councilor and Foreign Minister, made the announcement on the sidelines of the Meeting of BRICS Ministers of Foreign Affairs in South Africa on June 4.

The upcoming summit will be themed Win-Win Cooperation and Join Hands to Build a Closer Community with a Shared Future for China and Africa. Wang said China and Africa will endeavor to integrate the Belt and Road Initiative, the 2030 Agenda for Sustainable Development of the UN, the Agenda 2063 of the African Union (AU) and the development strategies of various African nations to create more opportunities for mutually beneficial cooperation, and to open up new prospects for common development.

The First FOCAC Summit was held in Beijing in 2006, and 12 years on leaders from China and Africa will once again gather in Beijing to usher in a new era of Sino-African cooperation. This summit, the third in FOCAC’s 18-year history, demonstrates the value that China places on Sino-African ties and promises to drive the China-Africa friendship to new historic heights.

Proactive attitude

Since Chinese President Xi Jinping proposed the Belt and Road Initiative five years ago, more than 100 countries and international organizations around the world have shown interest, of which more than 80 have signed cooperation agreements with China involving Belt and Road projects. The initiative, consisting of the Silk Road Economic Belt and the 21st-Century Maritime Silk Road, aims to build a trade and infrastructure network connecting Asia with Europe and Africa along and beyond the trade routes of the ancient Silk Road.

Africa is a continent rich in resources with great market potential, but it is in dire need of robust infrastructure. It is proactively participating in Belt and Road construction with other countries along the routes in the hope that its economy can make a leap.

As Wang said when he visited Africa in January, the African continent must be at the heart of the Belt and Road Initiative and must not be left behind by China or the wider world in terms of development.

FOCAC was established in October 2000, 13 years prior to the proposal of the Belt and Road Initiative. China pursues common, intensive, safe, open and green development in its cooperation with African countries, which neatly dovetails with its commitment to innovative, coordinated, green and open development that is for everyone at home. Nearly 18 years of evolution have established FOCAC as a symbol of international cooperation, which allows the organization to provide precious experience to the Belt and Road construction across different regions and fields.

Advancing interconnection

Inadequate infrastructure is a bottleneck that constrains Africa’s economic development. Poor transport facilities and substandard roads have created exorbitant costs in domestic and regional trade, as well as impeding foreign investment.

Financing for Africa’s infrastructure needs faces an annual shortfall of at least $20 billion. In addition, most African countries have a low level of industrialization, and the contribution of industry to their economies is correspondingly small. However, Africa is a continent with abundant resources, low labor costs and great market potential, while China has significant advantages in capital, technology and equipment, as well as a wealth of experience in transforming from an agricultural to an industrial society. At a time when China is undergoing a fundamental phase of economic transition and upgrading, there is plenty of high-quality capacity and advanced equipment and technology available for outward transfer, much of which is ideally suited to Africa’s needs.

Just as the Chinese people harbor the Chinese dream of national rejuvenation, the African people hold the African dream of achieving development and alleviating poverty. Connectivity and industrialization are essential preconditions and the only path toward the realization of this dream. The Belt and Road Initiative can work in harmony with Africa’s development strategy for the 21st century. It can provide new drive for the sustainable development of Sino-African relations and help Africa take a step forward, blazing a new trail for South-South cooperation.

China and the AU signed a memorandum of understanding (MOU) on infrastructure construction cooperation on January 27, 2015. According to the MOU, under the strategic framework of Africa’s 2063 Agenda, China will enhance cooperation with African nations on railways, highways, regional airlines and industrialization to promote African integration. Chinese enterprises have already launched construction projects in these fields in countries such as Ethiopia, Djibouti, Kenya and Nigeria.

For example, the Huajian Group, a shoe producer from Dongguan in south China’s Guangdong Province, began operating in the Ethiopia Oriental Industrial Park at the end of 2011. By the end of 2017, Huajian had become the largest private Chinese investor in Ethiopia, generating $122 million of foreign exchange income and creating 7,500 new jobs for the local population. The company produces over 5 million pairs of women’s shoes each year, accounting for more than 65 percent of the Ethiopian shoe industry’s total exports. On September 1, 2017, the Ethiopian Government awarded Zhang Huarong, Chairman of the Board of the Huajian Group, the honorary title of “Father of Ethiopia’s Industry” for his contribution to the country’s development. Inspired by its success in Ethiopia, the Huajian Group plans to invest in Rwanda, Nigeria and elsewhere in Africa in the future.

The China-built Nyerere Bridge, linking the business area of Tanzania’s largest city Dar es Salaam to the Kigamboni district across the Kurasini creek, is the largest cable-stayed cross-sea bridge in sub-Saharan Africa (XINHUA)

Driving force

At the FOCAC Johannesburg Summit in South Africa in December 2015, China and participating African countries agreed to carry out 10 major cooperation plans in the following three years. The ultra-intensive plans, worth around $60 billion, cover industrialization, agricultural modernization, infrastructure construction, finance, green development, trade and investment facilitation, poverty alleviation, public health, people-to-people exchanges, and peace and security. The foremost of these is cooperation on industrialization to promote the progress of African development. In order to facilitate this, the first China-Africa Capacity Cooperation Fund—worth $10 billion—has been set up, alongside the Special Loan for the Development of African Small and Medium-Sized Enterprises and the China-Africa Development Fund each with a capital of $5 billion.

Industrial cooperation between China and Africa has already begun to bear fruit. As one of the first African countries to join China in international industrialization cooperation, Tanzania has signed a framework agreement with China on supporting key projects of the country’s ongoing five-year plan.

The construction of infrastructure and industrial parks is also making rapid progress. China has assisted Africa in building several railway lines, including one connecting the port city of Mombasa in Kenya to its capital Nairobi, another connecting Addis Ababa, the capital of Ethiopia, to Djibouti, and a third connecting Angola and Nigeria.

As Kenyan President Uhuru Kenyatta said at the opening ceremony of the Mombasa-Nairobi Railway on May 31, 2017, the new line is “one of the cornerstones to Kenya’s journey of transformation to an industrial, prosperous and middle-income country.”

The author is a researcher with the Institute of West Asian and African Studies, the Chinese Academy of Social Sciences, and a senior researcher with the Charhar Institute

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Home

 July 19, 2018

The cooperation between Africa and China is a great success in international cooperation. As the traditional friendship between China and Africa becomes stronger and stronger, there is all indication that China-Africa cooperation shall be more forward-looking.

This cooperation is widely regarded as a major success in today’s international system and is widely regarded as a model of mutually beneficial cooperation with constructive and positive significance. China-Africa cooperation is also a model for South-South cooperation.

As a constructive new model, it has promoted the progress of the African development agenda, helped Africa to industrialize, develop economies, reduce poverty and inject vitality into the overall development of the continent.

The Forum on China-Africa Cooperation (FOCAC) has given Africa an alternative to North-South cooperation. It has given an extra voice for developing countries in the international arena. It is of great significance to the realization of the UN Millennium Development Goals.

The economic complementarity between China and Africa is strong and growing. Chinese companies are very active on the African continent. At present, there are more than 2,000 Chinese enterprises investing actively in Africa. They train workers and solve employment problems, increase local taxes and improve the living standard of the people. China’s investment in mining, infrastructure and telecommunications has given an immediate boost to the development of Africa.

At present, the trade volume between China and Africa has exceeded more than 200 billion U.S. dollars. China helps Africa build infrastructure, invest and open factories in Africa, provides Africa with a large number of high-quality and cheap goods. It also buys goods from Africa to promote its economic development.

The development of infrastructures such as highways, railways, and bridges will help the long-term development of African countries. This is the cornerstone for Africa’s development.

Africa has also significantly benefited from increased exports of raw materials to China where there is strong demand. China has promoted the demand for oil, natural gas and other raw materials, which has a direct or indirect positive effect on the economic development of African export-oriented countries.

Some western opinion advocates that China’s manufacturing industry has affected the development of African manufacturing industry. This statement is actually exaggerated. There is little evidence to prove that China’s manufacturing industry has negatively affected the manufacturing industry in Africa.

In fact, it has supported industrial development as already stated.  The challenge of African industrial development cannot be attributed to China.

In addition to trade and investment, China also provides assistance in other areas for the development of Africa. For example, China helps Africa to enhance its capability of food security and energy security, develop communication networks and improve medical facilities and participates in peacekeeping operations in Africa actively. Through these measures, China has promoted friendly exchanges between two sides and safeguarded peace and stability in Africa.

We foresee a China-Africa cooperation that will establish cooperative relations in various fields of sustainable development to seek a distinctive and high-quality way for win-win cooperation between both sides and to build a stronger, more effective and more sustainable development partnership.

Original article

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“The closest look yet at Chinese economic engagement in Africa”

June 2017
The closest look yet at Chinese economic engagement in Africa

Field interviews with more than 1,000 Chinese companies provide new insights into Africa–China business relationships.

In two decades, China has become Africa’s most important economic partner. Across trade, investment, infrastructure financing, and aid, no other country has such depth and breadth of engagement in Africa. Chinese “dragons”—firms of all sizes and sectors—are bringing capital investment, management know-how, and entrepreneurial energy to every corner of the continent. In doing so they are helping to accelerate the progress of Africa’s economies.

Yet to date it has been challenging to understand the true extent of the Africa–China economic relationship due to a paucity of data. Our new report, Dance of the lions and dragons: How are Africa and China engaging, and how will the partnership evolve?, provides a comprehensive, fact-based picture of the Africa–China economic relationship based on a new large-scale data set. This includes on-site interviews with more than 100 senior African business and government leaders, as well as the owners or managers of more than 1,000 Chinese firms spread across eight African countries1that together make up approximately two-thirds of sub-Saharan Africa’s GDP.

Africa’s largest economic partner

In the past two decades, China has catapulted from being a relatively small investor in the continent to becoming Africa’s largest economic partner. And since the turn of the millennium, Africa–China trade has been growing at approximately 20 percent per year. Foreign direct investment has grown even faster over the past decade, with a breakneck annual growth rate of 40 percent.2Yet even this number understates the true picture: we found that China’s financial flows to Africa are around 15 percent larger than official figures when nontraditional flows are included. China is also a large and fast-growing source of aid and the largest source of construction financing; these contributions have supported many of Africa’s most ambitious infrastructure developments in recent years.

We evaluated Africa’s economic partnerships with the rest of the world across five dimensions: trade, investment stock, investment growth, infrastructure financing, and aid. China is among the top four partners for Africa across all these dimensions (Exhibit 1). No other country matches this depth and breadth of engagement.

Africa’s economic partners, including China, India, France, the United States, and Germany, based on goods trade, foreign direct investment, aid, and infrastructure financing

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“When China Eliminates Poverty in 2020, Beijing Will Have Proved That the Developing World Doesn’t Need US Aid”

June 3, 2018

“No country in history has lifted as large a number of people out of poverty as China has done, beginning in the late 20th century. At the turn of the 1980s, over 88% of all Chinese were living in poverty according to the international definition of having an average daily income of $1.90 or less. Today, China’s poverty rate hovers around 2% of the entire population or 30 million people. This poverty is now entirely confined to rural areas. By contrast, in the United States, poverty while mostly in rural areas, is also spread among impoverished inner-cities…

“While some remain skeptical about China’s ability to eliminate poverty by the end of 2020, the record clearly shows that when it comes to tackling issues of extreme poverty in an extremely short period of time, China is not only able to achieve its goals but is able to do so in ways that put other countries to shame. While the poverty rate in the US has stagnated for decades, with the rate being 12.4% at the end of the 1970s with a slight increase to 13.7% at the end of the 1980s, China has dramatically gone from a state of near total poverty to the brink of eliminating all poverty in that same period.

“With China lifting an average of 13 million people out of poverty each year in the last five years, President Xi’s goal of progressively eliminating poverty for 10 million rural poor each year until poverty is fully eliminated at the turn of 2021, is ultimately a realistic goal, albeit one with seismic implications.”

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African Countries Meet On Using Yuan as Reserve Currency

May 30, 2018–A meeting of seventeen central bank and government officials from 14 countries in eastern and southern Africa met in Harare, Zimbabwe on May 29-30 to discuss the possibility of using the yuan as a reserve currency, Xinhua reported on May 29. The meeting was sponsored by the Macroeconomic and Financial Management Institute of Eastern and Southern Africa (MEFMI). They quote Gladys Siwela-Jadagu, spokesperson for MEFMI, saying that most MEFMI countries have received loans or grants from China and it would “make economic sense” to repay them in yuan. She said that the yuan has become a ‘common currency’ in trade with Africa.    Xinhua notes that China’s trade with South Africa surged by 14.7 percent on a yearly basis in the first four months this year

UN Official Lauds Belt and Road as `Grand Design for the Future’

May 29, 2018 — UN Under-Secretary Shamshad Akhtar, speaking to {China Daily} May 28, praised the Belt and Road Initiative of infrastructure great projects as “an initiative on a more integrated frame, [and] of a scale, that no one has talked about before.” Akhtar is executive secretary of the UN’s Economic and Social Commission for Asia and the Pacific.

“China leads the regional cooperation and the integration of Asia, with its Belt and Road Initiative strengthening intra-and intercontinental ties,” she told {China Daily}, on the sidelines of the Shanghai Forum at Fudan University. “It’s a grand design. Moving the Belt and Road Initiative forward not only connects Asia internally, but bridges it closer to Europe and Africa.”

She said, “Over the years, China’s shift from quietly forging bilateral relationships, to building multilateral and broad.”-based diplomatic structure has underscored its commitment to deepening its footprint in regional cooperation and integration.

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Chinese Engagement, Investment, and Trade With Africa

China’s New Silk Road–Belt and Road Imitative is providing indispensable investment and construction of infrastructure in Africa. Infrastructure development in energy, railways, roads, airports, and water management are critical for African nations to develop their agricultural and manufacturing sectors. Below are excerpts from the report: “The Belt and Road” in Africa 

Read entire report

“China’s close engagement with Africa continued through the succeeding decade and accelerated toward the end of the 1990s and into the 2000s. By 2008, China’s Export-Import Bank was funding more than 300 projects in 36 countries across Africa. The value of bilateral trade increased from US$6.5 billion in 1999 to US$73.3 billion in 2007 (Figure 1). According to the China-Africa Research Institute at Johns Hopkins University, by 2008 it exceeded US$100 billion, and it peaked at more than US$200 million in 2014, before slipping back in 2015 and 2016 in response to poorer global economic conditions. In 2009, China overtook the United States as Africa’s major trading partner. The largest African exporter to China from Africa in 2015 was South Africa, followed by Angola and Sudan. In the same year, South Africa was the largest African market for Chinese goods, followed by Nigeria and then Egypt.”

“In 2015, China investments into African infrastructure projects were three times the sum of those of France, Japan, Germany and India combined (Figure 7). The bulk of Chinese funding has been in the form of government-to-government loans, used then by the borrowing African governments either to develop the project itself, or to leverage it with private capital through a public-private partnership (PPP). As of the date of writing (late 2017), at least 76 PPP projects appear to be in the pipeline in African countries associated with BRI. Not all have values ascribed, but the 14 that do imply a cumulative investment of nearly US$6 billion for them alone. Sixty percent of these projects are in the transport sector.”

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“Ethiopia takes inspiration from China’s success for own development”

Ethiopian attendants walk along a train at the Lebu station in Addis Ababa, capital of Ethiopia, Jan. 1, 2018. (Xinhua/Michael Tewelde)

Ahmed Shide, Minister of Ethiopia Government Communications Affairs Office (GCAO), told Xinhua that China hasn’t only become Ethiopia’s top economic partner but a model for Ethiopia’s economic ambitions.

Learning from Chinese economic growth experience, Ethiopia will have about 15 industrial parks by June, most of them built with Chinese money and expertise.

Ethiopia has also heavily invested with Chinese assistance in road, rail and air infrastructures to alleviate transportation problems for Ethiopia’s exports.

Shide said landlocked Ethiopia has seen China’s success in having an efficient and effective infrastructure to facilitate exports from industrial parks and as such is building a “development belt” to copy the Chinese success story.

The “development belt” will see Ethiopia build industrial parks located along the path of existing or under-construction rail lines to speedily transport products made in industrial parks to ports in neighboring Djibouti.

After reaching Djibouti, the products are then loaded and shipped to their final export destinations including China.

About half of the 15 industrial parks Ethiopia is constructing or has constructed are located along the 756kms Ethio-Djibouti electrified rail line built with Chinese expertise and finances at a cost of 4 billion U.S. dollars.

The rail line which recently started commercial operations has cut transportation time for Ethiopian goods to Djibouti ports from two days to 10 hours, giving a leg up for Ethiopia’s economic dreams of becoming a light manufacturing hub in Africa and middle-income economy by 2025.

Shide said Ethiopia is also looking to further boost ties with China on air infrastructure, as the Asian economic powerhouse is the single largest market for its national carrier Ethiopian Airlines (ET).

ET currently flies to five destinations in China — Beijing, Shanghai, Chengdu, Hong Kong and Guangzhou, and plans to add Shenzhen as its sixth destination in June.

With China working on being an airplane manufacturing center, Shide adds he foresees ET will soon be a customer of fully developed Chinese airplanes.

LEARN MORE FROM CHINA

With Ethiopia utilizing Chinese hard infrastructure expertise and money to support its ambitious economic plans, Gedion Jalata, CEO at Center of Excellence International Consult, an Ethiopian consulting firm, told Xinhua Ethiopia should also be learning from Chinese success in creating a meritocratic bureaucracy.

“China succeeded in bringing out of poverty 700 million people in 30 years not just because it built physical infrastructure, but it worked on its human capital helping create an efficient state bureaucracy, that’s a soft infrastructure Ethiopia should build,” Jalata said.

He said there are simple things the new Ethiopian administration of Prime Minister Abiy Ahmed can do if Ethiopia is to effectively learn from China’s remarkable economic development.

“Ethiopian leadership, just like Chinese leadership, should have the political will, determination and commitment to meet the country’s economic ambitions,” Jalata added.

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“China committed to strengthen relations with Ethiopia”

Chairman of the National People’s Congress of China (NPC) and speaker of the congress, Li Zhanshu, confirmed that his country is determined to strengthen its diplomatic relations and continue its multi-faceted development support for Ethiopia.

On an official state visit in Ethiopia since Wednesday, the chairman met and conferred with different officials of the Ethiopian government including the president, the prime minister and speakers of both the House of People’s Representatives (HPR) and House of Federation (HoF) over bilateral and mutual interest.

Apart from this, the chairman has also signed an agreement of loan and humanitarian assistance.

In this regard, the chairman met with President Mulatu Teshome (PhD) on Thursday to discuss bilateral and regional issues. According to Meles Alem, spokesperson of the Ministry of Foreign Affairs (MoFA), the chairman confirmed that China gives priority to the bilateral ties with Ethiopia and needs Ethiopia to continue its pivotal role in Sino-Africa partnership.

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“Zimbabwe embraces ample cooperation opportunities following Mnangagwa’s trip to China”

Source: Xinhua   2018-04-10

By Zhang Yuliang, Gretinah Machingura

HARARE, April 9 (Xinhua) — Zimbabwean President Emmerson Mnangagwa concluded his five-day state visit to China last Friday, giving substantial impetus to future cooperation between the two nations.

The trip was Mnangagwa’s first outside Africa since taking over from former leader Robert Mugabe last November, and resulted in the two countries deepening political and economic ties.

During the visit, Chinese President Xi Jinping and his counterpart Mnangagwa agreed to establish comprehensive strategic partnership of cooperation between the two countries.

Xi said the Zimbabwean people have started a new journey in building their country since Mnangagwa took office last November.

“As a good friend, partner and brother of Zimbabwe, we are glad to see that,” Xi told Mnangagwa.

When meeting with Mnangagwa, Chinese Premier Li Keqiang said Zimbabwe is an important partner of China in Africa and China will continue to uphold the principles of sincerity, friendship and equality, and bring new vitality to the traditional friendship between China and Zimbabwe.

China is ready to work with Zimbabwe to give full play to the complementary advantages of both economies, innovate cooperation methods and deepen cooperation in infrastructure construction, agriculture, production capacity and human resources, said Premier Li.

On the economic front, China and Zimbabwe managed to strike deals worth billions of U.S. dollars for implementation of various infrastructure development projects in energy, water, transport, tourism and telecommunications, among other sectors, Chinese economic and commercial counsellor to Zimbabwe Li Yaohui told Xinhua.

The two countries also signed numerous agreements to advance economic cooperation, skills development, education and other facets of the economy, the counsellor said.

Among major deals Zimbabwe finalized with China is the expansion of Hwange Thermal Power Station by 600 megawatts by China’s Sinohydro.

Funds for the 1 billion U.S. dollars project, which has been in pipeline for some years now, are expected to be released immediately, the counsellor said.

With this latest deal, China is emerging as the top investor in Zimbabwe’s energy sector after the government, two weeks ago, commissioned another Chinese-built-and-funded power expansion project at Kariba South Hydro Power Station.

The expansion project, which added two 150-megawatt units to the power plant, was also done by Sinohydro at a cost of 533 million dollars.

The expansion lifted Kariba’s installed capacity from 750 MW to 1,050 MW, making it currently the country’s biggest power plant.

The completion of Kariba expansion and implementation of the vast Hwange Thermal Power project will greatly boost Zimbabwe’s power supplies and help the country, which faces perennial power shortages, be energy self-sufficient.

Li Yaohui said that other mega projects sealed by Mnangagwa in China are for the expansion of Harare Robert Mugabe International Airport, construction of a new parliament building, network expansion for Zimbabwe state-owned mobile firm NetOne, refurbishment of Harare’s water treatment plant and construction of a pharmaceutical warehouse, among others.

The two countries also signed a tourism memorandum of understanding and an economic and technological cooperation agreement.

During his stay in China, Mnangagwa also visited Anhui and Zhejiang and met with the political leadership and business communities from the two provinces, Li Yaohui said.

Mnangagwa, who was accompanied by several cabinet ministers and business leaders, said a lot of achievements were made from the state visit. He described the China trip as historic and a resounding success.

“Today, I conclude my first historic visit which will help bring further crucial momentum to our economy. We had many fruitful discussions with political and business leaders in China, including President Xi Jinping, and secured a host of deals which will make a real difference to the lives of Zimbabweans,” he said in a Facebook post at the end of his visit last Friday.

“They will focus on road, rail, air and dam construction projects…” he said.

In its editorial comment Monday, the state-controlled Herald newspaper said Zimbabwe-China ties had hit a new high following Mnangagwa’s visit.

“Major milestones were reached during President Mnangagwa’s meeting with Chinese officials. What is most important is that relations between Zimbabwe and China were elevated to comprehensive strategic status, a move that is set to change the bilateral cooperation between the two nations,” the newspaper said.

Another major milestone that came out of the Beijing visit was the incorporation of Zimbabwe into the Belt and Road Initiative where Zimbabwe stands to reap huge benefits by being part of the select group of countries that China is dealing with under the initiative, the paper added.

“Zimbabweans should celebrate President Emmerson Mnangagwa for convincing the Chinese to make the country a part of such a huge investment that is set to change the face of the world,” the newspaper said.

The trip bolstered Zimbabwe’s efforts to attract foreign investment to revitalize the economy that has been in the doldrums for many years.

Zimbabwe Opposition Campaigns with Anti-China Line

Zimbabwean opposition leader Nelson Chamisa is campaigning for the upcoming elections on an anti-Chinese line. This is not surprising, since on May 8 he will be the featured guest at Her Majesty’s Chatham House/Royal Institute of International Affairs in London. Chamisa tried to say that the Queen personally had invited him to London, which was immediately denied by the British Embassy in Harare.

Chamisa, leader of the opposition Movement for Democratic Change, is quoted in the {Zimbabwe Mail} as saying: “We have seen the deals by Ngwenya [President Emmerson Mnangagwa] and with the Chinese and others. They are busy asset stripping and looting our resources, so I said, beginning September when I get into office, I will ask the Chinese to come in a queue, and interrogate their deals. We will send away all those with bad deals for Zimbabwe. We want genuine investment which will bring benefit for the people, not for the leadership only.”

The {Mail}, however, also quoted China-Africa analyst Cobus van Staden of the South African Institute of international Affairs telling Voice of America: “We’ve seen that kind of populist, anti-Chinese agitation in other African countries, too. The most famous one was in Zambia a few years ago, when [the] late President Michael Sata was campaigning under a similar kind of nationalist, anti-Chinese kind of message. But then, interestingly, after he came to power, that changed very quickly.

Because I think once one is power and one faces the reality of the investment environment and the relative influence of China in the whole world, then it becomes very difficult. That’s kind of campaign talk, I think, more than governing talk.”

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Africa Collaboration With China’s Silk Road is Good for the Continent

March 30, 2018

Nigeria And China Are In Dialogue On The Belt And Road Initiative

–The Round Table Dialogue held recently in Abuja, organized by the Center for China Studies and chaired by Nigeria’s former Foreign Minister and former ambassador to the People’s Republic of China, Alhaji Aminu Wali, discussed the strategy of connectivity across countries, and within countries. The Belt and Road Initiative will spawn an elaborate network of land, rail and maritime transport arteries and industrial clusters along its now-inclusive global routes, Charles Onunaiju wrote in his article, Nigeria and China’s Belt and Road Initiative, published in “The Sun” on March 28.

“The dialogue recognized that the core feature of the Belt and Road, which is essentially connectivity, is at the heart of the contemporary challenge of Africa, and therefore urged Africa in general, and Nigeria in particular, to play decisive roles in the mechanism of the Belt and Road by appropriate policy engagement.”

The Deputy Ambassador of the People’s Republic of China to Nigeria, Li Jing, speaking on that occasion, said “the continent’s development agendas are therefore in synergy with the Belt and Road initiative, and there is no doubt that Africa and Nigeria, through appropriate policy facilitation, could align to the central features of the Belt and Road to advance her modernization and industrialization.”

Belt and Road Initiative and the African Continental Free Trade Area Provide Opportunities in Africa, Says a World Bank Officer

–In an article in the “Daily Nation” of Kenya, Peter Warutere, a communications officer for the World Bank based in Nairobi, said the condition created by the new African Continental Free Trade Area (AfCFTA) and China’s Belt and Road Initiative (BRI) “presents a window of opportunity for African

countries to transform their economies, achieve rapid growth, and create jobs for their burgeoning youth population.”

He also wrote that “Kenya is well positioned to greatly benefit from the AfCFTA and the development of the Indian Ocean maritime route connecting China with the East African coastline.

The gateway to eastern Africa, Kenya should invest heavily in upgrading its infrastructure and industrial capacity. The window of opportunity for it is to become a vibrant industrial and logistics hub for Sino-African trade, investment and exchange.”

Kenya’s Secretary of National Treasury, Henry Rotich, said his government hopes China will help to make Kenya’s Big Four economic agenda a success. The Big Four agenda consists of food security, affordable housing, manufacturing, and affordable health care, Prensa Latina reports. “We want the Chinese private sector to participate in projects related with this agenda,” the Secretary said.

‘Nuclear Could Turn Zambia into a Regional Food Basket’

–That is the plan, by the Zambia Agriculture Research Institute and the Agriculture Ministry, with help from Russia’s Rosatom nuclear agency. An article under that headline yesterday by the African News Agency describes how for Zambia, and most of Africa, nuclear technology can dramatically improve food availability and nutrition on the continent.

An agreement has been signed with Rosatom for the establishment of a Center for Nuclear Science and Technology in Lusaka, which will help prepare Zambia for nuclear power in the future. Zambia suffers power rationing between 8 and 14 hours per day when water is low at its hydroelectric dams. But immediately, the application of nuclear science and technology will be in agriculture.

Crops that are resistant to disease, able to withstand environmental stresses, such as drought, and produce higher yields are developed by using nuclear radiation to change the genetic makeup of plants. Zambia is developing new crop varieties with these characteristics, which will not only improve the nutrition of the population, but also the lives of the farmers.

Nuclear radiation will also be used for preserving food, using radioactive isotopes. This will immediately increase the food supply. A large percentage of the food produced, especially

in developing countries, never reaches the dinner table. For example, 40% of the fish produced globally rots before it can be eaten. Zambia will be able to join the 60 nations in the world that currently preserve food through irradiation.

Other applications of nuclear technology in agriculture will be for pest and disease control, inspection of the quality and quantity of water resources, and soil conservation.

The Zambia Agriculture Ministry is running multiple research projects in various fields to up-shift agriculture. With the Center for Nuclear Science and Technology, they will have new tools

Benin President Wants China To Build Rail Project

–President Patrice Talon of the West African nation of Benin has asked the French giant Bolloré and a local firm to “withdraw” from a rail infrastructure project so that China could take over the project, according to an interview Talon gave to the French business magazine {Challenges}, published yesterday.

Benin and neighboring Niger have been attempting to link the Benin port of Cotonou with Niger’s capital, Niamey, since 2008.

Talon described the Bolloré offer as “lower-end,” saying that “a private investor cannot finance the railway we want alone.” Talon also said that “China has the necessary financial means” to support the project, expected to cost around $4 billion and pointed out that “China has demonstrated its technical know-how” for building infrastructure in Africa.

Joint Projects Are a Testament to Cameroon’s Trust in China, Says President, Visiting Beijing

–Cameroon President Paul Biya is on a three-day state visit to China, and, as President Xi Jinping

pointed out, he is the first head of state to come to China since President Xi’s reelection. The two presidents met yesterday. President Biya stated that relations between the two countries has stood the test of time, and that China has become one of Cameroon’s strategic development partners. Without listing all of their specific joint projects, President Biya said that they are a testament to the trust that Cameroon has in China.

This afternoon, Biya met with China’s top legislator, Li Zhanshu, of the Standing Committee of yhe National People’s Congress, during which they discussed further bilateral relations in the future. Li said China is willing to have more friendly exchanges with Cameroon’s parliament, and expressed hope that both countries would support each other on political issues. More people-to-people exchanges were also discussed.

In turn, Biya “spoke highly of China’s foreign policy,” Xinhua reports, and said he appreciated China’s long-term support for Cameroon.

Africa Should Learn From China, Advises South African Scientist

–Africa should learn from China’s rapid advances in education, science, and technology to solve socio-economic challenges, said South African scientist Neil Turok. He is the founder of the African Institute for Mathematical Sciences, and director of the Perimeter Institute for Theoretical Physics in Canada. Turok made his remarks yesterday at the opening of the Next Einstein Forum, being held in Rwanda. There are about 1,600 participants at the conference, which takes place March 26-28, and at least half are under the age of 42, {xinhua} reports.
“China has invested heavily in education, science, and technology,” the scientist said, “and the results are amazing. China is emerging as a new global science and technology powerhouse.” He called upon all African countries to focus, prioritize, and promote science and technology for solving economic challenges.

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“Why the West Should Stop Complaining and Start Engaging China in Africa”

This article makes the essential point that I have made for many years. If the US would collaborate with China and join the One Belt-One Road, great advances would be accomplished in the economic development of Africa.  (see emphasis at end of article)

China is here to stay, and Western and African countries alike should make the most of it.

Pippa Morgn, The Diplomat

March 20, 2018

Ethiopia is one of the world’s poorest states, with an annual per capita GDP of just $707. Yet Addis Ababa is awash with billboards for Chinese construction firms, and China’s presence is palpable all over the country. Is “neo-colonial” China “out for oil” yet again?

In Ethiopia, that explanation just doesn’t add up: the country has virtually no oil, gas, or other precious minerals.

Fortunately, while the media and politicians seem stuck on uninformed accusations of neo-colonialism, some Western investors are starting to make the most of China’s growing presence. In Ethiopia’s Hawassa Industrial Park, the crown jewel of its industrial policy, the largest jobs provider is PVH – the U.S. owner of major global brands such as Calvin Klein, Tommy Hilfiger, and Speedo. Eco-friendly Hawassa was built by a Chinese company, the state-owned China Civil Engineering Corporation (CCECC), in just nine months. And, of course, PVH and other global investors could not run their businesses –and create thousands of coveted manufacturing jobs – without the railways, roads, and power stations that China is constructing all over Ethiopia.

There are also encouraging signs at the local level that, instead of pointing fingers at each other, China and the West can work together to deliver development aid. While the majority of Chinese funds go to hard infrastructure, traditional Western donors prefer social “soft” sectors. This makes them complements, not rivals. Ethiopia is eager for roads and railways, but it also   needs a better-trained, healthier workforce. Take Ethiopia’s new railway academy, designed to educate a fresh, local generation of engineers and workers: China is funding and building the school’s physical infrastructure, while the World Bank and European institutions are helping with curriculum development and business planning.

Turning “Made in China” to “Made in “Ethiopia”

History shows that (without massive oil reserves) industrialization – working up from cheap, lightly manufactured products to technically sophisticated products – is the only way to develop quickly. Factories offer an escape from unproductive and grueling subsistence farming into modern jobs with regular wages. Japan, South Korea, and later China all owe their economic success to this model, and Ethiopia’s government hopes to turn “made in China” to “made in Ethiopia.”

But industrialization needs more than cheap labor (which Ethiopia has in abundance) and the good governance that Western donors strive to instill. Investors desperately need roads, electricity, water, and the internet. With traditional Western partners either unwilling or unable to fund these at scale, and low tax revenues due to the country’s poverty, how else can the Ethiopian government build the basic infrastructure that we take for granted in the developed world? Without Chinese help, Western money for training and other “soft” sectors is sinking money into a black hole, and Ethiopia risks being “too poor to develop” –condemned to survive on subsistence agriculture and international handouts.

Ethiopian officials stress that they take the lead in dealing with China. They lament that Western aid (although well intentioned) is frankly “not enough.” Ethiopia, which has ambitious plans to escape poverty and become a middle-income country by 2025, does not have time to waste.

What’s in it for Beijing?

But is China a trustworthy partner? Beijing claims its aims are “win-win” rather than “neocolonial,” but what is China’s “win”? Like the United States after World War II, China seems to realize that providing global public goods is in its own interests. In Ethiopia, an important African hub for the Belt and Road Initiative (BRI), China secures important diplomatic gains and lucrative business opportunities…

Chinese business interests are also at play. Official loans are tied to the use of Chinese contractors, creating lucrative revenue streams. Fresh from “building China” over the past 40 years, Chinese state-owned enterprises (SOEs) are experts in cheap, fast infrastructure. They’re also eager for new opportunities as domestic growth slows. For example, the multi-billion dollar Addis-Djibouti railway was built by the state-owned China Railway Group and China Civil Engineering Construction Corporation, who later won a multiyear contract to operate the new line.

Why Engagement Not Estrangement is the Key

So is this really “win-win” for everyone? On the one hand, the commercial rates of many Chinese loans make debt sustainability a huge concern. To pay back what it owes, and eventually stand on its own feet, Ethiopia is in serious need of more tax revenue. So, if it fails to grow as quickly as hoped, Western warnings of a mountain of unsustainable debt may prove right. Ethiopia could end up like 1980s Latin America, where countries spiraled into crisis when they could no longer pay their foreign debts.

But, while there’s some dispute over the numbers (IMF estimates are slightly lower than the official figures), Ethiopia’s economy is widely agreed to have been growing at around 10 percent for the past decade – a phenomenal achievement. Given the extraordinarily low starting base, it’s unlikely to slow down soon. Businesses in Ethiopia’s industrial zones cite the continually improving infrastructure as one of the country’s main draws, and both Chinese and international firms plan to expand in future. For Ethiopia’s booming young population, this means yet more coveted industrial jobs…

How much more might be achieved if Beijing and the West proactively worked together across the whole African continent?  Much of the media and political discourse seems unable to accept that China’s role is equaling – or even surpassing – that of the West…

Read entire article in The Diplomat

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“China’s Inroads into Africa Trigger Envy and Allegations”

By Mark Kapchanga

Globaltimes.cn 2018/2/20

Allegations of spying and surveillance pop up every day on the global political stage. They are, however, not always true but driven by malice. A database compiled by the Union of Concerned Scientists shows that as of August 2015, there were 1,419 active satellites in orbit around the earth mainly used for the collection of intelligence.

From time immemorial, revelations of spying always provoke outrage. In his famous treatise The Art of War, Chinese general Sun Tzu says: “Enlightened rulers and good generals who can obtain intelligent agents as spies are sure to make great achievements.”

As recent as 2016, new documents made public by Wikileaks revealed that the US spied on German Chancellor Angela Merkel’s private conversations with world leaders. The secret files showed that the National Security Agency listened in as Merkel had private conversations with other European heads of government and with former UN secretary-general Ban Ki-moon. But even before the dust settled on this accusation, in late 2017 Berlin claimed Beijing was using LinkedIn to infiltrate political and business circles in Germany. The assertion followed claims from a German intelligence service that 10,000 of its citizens were targeted by Chinese spies, an allegation that China refuted.

In most cases, allegations of spying and surveillance cause strains between countries, and at times, even sever diplomatic ties. Informed that such claims can create a rift between regions, a French paper Le Monde carried a story on allegations that China has been spying on African Union headquarters in Addis Ababa for six years. In what appears to have been a manufactured story, Le Monde spoke to a number of anonymous sources, who said the alleged transfer of data was taking place at night. The story went further to say the alleged data transfer had been taking place since 2012, when the building was opened.

Trade between China and Africa has been rising thanks to policy benefits from a cooperative plan laid down by Chinese and African leaders in South Africa in 2015. At the summit, President Xi Jinping announced plans to invest $60 billion into African development projects, saying it would boost agriculture, build roads, ports and railways and write off some debt. 

As an example of strong relations between Africa and China, trade between them rose by 16.8 percent to $38.8 billion in the first quarter of 2017. On the other hand, China’s non-financial direct investment in Africa expanded by 64 percent in the first quarter of 2017 as countries such as Djibouti, Senegal and South Africa all saw a more than 100 percent rise in the quarter. 

The negative reportage about Sino-African relations by Western media has also been fueled by envy due to strengthening ties. The ambitious global trading strategy, known as the Belt and Road initiative, which appeared to be gaining traction recently, particularly in parts of East Africa where major infrastructure and defense projects are being built, is also likely to buoy China’s growing investments in Africa. The spying allegations are not the first media story being published by Western media with the aim of creating a gulf between Africa and China.

While free media is desired in any economy, there needs to be a sense of responsibility and professionalism in the practice. China’s presence in Africa has had its challenges no doubt. But Western media cannot spend acres of editorial space criticizing China for “increased corruption in Africa, for exploiting Africa’s natural resources, for environmental degradation, poor wages for employees, among others.”

In particular, the media has become obsessed with the claim that Chinese firms are winning mega tenders in African countries by paying bribes. This is absolutely not true. Chinese firms have not only shown that they qualify to execute these major infrastructural projects but they have also shown their unrivaled muscles in completing them in record time at a relatively low cost.

Perhaps it is now time that the Western countries upped their games in investing and trading with Africa if they are to compete favorably with China in Africa. Claims that Chinese firms bribe locals to win tenders are utterly false. Crucially, media should engage in constructive reporting for posterity.

The author is a researcher and expert on China-Africa cooperation based in Nairobi, Kenya. Follow him on Twitter:@kapchanga. opinion@globaltimes.com.cn

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Africa Is  Natural Partner of China in Maritime Silk Road

Jan. 29, 2018–“The African continent was part of the ancient maritime Silk Road and now is in a good position to be China’s natural partner,” said He Wenping, Director of Africa Studies at the Chinese Academy of Social Sciences, portraying the Belt and Road (BRI) activities in Africa, on the sidelines of the just-concluded African Union Summit.

In South Africa alone, there are more than 300 Chinese enterprises, half of which are major and medium-sized businesses, investing $13 billion in electronics, automobiles, financial information network infrastructure, and construction engineering, said a report compiled by the South Africa-China Economic and Trade Association in 2016.

Despite fears, frustrations, and challenges from unexpected hardships, misunderstandings, and cultural conflicts, China is accelerating the advancement of its all-around cooperation with Africa, He Wenping continued. It is expected to set a good example of deepening regional cooperation for the so-far reluctant Western countries. “BRI deserves to be a platform for the overall exchange and intensified cooperation between China and the world,” she urged.

Germans Invited To Invest in Zambian Infrastructure

Jan. 29, 2018–During an encounter with Stefan Liebing, the chairman of the German Africa Association, in Berlin on Jan. 17, Zambia’s Ambassador Anthony Mukwita presented a document titled “Zambia’s Investment Project,” which had been prepared by the embassy.

“This document contains areas that are ripe for investment in Zambia which you must share with your membership in Germany,” said Mukwita to Liebing.

The areas of possible investment he presented include: construction, agriculture, energy, transport, and tourism, to mention but a few. The Zambian diplomat urged German business to take full advantage of Zambia’s invitation: “Our President H.E. Edgar Lungu is keen to see a reduction in poverty and rise in GDP via foreign direct investment; our peace, stability and predictability, including ease of doing business, continues being a great ingredient of attracting business.” Liebing expressed confidence of stepping up business with Zambia.

German-Zambian contacts were continued at a meeting with leading officials of the Canadian Bombardier rail-tech firm on Jan. 27.  Bombardier Head of Rail for Africa Christian Bengtsson told Mukwita that a functioning railway grid is required for transportation of goods and services in order to enhance economic growth in Zambia. A memorandum of understanding was already signed in 2016, but not much has happened since, because no financing has been made available by the German government or private banks. The Zambian project would be crucial for Bombardier, which, for lack of new contracts in Germany, has been considering reducing its workforce in Germany from 8,000 to 6,000, also by selling the railcar-producing unit in Görlitz.

Bombardier, whose transportation headquarters is in Germany, has carried out feasibility studies on Zambia Railway’s 900-km network, half of which needs to be refurbished. Once the railway is replaced and railcars are purchased, the company is expected to create 5,000 jobs and increase its cargo transportation (mostly iron ore and other minerals) from the current 700,000 tons to about 5 million tons annually, and eventually 8 million tons.

China’s Belt Road at Davos World Economic Forum

Jan. 28, 2018–Under the above headline, the {New York Times} journalist Keith Bradsher bemoans the fact that, like it or not, it was China’s New Silk Road that dominated the Davos World Economic Forum, not the efforts by many to demean the Belt and Road Initiative as merely China’s effort to “spread its influence” and to “bury the recipients in debt and cause considerable environmental damage.”

Under a picture of a smiling Liu He, Xi Jinping’s top economic advisor who gave China’s keynote speech at the Forum, Bradsher acknowledges that that Liu He’s presentation was “one of the best-attended speeches,” and that throughout the Forum, the Belt and Road was the leading subject of discussion.

“At one end of town, President Michel Temer of Brazil welcomed an unexpected offer from Beijing for Latin American nations to work closely with a Chinese initiative,” writes Bradsher. “At the other end of town…, Pakistan’s Prime Minister Shahid Khaqan Abbasi used his talk to praise the rapidly expanding Chinese investments in his country, including to build power stations and a large port…. National leaders seemed to vie with one another in Davos in calling for closer cooperation with China.”

“The China One Belt, One Road is going to be the new WTO — like it or not,” Joe Kaeser, the chief executive of Siemens, told the {Times}.

But China’s actions were not limited to Davos, Bradsher notes. “On Friday, the Chinese government used a policy document issued in Beijing to call for a Polar Silk Road that would link China to Europe and the Atlantic via a shipping route past the melting Arctic ice cap…. At a summit meeting for Latin American and Caribbean foreign ministers in Santiago, Chile, Foreign Minister Wang Yi of China called for close cooperation and participation by the regions countries.”

Belt and Road ‘Heatedly Discussed’ in Davos; ‘China Is Committed to Providing Solutions to World Problems’

Jan. 27, 2018– As reported in the Chinese Foreign Ministry website, a journalist asked spokeswoman Hua Chunying about China’s role in building a common future for the world which they characterized as s “heatedly discussed” in Davos. “Considering that the theme of this annual meeting is ‘Creating a shared Future in a Fractured World,’ what do you think of China’s role in promoting common development and building a common future for the world as the second largest economy?”

Hua Chunying answered by recalling that “the international community still remembers President Xi Jinping’s keynote speech at the WEF annual meeting last year. President Xi evaluated the world economy and came up with his prescription, gave an in-depth analysis of global pressing problems and put forward major proposals to promote the re-balancing of economic globalization, which still has broad and far-reaching influence in the international community.

“China’s contribution to the development of the world is embodied in many aspects. China’s economic growth has injected a strong impetus into the world economy. In 2017 alone, China’s foreign investment reached $120 billion and it imported goods worth 12.46 trillion yuan, which provided a vast market and ample investment and development opportunities for all countries. It is safe to say that  China is the stabilizer and engine of the world economic growth.

“China provides popular public goods for international cooperation. China’s Belt and Road Initiative is one of the most popular international public goods for today’s world, pointing out new directions for improving global governance and providing a new model for international cooperation. The first Belt and Road Forum for International Cooperation hosted by China last year [in May 2017] has produced more than 270 fruitful outcomes.

“China is committed to providing solutions to the world’s problems. We have been attaching great importance to implementing the 2030 Agenda for Sustainable Development, actively responding to the challenge of climate change and making remarkable progress in pollution prevention and treatment. Last year, 10 million people in China were lifted out of poverty. By taking these concrete actions, China has made tangible contributions to meeting global challenges and realizing common development.

“At present, China’s economy has shifted from a phase of rapid growth to a period of high-quality development. We believe this will surely provide more and more positive energy to the common development of the world and the building of a common future,” she said

China Is Working on “the post-high-speed rail age;” Has In-Depth Development Program for Maglev Trains

Jan. 27, 2018–An entire generation of medium- to low speed maglev trains that can run at a maximum speed of 160 kmh, is being developed in China, with plans to operate 5 to 12 magnetic levitation rail lines in cities including Chengdu, Wuhan and Guangzhou by 2020. Altogether 12 Chinese cities, including Tianjin, Hangzhou and Shenzhen, are planning to launch maglev services by 2020, especially between their city center and airports, the city and suburban areas, and the city and surrounding counties.

Sun Bangcheng, deputy director of CRRC Industrial Research Institute, explained that this project is one of 18 national key research and development plans set by the Ministry of Science and Technology in 2016, researching both high-speed passenger and freight trains. The project will be completed by 2021 at a total investment of over 9 billion yuan ($580 million). The project includes six types of trains — three for freight, one high-speed passenger train, and two types of maglev trains. Freight trains with speeds of 250 kmh can transport seafood from Haikou in South China’s Hainan Province to Beijing in north China in one day, according to a project officer at CRRC.

Research into maglev includes a train that can reach 600 kmh and another that travels at 200 kmh. Research is to prepare for “the post-high-speed rail age” in technology, said Sun. The cost of a 600 kmh maglev train is almost the same as a 400 kmh version. The first Chinese-made high-speed maglev train will roll off the operation line in 2018, the report said. Design and construction will begin immediately. A sample carriage will be built in 2018, and a complete train will be ready for a 5-km test run in 2020, said Ding Sansan, deputy chief engineer of CRRC Qingdao Sifang Co.

Chinese Economic Policy Came Out of Study of Great Depression, 2008 Crisis

Jan. 27, 2018– Chinese economist, Liu He, in 2013, in his position as Deputy Director of the Development Research Center of the State Council conducted a comparative study of the 1930s Great Depression and the 2008 crisis. In a report on their conclusions he wrote: “After the outbreak of the crisis, we have been pondering over the possible period of the crisis, its possible international influence and our countermeasures. Since the Industrial Revolution, the crisis of the capitalist world has been frequent. In the 20th century, The Great Depression and the current international financial crisis were the two most widespread and devastating ones. Starting in 2010, we started to carry out a comparative study of the Great Depression of the 1930s and this international financial crisis. Except for Central Government In addition to co-workers, researchers from People’s Bank of China, China Banking Regulatory Commission, the Chinese Academy of Social Sciences, National Research Center and Peking University were also invited to participate.”

The following three conclusions were listed as the principle results of the report.

First, grasp the major changes in the connotation of the period of strategic opportunities in our country and seek the maximum intersection of China’s interests and global interests. The conclusions of the comparative study can tell us that the connotation of the strategic period in which we are located has undergone significant changes. In the economic sense, before the crisis, China’s strategic  opportunities mainly represented the expansion of overseas markets and the inflow of international capital. China seized the opportunity to become a global manufacturing center in one fell swoop. After the crisis, the world has entered a long process of insufficient aggregate demand and de-leveraging. Our strategic opportunities are mainly manifested in the tremendous stimulating effect of the domestic market on the global economic recovery and the opportunities and foundations of technology mergers and acquisitions in developed countries, their facilities and investment opportunities. We should firmly grasp these substantive changes, conscientiously analyze the enormous intersection of interests that have emerged with the new historical conditions in our country and the major economies, and clearly propose a solution to the global dilemma of growth. We will steadily implement the plan when the external conditions are clear.

Second, we should avoid moving to an over-indebted economy and attach importance to regulating and controlling financial fluctuations. We must uphold the essential requirements of

financial services for the real economy. The departure of the U.S. financial industry from its core service function has become the perpetrator of the global financial crisis. This is related to the abandonment of the traditional value of the industry by the U.S. financial industry and excessive pursuit of wealth and innovation. The good performance of the German economy in this crisis is closely related to Germany’s conservative financial tradition and the fact that the financial industry can operate soundly. Various effective measures should be taken to both improve the business environment of the real economy, consolidate the foundation for the development of the real economy,  and to curb capital from empty money-making-money schemes so as to prevent excess self-circulation and inflation in the fictitious economy.

Thirdly, in the process of establishing a new global economic governance structure, the active participants should become  leading policy shapers. Against the backdrop of accelerating changes in global power and the drastic changes in the global economic governance structure and in finding a new equilibrium, China should play a similar role to the United States in taking the initiative in shaping an international new system as a “creditor country” after World War II, China’s overall national strength and rising international competitiveness are favorable conditions for accurately judging the reality and trend of the international situation, clearly defining the interests of our country, breaking through existing institutional frameworks set by Western countries to reflect and convey the interests of our country Unanimously and with the Chinese characteristics on the global economic and financial governance and major international issues of the core ideas and propositions, set the “China agenda”, the introduction of “China program” to strengthen international personnel training and accelerate the institutionalization of China’s international rights and eventually secure the future.

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China Remains Committed to Africa’s Development

Jan. 14, 2018–Chinese Foreign Minister Wang Yi visited Rwanda and Angola over the past two days, the first of four African nations he will visit on his first trip abroad in 2018. With Rwanda assuming chairmanship of the African Union for 2018 at the end of January, Wang discussed with Rwandan Foreign Minister  Mushikiwabo and Pres. Paul Kagame, preparations for this year’s summit of the Forum on China-Africa Cooperation (FOCAC). The aim of the summit will be to “dovetail China’s Belt and Road Initiative with African countries’ development strategies, thus boosting industrialization and modernization, and raising the comprehensive strategic partnership between China and Africa to a new level,” Xinhua reported as Wang’s message.

FOCAC, joining the 52 African nations, China and the African Union, has held a summit every three years, alternating between Beijing and an African capital, since its founding in 2000. A three-year action plan between China and the African countries is adopted at each summit. Beijing hosts the FOCAC summit in 2018.    At the conclusion of his visit to Angola today, Wang told a joint press conference with Angolan Foreign Minister Manuel  Augusto, that China will continue to support Angola in its efforts to diversify and modernize its  economy through “accelerated industrialization … on behalf of peace and unity on the African continent,”  Angolan media reported.  Wang also stressed that China is not concerned about Angola’s debt, and Domingos Augusto reported that they had discussed mechanisms to make the debt sustainable without interrupting current and future projects which require a financial cushion.

Angola’s foreign debt is over $40 billion now, much of it owed to China. With the price of its major export, oil, still low, Western bankers talk of Angola’s “debt crisis.”

Xinhua reported that Wang discussed the debt in response to a reporter raising the Western canard that “China’s financing has increased the debt burden of African countries,” and carries political conditions attached. Wang was blunt: “Such a claim, which is made with ulterior motives, is an outright false accusation…. China’s financing is in response to Africa’s demands for self-development. A country has a huge need for capital in its primary stage of economic take-off and industrialization and Africa is no exception,” he said. He added that “China also passed through this process; these are temporary problems,” as reported by Angolan media.

Furthermore, China does not attach political conditions. “Like African countries, China also had memories of a bitter past when, with its economic lifeline controlled by foreigners, it was unfairly treated and even exploited and oppressed. Therefore, when providing aid to and engaging in cooperation with Africa, China will not repeat what Western countries did and will never impose its own views on others.” China follows the principle of mutual benefit and win-win results, Wang stated.

China will continue to do its part in helping Africa develop itself, Wang concluded, citing two Chinese sayings: “only the feet know if the shoes fit,” and “people have a sense of natural justice.” The African people are in the best position to decide who is Africa’s true friend and most reliable partner.

In its Third Year, AIIB Will Expand Lending to African and South American Nations

As the Asian Infrastructure Investment Bank (AIIB) enters its third year of operations, its President Jin Liqun explained in an interview with the {South China Morning Post} that in the coming year, it intends to expand lending and operations to South American and African nations, as well as further into the Middle East as soon as that is possible.

Jin noted that with “quite a number” of South American nations joining the Bank, it will be a good idea to finance some middle-income projects in South America to “bring South America and Asia together,” and reduce transaction and shipping costs.

But, he stated, “I would also pay attention to supporting African member countries. Asia is developing quickly, but it cannot sustain itself well without collaborating closely with African countries.” Jin emphasized that the  geographical scope of the Bank’s activities makes clear its role “in pushing broader-based social and economic development in the member countries in which we invest.”

Responding to the claims from some quarters that the Bank is merely an instrument of China, Jin said quite the contrary is true. China “is committed to building the Bank into a multilateral development institution with 21st Century governance.” The AIIB is separate from the Belt and Road Initiative (BRI), he said, but that it is inescapable that some projects in which the AIIB is involved would be connected to the BRI, simply because of the scale of this global development project, which covers 60 countries across multiple land and maritime corridors.

Jin Liqun was emphatic that China strictly adheres to the Bank’s principle of multilateralism and internationalism. “There has never been any interference by the Chinese government in the decision-making process.”

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China Shares Its Development with Africa & the World

Below are excerpts from a speech by Prof. He Wenping discussing “President Xi’s Perspective for the Year 2050 and the Perspective of African Development.”

Germany, November 25, 2017

The Industrialization of Africa

“Let’s quickly go to the One Belt, One Road: This is just what I call—this is not official, it’s what I call it—I think this is a 1.0 version of One Belt, One Road, because all those things you see, the Maritime one and the Silk Road continental one, go through 64 countries. In this 1.0 version, only Egypt is from Africa, among these 64 countries. But now, I think One Belt, One Road is entering 2.0 version—that is, now facing all the countries in the world. As President Xi Jinping mentioned to  the Latin American countries, “you are all welcome to join the Belt and Road.” In the Chinese “40 Minutes,” Xi said, all the African continent is  now on the map of the One Belt, One Road, the whole African continent, especially after the May Belt and Road Summit in Beijing had taken place.

“So now, its face is open to all the countries in the world, now it’s inclusive. Any country that would like to join, I would like to say. You see, these are two leaders in the world: People are saying “America First” is the idea. You see from abroad, Trump in the White House saying, “America First.” If anything is not too good for America, it’s not good at all. But, for President Xi Jinping, the One Belt, One Road is to make the world better. It’s not, “make China better,” because with all this Belt and Road, the Chinese foreign exchange reserves, we’re now enjoying the number-one highest foreign exchange reserves in the world.

“So, we’re going to use those foreign exchange reserves to build all those roads—connectivity! Connect China and other countries to join together, to build trade. And there are three connectivities we are talking about: First is the policy connectivity, China’s One Belt, One Road initiative is relevant to countries, their own development strategy. For example, Ethiopia.   Ethiopia has now been named as the “next China” on the African continent. It’s not my invention, these words—many scholars have been published talking
about which country in Africa is going to be the China in Africa, which means, developing faster! Faster and leading other countries forward. Most of them refer to Ethiopia.

” Ethiopia has now reached an GDP growth rate, last year, as high as 8%, but the whole rest of the continent, especially the oil rich countries, are suffering from lower oil prices. So they have developed an industrialization strategy; their strategy and the China strategy should be connected. One is called the policy connectivity.

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China Moves Quickly To Support  Zimbabwe Ally: Sends Special Envoy

         China’s Assistant Foreign Minister Mr. Chen Xiaodong, arrived in Zimbabwe today as China’s Presidential special envoy to meet with the new government. He has already met President Emmerson Mnangagwa. China pledged to broaden its cooperation with Zimbabwe’s new administration to quicken economic development in the country.  Chen also delivered a special invitation from Chinese President Xi Jinping to President Mnangagwa to visit China at a convenient time in the future.

“In our talk, President Mnangagwa and I agreed that, going forward, our two sides will continue to maintain high-level exchanges, deepen communication, enhance mutual political trust and carry our traditional friendship forward,” said Chen.

“The second point is: we are going to enhance the development strategy alignment between our two countries to ensure our practical cooperation will go deeper and broader, so as to inject more impetus to economic development and the people of Zimbabwe’s livelihood improvement. Thirdly, we will enhance solidarity and coordination in dealing with international affairs and jointly uphold the common interest of developing countries. We both have confidence in the future development of our bilateral relations.

“My mission is to convey the message of Chinese President Xi Jinping to His Excellency President Mnangagwa to demonstrate China’s support for the people and the new administration of Zimbabwe; to exchange views on deepening our traditional friendship and enhancing our cooperation in various fields.”

“President Xi Jinping congratulates President Mnangagwa on assumption of office in his message,” he said. “The President emphasizes that China and Zimbabwe are good friends, good partners and good brothers who have understood and supported each other over the years, and our relations have withstood the test of time, as well as changes in international situations.

“China firmly supports Zimbabwe in pursuing a development path suited to its national conditions, and believes that the government and people of Zimbabwe have the wisdom and capability to manage their internal affairs well,” he said.

“President Mnangagwa said the government and people of Zimbabwe will not forget China’s support of Zimbabwe over the years, and that the government and people of Zimbabwe will not forget the precious support of China to Zimbabwe in critical moments in the development of the country, and fully appreciated the mutually beneficial cooperation between the two sides,” said Chen.

“President Mnangagwa also emphasizes that the Zimbabwe side attaches high importance to the development of our bilateral ties and that China will become his first stop outside of Africa.”

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Will Pres. Trump Lead the US Into Cooperation With China’s Silk Road?

Despite the controversies surrounding President Trump, if he leads the United States into closer cooperation with China’s New Silk Road, a keystone policy of President Xi, then the potential for global economic development will be advanced. It appears from the meetings between Presidents Trump and Xi last week in China that there was progress in this direction.

{Global Times} Op-Ed Proclaims, ‘U.S. Participation in Belt and Road Inevitable’

November 14, 2017– This is the headline of an op-ed yesterday by Wang Yiwei, director of the Institute of International Affairs at China’s Renmin University, writing in {Global Times}. He says that the trade deals from President Trump’s official visit to China “will enable the U.S. to better grasp the potential and prospects for economic cooperation. Against this background, it is time for the U.S. to reconsider joining the Belt and Road Initiative, which offers wider space for cooperation.”

“Sino-U.S. cooperation on the Belt and Road Initiative will not only benefit economic and trade ties, but also shape the trajectory of a new mode of major-country relationship and the world in the next 50 years,” he writes.

“Although the U.S. has not announced it will take part in the Belt and Road, it already has connections with it,” he continues. This is the case in part because standards, rules, capital, technology, and personnel in projects are global, and also because U.S. companies are already involved.

He recommends that the two countries could work together on infrastructure, perhaps first in developed countries, such as regional cooperation in in the U.S. Midwest, and also on military resources; a challenging proposal. Defense Secretary Mattis has said that 19% of U.S. military facilities are idle, Wang reports.

These facilities could be developed by Chinese enterprises, he suggests. Cooperation could also be strengthened in the Maritime Silk Road context, regarding navigation, logistics, and maritime industry.

The U.S. and China could establish a “global infrastructure investment bank,” alongside global interconnection and global development programs. He concludes that such initiatives “will serve the two nations’ interests and benefit the world. What’s more, functional participation and constructional cooperation has always been what Trump aims for.”

Progress Report on the Chinese Economy: High-Tech Manufacturing Is Growing at 13.4% Per Year

Xinhua reported Nov. 13 on third quarter 2017 results for the Chinese economy, as presented by Zhang Liqun, researcher with the State Council’s Development Research Center.

Although the reported growth rates are for GDP measured in monetary terms, in the case of China these numbers undoubtedly track closely with actual physical economic processes–which is emphatically {not} the case in the trans-Atlantic sector, where GDP includes every form of speculative insanity, drugs, and whatnot.

The year-on-year overall growth rate in China for the first three quarters of 2017 was 6.9%, which was higher than expected.

Most interesting is that “the high-tech and equipment manufacturing sectors posted stellar growth in the first three quarters, with output up 13.4% and 11.6% respectively,” Xinhua reported. Investment in high-tech manufacturing rose even more dramatically, by 18.4%, up from 11.7% for the same period in 2016.

Job creation is correspondingly strong: China created almost

11 million jobs in the first three quarters of 2017–300,000 more than the same period last year. Official unemployment in Chinese cities stands at 3.95%, the lowest level since 2008.

The Xinhua article also quoted the chief economist at the Bank of China, Cao Yuanzheng, who said that it is of vital importance to contain financial risks, including “countering debt, shadow banking and asset bubbles.” Even Moody’s had to admit, in a recent research note, that “a stronger policy focus on financial sector regulation should continue to restrain the growth of shadow banking activities, help mitigate asset risks for the banks, and address some key imbalances in the financial system.”

On poverty reduction, which is the central concern of President Xi Jinping and the entire national leadership, Vice Premier Wang Yang presided over a meeting of the State Council’s group on poverty reduction on Nov. 13. Wang emphasized that they had to be focused on “enhancing a sense of mission and crisis awareness, and targeting problems to fulfill the Party’s promise to the Chinese people and the international community,” Xinhua wrote. (The fact that Wang presented this policy as a commitment to {the international community} is especially notable.) Wang added that to meet these goals it was necessary to train local authorities, “stressing the importance of carrying out research and investigation, and averting formalism.”

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Party Congress Highlights China’s Emergence on the World Stage

William Jones

October 21, 2017

Xi’s goals for China

President Xi divided the period ahead into two stages. The first stage will be the period between 2020 and 2035, when China will achieve its full modernization. Then, from 2035 to 2050, China will be transformed into a great modern socialist country that is “prosperous, strong, democratic, culturally advanced, harmonious and beautiful.” “In this state we will reach new heights,” Xi said. “China’s capacity for governance will be achieved. There will be prosperity for all and the Chinese people will be happier and safer. By that time, we will also have become an active member of the community of nations.”

Achievements under Xi

In opening the Congress, President Xi outlined the advances made in the last five years, his first term as President. In this period, China capped the achievement of bringing 700 million people out of poverty since about 1980, “with the middle income group expanding.” “Arts and culture are thriving,” Xi said. “China’s soft power and international influence have increased considerably, and there have been advances in the central and western regions. Making development people centered has paid off. We have been more purposeful in developing green technology, and we have revitalized the armed forces.” Xi underlined the efforts China had made in developing major-country diplomacy, pointing as examples of this, to the development of the Belt and Road Initiative (BRI), the creation of the Asia Infrastructure Investment Bank (AIIB), the G-20 Hangzhou meeting and the
Asia Pacific Cooperation Forum (APEC) Leaders meeting. “We have made major contributions to global peace and development. The changes have been fundamental and profound. We have solved problems that had never been tackled, and these changes will have far-reaching effects.

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BRICS not a talking shop but a task-force that gets things done: President Xi Jinping September 3, 2017

In an address at the opening session of the BRICS Business Forum on Sunday, Chinese President Xi Jinping said the global economy is “still not healthy enough” and that economic globalisation is facing many uncertainties. 1200 industry representatives from the BRICS nations and other countries were in attendance at the Xiamen business forum. Brazilian President Michel Temer and South African President Jacob Zuma also attended the meeting. Responding to critics of BRICS, Xi said, although the five economies “have encountered headwinds of varying intensity but the growth potential and growth trends of these countries remain unchanged”.

“In the past 10 years, BRICS combined GDP has grown by 179%, trade by 94% & urban population by 28%,” Xi said on Sunday underlining the growing clout of the bloc. BRICS, Xi said, are not a talking shop but a task force that gets things done. “The New Development Bank and the contingency reserve arrangement have provided financing support for infrastructure building and sustainable development of the BRICS contributing to enhanced global economic governance and building an international financial safety net,” Xi noted. The $100 billion BRICS Contingent Reserve Arrangement (CRA) became fully operational following the inaugural meetings of the BRICS CRA Board of Governors and the Standing Committee in the Turkish capital of Ankara in 2015.

Aside from the BRICS Bank and the BRICS monetary fund, the bloc will also discuss a joint energy platform, according to Russian President Vladimir Putin. On Sunday, Xi reminded the audience that BRICS seek a multipolar world. “Our world today is becoming increasingly multipolar. The law of the jungle where the strong preyed on the weak and the zero sum game have been rejected,” Xi said. “BRICS cooperation is a natural choice made by our five countries. In the past decade, we, the BRICS countries, have surged ahead and become the bright spot in the global economy…BRICS future cooperation must be based on “treating each other as equals”, Xi said.

BRICS Summit 2017 Key takeaways from Chinese President Xi Jinping’s Speeech

# “I am convinced that as long as we take a holistic approach to fighting terrorism in all its forms, and address both its symptoms and root causes, terrorists will have no place to hide.”

# “Construction of a tall building starts with a foundation. We have laid the foundation and put in place the framework for BRICS cooperation.”

# “In terms of BRICS cooperation, decisions are made through consultation, not by one country. We respect each other’s model of development, accommodate each other’s concern and work to enhance strategic communication and mutual trust.”

#”Given the difference in national conditions, history and cultures, it is only natural we may have some differences in pursuing our cooperation. However, with a strong faith in cooperation and enhancing collaboration the BRICS countries can achieve steady progress in our cooperation.”

# “Leveraging our respective strengths and converging interests, we have put in place a leaders-driven cooperation framework that covers wide-ranging areas and multiple levels.”

# “BRICS countries should improve macroeconomic policy coordination, synergize development strategies, leverage strengths in industrial structure and resources endowment, and create value chains and a big market for shared interests to achieve interconnected development.”

# “We should blaze a new path which may also help other emerging market and developing countries to seize opportunities and meet challenges.”

# “The long road to global peace and development will not be a smooth one. More than 700 million people are still living in hunger, tens of millions of people have been displaced and become refugees, while many people, including innocent children, have been killed in conflicts.”

# “Global economy has resumed growth, with emerging markets and developing countries delivering a strong performance. A new round of technological and industrial revolution is in the making, and reform and innovation are gaining momentum.

# “We have enough reason to believe that our world will be a better place.”

# “We should push for an open world economy, promote trade liberalisation and facilitation, jointly create a new global value chain, and realise a global economic rebalancing.”

# Xi said he still had “full confidence” in BRICS countries’ development despite claims that the bloc’s relevance had faded due to slower growth.

# “The development of emerging market and developing countries won’t touch anyone’s cheese, but instead will diligently grow the world economic pie.”

Xi closed his 45-minute speech by saying that Beijing encouraged Chinese companies to continue going abroad, and “warmly welcomed” other countries’ firms to invest in the world’s second-largest economy.

5 banks of BRICS nations sign pact for credit lines:

BEIJING: Five banks of the BRICS Bank Cooperation Mechanism have agreed to establish credit lines in the national currencies and cooperate on credit ratings. The agreement was signed ahead of the BRICS (Brazil, Russia, India, China and South Africa) summit in China’s Xiamen city tomorrow in which leaders of the five countries, including Prime Minister Narendra Modi are scheduled to take part.  “Brazilian Development Bank (BNDES), Vnesheconombank, Export-Import Bank of India, China Development Bank and Development Bank of South Africa (DBSA) have signed an agreement to establish credit lines in the national currencies, as well as a memorandum of cooperation on credit ratings,” Russian news agency TASS Reported.

The Chinese official said “the decision was taken in order to bolster further cooperation.” The agreement on credit ratings reportedly enables them to share information about internal credit ratings and rating assessment.

Zuma highlights SA’s plans for development at BRICS Summit

Sunday 3 September 2017: Tshepo Phagane: President Jacob Zuma has appealed for increased intra-BRICS trade to counter the negative impact of the global economic slowdown.  The President was delivering a speech at the 9th Brazil, Russia, India, China, South Africa (BRICS) business forum in the Chinese coastal city of Xiamen.  China and India remain the two fastest growing largest economies in the BRICS grouping.

In recent years the other three member-countries Brazil, Russia and South Africa have been experiencing slow growth largely driven by external factors such as weak global trade, decline in commodity prices, and tightening global financial conditions. President Zuma has made an impassioned plea for more foreign direct investment flows towards struggling economies like South Africa. “In as much as South Africa is endowed with natural resources, it is critical that we have in place beneficiation programmes that support our industrialization policy. It is in this regard, that we call upon our BRICS partners to collaborate with us in a few areas. This includes investing in supply and development programmes in Africa, skills development and technology transfer.

“We also wish to remind our Brics partners that given the history of institutionalised racism in South Africa, we continue to work hard to reverse the impact on the economy.” According to Zuma, South Africa has also set a plan to tackle the injustice and marginalisation of black people in the country.

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Analysis of China and the Belt and Road Initiative, and US

Patrick Lawrence

Aug. 17, 2017–The same Patrick Lawrence who researched the VIPS analysis of the fake Russian hacking of the DNC, and broke the story wide open by publishing it in {The Nation,} also wrote a detailed analysis of China’s role in the creation of the new paradigm, just days after the historic Belt and Road Forum in Beijing in May.

Called “How China Is Building the Post-Western World — Beijing’s Belt and Road project may be the largest single infrastructure program in human history,” it was also published in {The Nation}, on May 16. Lawrence begins by saying that he has often written about what he calls “parity between West and non-West,” calling it “the single most pressing necessity of our century if we are to make an orderly world out of the deranged, dysfunctional botch those responsible for it still get away with calling the postwar order, the liberal order, the global order — all of which are polite ways of saying the Western-designed, Western-imposed order.”

He described the Belt and Road Forum as China and Xi Jinping “constructing — on the ground as well as in the history books — something like a new world order.” He says a “post-Western world” is coming into being, adding: “It is what Vladimir Putin, who seems to have an excellent grasp of history, is talking about — the first, second, and third reasons we are supposed to detest and fear him. It is what formations such as the BRICs… are all about.”

He identifies four western responses: “They ignore it, dismiss it as unlikely to work, or mark it down to cynical self-interest or a plot to accumulate power.” The first was characterized by Obama refusing to join the AIIB–“a more stupidly arrogant call one cannot imagine.”

He describes the Silk Road Project as “almost certainly the largest single infrastructure program in human history,” and notes that Trump sent a serious representative to the Forum, and is considering joining the AIIB. But, he adds, the vast majority of western responses to the Belt and Road are absurd, claiming it is a power grab or a frantic effort to deal with a decline of their own economy, noting that the leaders in the West “have no clue as to the larger import of what we now witness, or simply cannot face it.”

Getting to the point, he says: “When was the last time the United States built Laotians a railway on any terms, never mind China’s (low-interest loans, extended terms)? Think about what a century of fraternal ties to the United States has given the

Philippines: You have to start with poverty, prostitution, dope, crime, desperation — all rampant. Don’t wonder why President Duterte now likes to spend his time in Beijing (as do the Malaysians, the Thais, the Vietnamese)…. China also sees advantage in the prosperity of others, and this thought overarches the others by many magnitudes. This has to be squared with all the reductionist accounts of the Chinese as merely selfish.”

He reflects: “The criticism of Xi Jinping’s Belt and Road plans now emanating from the West is best understood as a mirror. The imposition of an ideology, the Chinese model, a be-like-us imperative? The projection of power upon other peoples? Loans and development projects structured to the dominant nation’s advantage? Conditionality in the manner of the Western multilaterals? The cultivation of corruption to gain influence? The threat of intervention? Turn it all around and you have a picture of Western policy, America the most accomplished practitioner, since 1945.”

Historically, he notes: “Recall the Five Principles Zhou Enlai advanced (along with Nehru) at the Bandung Conference back in 1955, noninterference the animating thought in four of them. Xi practically recited them this week in Beijing.”

He concludes by quoting a friend who said: the “Chinese understand themselves as a non-Western people. Depending on whom one is talking to, they are perfectly clear that their intent is to claim, for themselves and others, the fullness of human existence heretofore available only to the Westerner. This is a thumbnail definition of parity, maybe.

“A lot of people, too far inside Western ideology and its attendant assumptions, may be uncomfortable with the thought that nations such as China are bringing centuries of Atlantic hegemony to a close. The task is to grasp that there are alternative perspectives, appealing to one’s sensibilities or otherwise — other ideas of democracy, other ideas of the place of the state, the place of the individual, the worth of public goods, the limits of the market, and so on. Development as freedom, Amartya Sen argued in a book of that title at the turn of this century. Westerners are unaccustomed to thinking in such terms. Most of the world still must.”

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 ‘Belt & Road’ May Catalyze China-US Cooperation in Africa

  • He Wenping

    May 15 , 2017

    Senior Fellow, Charhar Institute

Since the Belt and Road Initiative was proposed by President Xi Jinping in 2013, it has become a signature achievement of China’s diplomacy of peaceful development and has been well-received globally. In the three years since it was proposed, more than 100 countries and international organizations have participated in Belt and Road cooperation, and more than 70 countries related to the initiative have signed agreements with China to cooperate in the Belt and Road construction. Africa, which has rich resources, huge market potential and strong demand for infrastructure, has also actively embraced the Belt and Road, eager to grasp the historic opportunity.

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The US government, under President Donald Trump, wants to reduce its aid to Africa and to upgrade its domestic infrastructure facilities under the doctrine of “America First”. African development is one of the priorities in China’s international cooperation plans, and the United States cares more about its domestic infrastructure upgrading. But both China and the US stress infrastructure construction, and this could offer an opportunity for the two to cooperate in Africa under the Belt and Road Initiative.

China-African cooperation is advancing steadily through infrastructure connectivity and industrial cooperation. First, to promote Africa’s industrialization through investments in infrastructure projects under the Belt and Road Initiative, Three planned transport networks — railway, highway and aviation — will be constructed on the African continent, designed to linking the capital cities of all African countries, and industrialization and economic integration in Africa will also be greatly promoted. This is not only the responsibility of China as a big country and as Africa’s true friend, but also the requirement to transform and upgrade China-African economic cooperation and trade. Of the 10 major cooperation plans put forward at the Johannesburg summit of the Forum on China-Africa Cooperation in December 2015, the plans for industrialization and infrastructure cooperation were the most prominent aspects, and were also the “dual engines” driving Africa’s economic growth. To implement the plans, the China-Africa Fund for Industrial Cooperation was set up, with initial capital of $10 billion from China, and China also arranged an additional $5 billion for the China-Africa Development Fund and an additional $5 billion in special loans for the development of small and medium-sized African enterprises. China planned to construct or upgrade a batch of industrial parks in African countries, and set up regional vocational training and education centers and several capacity-building colleges to train 200,000 technical workers for Africa. China also planned to provide training opportunities in China for 40,000 Africans. At present, the China-Africa industrial cooperation has already started bearing fruit. The Addis Ababa-Djibouti railway was completed and put into operation as scheduled in October 2016, and the Mombasa-Nairobi railway is progressing smoothly and is slated for completion this year. The construction of industrial parks and industrial belts along the two railways is also making good progress.

According to incomplete statistics, since the Johannesburg summit of the Forum on China-Africa Cooperation in December 2015, China and African nations have signed 245 agreements, involving investments totaling $50.755 billion. Of the amount, Chinese government aid to Africa accounted for a mere 1.07%, preferential loans took up only 6.24%, and direct investments by Chinese enterprises and commercial loans took the lion’s share — $46.553 billion or 91.73% of the total. This indicated that China-Africa cooperation has shifted from government aid to corporate investments and financing cooperation; from general merchandise trade to production capacity cooperation and processing trade; and from contract engineering to investments and financial cooperation. These trends are still gaining momentum.

Not long ago, US President Trump said that his infrastructure plan has been “largely completed”, and the infrastructure package could cost $1 trillion in investment in 10 years. It has been learned that the plan covers more than transportation infrastructure such as highways and bridges, it will also include the construction of facilities such as energy, water and potentially broadband and veterans hospitals. The latest news suggests that the Trump administration wants to strengthen cooperation with China in the field of infrastructure construction, and Chinese companies, which have abundant cash and technological advantages, are also eager to play their role in the American market of infrastructure construction. When people begin to visualize cooperation between Chinese and US companies in American infrastructure construction, we could also envision the bright prospects of Chinese-US cooperation in infrastructure construction in Africa under the Belt and Road Initiative.  The African continent is short as much as $100 billion of funds for infrastructure construction on a yearly basis. In terms of financing, China and the US could, first of all, explore ways to jointly invest in African infrastructure projects through cooperation between the China-initiated Asian Infrastructure Investment Bank, the BRICS Development Bank (now New Development Bank) and the China-invested Silk Road Fund with financial institutions such as the US-dominated World Bank and the Asian Development Bank. Second, along with China-Africa cooperation shifting from government aid towards corporate investment and financing, Chinese companies (both State-owned enterprises and a growing number of private firms) may jointly invest in, undertake to construct and even operate infrastructure projects in Africa together with American companies, and such scenarios are no longer something out of reach.

To accelerate the process of industrialization and infrastructure construction, African nations and the African Union have already formulated important strategies for development, including the New Partnership for Africa’s Development (issued in 2001), the Action Plan for Accelerated Industrial Development of Africa (published in 2008), the Program for Infrastructure Development in Africa (issued in 2013) and Agenda 2063 (issued in 2013). Africa pins high hopes on its integration with the Belt and Road Initiative to promote African industrialization and infrastructure construction, and to turn the 21st century into an era of African development. During this process, the US and China, the two largest economies in the world, could and should play historic role

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BRICS, China, and Ethiopia Promote Industrialization

BRICS ministers adopt new industrial action plan

The industry ministers from Brazil, Russia, India, China and South Africa (BRICS) adopted a new action plan to deepen industrial cooperation among the five nations, Trade and Industry Minister Rob Davies said in a statement on Sunday. Davies and his counterparts from the BRICS grouping attended a meeting in Hangzhou, China where industrial and manufacturing matters were discussed and which culminated in the adoption of a seven-point action plan. “The action plan states that the world economy is still in a period of profound adjustment after the international financial crisis,” Davies said.

“Industrial sectors, the manufacturing sector and the service sectors related to it in particular, have become key factors in sustaining mid- and long-term economic development.” At the meeting, the ministers acknowledged that the new industrial revolution of digitisation among other things will change traditional production flows and business models that will give rise to new industrial forms.

The following seven points have been identified as key in the action plan:

strengthen industrial capacity cooperation

strengthen the coordination and match-making in the field of industrial policies

promote the cooperation in the development of new industrial infrastructure

expand cooperation in technological development and innovation

deepen cooperation in the field of small and medium enterprises (SMMEs)

strengthen cooperation in standard area

facilitate all-round cooperation with the United Nations Industrial Development Organization (UNIDO)

He emphasized that industrial development strategies and investment cooperation have to grapple with the potential threats in particular in the context of high unemployment.  Davies said the industrial development cooperation between the Brics countries can be used as a springboard to foster growth and development and create work opportunities. BRICS countries will focus on using their respective rich natural and human resources and broad domestic markets to broaden industrial capacity and policies, while working together in developing new industrial infrastructure and technology.

Chinese investment leads way as Ethiopia opens to outside

As Ethiopia, the most populous nation in East Africa, is spreading its economic relations across the globe, investment from the world’s most populous nation China is playing a prominent role. Ethiopia, with a population of some 100 million, is a country on the move with rail, air and road infrastructure projects and an ambitious industrialization plan.

Ethiopia keenly needs investment from industrial giants like China to give its burgeoning population, which is estimated to grow by 2 million annually, ample employment opportunities. According to the Ethiopian Investment Commission (EIC), there have been 279 Chinese companies with more than 571-million-U.S.-dollars worth of investment, creating more than 28,300 jobs in Ethiopia between January 2012 and January 2017.

Huajian Industrial Holding Company Limited, a Chinese company that has a long-term investment plan in Ethiopia, is operating two plants in the country. Yin Xinjun, Vice General Manager at Ethiopia Division of Huajian Industrial Holding Company Limited, says Huajian’s decision to have its first plant in Ethiopia stems from the country’s firm desire for industrialization. In fact, a personal call for more investment by late Ethiopian Prime Minister Meles Zenawi during an August 2011 visit to China is what motivated initially Huajian to invest in Ethiopia, says Yin. According to Yin, Huajian’s investment in its first African plant had overcome several challenges, including logistical ones. Huajian initially had to transport its goods through an overcrowded highway from the plant in landlocked Ethiopia to Djibouti port. The problem has been partially solved with the construction of the 85-km Addis Ababa-Adama Expressway funded partly by the Export-Import Bank of China (China EXIM bank) and built by China Communications Construction Company (CCCC). The 500-million-dollar expressway was inaugurated in May, 2014.

Huajian also had to face intermittent power and water outages. The Ethiopian government later solved this problem through a special water and power line for the Eastern Industry Zone where Huajian’s first plant is located. Overcoming these challenges, Huajian currently employs more than 4,000 Ethiopians with a plan to increase employment to 50,000 people by 2022. Having established a plant in the Dukem industrial zone, 37 km south of Addis Ababa, Huajian is currently building a massive 138-hectare international light industry city in Addis Ababa. With the completion of the light industry city, Huajian foresees increasing its export revenue from 30 million dollars in 2016 to 4 billion dollars by 2022

However Western critics warn Ethiopia of being trapped in a neo-colonial relationship and some Ethiopians wonder if the Ethiopia-China relationship comes at the expense of other countries. Gedion Jalata, Program Manager of Africa China Dialogue Platform at Oxfam International, says both views miss the mutual beneficial and sovereignty respecting aspect of the bilateral relations. Jalata points out that Ethiopia is one of the beneficiaries of the China-proposed Belt and Road Initiative.

While Ethiopia is attracting massive Chinese investment in infrastructure projects, the Ethiopian government has set its sight in particular on Chinese involvement in industry parks. Ahmed Shide, Ethiopia’s Minister of Transport, says the country plans to utilize Chinese built infrastructure to boost its industrial exports. Shide is especially keen on the 4.2-billion-dollar Chinese built and financed 756 km Ethiopia-Djibouti electrified rail line to boost its industrial exports.

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The New Name for Peace is Economic Development

Helga Zepp LaRouche

July 7, 2017

I think that we are all aware that we are involved in the historically important process of trying to improve the relationship between the United States and China, in the context of the Belt and Road Initiative. It is especially important in the area of agriculture and food production, because this is an extremely urgent question. While at the G-20 meeting in Hangzhou last year, China and all the other participating nations devoted themselves to eradicate poverty by the year 2020, we have not yet reached that goal.

Because of what China has been doing in Africa for the first time; building up huge industrial complexes.   Africans have a new sense of self-confidence, and they are telling the Europeans that: “We don’t want your sermons on good governance, we want to have investments in infrastructure, in manufacturing, in agriculture, as equal business partners.” {There is no substitute for Africans having their own manufacturing sector to help expand their agricultural output. }

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New Report Debunks Myth of China Colonialism in Africa

Lawrence Freeman

July 3, 2017

A new report, “Dance of the lions and dragons,” released by McKinsey & Co. supplies valuable information that exposes the lie of “China Inc” exploiting Africa and instead details the how private Chinese companies are providing jobs and training that is advancing economics growth in African nations.

The following is included in McKinsey’s report:

*findings suggest there are more than 10,000 Chinese owned firms operating in Africa.

*31 percent Chinese companies are involved in manufacturing, estimated to be 12 percent of Africa’s industrial production-valued at $500 billion a year. These firms serve domestic markets with 93 percent of revenues from local or regional sales.

*these Chinese firms claim nearly 50 percent of Africa’s internationally contracted construction market.

*74 percent of Chinese firms are optimistic about the future.

*over 1,000 companies interviewed, 89 percent of employees were Africans, adding up to over 300,000 African jobs. Extrapolating to all 10,000 Chinese owned businesses, several million Africans are already being employed by these firms. Chinese SOEs employ an 81 percent African workforce.

*44 percent of local mangers of Chinese owned businesses surveyed were Africa, with some firms at 80 percent.

*with a “business as usual” model in the three industries dominated by Chinese firms–infrastructure, manufacturing, and resources–Chinese firms in Africa would grow from $180 billion in revenues today to $250 billion in 2025, By expanding aggressively into new sectors, revenues could reach $440 billion in by 2025.

*In Ethiopia 62 percent of nearly 700 Chinese firms are manufacturing.

*Chinese commitments to infrastructure amount to $21 billion, more than the combined total the African Development Bank, European Commission, World Bank, International Finance Corporation and the G-8 nations.

While I do not agree with all of the report’s recommendations, it is clear that China has done more to transform Africa than all Western nations. However, given the huge infrastructure deficit in Africa, there is no zero-sum limit, and no competition for limited markets. China’s New Silk Road provides an opportunity for Africa, the United States and Europe to collaborate with China in creating an economic renaissance for the people of Africa.

Read: Dance of the lions and dragons

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THE BELT AND ROAD INITIATIVE: A New Trajectory for Mankind

by William Jones
June 30, 2017
When China’s President, Xi Jinping,announced the Silk Road Economic Belt project in September 2013, it took the world by surprise. But it didn’t come totally out of the blue. Anyone closely following events in the region would have known that there were a number of strands that had been coming together since the collapse of the
Soviet Union, which converged in the concept so eloquently enunciated by President Xi in his speech at Kazakhstan’s Nazarbayev University in September 2013. There, he presented his idea of the Silk Road Economic
Belt, and then one month later, he announced the 21st Century Maritime Silk Road.
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Once the United States Joins the Belt and Road Initiative, a New Paradigm for Mankind Can Begin

Helga Zepp LaRouche

May 14-15, 2017, Bejing China

China Investment Magazine, supervised by China’s National Development and Reform Commission,  arried this article by Helga Zepp-LaRouche in its May issue. The article was distributed both in Chinese and in English to every participant in the May 14-15 Belt and Road Forum for International Cooperation in Beijing. 

Thus, the return on infrastructure investment is actually measured by the increase of the productivity of the entire economy. Therefore the financing can not be left to the private investor, but it must be the responsibility of the state, which is devoted to the common good of the national economy.

The most important aspect of the concept of the United States joining with the Belt and Road Initiative, however, would be to inspire the whole population with hope for the future, a better future for generations to come—something which has been lost in the last five decades

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Beijing Belt and Road Forum Launches ‘Project of the Century’

William Jones

May 16, 2017

The Belt and Road Forum, held in Beijing on May 14-15, brought together 29 heads of state and heads of government and over 1,500 delegates, including many heads of think-tanks dealing with the Belt and Road Initiative (BRI). Most prominent among these was Schiller Institute President Helga Zepp-LaRouche, who is considered by many Chinese scholars as the inspiration behind the project. During the conference, Mrs. Zepp-LaRouche received extensive media coverage and was well received by all the delegates. The Forum was a clear consolidation by the Chinese government of the overwhelming support for the Belt and Road Initiative by over 100 governments and international institutions.

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Initiative charting new trajectory for mankind

William Jones

May 10, 2017

It was no doubt the unique circumstances of China’s internal and external developments during the first decade of this century that convinced President Xi Jinping to place the Belt and Road Initiative at the top of China’s foreign policy agenda.

More importantly, China has reinvigorated with the Belt and Road spirit, the spirit which imbued the ancient Silk Road with its profound exchange of both goods and ideas. That was a period of time during which there was a tremendous exchange of goods-silk, spices, jade and gold.

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HELGA ZEPP-LAROUCHE ADDRESSES PERU ASSOCIATION OF ECONOMISTS
The New Silk Road Concept, Facing the Collapse of the World Financial System

Helga Zepp LaRouche

November 17, 2016

To finance all of this China together with the other BRICS countries, a completely alternative financial system, responding to the fact that in the last decades the activities of the IMF and the World Bank have betrayed criminal neglect of funding infrastructure in the developing countries, leading to the underdevelopment of such continents as Latin America or Africa, or large parts of Asia. China remedied that by creating the Asian Infrastructure Investment Bank (AIIB) in 2015, which immediately, despite massive pressure from Washington not to do so, had 57 founding members

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Progresses Report on China’s Belt and Road Initiative

William Jones

October 21, 2016

While the U.S. public has only recently become acquainted with the Chinese Belt and Road Initiative (BRI) because of the almost total neglect of the project by the myopic U.S. media, the BRI has already shown itself to be the most comprehensive development project since the post-war Marshall Plan. But the BRI has already gone far beyond the Marshall Plan in the magnitude of investment and number of countries benefiting from it.

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South Africa’s Role in the BRICS Vision

Mr. Van Niekerk, South African Embassy in Denmark

January 30, 2015

The New Development Bank is aimed at achieving the central desired objective, namely to ensure that funding becomes available for priority infrastructure and sustainable development projects. The question  whether this central objective could be met, is now becoming a reality, so there’s no question about it. In South Africa, we also have our own infrastructure plan, which requires funding beyond the means of our own fiscus, and this bank will certainly bring complementary funding to facilitate the implementation of such projects

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The BRICS Perspective for African Development

Themble Joyini, Permanent Mission of South Africa to the UN.

January 17, 2015

On BRICS, I agree, this is just the beginning of a new international economic order; it will be a gradual, but steady process. I also agree that not everybody would agree on the importance of the BRICS bank, but the creation of the BRICS bank is significant for the future international order for three reasons. Second, the BRICS bank demonstrates China’s global leadership. Given China’s huge size and quick development, there is little doubt that the world truly needs China’s leadership

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