trade

Xi-Trump Summit Offers Needed Stability In A Perilous World

Lawrence , , , , , ,

On May 15, China’s People’s Daily published edited excerpts from an interview with Lawrence Freeman, prior to the May 14-15 summit, between Presidents Xi Jinping and Donald Trump. Read: People’s Daily Interview with Freeman

Below is the English translation.

Strengthening dialogue and cooperation between the US and China will better enable them to jointly address global challenges (International Forum) Cooperation between the United States and China will inject strong momentum into global stability, development, and prosperity, making the world a better place.

On May 14, Chinese President Xi Jinping held talks with US President Donald Trump at the Great Hall of the People in Beijing, who was on a state visit to China. The meeting between the two heads of state is crucial for both countries and the world. As the world’s two largest economies, the decisions made by the US and China, and their future policy directions, will have a significant impact on the world. This meeting set the tone and direction for the development of US-China relations and is a key opportunity to promote the sound development of US-China relations, making it of great significance. Maintaining dialogue and communication between the United States and China helps enhance mutual trust, manage differences, expand consensus, and promote cooperation.

As important trading partners, the US and China each possess strong complementary advantages in areas such as natural resources, markets, capital, and technology, offering vast opportunities for cooperation. Those advocating for “decoupling and supply chain disruptions” clearly lack rational consideration. Against the backdrop of rising uncertainty in the current international environment, maintaining stable, healthy, and sustainable development of US-China economic and trade relations is conducive to maintaining the stability of global industrial and supply chains, boosting market confidence, and is in the common interest of both peoples. It will also inject more stability and certainty into the world economy.

There are no winners in tariff wars and trade wars. The US should abandon zero-sum thinking, fully recognize the enormous potential of US-China cooperation, establish a win-win cooperation concept, and contribute to improving people’s livelihoods and promoting common development worldwide. In fact, the American people hold a friendly yearning for China and eagerly anticipate visiting and exchanging ideas with it. Two years ago, I visited Beijing and stayed for nine days, personally experiencing the sincerity, enthusiasm, and friendliness of the Chinese people, and also feeling their sincere expectation for friendly exchanges between the American and Chinese people. Recently, a friend of mine traveled to China and had a very pleasant experience, deeply appreciating the warm hospitality of the Chinese people. Because of this wonderful experience in China, my family and I plan to travel there again this summer.

This meeting between the US and Chinese heads of state will inject vitality into promoting friendly exchanges between the two peoples, enhance the American people’s understanding of China, and encourage them to truly get closer to this fascinating country and witness firsthand the vibrant picture of ancient civilization and modern development complementing each other. Looking at the international situation and the development of bilateral relations, there is no reason for the US and China to move towards confrontation. Cooperation between the two countries benefits both, while confrontation harms both. The two countries can absolutely achieve mutual success and common prosperity. Working together, the US and China will inject strong momentum into global stability, development, and prosperity, making the world a better place. We look forward to both countries jointly maintaining a stable, healthy, and sustainable bilateral relationship, jointly addressing global challenges, jointly committing to reducing hunger and poverty, helping underdeveloped countries achieve industrialization, promoting sustainable global economic growth, and safeguarding world peace and prosperity.

On Sunday, May 17, People’s Daily published additional remarks from Lawrence Freeman. Under the title:

Promoting the stable, healthy, and sustainable development of China-US relations

　　”The meeting between the US and Chinese leaders is of great significance to both countries and the world. The mutual respect and friendly attitude shown by the two leaders have laid a solid foundation for strengthening cooperation in areas such as trade, science and technology, culture, and maintaining international and regional stability. We look forward to this meeting opening a new chapter in US-China relations and promoting the long-term stable development of bilateral relations,” said Lawrence Freeman, an international affairs expert in the United States.

Read below, my earlier posts on this topic.

China & BRICS Choose Progress Over West’s Deindustrialization

Franklin Roosevelt Intended to Industrialize the ‘Global South’: The Case of Ethiopia

Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in economic development policies for Africa for over 35 years. He is a teacher, writer, public speaker, consultant on Africa, and an analyst of global strategic relations. Mr. Freeman strongly believes that economic development is an essential human right. He is the creator of the blog: lawrencefreemanafricaandtheworld.com, also publishes on: lawrencefreeman.substack.com, “Freeman’s Africa and the World, and on X @lkfreemansafrica

Kenyan President Ruto Decries Disrespect for Africa & Challenges Dollar Dominance

Lawrence , , , , , , ,

June 18, 2023

The post below is from africanagenda.net, reporting on a punchy fifteen minute speech by Kenyan President, William Ruto, to the African Union Parliament on the disrespectful manner African leaders are treated by the developed sector. (See video). Below that, is a two minute clip of President Ruto discussing the need to conduct trade outside of the dollar denominations.

President Ruto`s Candid and Humorous Speech to the AU: No More Kowtowing to the Developed World!

Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in economic development policies for Africa for over 30 years. He is a teacher, writer, public speaker, and consultant on Africa. He is also the creator of the blog: lawrencefreemanafricaandtheworld.com. Mr. Freeman’s stated personal mission is; to eliminate poverty and hunger in Africa by applying the scientific economic principles of Alexander Hamilton

China Fully Engaged in Africa for 2023-The Future is Trade Not Debt

Lawrence , , , , , , , , , , , , ,

By Lawrence Freeman

Ethiopian Prime Minister, Dr Abiy Ahmed with Chinese Foreign Minister, Qin Gang, in Addis Ababa (Courtesy of VOA)

For the thirty-third consecutive year, the first foreign trip by China’s Foreign Minister was to Africa. China’s new Foreign Minister, Qin Gang, the former Ambassador to the United States, traveled to Ethiopia, Gabon, Angola, Benin, and Egypt, from January 9 to 16, 2023. In addition to visiting these five African nations he was also invited to meet with African leaders at the African Union and the League of Arab States Headquarters. The stated purpose of the trip was: To deepen the China-Africa comprehensive strategic and cooperative partnership and boost friendly cooperation between China and Africa.

Friendship Remains Strong

Starting in the year 2000, China organized the Forum on China-Africa Cooperation (FOCAC), which meets every three years, alternating between China and Africa. These conferences provide a unique opportunity for African leaders and Chinese President, Xi Jinping, to discuss future economic, cultural, and political collaboration. Contrary to continued efforts by the U.S. to malign Africa-China cooperation, China and Africa have remained steadfast in their shared common interest; the development of their people.


Chairperson of the African Union Commission, H.E. Moussa Faki Mahamat, and Qin Gang at ribbon cutting ceremony at the new Africa CDC. (Courtesy of African Union-au.int)

One of the highlights of Foreign Minister Qin Gang’s visit to Ethiopia, was to inaugurate the new Headquarters of the Africa Center for Disease Control and Prevention (Africa CDC). The new Africa CDC, located outside of Addis Ababa, the capital of Ethiopia, was built by China and given as a gift to Africa.

This is a critically important contribution to Africa, a continent of one and a half billion people, which was given a very low priority for vaccinating against COVID 19, and continuously suffers from a weak healthcare system.

Foreign Minister Qin met with Ethiopia’s Prime Minister, Dr. Abiy Ahmed, and Deputy Prime Minister and Foreign Minister Demeke Mekonnen. He was the first foreign government official to visit Ethiopia following the signing of the peace agreement of November 2, 2022, that ended a two year long war in northern Ethiopia. He expressed China’s support for “Africans in solving African problems in African ways.” This attitude differs dramatically from the U.S. and Europe, who undermined the government of Ethiopia during the war. Foreign Minister Qin pledged to assist Ethiopia in its reconstruction efforts, which are formidable following the terrible damage that the country suffered in fighting to maintain its sovereignty. Additionally, he announced that China will forgive thirty million dollars in Ethiopian debt.

In December 2022, the U.S. convened its first U.S.-Africa Summit in eight years. The unspoken “secret topic” and motivation for the three-day conference was, how to counter China’s growing influence on the African continent.  

There are yet to be any “deliverables” from the U.S.-Africa Summit. While the Biden administration seems to be more focused on exporting the “infrastructure of democracy,” China is building and financing more hard infrastructure projects in Africa than the rest of Western nations combined. These projects impact the daily material needs of the African people, which is essential to eliminate poverty on the continent.

China-Africa Trade Not Debt

China’s trade with Africa during 2022 expanded to its largest single year total of $282 billion. China exported $164.5 billion to Africa and imported $117.5 billion over that twelve-month time, which represented an increase of 11% over 2021. From January to November of 2022, U.S. exports to Africa, were $28.5 billion and imports of $38.9 billion for a total trade of $67.3 billion, almost no increase over 2021. Thus, U.S. trade with Africa was approximately one-fourth that of China for 2022. If the U.S. intends to counter or challenge China in Africa, it will have to do a lot more than “exporting democracy.”

As you can see from the chart below the myth spun by Western officials and the media that China is primarily responsbile for Africa’s debt, is simply not ture. This intentionally false allegation has been refuted again and again, but Western governments continue to propagandize Africa nations that China is using a ‘debt-trap’ diplomacy to seize their resources. Chinese ‘Debt Trap” is a Myth-Biden Would be Wise Not to Continue Trump’s Attacks on China in Africa,

The total outstanding debt for sub-Saharan African nations to foreign entities totals: 454.4 billion USD. China is not even close to being the largest debt holder. China owns 79 billion USD of sub-Saharan Africa’s debt, less than one firth-17%. The debt held by bondholders, the World Bank, and the IMF, equals 286.9 billion USD,-63% of the total foreign debt of sub-Saharan Africa,

Courtesy of Reuters Graphics

Investing in Manufacturing

Contrary to Western propaganda, which accuses China of stealing Africa’s resources, China is actually expanding Africa’s manufacturing sector. This is a vital contribution since African nations suffer from an anemic production capability to add value their natural resources. A good example is the investment by Dinson Iron and Steel Company (DISCO), a Chinese steel manufacturer, who intends to invest in building a lithium battery manufacturing plant in Zimbabwe. chinese firm to manufacture lithium batteries in zim. The Zimbabwean government has wisely banned the export of raw lithium. Having its own manufacturing plant, will create jobs and improve the standard of living of Zimbabweans, since mining and export of valuable minerals does not lead to economic growth for the population.

This kind of investment in local manufacturing along with China’s Belt and Road strategy of building infrastructure throughout Africa, is exactly what is needed to assist African nations in creating strong sovereign economies.

Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in economic development policies for Africa for over 30 years. He is a teacher, writer, public speaker, and consultant on Africa. He is also the creator of the blog: lawrencefreemanafricaandtheworld.com. Mr. Freeman’s stated personal mission is; to eliminate poverty and hunger in Africa by applying the scientific economic principles of Alexander Hamilton

Africa Continental Free Trade Area Must Have An Integrated High Speed Rail Network

Lawrence , , , , , , , , , , , , , ,

Map of main corridors of a proposed African Integrated High Speed Rail Network

May 18, 2021

Watch the video below, an comprehensive discussion with Rowland Ataguba, Managing Director of Bethlehem Rail Infrastructure on the African Integrated High Speed Railway Network (AIHSRN). He is a driving force to have AIHSRN up and running in Africa by 2033. For Africa to realize the potential of the newly inaugurated, Africa Continental Free Trade Area AfCFTA, there must be an integrated rail network connecting the major capitals, cities, ports, and regions of Africa. Such an integrated network of freight and passenger transportation is necessary to reverse the dismal amount of trade among African nations, estimated at 15%. With the population of the African continent projected to have almost 2.5 billion people by 2050, the AIHSRN proposal is essential and cannot wait until 2063 as planned by the African Union (AU).

The African Integrated High Speed Railway Network will deliver  connectivity across the huge continent via 6 main East-West and 3 North-South corridors, using standard gauge tracks with electric locomotives running at a speed of 160 kilometers per hour. These rail lines will become corridors of economic expansion for manufacturing and agriculture.

As the history of the development of great nations, such as the United States, Russia, and China demonstrate; railroads build nations,  traverse continents, link oceans, and create a spine for manufacturing centers. Properly understood, infrastructure is much more than a simple collection of projects. Economic progress is determined by the relative level of the scientific-technological design embodied in the integrated infrastructure platform which undergirds the manufacturing and agricultural sectors of an economy. An individual infrastructure project, such as a railroad, may not yield an immediate profit itself. However, as physical economists like myself know, viable infrastructure projects contribute to increasing the productivity of the labor force, thus enabling the economy as a whole to generate a profit. Massive investments in infrastructure, such as AIHSRN, are essential to industrialize Arica, which is necessary to eliminate hunger and poverty across the continent.

Mr. Ataguba proposes that the entire network be completed in the next 12-13 years. The only way that AIHSRN can be FAST TRACKED is through centralizing the project. He says that too much valuable time has been lost in connecting the railway network, which is indispensable for improving the standard of living of the average African. He emphasizes  that this rail network needs to affect the economy today, not tomorrow! Mr. Ataguba understands that for African nations to develop, this quality of infrastructure is urgently required.

AIHSRN will revolutionize African economies in providing standardized, fast, efficient, and safe transport at a far cheaper cost than road.

Once completed, freight and passenger transport across Africa will be transformed. For the first time in history, it will be possible to travel and send freight on a modern railway from: Dakar in Senegal to Djibouti or Pointe Noire; Congo Brazzaville to Dar Es Salaam; Tanzania to Walvis Bay; Namibia to Maputo Mozambique. Traversing the continent from east to west. Likewise, it will be possible to travel the entire length of the African land mass from Cape Town, South Africa along the Indian Ocean to Alexandria in Egypt or from Cape Town to Tripoli in Libya along the Atlantic coast.

For those passionately concerned about securing a prosperous future for Africa; watch this video.

 

Please view my earlier post from January 2021. The Africa Integrated High-Speed Rail Network is Feasible and Will Create A Prosperous Future for All African Nations

Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in economic development policies for Africa for over 30 years. He is the creator of the blog: lawrencefreemanafricaandtheworld.com. Mr. Freeman’s stated personal mission is; to eliminate poverty and hunger in Africa by applying the scientific economic principles of Alexander Hamilton

China-Africa Cooperation is Mutually Beneficial

Lawrence , , , , , , , ,
 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

Why the “Fire and Fury” on China Trade

Lawrence , , , , , , , ,

By William Jones

The world is on tenterhooks waiting for the next moves from the Trump Administration in terms of the draconian tariffs he has threatened to place on China as well as on a number of other countries, including our close neighbors Canada and Mexico. And the question remains for most people: Is he really intent on carrying out the threat (the first tariffs are to take effect on July 6) or is this merely an “in-your-face” negotiating tactic to cut a better deal for the United States? We probably won’t know until the last moment, but a number of things seem to be clear.

Why the “Fire and Fury” on China Trade?