Strengthen China-Africa Cooperation for Mutual Benefit
Address
By

Wen Jiabao Premier of the State Council Of the People's Republic of China At the Opening Ceremony of the High-level Dialogue Between Chinese and African Leaders and Business Representatives And the Second Conference of Chinese and African Entrepreneurs

4 November 2006

Your Excellency Prime Minister Meles Zenawi,

Your Excellencies, Heads of State and Government,

Your Excellencies, Heads of Delegations, Ministers and Ambassadors,

Ladies and Gentlemen,

The Beijing Summit of the Forum on China-Africa Cooperation (FOCAC), which brought together leaders from China and 48 African countries to discuss ways of growing China-Africa relations, was successfully held this morning. Now, we are meeting here for the High-level Dialogue between Chinese and African Leaders and Business Representatives and the Second Conference of Chinese and African Entrepreneurs to draw up a blueprint for boosting China-Africa business ties. On behalf of the Chinese Government, I would like to extend a very warm welcome to all of you, the distinguished guests.

This year, on the occasion of the 50th anniversary of the inauguration of diplomatic relations between China and Africa, the Chinese Government issued a policy paper entitled China's Africa Policy. In this policy paper, China calls for the forging of a new type of strategic partnership with Africa that features political equality and mutual trust, economic win-win cooperation and cultural exchanges, thus charting the course for strengthening China's ties with Africa in the new era. To deepen China-Africa friendship is the shared desire of our peoples and meets our common national interests. Thanks to our joint efforts since the founding of the FOCAC in 2000, China-Africa economic cooperation and trade have entered a new phase of all-round development.

-- The trade volume between China and Africa in 2005 stood at US$ 39.7 billion, almost quadrupling that of 2000. In the first nine months of this year, the figure reached US$ 40.6 billion, up 42% over the same period last year. In recent years, despite continued deficit in its trade with Africa, China has increased its import from Africa. China extends zero-tariff treatment to 190 export products of 28 least developed countries in Africa. China's quality yet inexpensive commodities meet demand in Africa and are popular among local consumers.

-- China's total investment in Africa had reached US$ 6.27 billion by the end of 2005. China has signed investment protection agreements with 28 African countries and agreements on avoidance of double taxation with eight African countries. Through its investment, China has introduced to Africa advanced and applicable technical know-how and managerial experience, helping promote local economic and social development.

-- Under the FOCAC framework, China has undertaken 176 complete sets of projects in 42 African countries including highways, schools, hospitals and stadiums. It has provided speedy humanitarian aid to disaster-afflicted areas in Africa. We have canceled RMB 10.9 billion yuan of debt from 31 heavily indebted poor countries and least developed countries in Africa, signed 27 framework agreements on providing concessional loans to African countries and trained over 10,000 African professionals in various sectors. Such assistance, agreed upon through consultation, meets the need of African countries and has played an active role in promoting African development.

Ladies and Gentlemen,

China is the world's largest developing country and Africa is a continent with the largest number of developing countries. Our economies are highly complementary and enjoy huge potential and broad prospect of cooperation. We should continue to treat each other as equals, strengthen cooperation for mutual benefit and ensure that the benefits of cooperation are shared by our peoples. At the opening session of the Summit, President Hu Jintao announced, on behalf of the Chinese Government, substantive new steps to promote cooperation with Africa. To ensure the effective implementation of these steps and upgrade the level of China-Africa cooperation in all aspects, I wish to make the following proposals:

First, expand the size of China-Africa trade. We should improve the trade structure and further tap trade potential to bring our trade to US$ 100 billion in 2010. China will open its market wider and encourage Chinese companies to increase import from Africa in response to market demand. The Chinese Government will extend zero-tariff treatment to most of the commodities exported from the least developed countries in Africa. We also need to step up cooperation in services in the tourist, financial and telecommunications sectors to foster new stimulants of trade and facilitating balanced and coordinated growth of China-Africa trade.

Second, increase cooperation in investment. The Chinese Government encourages reputable and well-established Chinese companies to invest and explore business opportunities in Africa and transfer applicable technologies and managerial experience. For this purpose, the Chinese Government has decided to set up a China-Africa development fund, which will reach US$ 5 billion. The Fund will guide and support Chinese companies making investment in Africa in accordance with the principle of market operation and mutual benefit. We will also encourage well-established Chinese companies to set up trade and economic cooperation zones in African countries where conditions are ripe to upgrade the level of investment. African companies are also welcome to explore business opportunities and invest in China.

Third, upgrade assistance to Africa. China will increase its assistance to Africa in keeping with its level of development and help African countries boost their capacity for independent development and promote their economic and social development in all aspects. In providing assistance to Africa, we will lay even greater emphasis on public programs, particularly programs in agriculture, poverty reduction, healthcare, education, sports, water supply, housing and environment protection that are essential to the life of the African people. We will strengthen management of the assistance projects undertaken by China in Africa, and pay particular attention to the quality, performance and safety of the projects and environmental protection to ensure that the assistance projects undertaken by China are fully operational. The assistance projects will be conducted in line with international practices and the principle of being open, fair, just, equitable and transparent. China will take concrete measures to cancel the debt owed to China by the heavily indebted poor countries and least developed countries in Africa to ease the burden on their development.

Fourth, promote cooperation between the business communities. As businesses are major participants in trade and economic cooperation, their role should be brought into full play in conducting economic and trade cooperation in accordance with the market rules and under government guidance. The Conference of Chinese and African Entrepreneurs has been held twice. And now, the China-Africa Joint Chamber of Industry and Commerce is established. We call on businesses of both sides to make full use of these mechanisms to exchange visits and information and deepen mutual understanding, friendship and cooperation. The Chinese Government will continue to facilitate the exchanges and cooperation between the Chinese and African business communities.

Fifth, increase assistance to Africa in human resources development. China will considerably increase the number of scholarships it offers to African students to study in China. With what they have learned in China, they will contribute to national development of their respective countries when they return to Africa upon graduation. China will also train 15,000 African professionals in various sectors in the next three years to promote human resources development in Africa and strengthen its capacity building.

Ladies and Gentlemen,

During the past 28 years of reform and opening-up, China has embarked on a path of development suited to its conditions and achieved sustained and fast economic growth. Its overall national strength has greatly increased, and the life of the Chinese people has markedly improved. But China is still a developing country facing many difficulties and problems, particularly the uneven development between urban and rural areas and among different regions. Modernization remains a long-term goal for China. Despite its limited ability, China has endeavored to provide assistance to Africa. China's assistance to Africa is sincere, unselfish and with no political strings attached. To us, support and assistance among countries are mutual. We will never forget the invaluable support Africa has given us in upholding China's sovereignty and territorial integrity. We will continue to conduct in good faith mutually beneficial cooperation with Africa. China-Africa business cooperation is open. We are ready to work closely with other countries and international organizations in a common effort to provide greater support and assistance to Africa.

Ladies and Gentlemen,

The combined population of China and Africa takes up more than one third of the world total. Closer cooperation between China and Africa will both benefit our peoples and promote global prosperity and development. Let us work together for a bright future, for common prosperity and progress of China and Africa.

In conclusion, I wish this High-level Dialogue and the Conference of Entrepreneurs every success!

Thank you all!