China-Africa trade expected to exceed US$100 billion in 2010

6 November 2006

Beijing, China, 06 Nov – Trade between China and Africa is expected to exceed US$100 billion by 2010, the Chinese prime minister said Saturday, the first day of the high-level summit on China-Africa cooperation.

Wen Jiabao said that in order to reach this figure, Chinese and African companies and government needed to boost cooperation in the services, tourism, finance and telecommunications sectors.

Wen presented Beijing’s proposal in a speech during a meeting of the High Level Dialogue Mechanism of the Conference of Chinese and African Businesspeople.

This meeting was part of the head of state and government summit of the Forum for China-Africa Cooperation (FOCAC), held Saturday and Sunday in Beijing.

“China will encourage its best companies to invest in Africa and transfer their technology and management experience,” said Wen.

St the end of 2005, over 800 Chinese companies were operating in Africa, investing some US$6 billion in the continent, according to figures from the Chinese trade ministry.

If China and the African nations manage to reach trade of US$100 billion, this would represent a more than two-fold increase in trade since 2005, a year in which trade totaled US$39.7 billion.

In the first nine months of the year, trade between China and Africa rose 42 percent year on year, totaling US$40.6 billion.

According to official Chinese figures, this figure is projected to exceed US$50 billion at the end of 2006, which is ten time more than total trade in 1995.

FOCAC, which was created in 2000, is a mechanism for dialog and cooperation between China and the 48 African countries with which it has diplomatic relations. (macauhub)