(March 24, 2010Shanghai)

 

Dear colleagues,

 

It is a pleasure for me to have this opportunity to share with you some of my thoughts on a sustainable Sino-Africa relationship.

 

First let me thank the sponsors, the Shanghai Institutesfor International Studies, the British Embassy and the DFID Beijing Office, for your kind invitation.

 

China and Africa are committed to the new strategic partnership of political equality and mutual trust, economic win-win cooperation and cultural exchanges, not solely depending on "aid."

 

Social-economic cooperation is one of highlights of Sino-Africa relationship. The Forum on China-Africa Cooperation (FOCAC) serves as a strong boost to the implementation of its several action plans.

 

In 2008, two-way trade topped US$106.8 billion, meeting the target of $100 billion set at the Summit two years ahead of schedule. In 2009, the bilateral trade experienced a fall of 15% due to the on-going global economic crisis, registering $91.1 billion. That is calculated in falling dollars and commodity prices, however, I think the volume is still growing.

 

In the past 3 years, China had granted zero-tariff on 478 items of commodities exporting to China from the African LDCs.

 

China's investment in Africa grew steadily both in terms of volume and sectors. Non-financial direct investment from Chinese businesses to Africa totaled $1 billion in 2008. By then we had more than 1,600 enterprises in Africa with an investment stock of $7.8 billion. Last year, China's direct investment to Africa was $1.36 billion, increased by 36%, against the backdrop of sharply declining FDI flows to the continent from other parts of the world.

 

For the past 3 years, China had disbursed to African countries $5 billion of concessional loans and preferential export buyer's credit.

 

China has fulfilled its commitment to double the development assistance to Africa by the end of 2009 compared with that of 2006, focusing on sustaining growth in economic sectors and social services to bring about tangible benefits to the local people.

 

At the 4th Ministerial Conference of FOCAC last November, Premier Wen Jiabao announced another 8-point plan for the following 3 years, including collaboration with Africa in coping with climate change, building 100 solar power, bio-gas and other clean energy projects; another $10 billion in concessional loans and an $1 billion special loan for African SMEs; cancellation of African HIPCs' debts of interest-free loans due by the end of 2009; tariff exemption on 60-95% of the products from African LDCs, that is 4,000-7,000 items; enhancing cooperation in agriculture, health care, skill training and high education; launching a China-Africa joint research and exchange program for think tanks and academics.

 

As a Chinese saying goes, the success of whole year's work consists in a good start in spring.Chinese Foreign Minister and Minister of Commerce and other ministers got off to a good start by visiting 14 African countries last January to discuss with their counterparts on implementation of these action plans.

 

China's cooperation with Africa is based on the principles of sincerity and equality, mutual benefit and common development, as clearly stated in the government's white paper "China's African Policy".

 

China is living up to all its commitments to Africa despite the financial crisis.

 

For decades, China has provided assistance through bilateral channel and the FOCAC to Africa, with no political strings attached. We are willing to learn others in helping the Africans in need. When in Africa, however, we do as the Africans do.

 

In our engagement with Africa, we would follow the requirements or decisions by Africans and we build the schools, hospitals, water plant and telecom cables that the Africans want us to build, which benefit hundreds of millions of local people.

 

China is willing to share experiences in development with the Africans, yet it seems to me that Africa's development should be based on its own conditions and to follow its own path, that is, the African Models.

 

China maintains good relations with 49 African countries in FOCAC, most of them are quite small and in want of natural resources and infrastructure. 2 weeks ago, I was at Doha for an international conference on fund-raising for the Union of Comoros. China sent experts to help the local farmers in expanding trade and job creation, build an anti-malaria center, TV station, airport there, and support their capacity-building with technology transfer, market cultivation and professional training.

 

For decades in our cooperation with Africa, we have placed priority on the development of infrastructure, agriculture, mineral resources, education and health care, for these are what the African people need. Apart from 3,300 km of roads and 2,200 km of railways, we have assisted nearly 2,000 processing industry projects where Africa enjoys comparative advantage for export and potential for job creation.

 

Aid effectiveness should be measured against its contribution to long-term sustainable growth and to relieving poverty for majority of the population. The ultimate goal of China's assistance to African countries is to build up their capacity to develop on their own feet. Therefore, my government stresses on technology transfer and capacity-building in aid projects there.

 

For my government, Africa is always high on foreign policy agenda. There are a lot of human feelings involved in the China-Africa relationship. Both China and Africa belong to the developing world and have been through a lot in the past, and we always help each other. We often say it is our African brothers and sisters who carried China back in the UN, therefore, we feel indebted to them.

 

To sustain cooperation, we need to follow the fundamental principles of economy. We assume that our own interests intersected and converged with those of Africa, however, we should locate the interface, for each country of Africa has different conditions and needs.

 

The Chinese government requires those enterprises going to Africa must fulfil their corporate social responsibility on the ground. Actually, it is the essence and raison d'être for them to do business and form business partnerships with the Africans.

 

In recent years, China has been approached by France, Japan, UK, USA and others for trilateral cooperation with Africa. We are open on this issue, and keep consultations with them. In fact, we actively take part in some joint projects with FAO in a few African countries to enable them self-sustained in food.

 

Last October, I went to several African countries and discussed the trilateral cooperation with their high officials, two deputy ministers told me that they want to keep as many options as possible and engage with different partners on their own. They said, "FOCAC, FOCAC, let's focus on China and Africa Causes." They are not happy about like the former US Assistant Secretary of State Dr. Frazer's idea that "...towork closely together behind closed doors ... the U.S. Has endeavored to utilize all available tools of diplomacy to persuade China to come around to the US position." (p.29 China, Africa, and the African Diaspora: Perspectives, edited by Sharon T. Freeman, AASBEA Publishers 2009)

 

Having said that, I believe that the way to get African on board is not to force them, instead we may "find the way" with Africans through consultation and bring them in.

 

Finally, I wish the meeting a success.

 

Thank you.