I. Summary of China-Africa economic cooperation and trade in the first quarter of 2005

1. China-Africa trade has kept a rapid and steady growth.

According to China's customs statistics, from January to March this year, the trade volume between China and Africa increased to US$ 7.6 billion, up by 31% on the year and 7.9% higher than China's overall trade growth in the same period. Among that, China's exports to Africa reached US$ 3.61 billion and imports from Africa totalled US$ 3.99 billion, up 43.5% and 21.4% respectively. The mix of China's export commodities to Africa was continuously improved, with traditional bulk commodities maintaining steady growth and goods like electromechanical equipment and hi-tech products beginning to take half of the total share. At present, China mainly imports from Africa such primary products as crude oil, iron ore, iron and steel products, logs, diamond, manganese ore, copper products, copper ore and cotton, which accounts for 87% of total imports from Africa.

The trade balance between China and Africa continued to improve. In the first three months of this year, China registered a deficit of US$ 380 million in its trade with Africa.

2. China-Africa economic and technical cooperation has advanced smoothly.

The Chinese side continued to encourage and guide Chinese enterprises with mature technologies and management expertise to conduct economic cooperation with African countries and to take an active part in Africa's economic development. From January to March of 2005, Chinese enterprises in Africa won labor service contracts worth US$ 1.53 billion achieved a turnover of US$ 890 million. By the end of March of 2005, the accumulated value of labor service contracts by Chinese enterprises in Africa reached US$ 34.13 billion, with a total turnover of US$ 23.59 billion and 74,000 Chinese workers involved.

3. Chinese investment in Africa increased steadily. In 2004, direct investment from China to Africa reached US$ 135 million, a record high in recent years. From January to March, Chinese direct investment in Africa was US$2.8 million.

II. Implementation of exemption of tariffs on some exports to China from the Least Developed Countries in Africa

Up to 31 December 2004, the Chinese Government exchanged notes on the exemption of tariffs with 25 least developed African countries. As a result, since 1 January 2005, some commodities from these 25 countries to China would be tariff-free. Countries benefited from the arrangement are Sudan, Liberia, Zambia, Mozambique, Benin, the Democratic Republic of Congo, Guinea, Madagascar, Mauritania, Tanzania, Uganda, Togo, Rwanda, Ethiopia, Mali, the Central African Republic, Burundi, Sierra Leone, Djibouti, Eritrea, Cape Verde, Niger, Lesotho, Comoros and Guinea-Bissau. A total of 190 tax items are exempted (according to China's 2005 eight-digit tariff code).

According to China's customs statistics, from January to March of 2005, under those 190 tax items, China imported US$ 59.852 million worth of goods from the above 25 least developed African countries, up 44.7% on the year and 23.3% higher than the overall growth of Chinese imports from Africa in the same period.