Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

China set to pledge more aid to Africa ahead of Xi's trip

Published 11/25/2015, 03:36 AM
Updated 11/25/2015, 03:36 AM
© Reuters. Chinese President Xi Jinping listens to Taiwanese President Ma Ying-jeou speak during their meeting at the Shangri-la Hotel in Singapore

By Sui-Lee Wee

BEIJING (Reuters) - China is set to announce new aid to African nations when President Xi Jinping visits Zimbabwe and South Africa next month, a senior Chinese official said on Wednesday.

The trip is likely to boost China's relations with Africa, which supplies oil and raw materials such as copper and uranium to the world's second-largest economy.

China is Africa's largest trading partner and the trade volume between them amounted to $220 billion in 2014, according to China state news agency Xinhua.

Zhang Ming, one of China's vice foreign minister, said President Xi will provide further details in his keynote speech on Dec 4.

"As for whether China will continue to provide support and aid, there will be no doubt about it," Zhang said, declining to provide further details on the aid amount and its purpose.

Xi is scheduled to meet Zimbabwe's 91-year-old President Robert Mugabe on December 1-2, Zhang said. He will also meet South Africa's President Jacob Zuma on December 2-3 and co-chair a two-day summit between China and African countries in Johannesburg after the meeting.

The summit in December will be the second such high-level forum following one held in Beijing in 2006, Zhang said.

"This African trip by President Xi Jinping will be the most important, comprehensive and valuable visit in recent years," Zhang said.

Xi visited Africa in 2013 shortly after he took office as president. Mugabe reciprocated with a visit to China in 2014 in an attempt to seek loans and investments to lift Zimbabwe's struggling economy.

Beijing's focus on growing trade and aid in Africa leaves it open to charges by the West of turning a blind eye to conflicts and rights abuses in the continent.

Trade with resource-rich Africa has exploded in the last decade as China feeds its industrial machine amid African demand for cheap Chinese products.

The EU has rejected what they call China's "cheque book" approach to doing business with Africa, saying it would continue to demand good governance and the transparent use of funds from its trading partners.

Chinese firms in Africa also face criticism for using imported labor to build government-financed projects like roads and hospitals, while pumping out raw resources and processing them in China, leaving little for local economies.

© Reuters. Chinese President Xi Jinping listens to Taiwanese President Ma Ying-jeou speak during their meeting at the Shangri-la Hotel in Singapore

China's friendship with Africa dates back to the 1950s, when Beijing backed liberation movements in the continent fighting to throw off Western colonial rule.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.