China in Africa
Appendix II: The Forum on China-Africa Cooperation
[16-18 December 2003]
The
second
Forum
on
China-Africa
Cooperation
(FOCAC)
took
place
against
the
backdrop
of
four
main
issues
that
currently
drive
China’s
Africa
policy:
- Developing a broad front against US or Western hegemonic aspirations;
- Securing new consumer markets for its growing production base;
- Securing new raw material supplies;
- Neutralising Taiwan’s search for international respectability;
The
FOCAC
meeting
in
Addis
Ababa
was
preceded
by
a
meeting
of
the
Third
Senior
Officials
Meeting
(SOM)
of
the
second
China-Africa
Cooperation
Forum
(FOCAC),
which
ended
in
Addis
Ababa
on
12
December
2003,
with
the
adoption
of
the
draft
agenda
for
the
second
ministerial
conference
of
FOCAC
slated
for
the
following
week.
The
SOM
was
presided
over,
jointly,
by
Kongit
Sinegiogis,
director
general
of
African
affairs
and
permanent
representative
of
Ethiopia
to
the
African
Union
(AU)
and
Du
Qiwen,
secretarygeneral
of
the
Chinese
FOCAC
Follow-up
Committee
(FUC).
In
an
opening
statement
at
the
SOM,
Ethiopian
State
Minister
of
Trade
and
Industry
Taddese
Haile,
said
"China's
cooperation
with
Africa,
particularly
in
some
critical
areas
can
make
a
real
difference
in
assisting
African
countries
in
their
earnest
fight
for
transforming
their
political
and
socio-economic
development,"
Of
much
greater
significance,
Haile,
continued,
"
We
consider
China
as
our
vital
strategic
partner.
"
The FOCAC Meeting
The
FOCAC
meeting
itself
that
commenced
on
from
December
15
through
December
16,
saw
six
African
presidents
in
attendance.
They
included
Congo-Brazzaville
President
Sassou-Nguesso,
Mozambican
President
Joaquim
Chissano,
Sudanese
President
Al-
Bashir,
Ugandan
President
Yoweri
Museveni,
Zimbabwean
President
Robert
Mugabe
and
Comoro
President
Azali.
Other
high-level
officials
from
most
African
states
were
also
in
attendance.
These
included
Ethiopian
Prime
Minister
Meles
Zenawi,
South
Africa's
then
Deputy
President
Jacob
Zuma
and
Foreign
Affairs
Minister
Nkosazana
Dlamini
Zuma,
Tanzanian
Prime
Minister
Frederick
Sumaye
and
Minister
for
Foreign
Affairs
and
International
Cooperation
Jakaya
Kikwete
and
Minister
for
Industry
and
Commerce
Juma
Ngasongwa.
Also
present
at
the
Forum
were
69
African
ministers
and
representatives
of
international
and
regional
organizations.
The
Chinese
delegation,
underscoring
the
importance
of
the
forum
to
China,
was
led
by
Premier
Wen
Jiabao,
who
made
his
first
visit
to
Africa
since
becoming
his
country's
leader.
The
senior
person
in
the
delegation
was
Beijing's
Foreign
Minister
Li
Zhaoxing.
This
was
the
first
ministerial
conference
of
the
FOCAC
to
be
held
on
the
African
continent.
The
first
was
held
in
Beijing
in
2000,
with
nearly
500
attendees,
including
more
than
80
ministers
in
charge
of
foreign
affairs,
international
trade
and
economic
cooperation
from
China
and
45
African
countries
that
have
diplomatic
relations
with
China.
The
FOCAC
has
been
described
as
a:
collective
consultation
and
a
new
departure
in
the
history
of
Sino-Africa
relations.
It
was
designed,
according
to
Chinese
public
relations
"to
be
a
future-oriented
movement
in
the
context
of
South-South
cooperation."
The
main
agenda
of
this,
the
second
FOCAC
ministerial
conference,
was
to
review
the
implementation
of
the
"Beijing
Declaration"
and
the
"Program
for
China-Africa
Cooperation
in
Economic
and
Social
Development."
These
documents
had
been
adopted
during
the
first
meeting
in
Beijing,
and
provided
a
framework
for
the
establishment
of
the
partnership.
They
explored
initiatives
and
measures
toward
Sino-African
cooperation,
in
areas
such
as
human
resources
development,
agriculture,
infrastructure
development,
investment
and
trade.
As
the
Forum
began,
African
leaders
called
for
more
cooperation
with
China
for
the
continuing
development
of
the
continent
under
the
frame-work
for
the
establishment
of
the
partnership.
They
explored
initiatives
and
measures
toward
Sino-African
cooperation,
in
areas
such
as
human
resources
development,
agriculture,
infrastructure
development,
investment
and
trade.
To
strengthen
and
accelerate
the
decision-making
process
of
the
FOCAC
mechanism,
the
Chinese
established
a
Follow-up
Committee
in
December
2001,
composed
of
senior
officials
from
21
African
ministries,
commissions
and
agencies.
As
the
Forum
began,
African
leaders
called
for
more
cooperation
with
China
for
the
continuing
development
of
the
continent
under
the
framework
of
the
Forum,
and
within
the
guidelines
of
the
New
Partnership
of
Africa's
Development
(NEPAD).
In
his
opening
speech,
citing
the
establishment
of
the
African
Union
and
NEP
AD
as
examples,
Prime
Minister
Wen
said
these
are
expressions
of
Africa's
collective
commitment
to
placing
the
continent
on
a
generalized
course
of
peace
and
development.
Economic Developments
The
Chinese
premier
announced
that
his
government
had,
ahead
of
schedule,
established
its
debt
exemption
commitments
and
cancelled
31
African
countries'
debt,
totalling
10,5
billion
yuan
(US$1,2
billion).
Wen
continued
to
talk
about
Chinese
training
programs,
saying
that
in
2003,
a
further
10
000
young
Africans
would
join
the
7,000
now
receiving
professional
and
technical
training
in
China.
After
the
opening
of
the
Forum,
the
premier
announced
that
Tanzania,
Ethiopia,
Kenya,
Tunisia,
Seychelles,
Zambia,
Zimbabwe
and
Mauritius
would
be
given
the
status
of
"approved
destinations
for
outbound
Chinese
tourists"
or
“Approved
Destination
Status”.
This
status
means
that
Chinese
travel
agencies
can
organize
mass
visits,
as
they
are
already
doing
with
Egypt,
South
Africa
and
Morocco,
which
were
approved
last
year.
There
are
strings
attached
with
this,
however.
One
is
formal
and
informal
pressure
from
Beijing
to
have
African
ADS
countries
regulate
tourism
fees
-
from
hotels
and
meals
to
safaris
and
tours
-
at
levels
considered
bearable
by
Chinese
tourists.
As
a
big
part
of
the
market
is
not
state
directed,
this
could
result
in
nefarious
attempts
to
pass
legislation
violating
established
rules
of
market
competition.
Just
after
the
passing
of
the
Chinese
decision
in
Ethiopia,
one
large
group
of
PRC
tourist
operators,
headed
by
businessman
Tony
Li
(of
China
Golden
Bridge
Travel
Service
Corp.,
Head
Office,
Beijing,
a
corporation
founded
in
1986),
did
several
exploratory
trips
to
Zimbabwe,
Tanzania
and
Kenya,
to
enquire
about
the
precise
prices
practised
by
local
entities,
and
suggested
several
substantial
reductions.
This
is
unlikely
to
be
accepted
by
privately
run
tourist
spots.
Bigger
Chinese
trip
and
booking
services,
like
China
International
Travel
Service
Shanghai
Corp.
Ltd,
Peace
International
Tourism
Corporation,
Guangdong
Overseas,
Shantou
Tourist
General
Corp.,
the
China
Youth
Travel
Service
or
Travel
Service
Beijing,
Hua
Du
Travel
or
Xinhua
Tours,
all
are
poised
for
the
higher
segments
of
African
travel,
said
to
still
be
in
South
Africa,
Egypt,
Mauritius,
Morocco
and
Tunisia.
It
was
also
decided
that
China
and
Africa
would
co-operate
in
maximising
projects
already
established
in
NEPAD
-
for
example,
the
need
to
revamp
extensive
infrastructures,
or
a
sound
agriculture
development
plan
until
2006
-
and
so
use
Beijing's
resources
to
support
what
was
deemed
as
a
rational
strategy
for
development
and
growth
of
the
whole
continent.
However,
no
specific
projects
were
put
forward
by
China
to
strengthen
NEPAD
on
the
continent.
The China Africa Business Conference
Perhaps
the
most
significant
event
at
the
FOCAC
meeting
was
the
parallel
hosting
of
the
where
more
than
320
entrepreneurs
representing
Chinese
and
African
companies
"China-Africa
Business
Conference"
between
December
14
to
16
at
the
same
venue,
participated
in
the
conference.
The
142
participating
Chinese
entrepreneurs
were
from
more
than
100
companies
(see
previous
lists)
while
more
than
180
business
people
from
24
African
countries
attended
the
conference.
The
conference
was
organised
by
the
China
Council
for
the
Promotion
of
International
Trade
(CCPIT),
under
a
special
commission
headed
by
executive
Vice-Chairman
Yu
Ping.
Among
speakers
on
the
business
forum
were
Dick
Patel,
Zambia
Commerce
Minister,
Olive
Kiongo,
Uganda
National
Chamber
of
Commerce
and
Industry,
Manuel
da
Cruz,
Angola
Vice-Minister
of
Trade,
Avelino
Bonifácio
(Cape
Verde
Minister
of
Trade).
It
was
announced
by
the
CCPIT
officers
that
PRC
banks
agreed
on
making
available
more
credit
funds
for
Chinese
companies
wanting
to
invest
in
Africa,
while
the
main
areas
of
interest
were
quickly
identified:
- Officers from the CCPIT and the China Chamber of International Commerce (CCIC) presented the proposal for the establishment a permanent Sino-Africa Industry and Trade Federation, that could accept as members all continental entities having a proven economic interest in doing so (in principle, it could include "Group of 7" members; see under).
- There was a general compromise to have a pre-selected list of African goods included in a reduced tariff or no tariff area of Chinese import economy.
- Another big goal is the planned Foreign Direct Investment by Chinese firms and the and the state in Africa, valued at $30 billion over the next 5 to 7 years. One third of this amount is said to be for Nigeria. Mustapha Bello, theNigerian head of foreign investment council, will soon address the issue in a high level visit to Beijing and Shanghai.
Chinese officials who attended the trade forum said they have signed 20 trade agreements with eight African countries -Ethiopia, Tanzania, Sudan, Uganda, Rwanda, Cape Verde, Nigeria and Mauritania - worth $68 million, covering the supply of energy, cement, chemicals, pharmaceuticals, textiles, sugar mills and agricultural products. Most of these were clinched before the meeting.
Political Developments
PM
Wen
Jiabao
met
separately
with
senior
African
leaders
present
(13
total),
and
briefed
them
not
only
on
the
FOCAC
agenda,
but
also
on
political
and
security
issues,
including
PRC's
posture
on
terrorism
and
the
Taiwanese
question.
The
ones
who
had
the
privilege
of
hearing
Jiabao
on
more
exclusive
matters
included
South
African
Vice
president
Jacob
Zuma,
Mozambique
President
and
AU
Chairman
Joaquim
Chissano,
Zimbabwe’s
President
Robert
Mugabe,
Congo
Brazzaville’s
President
Sassou
Nguesso,
Sudan's
President
Al
Beshir,
AU
Commission
Chairman
Alpha
Konare,
Ethiopia
PM
Meles
Zenawi,
Sierra
Leone
Vice
President
Solomon
Berewa,
Burundi’s
Vice
President
Alphonse
Meie
Kadege,
Tanzania’s
Prime
minister
Frederick
Suraye,
Comoron
President
Azali
Assoumani,
and
Uganda’s
President
Yoweri
Museveni
Security Developments
On
the
defence
and
security
side,
besides
promises
to
increase
the
present
level
of
PRC
peacekeepers
in
Africa,
Beijing
also
affirmed
its
willingness
and
means
to
work
against
weapons
trafficking,
terrorism,
money
laundering,
computer
crime,
narcotics
smuggling,
and
other
forms
of
organised
crime,
including
shared
intelligence
work,
police
training
and
by
discussing
the
use
of
armed
forces
in
preventing,
deterring
or
repressing
such
phenomena.
China’s
concern
over
international
terrorism
had
to
do
with
the
activities
of
the
Uighur
Muslim
separatists
in
China’s
Xinjiang
Province
fighting
for
an
independent
Turkestan
“homeland”.
Chinese
intelligence
officials
have
claimed
that
these
elements
are
linked
into
the
Al
Qaeda
network
and
its
affiliated
groupings
that
also
reach
into
Africa.
But
most
African
foreign
ministry
security
officers
who
heard
the
Chinese
view
on
terrorism,
especially
from
Sudan,
Ethiopia
and
Nigeria,
expressed
serious
doubts
about
the
reality
of
the
so
called
"terrorist
threat",
saying
that
no
documents
were
provided
by
China
on
the
levels
of
activity
and
routes
of
possible
escape
that
militants
from
the
Central
Asia
trouble
spot
might
have
been
using.
Algeria
seemed
to
be
the
only
country
more
wiling
to
take
China
seriously
on
the
matter,
having
instructed
its
security
service
keep
watch
over
any
contacts
between
the
Al
Qaeda
aligned
Salafist
terror
group
in
Algeria
and
Uighur
elements.
In
return,
PRC
officers
announced
at
security
briefings
at
the
Forum
that
Beijing
would
help
assist
in
the
establishment
of
a
suitable
centre
for
Study
and
Research
on
Terrorism
in
that
country.
China
promised
material
support
for
security
initiatives
of
the
African
union's
Peace
and
Security
Council,
and
stated
that
PRC
state
defence
industries
would
supply
top
notch
non
lethal
equipment
for
engineering,
de-mining,
transportation,
patrol,
air
sea
and
land
reconnaissance,
emergency
relief,
environmental
protection
and
other
non
lethal
security
tasks
and
duties.
Other Developments
- A major stress was placed on the training and education of new generations of able Africans, ready to use China's skills in development. This would be done by Beijing’s African Human Resources Development Fund, created in 2002. The target is the training of 10 000 African professionals in Chinese schools or by PRC instructors, over the next three years;
- The PRC also wants to increase the present level of medical presence in Africa, from current 1 100 in 40 countries to around 2 000 in virtually all the continent. Chinese Deputy Prime Minister Wu Yi is presiding over the commission studying the financial structure and offsets for this ambitious plan. HIV, Tuberculosis and malaria are seen as the main diseases needing PRC specialised help, at the level of prevention, treatment and specialised drug and equipment supply
- A Sino-Africa Youth Festival was planned for later 2004, in mainland China, under the designation "Beijing meeting". In principle, the PRC would invite and pay for around 15 African arts groups to be present and perform. There will also be a month of "Chinese Culture Trip to Africa", with travelling arts and performance groups, exhibitions, seminars and special events.
- The PRC has followed up on the FOCAC meeting with a reception in Beijing on 12 January that was intended to consolidate and advance the FOCAC agenda. The event was jointly sponsored by the Chinese Association for Friendship with Foreign Countries (CPAFFC) and the Chinese-African People’s Friendship Association (CAPFA). Beijing is expected to make greater use of CPAFFC and CAPFA in advancing relations with African countries. These two organisations will be used to broaden links with selected African countries in an effort to consolidate diplomatic relations and perhaps more importantly to consolidate links in non-governmental areas such as with civil society/NGOs. The organisations are expected to specifically target selected African ambassadors in Beijing in an attempt to more effectively use them as messengers to the home government.
Beijing
has
indicated
its
intention
to
consolidate
the
already
established
business
centres
in
11
African
countries.
The
centres
are
expected
to
serve
as
focal
points
for
new
Chinese
trade
and
investment
initiatives
in
Africa.
According
to
Beijing,
almost
650
Chinese
companies
are
now
involved
on
the
African
continent.
Beijing
also
claims
that
Chinese
companies
are
contracted
to
invest
over
$900
million
in
Africa
over
the
next
few
years.
However,
diplomatic
sources
point
out
that
the
contractual
investment
is
deceptive.
In
effect,
Chinese
companies
borrow
from
local
or
Chinese
banks
in
the
country
concerned,
no
funds
are
actually
transferred
from
China
to
Africa.
Beijing
has
also
indicated
its
intention
to
provide
African
countries
with
“unconditional
assistance
within
its
capacity.”
However,
the
historical
record
shows
that
the
PRC
has
always
expected
something
in
return
for
assistance.
Moreover,
Beijing
is
increasingly
insisting
that
it
is
not
prepared
to
provide
aid
to
African
countries
as
it
did
in
the
past.
Instead,
Beijing
is
insisting
on
a
relationship
based
primarily
on
trade
and
investment.
Diplomatic
sources
point
out
that
China
has
been
frustrated
by
African
counties
misuse
of
aid
and
failure
to
repay
loans.
Consequently,
Beijing
decided
to
cancel
part
of
the
debt
owed
them
by
African
countries
(money
which
they
did
not
expect
to
receive
in
any
event)
in
exchange
for
the
extraction
of
promises
of
political
support
from
the
debter
nations.
The
drive
for
a
more
normal
commercial
relationship
with
African
countries
is
expected
tosignificantly
benefit
China,
given
the
PRC’s
low
labour
costs
and
increasingly
effectiveeconomy.
目次
- 1. Introduction
- 2. Africa in the Context of China's Resource Acquisition Requrements
- 3. The Origins of China's New Africa Policy
- 4. The Role of FOCAC
- 5. China's New Resource Acquistion Business Model
- 6. The Role of Chinese Institutions in the Acquisition of Business Intelligence
- 7. China's Energy Footprint in Africa
- 8. China's Mining Footprint in Africa
- 9. China's Telecommunications Footprint in Africa
- 10. China's Infrastructure Footprint in Africa
- 11. The Role of China's Financial Institutions
- 12. Implications for Japanese Investors
- Annexure I: The Focac Fuc Structure
- Appendix II: The Forum on China-Africa Cooperation
- Annexure III: Ministry of Commerce
- Annexure IV:Profile Chen Yuan and Chi Janxin