China's new five-year plan synergizes with Africa's development strategy
- By He Wenping
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E-mail ChinAfrica, April 19, 2016
Deepening China-Africa ties
After high-speed growth for 30 years, China's economy has entered a new phase, referred to as the "new normal." It is characterized by mid- to high-growth with economic restructuring and addressing excess manufacturing capacity.
Ahead of the Johannesburg Summit of the FOCAC, pessimists in the international community had predicted that China would be unlikely to pledge new significant assistance to Africa, considering its own economic slowdown. Concluded deals could also be affected, detractors said.
However, China rolled out 10 major plans to boost China-Africa cooperation, committing $60 billion of funding support. This not only demonstrates China's determination to promote Africa's development but also satisfies the needs of China-Africa trade relations in the new era.
During the 13th Five-Year Plan period, China will continue its win-win cooperation and opening-up policy, participate in global economic governance and offer public goods services.
Specifically, it will reinforce efforts to speed up international cooperation in industrial capacity and equipment manufacturing, as well as boost overseas investments and cultural exchanges under the Belt and Road Initiative.
China will undertake its responsibilities and obligations to expand foreign assistance and improve the mode of assistance. It will offer more free training in human resources and advice on development strategies and economic policies.
It will increase assistance in technology, education, medical care, disaster management, environment and wildlife protection and poverty reduction.
All of these will bring concrete benefits to African countries.
Predictably, trans-national and trans-regional infrastructure projects and projects boosting Africa's manufacturing sector will spearhead China-Africa cooperation. Apart from Chinese state-owned enterprises, more and more Chinese private businesses, with their rich experience and advanced technology in light industries, will join in industrial cooperation.
China-Africa industrial cooperation is already achieving results. For instance, Tanzania signed a draft deal with China's National Development and Reform Commission on April 28, 2015 to expand cooperation in industrial capacity, becoming one of the first African countries to respond to China's initiative to strengthen international industrial cooperation.
Abundant opportunities
The core of Tanzania's current five-year plan is also industrialization, presenting China with abundant opportunities.
Tanzania has been building an industrial zone to process export products and boost its export-oriented sectors. It is also meant to absorb foreign investment, stimulate employment and raise technology and management levels. To date, 12 Chinese firms have invested in the zone.
Against the backdrop of the international economic order undergoing profound changes, China's economy and China-Africa trade cooperation face important challenges like the need for structural upgrades.
Only by overcoming these challenges can the bilateral relations be further deepened and injected with new vitality.
The author is a senior research fellow at the Charhar Institute and a research fellow at the Institute of West-Asian and African Studies, Chinese Academy of Social Sciences.
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