Your Excellencies Diplomatic Envoys,

Mr.Ji Peiding, Vice Minister of Foreign Affairs, just now talked about the overall follow-up action of China-African Co-operation Forum. Now, I would like to take this opportunity to brief you on the economic and trade cooperation in 2000 between China and Africa, and follow-up actions that have been taken or will be carried out in the fields of trade, investment, debt reduction and human resource development for the implementation of the Program for China-Africa Co-operation in Economic and Social Development.

1.China-Africa Economic and Trade Co-operation in 2000.

I. Bilateral Trade

The year 2000 has seen a remarkable growth of bilateral trade between China and Africa. The total trade volume exceeded US$10 billion, reaching a record high in the history of China-Africa trade. According to Chinese Customs' statistics, the total import and export volume amounted to US$10.598 billion , up by 63.3% from 1999. In a breakdown, China's export to Africa reached US$5.043 billion, increased by 22.5% as compared to the previous year; and its import from Africa stood at US$5.555 billion, up by 133.9% from 1999. At present, there are 19 African countries whose bilateral trade with China has exceeded US$100 million.

In 2000, China's import from Africa, which is 133.9% higher than that in 1999, has outpaced its export to Africa. There was US$512 million deficit on Chinese side. Last year China imported from Africa 17.01 million tons of crude oil, which was valued at US$3.615 billion. The other main imports from Africa are timber, mineral products and etc.
At present, China maintains trade ties with all 53 African countries and regions. China has signed Trade Agreement with 39 of them, and has had Agreement for Encouragement and Protection of Investment with 17 African countries, and has signed Agreement on Avoidance of Double Taxation with 4 countries in Africa.

II. Investment

According to MOFTEC's statistics, Chinese companies set up 57 new companies in Africa in 2000, with a total contractual investment of 251million US dollar, in which Chinese capital was 216 million US dollar, 119 million US dollar more than that of 1999. By the end of 2000, Chinese companies have established 499 companies in Africa with a total contractual investment of 990 million US dollar, in which Chinese capital was 680 million. In addition, more and more Chinese private enterprises have begun to focus on African market. They are earnestly expanding their trade with African companies and injecting their investment into Africa.

III. Economic & Technological Co-operation

In 2000, China provided new assistance to over 30 African countries, undertaking more than 20 new complete projects and 20 technical co-operative projects in over 20 countries. Altogether there are 12 newly opened projects, 32 complete projects and 38 technical co-operative projects that are still under construction, 11 projects have been completed in 2000. China also granted more than 30 batches of urgently needed materials to over 20 African countries. In the aspect of human resource development, more than 40 officials from over 30 African countries attended China-Africa Seminar for Economic and Management Officials. Over 100 African technicians participated in TCDC program. Further more, Chinese companies have set up several co-operative and joint venture projects in Africa, aided by concessional loans and special fund.

2.Follow-up Work of China-Africa Cooperation Forum

I. The Symposium on China-Africa Economic Co-operation.

In order to implement the Program for China-Africa Co-operation in Economic and Social Development, the Ministry of Foreign Affairs and the Ministry of Foreign Trade and Economic Co-operation co-hosted the Symposium on China-Africa Economic Cooperation in Beijing, from 27 to 29 November 2000. Over 200 participants from 25 ministries and commission, including State Development Planning Commission, State Economic and Trade Commission, Ministry of Finance, People's Bank of China and China Export & Import Bank, and 23 Provinces and cities, 47 enterprises and 7 research institutes took part in the Symposium. Mr.Tang Jiaxuan, Minister of Foreign Affairs and Mr.Shi Guangsheng, Minister of MOFTEC delivered very important speeches on how to further strengthen China-Africa collaboration. Mr. Ji Peiding, Vice Minister of Foreign Affairs and I talked about the implementation of the Forum's document and promotion of China-Africa friendly cooperation. Mme.Wei Yu, Vice Minister of Education, briefed the delegates on exchange and cooperation between China and Africa in the field of education. Delegates from Ministry of Health and Ministry of Agriculture talked about the cooperation with Africa in their respective fields. Representatives from 8 companies made presentations about their experiences of operation in Africa. The successful conclusion of this symposium has laid a good foundation for the follow-up action of China-Africa Cooperation Forum.

II. Promotion of Trade

China will take measures to support the development of Investment Promotion and Trade Development Center in Africa so that they can play a more active role in promoting China-Africa trade. More African business people will be invited to attend Chinese Export Commodities Fair. Similar ones will also be held in different African countries so as to help Africa to know more about Chinese products. Chinese companies will be encouraged to expand import from Africa. While importing primary products from Africa, they will also buy other African products that can find ready market in China so that trade imbalance with some African countries could be gradually alleviated. Measures and policies, which are within the scope of WTO rules and regulations, will be carried out to further promote bilateral trade between our two sides.

III. Investment in Africa

China will actively promote its competent companies to invest in Africa in accordance with the principle of taking enterprise as the mainstay, setting economic performance as the aim and emphasizing market demand as the orientation.

In order to safeguard legitimate rights and facilitate business activities for companies from both sides, China will negotiate and sign Agreement on Encouragement and Protection of Investment and Agreement on Avoidance of Double Taxation with relevant African countries.

China will provide special fund to competent companies with credit so as to support and encourage them to develop bilateral trade and economic cooperation with Africa on the basis of equality, mutual benefit and reciprocity. Chinese companies, by investing and setting up factories in Africa with capital, technology and equipment, can make their contribution to the development of local economy. According to their business operation in Africa, the Chinese government will organize a group of Chinese companies to visit Africa this year, so as to help to strengthen the exchanges and communications between businesses from both sides.

IV. Aid and Debt Reduction

During China-Africa Co-operation Forum, China announced to reduce or exempt the debts of 10 billion RMB yuan owed by those heavily indebted poor and the least developed countries in Africa. To implement this commitment, the Ministry of Foreign Trade and Economic Co-operation and the Ministry of Foreign Affairs have jointly informed African countries concerned, which have been listed on debt reduction plan, to verify the amount of loans rendered by China in the past. Recently the Chinese government has reached agreement with Ugandan government on debt reduction and signed relative documents, which marks the substantive step towards debt reduction process. From the first half of this year, MOFTEC will start negotiation with other African countries concerned about debt reduction.

The Chinese government will expand the scale of aid program to Africa in accordance with China's financial capability and needs of recipient countries. This year, China's new aid program to Africa will be increased and plan to sign new aid agreements with over 40 African countries, and will increase the proportion of aid gratis.

V. Human Resource Development

In 2000, MOFTEC hosted 2 seminars for more than 40 economic and management officials from over 30 African countries. 20 technical training courses under TCDC program, including cultivation, fishing, acupuncture, environment protection and etc, were organized and more than 100 African professionals took part in these courses. In 2001, MOFTEC will put more emphasis on human resource development. 4-5 Seminars for China-Africa Economic and Management officials, which will have over 100 officials from African countries, will be held. Over 200 African trainees will participate 9 technical training courses under TCDC program, which are specially designed for Africa. African professionals will also be invited to attend another 18 training courses of different nature.

Apart from MOFTEC, other Chinese government agencies will also make their plans to enhance collaboration with Africa in the area of human resource development.

VI. Enhancement of Information Service

At present, the main obstacle faced by Chinese companies when dealing with their counterparts in Africa, is the lack of basic information about Africa in the fields of politics, economic development, environment for trade and investment, relevant laws and regulations. Therefore, MOFTEC will try to provide Chinese companies with prompt and accurate information about trade and investment in Africa by making good use of its official web site--www.moftec.gov.cn, www.ec.com and other networks. The Economic & Commercial Sections of the Chinese Embassies in Africa will be encouraged to set up their home page so that Chinese companies at home can get whatever information they need. In the meantime, MOFTEC will organize special training program for those who want to establish business ties with African counterparts and help them to have a better understanding of markets, politics, economies and legal structures in Africa, which will be helpful for them when doing business there.