Q: Now that China has become a great economic power with much influence in Africa. How do you foresee your relationship within the context of China-Africa Forum? What do you want from Africa and what does Africa want from China?

 

A: You have raised a good question.

 

This year marks the 50th anniversary of the inauguration of diplomatic relationship between China and African countries. It is high time to review the past and look into the future.

 

For this very purpose, leaders from 48 African countries and China assembled early this month, on the occasion of the Beijing Summit and the 3^rd Ministerial Conference of the China-Africa Cooperation Forum.

 

As affirmed by the China and African leaders, China is the world's largest developing country, while Africa is the continent with the largest number of developing countries. In the new era, our common interests are increasing rather than decreasing. Our cooperation potentials are expanding rather than diminishing. If China could provide selfless assistance to Africa 2 or 3 decades ago when China faced many difficulties itself, China can definitely do more for Africa after it has achieved remarkable economic development.

 

We believe the cooperation between China and Africa can be mutually beneficial. The leaders of China and Africa have accordingly decided to forge a new type of strategic partnership, featuring political equality and mutual trust, economic win-win cooperation, as well as cultural exchanges and enrichment. Specifically, China and Africa will strengthen cooperation as follows:

 

Politically, we will be guided by the principle of equality, non-interference, and respect for each other's choice of development road. We need maintain high-level contacts, establish a regular consultation mechanism and conduct strategic dialogues for better political trust. We are determined to promote democracy in international relations and safeguard the rights and interests of developing countries.

 

Economically, we will be partners of cooperation. We are committed to deepening bilateral economic ties in diversified forms and for mutual benefits. We will give full play to our respective strength and explore new avenues in trade, investment, human resources development, etc. And we will make joint efforts to ensure economic globalization to proceed in a balanced way and bring benefits to all. We are resolved to work together in promoting South-South cooperation and North-South dialogue.

 

And, we will enhance exchanges and cooperation in education, science and technology, culture, public health, sports and tourism, so as to provide intellectual motivation and cultural support for China-Africa cooperation. We share the aspiration to advance civilizations internationally, promote tolerance and coexistence among various civilizations, and strive to build a harmonious world.

 

It is my firm belief that the China-Africa relations, based on the profound traditional friendship and tremendous common needs, hold great promise and prospects.

 

Q: What does the outcome of the recent China-Africa Forum mean to African countries?

 

A: I am not in the position to sum up the Forum outcomes for our African friends. But it can be noted that all the African leaders expressed satisfaction with the Summit's achievements, as embodied in the outcome documents, namely the Beijing Declaration and its Action Plan (2007-2009).

 

Let me touch upon some of the initiatives to be taken on Chinese part in the next three years.

 

We will double the size of development assistance to Africa, provide US$3 billion of preferential loans and US$2 billion of preferential export buyer's credit.

 

We will cancel all the debts in interest-free government loans maturing at the end of 2005 contracted by the heavily indebted poor countries and the least developed countries in Africa, who have diplomatic ties with China.

 

We will set up a US$5 billion of China-Africa Development Fund, expanding zero-tariff treatment from 190 to over 440 African export items, helping build 3 to 5 economic and trade cooperation zones across Africa, as well as an AU conference center here in Addis Ababa.

 

And we will send more teachers, more technicians and more medical staff to this continent for its social advancement. We will foster bilateral political consultations within the framework of the Forum. We will try our best in giving voice to the voiceless people in Africa on the international arena.

 

Our aim is to give a big boost to socio-economic building in Africa. As said by the African leaders, that the outcomes of the Summit are positive and substantive, which answer the needs of Africa and inject new vitality to the cooperation between Chinese and African peoples.

 

 

Q: Some western countries have been loudly wondering about "China's hidden agenda in Africa". You have been accused of turning a blind eye to human rights abuses in some African countries and refusing to lay down governance conditionality on your African trading partners. What do you say to this accusation?

 

A: The allegations are absolutely unfounded.

 

In a long time of history, Africa had been subject to colonialism or invasion. Bound by historical constraints and others, African countries have difficulties, challenges and even problems. But it is groundless and ignorant, if not ridiculous, to blame them on China.

 

China has been pursuing an independent foreign policy of peace, and observing the purposes of UN Charter and the Five Principles of Peaceful Coexistence in handling its relations with all the countries in the world, including African countries. Based on these guidelines, we have provided development assistance to Africa to the best of our capacity, which is genuine, selfless and transparent. We support Africa for its democratization and judicial building, but as China never accepts any foreign country to impose its will on China, we will never impose our own will on African countries.

 

When it comes to human rights and good governance, it should be noted that China and Africa have long maintained exchanges on these issues. But the exchanges are held in a spirit of equality and mutual respects, with a view to drawing on each other's strength for common progress.

 

In the Beijing Summit's Action Plan, China and Africa have once again declared their commitment to sharing experience on governance, voiced a welcome to the newly established UN Human Rights Council and called for elimination of double standard and de-politicization of human rights issues.

 

 

 

Q: Politicians say that the interest of a country comes first. What is your specific interest in Ethiopia for example? How do you describe relations between Ethiopia and China?

 

A: One can hardly understand China-Ethiopia friendship, by holding fast to the 15^th century Machiavellian doctrine of power and interest.

 

The friendship between China and Ethiopia dates back for centuries and is deeply rooted in the hearts of the two peoples. As early as 1930s, Chairman Mao Zedong wrote a renowned article, namely Supporting the Abyssinian People in Their Struggle Against the Italian Fascists.

 

During the past decades, the friendship has endured the test of times and vicissitudes of the international situation. Because we have never strayed away from the principles of equality, mutual respect and common development.

 

In the new era, China and Ethiopia has further boosted the relations by forging a partnership of comprehensive cooperation. High-level visits are frequently exchanged, with political trust cemented. Ethiopia unswervingly supports China's bidding for national reunification. The two sides have maintained sound cooperation on major international issues. Recently, as co-chairs of the FOCAC, China and Ethiopia worked together closely to bring the Beijing Summit into a full success and the China-Africa relations up to a new height.

 

The bilateral economic cooperation has been dramatically strengthened, covering agriculture, mineral resources prospecting, infrastructure building, etc. Since January of last year, China has granted zero-tariff treatment to some Ethiopian commodities, which helped increase Ethiopia's export to China by almost 500% in 2005. From January to September this year, the bilateral trade registered further growth of 55%, reaching US$ 394 million, and the Ethiopian export to China grew to some US$ 130 million. So far China has become Ethiopia's biggest trade partner.

 

During the recent bilateral talks in Beijing, leaders of our two countries had fruitful discussions on how to further expand trade and economic relations between China and Ethiopia. Ethiopia can also enjoy all the benefits prescribed in the Summit aiming at helping the African countries.

 

In a summary, I would say, China and Ethiopia are both developing countries, with similar political aspirations and complementary economic structures. The Chinese Government and people treasure the traditional friendship and would work vigorously with the Ethiopian Government and people to further explore ways and areas of cooperation. The China-Ethiopia relations will embrace a better tomorrow.

 

 

 

Q: Why has China suddenly increased a large scale investment in the African oil industry?

 

A: Africa is endowed with abundant energy and resources, but in a desperate need of international cooperation to turn its advantage in natural resources into the one in development and competition.

 

It is China's long-term policy to encourage well-established and reputable native companies to invest in Africa. So far the Chinese investment has reached over 6.27 billion US$, covering textile, manufacturing, communication, agriculture, etc. The investment in energy and resources is only a small part of it.

 

It should be emphasized that China's energy strategy focuses on domestic exploitation, with a self-supply rate above 90%. China's oil import only accounts for 6% of the global oil trade. In 2005, China imported 38.34 million tons of oil from Africa, roughly 10% of the latter's oil export, not even up to 1/3 of its export to a certain Western country.

 

In terms of the oil cooperation on the ground, Chinese oil companies make a vigorous effort in helping the African countries to build an integrated structure of oil industry, and devote themselves to local environmental protection and social services. The acclamations they win from local people, testify to the nature of China-Africa energy cooperation, as complementarity, reciprocity and common development.

 

 

 

Q: What do you say to complaints by some foreign companies that you are being favored to win various bids in Ethiopia and other African countries?

 

A: With 20-odd years of reform and opening-up, Chinese companies have dramatically increased the cutting-edging in technologies, equipments and management, which provide a foundation in business expansion and cooperation in Africa. Usually, Chinese companies put much emphasis on quality of the projects, which help them win a good reputation. And the traditional advantage in labor cost also enables Chinese tenders to offer a competitive bidding price.

 

These, among others, put Chinese companies in an advantageous position during the biddings, or as you use the word "are being favored" to win various bids.

 

Q: Your consumer products and capital equipment in particular are believed to be cheap and durable compared to those from western countries. Why is it so?

 

A: As economists put it, China has a great comparative advantage in terms of labor cost and raw materials. Meanwhile, we enjoy the benefit of the scale economy, thanks to the large amount of foreign direct investment (FDI) and the transfer of manufacture industries from the developed economies. These, among others, make China a manufacture power or "a world factory". 

 

As H.E. Ato Meles Zenawi pointed out, Chinese products, good in quality and low in price, meet the special demand in Africa markets and improve the living standards of African people.

 

It is worth mentioning that in recent years, China has adopted a scientific outlook on development and embarked on the road of a new type of industrialization. We put more evaluation on industry upgrading and scientific innovation, attach more importance to environmental protection and labor rights, and go all out to address the growing gap among different regions and social strata. Chinese economy is taking on some brand new features, rather than only producing cheap and durable goods.

 

 

Q: Are there cultural differences in the way business is conducted in China and Africa?

 

A: The answer is affirmative.

 

China is one of the four greatest ancient nations, while Africa is the place of origin for mankind. We are both cultured people, descended from the world's oldest civilizations.

 

The Chinese and African cultures bear enormous similarities, but also differ in many aspects, such as languages, religions, traditions, values, etc. To businesses, the differences can be either lucrative opportunities or potential traps, depending on how we approach them.

 

For example, Ethiopians have a strong liking for coffee, ranking your country the world's second biggest coffee consumer, while the traditional drink for Chinese is tea, although coffee is getting increasingly popular among the youth. The difference in drinking culture leads to a different structure of the drinks market.

 

Especially in joint-ventures, African businessmen who traditionally value freedom, dynamism and individual creativity, will find their Chinese partners put more stress on trust, discipline and team work, as shaped by the thousand-year-long Confucius doctrine.

 

Therefore, cultural exchange and enrichment has been set as part and parcel of the new type of strategic partnership. So far, China and African countries has entered into 65 governmental cultural agreements and 151 plans of implementation. The two sides have exchanged over 200 visits of official delegations. I would say, it's a lot, but not enough.

 

I mean the enterprises should play their roles, as trade, investment and cultural exchanges are always interwoven. They are in a good position and are obliged to do more to promote the understanding between the peoples of China and Africa.