Trade with Africa will double by 2020, Li Keqiang tells Ethiopia conference

Trade with Africa will double by 2020, Li Keqiang tells Ethiopia conference

Trade volume with Africa will double by 2020, Premier Li Keqiang told the African Congress at the start of his week-long visit to the continent.

Chinese direct investment was also expected to quadruple to US$100 billion within that time, Li said in a speech delivered at the congress' headquarters in Addis Ababa, Ethiopia.

But the deeper economic partnership should broaden beyond its current focus, he said.

"The collaboration must not be limited to energy and infrastructure but expanded to industralisation, urbanisation, the modernisation of agriculture, with more attention given to green, low-carbon development and environmental protection," Li said.

Sixty deals are expected to be signed during Li's visit, which also includes stops in Nigeria, Angola and Kenya. His wife, Cheng Hong, is accompanying him on the trip.

China has become Africa's biggest economic partner, and Li predicted trade volume would reach US$400 billion, up from US$200 billion last year, by 2020.

Direct investment would hit US$100 billion, up from the US$25 billion in total injected so far, he said.

China wanted to become "actively involved" in the continent's economic advancement, and would seek to promote the development of its textile, home electronics and manufacturing industries. But it would also consider projects in telecoms, aviation and other forms of travel.

"The Chinese government proposes to establish joint venture airlines between Chinese companies and Africa and providing civilian aircrafts to develop the regional aviation industry. We will also set up a high-speed railway research and development centre," Li said.

Before he departed for his visit, the premier addressed fears that Beijing was becoming a neocolonial power in Africa.

"China will never pursue a colonial path like some countries did or allow colonialism, which belonged to the past, to reappear in Africa," Li said on Sunday.

Some Chinese companies have become the focus of labour disputes, accused of shoddy construction and failing to respect employment laws.

But Shu Yunguo, a professor at Shanghai Normal University's Centre of African Studies, said Chinese companies were problematic even at home.

"Products in China have quality issues as well and many companies fail to recognise the importance of environmental protection," he said.

Beijing said it would increase its financial assistance to the continent, adding US$10 billion in loans to take the total to US$30 billion.


Source SCMP