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Trade with Africa gallops

By Diao Ying (China Daily)
Updated: 2009-02-12 08:04

China's bilateral trade with Africa in 2008 rose 45.1 percent year-on-year to $106.8 billion, a historic high, the General Administration of Customs said yesterday.

China exported goods worth $50.8 billion to Africa last year, up 36.3 percent over 2007, while imports from the region rose 54 percent to $56 billion.

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The record high bilateral trade also means that the goal set by the Chinese government of reaching $100 billion trade value with Africa by 2010 has been achieved beforehand.

The balance of China's trade with the continent has shifted from a surplus to a deficit. In 2007, China's trade surplus with Africa was $940 million, but it changed to a trade deficit of $5.16 billion in 2008.

Bilateral trade touched $10.96 billion in August, up 68.9 percent year-on-year, the highest monthly figure since trade began between the two sides.

Angola is China's largest trading partner in Africa. Bilateral trade between the two countries rose 79.3 percent in 2008 to $25.3 billion and accounted for over one-fifth of China's total trade with Africa. It is followed by South Africa, which is also China's largest export market in Africa.

Mechanical and electrical products accounted for more than half of the exports to Africa with sales of $25.9 billion, an increase of 50.5 percent year-on-year.

General trade accounts for 81.6 percent of the overall bilateral trade and rose 47.7 percent year-on-year in 2008. Exports in the form of contract projects were the main gainers. China's contract projects in the area doubled in 2008 to $3.1 billion.

China mainly imports resources and primary goods from Africa. Crude oil imports went up by 50.6 percent to $38.94 billion, while that of iron ore increased by 92.9 percent to $2.28 billion.

But Customs said the financial crisis has started to impact trade between China and Africa. The increase has slowed after reaching a record high in August. Bilateral trade in December declined 11 percent year-on-year to $6.63 billion, compared with the 1.6 percent increase seen in November.

Drawn by weakening domestic demand and falling commodity prices in the global market, China imported goods worth only $2.26 billion from Africa in December, a decline of 42 percent year-on-year, and 30 percent over November.