{"id":2924,"date":"2022-02-08T13:13:14","date_gmt":"2022-02-08T12:13:14","guid":{"rendered":"https:\/\/ancstockinvestments.com\/blog\/?p=2924"},"modified":"2022-02-08T13:13:20","modified_gmt":"2022-02-08T12:13:20","slug":"china-africa-trade-reached-an-all-time-high-in-2021","status":"publish","type":"post","link":"https:\/\/ancstockinvestments.com\/blog\/2022\/02\/08\/china-africa-trade-reached-an-all-time-high-in-2021\/","title":{"rendered":"China-Africa Trade Reached an All-Time High in 2021"},"content":{"rendered":"\n
\n

Trade between Africa and China rose to a record high last year, according to recently released data<\/a> by China\u2019s customs agency.<\/p>\n

China is Africa\u2019s largest trading partner, and last year\u2019s growth strengthens this position.<\/p>\n

The value of trade between Africa<\/a> and China rose by 35% from 2020 to $254 billion last year, mainly due to an increase in Chinese exports to the continent. This rise occurred despite last year\u2019s global supply chain challenges<\/a> and other interruptions caused by the covid-19 pandemic<\/a>.<\/p>\n

How has trade between Africa and China grown over the years?<\/h2>\n

The growth can be attributed to China\u2019s export of essential pandemic goods such as pharmaceuticals, PPEs, masks, hazmat suits, chemicals, and digital hardware, says Zainab Usman, senior fellow and director of the Africa Program at the Carnegie Endowment for International Peace in Washington, D.C. China is\u00a0a big player and producer in this area, which had sustained demand in 2020 and 2021, she says.<\/p>\n

\u201cThe pandemic might have disrupted trade and economic activity globally, but it did not really dampen demand for essential goods during the pandemic such as pharmaceuticals,\u201d she tells Quartz.<\/p>\n

Another factor is increased exports to China by African countries. Exports from Libya and Benin, for example, went up by more than 400%. Those for Togo, S\u00e3o Tom\u00e9 and Pr\u00edncipe, Sierra Leone, Burkina Faso, Madagascar, and Eswatini doubled.<\/p>\n

China-Africa trade still has a deficit problem<\/h2>\n

Despite the increase in trade, China\u2019s exports to China continue to exceed Africa\u2019s exports to the Asian country.<\/p>\n

Many African countries are working to reduce this deficit. Rwanda and Ethiopia, for example, are using creative marketing approaches<\/a> to attract e-commerce users in China and increase their exports to the Asian country. And Kenya is\u00a0creating an online platform to sell agricultural products<\/a>. China, on its part, wants to import more goods<\/a>, especially agricultural products, from Africa.<\/p>\n

There needs to be a \u201cdeliberate and concerted effort across the board\u201d to reduce the trade deficit, says Usman. \u00a0African policymakers, she says, need to pursue and implement productivity-enhancing policies including road, rail, electricity, digital, and other connectivity infrastructure to give African enterprises the opportunity to access export markets including China\u2019s.<\/p>\n

At the same time, Chinese policymakers also need to relax strict trade barriers with preferential market access agreements for African businesses seeking to export to the Asian country, Usman adds.<\/p>\n

Here\u2019s a breakdown some of the new data to put this development into more perspective.<\/p>\n

Who were China\u2019s largest African trading partners in 2021?<\/h2>\n

South Africa, Nigeria, Angola, Egypt, and the Democratic Republic of the Congo were the top five largest African\u00a0trading partners for China in 2021. Together, the value of trade between China and these countries accounted for more than half of all China-Africa trade last year.<\/p>\n

Made in China: What were China\u2019s largest African export markets in 2021?<\/h2>\n

Nigeria, South Africa, Egypt, Ghana, and Kenya were the African countries that imported the most goods from China in 2021. Combined, their imports made up more than half of all imports of Chinese goods to Africa last year.<\/p>\n

What were China\u2019s largest African import markets in 2021?<\/h2>\n

On the other hand, South Africa, Angola, the Democratic Republic of the Congo and Zambia exported the most to China in 2021. Together, their exports accounted for 71% of all exports to China last year.<\/p>\n

Africa\u2019s main exports to China include minerals, metals, agricultural products, crude oil, and agricultural products.<\/p>\n

How does China-Africa trade compare with China\u2019s trade with other regions?<\/h2>\n

Despite the growth of China-Africa trade, Africa is one of China\u2019s smallest trading partners, with trade between the two making up about 4% of China\u2019s global trade. There are vast opportunities for the continent to not only reduce the trade deficit, but greatly increase its exports to China.<\/p>\n

S<\/strong><\/em>ign up to <\/strong><\/em>the Quartz Africa Weekly Brief here<\/em><\/a><\/strong> for news and analysis on African business, tech, and innovation in your inbox.<\/strong><\/em><\/p>\n<\/div>\n\n

Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

China is Africa’s largest trading partner, and last year, China-Africa trade rose to a record high further strengthening this position.<\/p>\n","protected":false},"author":5,"featured_media":2925,"comment_status":"open","ping_status":"open","sticky":true,"template":"","format":"standard","meta":{"content-type":"","inline_featured_image":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[5],"tags":[397,398],"series":[],"ppma_author":[533],"class_list":["post-2924","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-china-africa-trade","tag-trade"],"yoast_head":"\nChina-Africa Trade Reached an All-Time High in 2021 - ANC Blog<\/title>\n<meta name=\"description\" content=\"China is Africa's largest trading partner, and last year, China-Africa trade rose to a record high further strengthening this position.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, 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