But trade deficit has ‘widened’ from €35.2 billion dollars to €56.9 billion
The value of trade between China and Portuguese language countries in Africa (CPLP) in the first half of this year was up by an average of 22% the year before, to €12.3 billion, according to official customs data from China.
The largest slice of China’s trade with Portuguese-speaking countries is with Angola, largely due to the latter’s sale of oil to the Asian giant, which accounted for almost all of its exports to the country in the period, at $10.6 billion (€9.575 billion).
China’s exports to Angola were worth $1.5 billion (€1.354 billion).
In second place among China’s biggest partners in Portuguese language Africa is Mozambique, which sold $721 million (€651.2 million) in goods and services and bought the equivalent of $1.6 billion (€1.445 billion).
In the cases of Equatorial Guinea and Mozambique, there was a drop in trade of 12.8% and 6.0% respectively on the previous year
The increase in trade between Portuguese language countries and China reflects the latter’s aim to increase not only its trade relations with Africa, but especially the volume of imports, to counter criticism of a trade imbalance in China’s favour, writes Lusa.
In 2021, at the most recent Forum on China-Africa Cooperation (FOCAC), China promised to increase imports of African products to $300 billion (€271 billion) by 2024, up from the $275 billion it averaged in the previous three years (between 2019 and 2021).
“While not an overly ambitious target, it was important, firstly because it was the first African import target, and secondly because it was the first African import target set by any development partner,” wrote analyst Rosie Wigmore of consultancy Development Reimagined in a special dossier produced in conjunction with African Business magazine.
In the article, published in the run up to another FOCAC that is to take place this week in Beijing, Ms Wigmore notes that the target is only $14 billion (€12.64 billion) away, while emphasising that although there has been an increase in African exports to China, African purchases have grown faster, thus worsening the deficit.
“The good news is that the target should be met, but the bad news is that since 2022 the trade deficit has actually widened, from $39 billion dollars in 2021 (€35.24 billion) to $63 billion dollars (€56.9 billion) in 2023,” she writes.
Last year, the analyst adds, 83% of exports to China were made by just eight countries, all of them rich in natural resources.
Among the measures that African and Chinese leaders could approve this week in Beijing, Wigmore suggests mechanisms to finance African banks, lower customs duties and harness the potential of the continental free trade agreement in Africa.
FOCAC 9 – with the motto ‘Joining Hands to Advance Modernisation and Build a High-Level Sino-African Community with a Shared Future’ – is to take place from September 4-6 in Beijing, with preliminary meetings already underway, and will be attended by China’s president, Xi Jinping.
According to China’s Ministry of Foreign Affairs, it is “a platform for collective dialogue, uniting China with the African Union Commission and the 53 African countries that maintain diplomatic relations with China”.
CHINA TRADE……..1ST HALF 2024…..YEAR-ON-YEAR CHANGE
Angola…………….10,628……………4.6%
Cabo Verde…………….56.6…………11.4%
Guinea-Bissau………….35.1…………80.8%
Equatorial Guinea……..675………….-12.8%
Mozambique………….2,388…………..-6.0%
São Tomé and Príncipe……9.3…………56.5%
SOURCE: China Customs Bureau Statistics
AMOUNTS in millions of dollars
This news follows that of cooperation agreements between Portuguese-speaking countries in Africa, and Russia.
This news follows that of cooperation agreements between Portuguese-speaking countries in Africa, and Russia.
Curiously, the two Portuguese-speaking countries that have been courted by Russia (São Tomé e Príncipe and Equatorial Guinea) are the two that have also increased their trade with China the most in the first six months of this year.
Source: LUSA
