Lin Han , a student of the UC group - 23mp

Thesis topic: "Activation of China's international cooperation with African

countries"

Master’s work Structure

Chapter 1. Theoretical principles of international cooperation of countries
1.1. The essence and characteristics of international cooperation
1.2. Principles and strategies of international cooperation
1.3. A methodical approach to evaluating the effectiveness of international
cooperation
Conclusions to section 1
Chapter 2. Analysis of international economic relations between China and
African countries
2.1. General characteristics of China and its international economic relations
2.2. Research on international cooperation between China and African
countries
2.3. Identification of opportunities for the development of international
cooperation between countries
Conclusions to section 2
Chapter 3. Directions for intensifying international cooperation between
China and African countries
3.1. Development of measures to increase international cooperation
3.2. Justification of directions for the development of international
cooperation
Conclusions to section 3
Conclusions
References
 Chapter 1
Theoretical principles of international cooperation of countries

1.1. The essence and characteristics of international cooperation

International cooperation refers to collaborative efforts among nations,

governments, organizations, or individuals across borders to address global
challenges, achieve common goals, and promote mutual interests. Its essence lies
in fostering diplomatic relations, exchanging knowledge, resources, and expertise,
and working collectively to tackle issues that transcend national boundaries.
Key characteristics of international cooperation include:
1. Multilateral Approach: It involves multiple parties working together, often
facilitated by international organizations like the United Nations, World
Bank, or regional alliances, to address complex global issues such as climate
change, peacekeeping, trade agreements, or health crises.
2. Shared Objectives: Countries or entities engage in cooperation to pursue
shared objectives or mutual benefits, whether economic growth, security,
environmental conservation, humanitarian aid, or technological
advancement.
3. Diplomacy and Negotiation: Successful cooperation relies on effective
diplomacy and negotiation to reconcile differences in ideologies, policies, or
priorities among participating entities.
4. Cultural Exchange and Understanding: It promotes cultural exchange,
understanding, and tolerance by facilitating interactions among diverse
populations, fostering empathy, and breaking down barriers.
 5. Resource Sharing and Expertise: Collaboration allows for the pooling of
resources, knowledge, technology, and expertise to address challenges more
effectively than individual efforts might allow.
6. Legal Frameworks and Agreements: Often, international cooperation is
governed by legal frameworks, treaties, or agreements that outline the terms,
responsibilities, and obligations of participating parties.
7. Conflict Resolution and Peacebuilding: It plays a crucial role in conflict
resolution and peacebuilding by fostering dialogue, mediation, and
reconciliation between conflicting parties.
International cooperation is pivotal in addressing global issues that transcend
national borders and require collective action. It enhances global stability,
economic prosperity, social development, and environmental sustainability by
harnessing the collective strength and resources of diverse nations and
stakeholders.
With the globalization of world economic relations, intensive political
integration of states, increasing dependence of mankind on weapons of mass
destruction, and environmental hazards, international relations are actively
influenced by universal human interests. Unlike domestic relations, international
relations lack an apparatus for their regulation, a single regulatory center to which
the subjects of international political life would unconditionally obey.
The core element of international relations is political relations, which,
interacting with other relations, guide them in a certain way. The main subject of
international relations is the state. Under current conditions, non-governmental
organizations, social and political movements are increasingly active in the
international arena, but their role cannot be compared to the role of states in
international relations, especially in political ones.
States represent societies, not individual social groups or political
organizations, in the international arena. Such important issues as sovereignty,
security, and territorial integrity are resolved through its structures only by the
state.
 The state is the only national institution that has the legitimate authority to
pursue policy in the international arena: to conclude bilateral and multilateral
agreements on cooperation in certain areas, to declare war and sign peace
agreements, etc. The aggregate foreign policy activities of sovereign states
determine the entire world politics.
Every state pursues its own interests in its foreign policy. The category of
"national (state) interest" is the main one in the theory of international relations,
determining the foreign policy of states.
It is in the national interest:
 the problem of preserving the nation as an independent state;
 security from external threats;
 increase in the welfare of the state's population;
 protecting its economic and political positions in relations with other
states;
 maintaining and expanding its influence in world politics.
It is realized in the foreign policy of the state, in the policy of its
government, which defines specific goals for other states and ways to achieve
them.
The formation of the state's foreign policy course is a complex and
controversial process. In the struggle for power in the country, different political
forces demonstrate their vision of the national interest and foreign policy course,
which does not always correspond to the internal and external conditions for its
realization, and is not always adequate to the national interests.
In its foreign policy course, the state should:
 consider its geopolitical position,
 rely on its economic, demographic, military, scientific, technical, and
cultural potential.
This potential determines the state's foreign policy capabilities and priorities
in solving specific foreign policy problems.
 The organization and control over the implementation of foreign policy are
entrusted to special state bodies:
 the Ministry of Foreign Affairs (External Relations);
 parliamentary committees on foreign policy;
 embassies;
 representative offices in other countries;
 scientific and cultural centers abroad;
 official and semi-official missions, etc.
Thus, the French researcher R. Aron is right when he states that "the content
of international relations is primarily relations between states".

However, not all political scientists share the view that the main role in
international relations belongs to the state. Thus, the American researcher D.
Caporoso believes that the main actors in international relations are not states, but
classes, socio-economic groups, and political forces.
Another American expert in international relations, D. Rosenau, argues that
the structural changes that have taken place in recent decades in world politics,
causing interdependence of peoples and societies, have radically changed
international relations. The main person in them is no longer the state, but a
specific individual, as the so-called "international continuum (Latin for
"international continuum") has been formed. continuum), whose symbolic subjects
are the tourist and the terrorist."
International relations cannot be reduced to interstate relations only, let
alone to the activities of non-state actors. The significant expansion of the number
of actors in international relations, the growing activity of non-state actors,
including individuals, in international politics and international life, indicates the
need to consider the role of these actors and their influence on international
politics. Despite the significant share of each actor in international relations, the
main and decisive ones, as practice shows, are states.
 The foreign policy of states is linked to their domestic policy. In political
science, either foreign or domestic policy is given preference as a decisive factor.
However, the priority of domestic or foreign policy is determined in each specific
situation. In general, domestic policy, the internal interests of the state, for the sake
of which foreign policy is also pursued, prevail.
International relations manifest themselves in different types, forms, and
states. In Soviet and Eastern European literature, they were classified on the basis
of the class criterion, divided into the following types:
 relations of domination and subordination (in slave, feudal and
capitalist societies);
 cooperation and mutual assistance (between "socialist" countries);
 transitional relations (between developing countries).
Real international life did not fit into this scheme, because relations of
genuine cooperation existed and still exist between capitalist countries, and serious
contradictions, even armed conflicts, arose between some "socialist" countries.
Today, most experts divide international relations into two types:
 relations based on a balance of power;
 relationships based on a balance of interests.
Types of international relations are also distinguished:
 by sphere of public life (economic, political, military-strategic,
cultural, ideological);
 by the subjects of interaction (international, inter-party, relations
between different non-governmental associations, etc.);
 by the degree of their development (high, medium, low).
Levels of development of international relations are sometimes defined
through such concepts:
 "regional";
 "subregional";
 "global".
 Finally, in terms of the degree of tension, different states of international
relations are distinguished:
 instability;
 rivalry;
 of enmity;
 conflict;
 war;
 peaceful coexistence;
 trust;
 cooperation;
 political solution of problems based on civilized coordination of
interests by states.
The consistent change in the state of international political life is due to the
peculiarities of the global political process, which is the result of the interaction of
all political institutions and forces involved in international life. In this interaction,
diverse, sometimes completely opposite, interests, ideological positions, goals and
intentions of international political actors, especially states, collide.
Another important factor is that the world is divided into zones of political
influence of states, groups of states, and blocs, which often compete with others in
pursuit of their own interests. Therefore, the result of the interaction of actors in
international political life can be manifested in various trends in the global political
process: trends of climate mitigation in the international arena or aggravation,
confrontation, confrontation, etc. This is the contradictory and uneven
development of the global political process.
In the space of international relations, there is no central core of power
whose decisions would be binding on all states and other actors in international
political life. Therefore, the global political process is to some extent spontaneous,
although in recent decades there have been attempts to organize it and strengthen
peace and stability in the world. The course of the global political process is
influenced by both rational, balanced political actions and decisions of states and
interstate associations, as well as spontaneous, irrational, unpredictable actions.
Along with progressive institutions, reactionary, extremist forces are also active in
the international arena.

1.2. Principles and strategies of international cooperation

The main content of the principle is as follows: states are obliged to respect
each other's sovereign equality and uniqueness, as well as the sovereignty and legal
personality of other states. Every state has the right to freely choose and develop
its political, social, economic, and cultural system, establish its laws and
administrative rules.
All states have equal basic rights and obligations. They are obliged to
respect the right to define and carry out at their discretion relations with other
states in accordance with international law. Every state has the right to participate
in international organizations and treaties. States must faithfully fulfill their
obligations under international law.
The principle of non-interference in the internal affairs of states- one of the
principles of international law is that states must refrain from:
1) any interference, direct or indirect, individual or collective, in internal or
external affairs, which is the internal competence of another state;
2) any form of armed intervention or threats of such intervention against
another state;
3) any other action, military or political, economic or other coercion to
subjugate the exercise by another state of the rights inherent in its own sovereignty
to its own interests;
 4) provision of direct or indirect assistance to terrorist activities or
subversive or other activities aimed at the violent overthrow of the regime of
another state.
The UN Charter states that this principle does not give the Organization the
right to intervene in matters that are within the internal competence of any state,
and requires member states to resolve such matters in an established manner. Only
one exception is made: the principle does not affect the application of measures
based on Chapter VII (paragraph 7 of Article 2). In other words, the principle of
non-intervention does not prevent the application of coercive measures to the state
by the decision of the UN Security Council in the event of a threat to the peace,
violations of the peace and acts of aggression.
The principle of equality and self-determination of people This principle is
embodied in the UN Charter, which states as one of the goals of the Organization:
"To develop friendly relations between nations on the basis of respect for the
principle of equality and self-determination of peoples, as well as to apply other
appropriate measures to strengthen general peace".
It follows from this that we are talking about interstate relations, which must
be carried out since all peoples are equal and each of them has the right to manage
their own destiny. The importance of this type of relationship for strengthening
world peace is emphasized.
As for the concept of nation itself, in modern conditions it is used as a real
unity of people who consider themselves forming a nation on the basis of a
commonality of traditions, culture, language, and religion. In turn, the people is
understood as the entire population permanently living on the territory of the state -
a subject of international law.
This principle should not be interpreted as encouraging or sanctioning any
actions that would lead to the dismemberment or violation of the territorial
integrity or political unity of sovereign states.
The principle of respect and protection of human rights
 This is one of the main principles of international law recognized only in the
modern era. Real international cooperation in the field of promoting general
respect and observance of human rights began after the creation of the UN.
Strategic communications in international relations are considered as
integrated communication technologies aimed at ensuring international interaction
and the formation of long-term formal and informal ties between government
institutions, international actors, diplomatic institutions, and political leaders in
order to implement political, economic, security, cultural, social and humanitarian
initiatives and projects. Currently, strategic communications are considered an
integral and effective mechanism of foreign policy and national security of the
world's leading states, one of the most effective tools for promoting geopolitical
and national interests in the international arena. Conceptual foundations of
strategic communications are recognized as theories of international systems that
orient the international community to expand opportunities for international
cooperation at the global, regional, and national levels in the geopolitical plane;
theories of international order, which consider the configuration of connections and
relations between political actors, which this order establishes for all participants in
the system of international relations; theories of international security, in which
political, economic, informational, military, humanitarian, ecological, anti-terrorist
components are distinguished, considering that their number, importance and
priority for international cooperation are transformed in accordance with the state
of peace, social development, scientific and technological progress, experience of
international integration, settlement of international conflicts and use of "soft"
power; theories of communication and communicology, which involve taking into
account all constructive initiatives, philosophical and political principles, moral
and ethical values, religious and social norms regarding the provision of
international information and communication interaction. The evolution of
scientific opinion regarding the international content of strategic communications
influenced the terminology of the innovative toolkit, outlined the definition of the
concept that characterizes the communicative principles of international
cooperation and foreign policy activity, which are recorded in international
documents of the UN and its specialized institutions, in conventional and directive
documents of regional institutions, in the doctrines of foreign and security policy
of the countries of the world and researches of the expert community. The concept
of "strategic communication" was formed in international security organizations,
and in the last decade it became widespread in official documents of the State
Department and the US Department of Defense, which were interpreted as "a
focused effort aimed at understanding and involving key target audiences in
creating, strengthening and maintaining favorable conditions for the expansion of
interests, policies and tasks through the implementation of coordination programs,
plans, themes, key messages and synchronized products using all tools of state
power".
Certainly, the principles and strategies of international cooperation revolve
around fostering collaboration, achieving common goals, and promoting mutual
benefit among nations and diverse stakeholders. Here are key principles and
strategies:
Principles:
1. Sovereign Equality: All nations are equal and have the right to participate
in international cooperation without discrimination.
2. Mutual Respect and Understanding: Respecting the diversity of cultures,
values, and perspectives while striving to understand and tolerate
differences.
3. Consensus-building: Decision-making through consensus, dialogue, and
negotiation to accommodate diverse viewpoints.
4. Non-Interference: Respecting the sovereignty and internal affairs of other
nations without interference in their domestic affairs.
5. Shared Responsibility: Collaboratively addressing global challenges,
acknowledging the shared responsibility to promote peace, security, and
sustainable development.
 6. Good Faith and Trust: Conducting cooperation in good faith, fostering
trust among participating entities, and honoring commitments and
agreements.
Strategies:
1. Diplomacy and Negotiation: Employing diplomatic channels to build
relationships, negotiate agreements, and resolve disputes or conflicts
peacefully.
2. Multilateralism: Embracing multilateral approaches by engaging multiple
stakeholders and international organizations to address complex global
issues.
3. Capacity Building: Assisting developing nations in enhancing their
capabilities, knowledge, and resources to participate effectively in
international cooperation.
4. Resource Sharing and Technology Transfer: Sharing resources,
knowledge, and technology to bridge gaps and promote sustainable
development.
5. Conflict Prevention and Resolution: Implementing strategies to prevent
conflicts and support peacebuilding efforts through dialogue, mediation, and
reconciliation.
6. Humanitarian Aid and Development Assistance: Providing aid and
assistance to countries affected by crises, disasters, or poverty to foster
stability and development.
7. International Treaties and Agreements: Establishing legal frameworks
and international agreements to govern cooperation, delineate
responsibilities, and address common challenges.
8. Cultural Exchange and Education: Promoting cultural exchange
programs, educational initiatives, and people-to-people contacts to enhance
mutual understanding and cooperation.
These principles and strategies form the foundation for effective
international cooperation, enabling nations and global actors to address complex
challenges and work towards shared objectives for the collective benefit of
humanity.

1.3. A methodical approach to evaluating the effectiveness of international

cooperation

Alon with the fact that international management opens up wide

opportunities, it also places greater demands on managers to understand a much
wider set of surrounding factors that are not traditionally listed in the management
of a complex business within the borders of a country. That is, there is a need to
take into account the effects of various elements of the international environment
and take into account the concept of achieving advantages in competition.
 Consideration of the total environment, or mega-environment, is important
to understanding the nature of international management. The main elements of the
general environment are economy, politics, socio-cultural and technological
factors.
The Economic Element (Eng. The Economic Element) different types of
economic systems of states participating in international business. Important
economic factors affecting the ability of organizations to successfully conduct
international activities are the level of economic development in various countries,
the availability of appropriate infrastructure (industrial and social), the country's
balance of payments, and the currency exchange rate.
It is customary to divide all countries (except former socialist countries) into
two large classification groups, based on the level of their economic or industrial
development. The first group is known as developed countries, which are marked
by a high level of economic and industrial development. This includes the USA,
Canada, Australia, New Zealand, Japan, Western European countries, etc. Many
countries belong to another group known as developing countries. It consists
mainly of relatively poor countries characterized by low per capita income,
underdeveloped industry and high population growth.
A special group consists of Hong Kong, Taiwan, South Korea, and
Singapore, which are very often called "newly industrialized countries" because
significant economic growth has taken place there in recent years.
Many believe that multinational corporations are active primarily in
developed countries. Indeed, about 95% of such companies are located in
developed countries and about 75% of foreign investments were made here. The
development of business activities in one or another country largely depends on the
availability of adequate infrastructure: roads, highways, railways, airports, sea
terminals, housing conditions, educational institutions, hospitals, etc.
An important economic indicator is the balance of payments. This is the
amount of goods and services, loans, gold, other income and government
payments. The main indicator of the country's balance of payments is the trade
balance as the difference between exports and imports. The permanent trade deficit
indicates weak use of the country's export potential. Ukraine continues to
experience an imbalance between imports and exports, when in general imports
prevail over exports.
Exchange rate is the rate at which one country can exchange its currency for
the currency of another country. This exchange rate varies depending on changes
in economic factors, taking into account changes in the prices of goods exported
from this country. A change in the exchange rate can affect the ability of
companies to participate in international business because the exchange rate affects
the relative prices of goods in different countries.
The legal and political element (English. The legal-political element). Legal
and political conditions significantly affect the ability of organizations to conduct
business in a given country. Here, first of all, two circumstances that are directly
related to business should be noted: the level of political risk and the level of state
regulation of business activity.
Political risk (English. Political risk) is the probability of making
unpredictable political decisions and actions that can lead to losses for the
enterprise and its owners. The legal and political aspects of business activity
should also include trade control, the creation of customs borders, and the
introduction of restrictions on the export and import of goods.
Customs borders are created so that the goods of one's own country have a
competitive price in comparison with the goods of foreign competitors. The most
common restrictions are tariffs, customs duties, taxes, mainly on imports. Another
type of barrier is an import quota — a limit on the amount of goods that can be
imported during a certain period of time.
Regulatory influence on international business activities is exercised by
administrative protection, which is based on various rules and regulations, which
create certain complications for foreign companies in conducting business in this
country.
 These include, for example, veterinary regulations, certificates for imported
goods, national purchasing policies that give priority to own products, complex
regulations that can lead to lower or higher prices. Very often, states try to keep the
importer's funds within their own borders in order to use them to support their own
economies.
The social-cultural element (eng. The social-cultural element) of business
activity is the environment, which includes approaches, behavior, values, norms,
beliefs and associated demographic areas of activity that characterize a given
geographic area.
In the process of analyzing the socio-cultural element, they study the level to
which individuals in society perceive the difference in the use of force as normal,
the level to which employees feel comfortable or try to prevent a situation where
they feel insecurity, illogicality, ambiguity, unpredictability.
The subject of analysis is individualism - collectivism and the degree to
which society respects traditional qualities such as courage, the ability to fight and
material success more than traditional female qualities such as calmness,
understanding, feelings.
Technological element (English. The Technologic element) - the
technological environment is also a very important element (aspect), because the
level of technology in different countries affects the nature of markets and the
ability of companies to conduct activities. Technological transition is the
movement of technology from those who possess it to those who do not possess it.
Technology can be in the form of physical goods or processes, components
for equipment, etc. Technological transition occurs through channels such as joint
ventures, licensing contracts, etc. Technological elements are very important both
for competition in the global market and for protecting one's own market from
foreign competitors.
When determining the impact of the external environment on the
organization, the competing advantages of the state should be taken into account.
 The competitive superiority of states (English: The competitive superiority
of state) is a concept that states that elements of the environment in the state itself
can accelerate innovation in some industries, as there is a prospect for the success
of its own companies operating in the international market of the same industries
The competitive success of these companies undoubtedly has a positive impact on
the development of the state.
Companies gain competitive advantage through inventions that can cause
radical change, as well as through small local improvements. All companies are
trying to put all their efforts into the development of scientific developments in
order to gain victory in the competition.
The development of the invention is influenced by:
 a) conditional factors are components of production, such as the
competence of workers and the development of infrastructure;
 b) demand conditions are characteristics of own demand for goods and
services of a separate industry. When own demand for products and services may
become less important for organizations operating in the international market, own
demand and its conditions may become factors of uncertainty in the organization
of competitive advantage;
 c) the presence of a national (own) supplier and industries that
compete effectively at the international level. Such industries can help create
competitive advantages by providing low-cost inputs and the latest developments
for their own companies;
 d) the firm's strategy is an orientation to generality, which is the main
condition for its functioning in the state and affects the specifics of creating an
organization's management. So, in Italy, most firms try to be small or medium-
sized, which helps them maintain flexibility. In Germany, companies try to be
giants and have management with a prestigious education.
Among the most important steps a company must take is to find a buyer that
needs its services, work with the best suppliers, achieve a high level of work
standards, and attract the best labor resources. Supporting measures are the
improvement of work in the domestic market, close work with own suppliers and
buyers and good relations with competitors.
Many companies involved in international activities develop long-term
plans.
There are four main methods of entering international business: exporting,
licensing, joint production, and managing your own branch.
ExportExporting is the process of producing products in one's own country
and sending them abroad with the aim of entering the international market. The
biggest advantage of this method is that it requires the least capital if the product
does not need to be modified. Costs here are mainly related to transportation and
advertising.
Licensing(eng. Licensing) is an agreement under which one organization
grants limited rights to another to use its assets, such as warehouses, machinery,
company brand, equipment, etc. Generally, licensing allows you to use the
company's assets in a certain territory and for a certain period of time. The main
advantage of the method is that it does not require large expenses necessary for
running a business.
Joint ventures(eng. Joint ventures) is an agreement under which two or more
organizations are united to produce products or services. Joint ventures provide
direct investment to create production facilities in a foreign country. As a rule,
joint production and direct investment are limited to the level of ownership
(ownership) that the company has in the business (approximately 20% of the
investment).
One advantage of sole proprietorships is that they can gain access to
countries where sole proprietorships are prohibited. The main disadvantage is the
possibility of receiving damages or losing property rights due to a legal
misunderstanding.
Full ownership of the branch(eng. Wholly owned subsidiaries) is an activity
on the land (territory) of a foreign country, owned and controlled by a company
with a management center in another country. The advantage of full ownership is
that the main company sells the right to manage the branch, taking into account the
existing laws of the foreign country where the branch is located, and this is an
important prerequisite for effective business management. The main disadvantage
is that if there are any significant negative political changes in a foreign country,
the parent company may lose the branch with all its property.
Transnational corporations and small organizations doing business in the
international arena must take into account two important factors: the need to make
optimal economic decisions on a global basis and to be prepared for significant
differences in business conditions in the partner country. According to this,
multinational companies use three main strategies: global integration, national
responsibility and multi-purpose emphasis.
Worldwide integration is sometimes called globalization. Its task is to
produce highly standardized goods that are in demand in the world. The main
element is rationalization, which includes activities where all parts of the company,
regardless of their location, produce products where there is an opportunity to get
the most profit. Multinational corporations take into account factors such as cost,
raw material costs, capacity and availability of sufficient volumes to do the job.
National responsiveness (English. National responsiveness) - enables
subordinate branches to have sufficient authority to adapt products and services to
meet the specific needs and political requirements of the state where they operate.
Subsidiary companies act as national enterprises, but along with this they receive a
number of advantages; being related to multinational companies, they share
financial resources and have access to common resources.
Multifocal emphasis is a strategy aimed at obtaining the benefits of global
integration, where possible, as well as trying to be responsible for important state
needs. This strategy requires careful coordination from the centers and great efforts
to integrate local information into a global perspective.
Adaptation to cultural differences and management
Along with social responsibility and ethics, adaptation to cultural differences
is an important factor in the effectiveness of international management. Here, the
main thing is to use the advantages of international human resources management
and adaptation to the lifestyle and entrepreneurial activity in this country.
In the process of managing international human resources, operations related
to the formation, stimulation of their development, policy of allocation,
recruitment, selection and training of personnel are taken into account.
The allocation policy is carried out taking into account four main groups of
human resources:
 a) local workers;
 b) staff of the parent company;
 c) international staff;
 d) mixed resources.
Managers from the local population have the advantage that they are
intimately familiar with local habits and traditions; however, they may not be
familiar with the parent company's technology. In contrast, the parent company's
personnel are competent in the firm's professional affairs, but little familiar with
local customs.
The combination of personnel from the local nationality and the personnel of
the parent company is used primarily in the early stage of internationalization.
International staff - staff who are hired regardless of nationality and place of
work. It is best, of course, to use a mixed staff.
International companies find people for key positions, that is, they conduct
recruitment in accordance with the implemented policy. Basically, these are not
local citizens, but people employed in their own country, they are often called
exporters.
Most organizations involved in international business on a large scale tend to
have at least a few managers working abroad with all subordinate departments. At
the same time, however, it is necessary to send up to 25-40% of the staff abroad,
which leads to large costs for their transportation, housing, etc.
When hiring employees to work abroad, most multinational corporations
consider technical skill as the main selection criterion. However, while technical
knowledge and skills are very important for sustained success, the ability to
connect with the host country's population is even more important. This is called
the skill of contact. The art of communication is based on several requirements:
 use of the local national language;
 the ability to inspire self-confidence;
 the ability to enter a conversation (using jokes, apt comments about
movies and sports, etc.);
 the desire to understand and attract the affection of many people.
Specialists in international management claim that the forms and methods of
activity of organizations tend to unify in different countries. Still, for managers
there is a problem of adapting their leadership styles to local conditions and taking
into account cultural factors: the level of development of society, creative forces
and abilities of people, current values, ethnic characteristics, mentality, etc.
Many problems related to social responsibility arise when an organization
begins to do international business on a large scale. The main reason for this is the
significant increase in the number of shareholders employed in the business,
especially when the business is conducted by a multinational corporation through
the opening of representative offices and branches.
Analyzing the effects of international cooperation yields a multifaceted
understanding of its impact across various domains. Here's a breakdown of its
effects:
Economic Effects:
1. Trade and Investment: International cooperation fosters trade agreements
and investment partnerships, boosting economic growth and market access
for participating nations.
2. Economic Development: Collaborative efforts often lead to development
initiatives, infrastructure projects, and aid programs, promoting economic
stability and growth in developing regions.
3. Resource Sharing: Cooperative ventures enable resource sharing,
technology transfer, and knowledge exchange, fostering innovation and
economic diversification.
Political Effects:
1. Peace and Stability: Cooperation in conflict resolution and peacekeeping
promotes regional stability and mitigates tensions among nations.
2. Diplomatic Relations: Strengthening diplomatic ties through cooperation
facilitates dialogue, mutual understanding, and alliances among countries.
3. Global Governance: Collaborative efforts shape global governance,
influence policy-making, and establish norms and regulations on various
international issues.
Social Effects:
1. Cultural Exchange: Cooperation fosters cultural exchange, promoting
tolerance, understanding, and appreciation of diverse cultures.
2. Humanitarian Aid: Joint efforts provide humanitarian aid, disaster relief,
and support for refugees, improving living conditions and addressing
humanitarian crises.
3. Health and Education: International cooperation in healthcare and
education enhances access to healthcare services, educational opportunities,
and knowledge sharing globally.
Environmental Effects:
1. Environmental Protection: Collaborative agreements tackle environmental
issues such as climate change, deforestation, and biodiversity loss, fostering
sustainable practices and conservation efforts.
2. Resource Management: Cooperation in environmental management
promotes responsible resource utilization and conservation, benefiting
ecosystems and future generations.
3. Green Technology and Innovation: Joint research and development
initiatives drive innovation in green technologies, aiming for sustainable
solutions to environmental challenges.
 Global Security Effects:
1. Counter-terrorism: International cooperation strengthens efforts in
combating terrorism, sharing intelligence, and addressing security threats
collectively.
2. Non-proliferation: Collaborative agreements focus on nuclear disarmament
and non-proliferation, reducing the risk of global conflicts.
3. Cybersecurity: Joint efforts in cybersecurity address threats in the digital
realm, ensuring global data security and protection against cyber-attacks.
By analyzing these effects, it becomes evident that international cooperation
plays a pivotal role in shaping the global landscape, fostering development,
stability, and progress across various spheres of human endeavor.
At times, one hears unwarranted criticism of large corporations for their
potentially harmful influence on the development of nations. This is evidenced by
corporations' predatory use of natural resources, siphoning off the wealth of
developing countries, and attempts to manipulate the government.
The public mostly follows various aspects of the functioning of
multinational corporations and their behavior abroad. It can put pressure on them if
any negative political, environmental or economic consequences of their activities
are revealed. Shareholder groups often send petitions to the UN, in particular to the
human rights commission, but the company's official representatives try to do
everything to keep the corporation in the countries and at the same time make
independent decisions and actions and influence political changes in the state.
When conducting international business, the problem of questionable
payments occasionally arises. These are business payments related to important
legal and ethical issues, both in the native (own) country and in the country where
the enterprise is located. Problems with questionable payments arise due to the
difference in ethics and laws of different countries, which require different types of
payments. The most common forms of questionable payments are political
payments, bribes, sales commissions, racketeering, and expedition payments.
Some of these payments are considered normal in some countries, but they are
considered unethical or illegal in the vast majority of developed market economies.
Orientation of international management for the future
Senior managers of companies entering international relations try to adhere
to one of three main orientations (philosophies), taking into account the methods
used to influence the central management of the corporation or the management of
companies located in other parts of the world:
 a) focus on the domestic market (ethnocentric);
 b) orientation to one's market and the market of another country
(polycentric);
 c) orientation only on the world market (geocentric).
An ethnocentric or home-country orientation (eng. An ethnocentric or home-
country orientation) is an approach to international management in which
management takes practical actions that work in the company's home country
centers and must necessarily work elsewhere .
A polycentric or host-country orientation is an approach to international
management in which management views the company's host country and its
population as very difficult to understand. Therefore, they believe that those parts
of the organization that are located in a given country should be represented mainly
by local employees who know their own culture, habits, business ethics and the
market much better.
As a result, subsidiaries in different countries are always managed
independently, are under the control of local managers and are connected to the
head office mostly through financial control. Also, from the standpoint of
polycentric orientation, local managers manage operations in another state, with
little prospect of occupying important management positions in the centers.
A polycentric approach can be successful if decision-making is decentralized
and carried out mainly in the host country.
The geocentric or world orientation (English) is an approach to international
management in which management believes that a global view is necessary in both
cases: in the centers of the home country and in its various branches. Regardless of
whether they are their own managers or from a foreign country, they must
successfully solve the company's problems and tasks.
Almost everywhere in the world, executives look at major decisions from a
global perspective, asking the question: "Where in the world should we make
money, build factories, develop and implement new ideas to serve our current and
future customers?" This is the most difficult approach because it requires
knowledge of both the domestic market and the international situation.
When organizing international business, different forms of distribution of
responsibilities and personal powers of top managers are possible:
 a) global functional division;
 b) global commodity division;
 c) international distribution;
 d) geographical distribution;
 e) use of the global matrix.
In the case of international functional divisions (English: Worldwide
functional divisions), top-level managers in the parent company have global
responsibility for individual functions: production, marketing, finance, personnel,
engineering. The advantage of this structure is that it provides strong functional
control in foreign branches, but requires coordination of all functional divisions.
The management structure must quickly and clearly respond to changes in the state
of affairs in different countries and ensure product diversification on the market.
Worldwide product divisions (eng. Worldwide product divisions) — top
echelon managers are responsible for a special product area of the world. With this
type of structure, there is a tendency to transfer all functions to a branch or a
subsidiary, but leaving coordination actions to the center.
International divisions are a structure in which all foreign subsidiaries report
to a responsible unit at the center of the company. International division is based
on geographic distribution. But it is becoming more difficult to manage the affairs
of the types of products that are produced in one's own countries and on the
international market.
Geographical division (English. Geographic regions) under this structure,
the whole world is divided into regional parts, and it is assumed that the branches
report to the relevant departments according to the location. Such a structure is
very convenient for collecting information by region, but it complicates the
exchange of information between regions. It is used more by European countries
than the USA.
A global matrix is a structure in which responsibilities and rights are divided
evenly in such a way that one part of them belongs to regions, and the other to
products or to the corresponding functions. According to the global matrix, middle
managers report to two of them, who are empowered to make decisions for this
region and a special product area of business activity. Some international
companies are experimenting with the global matrix, introducing changes
according to which middle managers report to three bosses: by region, function and
product.
Already now, in countries with a market economy, the transfer of
management functions and rights to professional managers, who are increasingly
moving away from the performance of only administrative duties, becoming
involved in entrepreneurial activities, has acquired a stable character. The volume
of work related to the management and movement of resources is growing
noticeably, while system (management in the input-output system) and situational
methodology are increasingly being used.
According to the well-known American scientist Peter Drucker, in the 21st
century, the principles of enterprise activity will change from those based on
rational organization to those based on knowledge and information.
In a modern organization, specialists will mostly work who direct and
organize their activities with the help of feedback from their colleagues, consumers
and the strategic center of the corporation.
 New revolutionary changes in management are associated with the use of
information technologies, scientific knowledge, horizontal structures, "internal"
markets, etc.
The formation of a new model of management requires the process of
globalization of the economy. In this model, the main factor remains people who
are able to successfully solve the problems of combining the interests of their own
country and other states, ensure partnership between business and governments of
different countries, competition and cooperation on a global scale, adaptation of
management and business to the cultural differences of countries participating in
international business.

Conclusions to section 1
In today's world, competition plays an important role for the activities based
on market relations. Competition is a kind of competition between different
companies operating in the same field for popularity among consumers, better
production and sales conditions. Competition of an enterprise is described by such
an economic category as competitiveness.
There are many different explanations of the term "competitiveness" by
different
authors, but in general, this concept can be described as an economic
indicator that
summarizes the results of the work of various departments of the enterprise,
reflects advantages and disadvantages of this company compared to others in the
market.
As for international competitiveness, it can be described as the ability of the
enterprise to function effectively in the foreign market, and as well as the
possibility of achieving effective financial and economic performance,
of foreign economic activity and leading positions in a competitive
environments.
The level of international competitiveness of an enterprise is influenced by
 two groups of factors: external (factors of the global economy,
macroeconomic and
industry) and internal (factors that directly arise at the enterprise).
To find out how competitive the company is in the the foreign market needs
to be assessed. There are different methods of evaluation international
competitiveness. There are 5 main groups: analytical, matrix, index, graphical,
complex. Each group of methods contains different ways of assessing
competitiveness.
In general, each method of assessing international competitiveness has a
number of
its advantages and disadvantages over other methods, but enterprises choose
which method to use according to your needs.

Chapter 2. Analysis of international economic relations between China

and African countries
 2.1. General characteristics of China and its international economic
relations
China is a country whose history of statehood goes back several millennia,
its people have made a significant contribution to the material and spiritual culture
of mankind
The area is 9.6 million km2.
Population - 1.2 billion people.
The capital is Beijing.
China is a country whose history of statehood goes back several millennia,
and its people have made a significant contribution to the material and spiritual
culture of mankind. China, with its large territory, huge labor and rich natural and
raw materials resources, and a potentially large internal market, has objective
prerequisites for the creation of a comprehensive, versatile economy capable of
providing the country's needs in all necessary goods.
Currently, in terms of GDP and economic potential, China is among the top
ten leading countries in the world. The growing role of the Asia-Pacific region in
the world economy further strengthens China's economic capabilities.
China is a republic. The highest authority is the National People's Congress.
Administratively, the People's Republic of China is divided into 23
provinces, 5 autonomous regions (Inner Mongolia, Xinjiang-Uyghur, Tibet,
Guangxi-Zhuang, Ningxia-Hui) and three central cities - Beijing, Tianjin and
Shanghai.
Natural resource potential. China - the third largest country in the world -
has a significant land fund, large reserves of minerals, powerful water resources, as
well as wide opportunities for the development of ocean resources.
The nature of China is rich and diverse. In the north, harsh mountain ranges
covered with forests or temperate steppes adjoin the cold expanses of Siberia, and
in the south - mountains with evergreen tropical forests. On the plains of Eastern
China, which is under the influence of the warm monsoons of the Pacific Ocean,
fertile fields spread out, in the west - waterless expanses of the largest Asian
deserts and mountains covered with eternal snow.
The area of agricultural land in the PRC is about 350 million hectares, or a
little more than 1/3 of the country's territory. Another 1/6 of the territory is
occupied by forests. Arable land is about 100 million hectares, or 11% of the land
fund. But if you take into account that in some areas you can harvest 2-3 crops per
year, the cultivated area of China is much larger than the arable area, it is estimated
at 150-170 million hectares.
The main part of arable land is in the eastern regions of the country, only
12% of such land is in the west.
China is extremely rich in raw fuel and mineral resources.
There are large reserves of iron ore and ores of alloying metals for ferrous
metallurgy in most provinces, in particular - in North China, Xinjiang and the
south. There are especially many deposits of ores of polymetals, tin, antimony,
tungsten, mercury in the provinces of South and South-West China. There are also
large deposits of phosphorites, fluorspar, asbestos, and various building materials.
Industrial coal reserves make up almost 1/3 of the world's. The provinces of
North China account for half of the coal reserves in the country, another 1/5 of the
reserves are concentrated in the provinces of the northwest. 1/3 of China's territory
is promising for oil and gas. The best-explored oil-bearing areas are located in the
north of the Great China Plain (1/3), in the northeast (1/4) and in the northwest.
Prospective oil shelf of the China Seas.
The country has significant reserves of nuclear raw materials: in the
provinces of Guangdong, Xinjiang, Qinghai and Inner Mongolia. Power generation
opportunities are significantly supplemented by a large hydro potential. The annual
flow of rivers in China is 2.7 thousand km3, which is almost 9% of the flow of all
rivers of the globe.
People. Every fifth inhabitant of the Earth is Chinese. The natural movement
of China's population in recent decades is characterized by a decrease in the birth
rate and death rate. Natural population growth decreased to 1.2% per year. Now
every year the population of China increases by 12-14 million people. The number
of economically active population is more than 500 million people.
China's economy functions in conditions of labor surplus and hidden
agrarian overpopulation. Spontaneous urbanization is taking place, the number of
cities with a population of more than 1 million people is already more than four
dozen.
China's population is unevenly distributed. In Eastern China, 2/3 of the
country's population lives on 1/5 of the territory. Half of it is concentrated in
coastal areas, the western and northwestern regions of the country with adverse
natural conditions are still sparsely populated. In the Northwest and in Tibet, there
are only 1-4 men per 1 km2.
In recent decades, because of the intensification of the country's economic
life, labor migration flows have increased. They are directed from the densely
populated areas of the Great China Plain in the provinces of North, North-East,
North-West and South-East China. Seasonal and pendulum migration in the areas
of millionaire cities is also increasing.
The largest cities in China are Shanghai (over 12 million people), Beijing
(over 9), Tianjin (8), Chongqing (7), Guangzhou, Fuzhou, Changchun, Shenyang
(all 5-6 million people), as well as Dalian , Wuhan, Qingdao, etc.
Household. In the development of the economy of the People's Republic of
China, several periods can be distinguished: reconstruction and the first five-year
plan, the "great leap", the "cultural revolution" and modern reforms.
Unrealistic tasks were set: to eliminate the economic and technical lag
behind economically developed countries in 3-5 years. The development of
industry was excessively forced, and the creation of "people's communes" became
the form of "improvement" of agriculture. Economic chaos began, which took
years to overcome. "People's communes" were dismantled, part of the communal
property and homestead plots were returned to the peasants. The situation in the
economy somewhat normalized.
 At the same time, in foreign economic activity, China moved to an "open
door" policy, that is, to a policy of cooperation with all states, the use of foreign
capital, and the construction of free economic zones.
As a result of the changes that occurred in the property system, five of its
forms were formed in modern China:
 state,
 collective,
 personal,
 private
 state-capitalist.
The number of private enterprises, including those with the participation of
foreign capital, increased sharply.
The assessment of the current level of economic development of the People's
Republic of China is rather ambiguous. On the one hand, the People's Republic of
China is a large country, which in terms of absolute indicators is inferior to few
countries in the world. The country has great opportunities in energy (third place in
the world in terms of fuel production, including first place in coal production),
ranks second-third in steel production, and first place in grain and fabric
production. China has a developed space and atomic industry, petrochemicals and
electronics. On the other hand, the production of industrial and agricultural
products per capita is relatively small.
During the years of building socialism in the People's Republic of China, the
sectoral structure of the economy has fundamentally changed. At the beginning of
the 50s, the share of agriculture in the structure of GDP was 1/2, industry - about
1/4. At the beginning of the 90s, the ratio is estimated as follows: industry - 1/2,
agriculture about 1/3.
Consequently, the structure of China's GDP has come close to the industrial
and agricultural structures of economically developed countries. But in terms of
labor productivity, agriculture has significantly lower indicators compared to
industry. In addition, the economic system is characterized by an imperfect
infrastructure and a relatively low technological level of civilian industries.
Industry. A powerful multi-branch industry has been created in the PRC.
Along with the traditional ones (textile, coal, metallurgical), such new branches of
industry as oil extraction and oil refining, chemical, aviation, space, and
electronics have emerged.
The structure of the energy balance retains its "coal" character. Hard coal
provides 3/4 of energy needs, oil - about 1/5. Coal production is 1.2 billion tons,
deposits are developed in all provinces of the country, but the largest is in Northern
China.
More than 170 million tons of oil are extracted. The main production areas
are the Northeast and the shelf. Power generation capacity does not meet the needs
of the country's economy, although electricity production is 840 billion kWh. -
China ranks fourth in the world.
Mechanical engineering is the most important branch of Chinese industry.
The leading place here is occupied by enterprises producing products for military
purposes. The production of machines and equipment for various branches of
industry, the production of metal-cutting machines, cars, tractors and agricultural
machines has also been established.
General mechanical engineering and electronic industry are developed. A
characteristic feature of the territorial structure of the industry is the coexistence of
large machine-building centers, where large machine-building factories are
located, and numerous small enterprises operating in each province. The largest
machine-building centers of China are Shanghai, Beijing, Tianjin, Shenyang, as
well as Harbin, Dalian, Changchun, Guangzhou, Wuhan, Nanjing, Xi'an,
Chongqing.
In the chemical industry, the production of military chemicals and mineral
fertilizers stand out. In terms of fertilizer production (more than 20 million tons
based on the content of the useful component), the PRC is second only to the
United States.
 China's textile industry ranks first in the world in terms of finished products.
It provides about 1/4 of the world production of cotton fabrics and 1/10 - of fabrics
made of chemical fibers. China is also an important producer of natural silk
fabrics.
The main enterprises of the textile industry are concentrated in Eastern and
Northern China. The largest center of the textile industry is Shanghai, silk fabric is
Hangzhou. Beijing, Tianjin, Qingdao, Nanjing, Wuxi, Xi'an, Chongqing,
Guangzhou are also significant centers of the textile industry.
Agriculture. China is a large agricultural country. More than 1/3 of the
world's rice and millet crops are harvested here, 1/10 of the world's cattle and 2/5
of pigs are concentrated here. China is one of the world's largest producers of corn,
cotton, soybeans, tea, tobacco, poultry, and silkworm cocoons.
The sectoral structure of agriculture is characterized by a significant
predominance of crop production (mainly food crops), the share of which is more
than 70% of the value of the industry's gross output. In crop production itself, the
specialization of one or another area is determined by the ratio of three groups of
crops: grain, technical and vegetable.
Grain farming provides the main share of the country's food. The traditional
culture is rice, which occupies up to 1/4 of the cultivated area. About 180 million
tons of this valuable crop are harvested in China every year. In the south and in the
Sichuan region, rice is the main grain crop, in the Yangtze River basin, in addition
to rice, wheat and barley are grown; in the north, rice is inferior to wheat, millet
(millet) and corn. In the southern regions, two or even three harvests of rice are
harvested per year.
About 1/6 of the sown area is sown with technical crops. Cotton (1/4 of
world production) and jute are the main fiber crops. An important sugar-bearing
crop is sugar cane. The main oil crops are soybeans (about 20 million tons per
year) and peanuts. China ranks second in the world (after India) in terms of tea
production (580,000 tons per year).
 Vegetables and tuberous crops (especially sweet potatoes and potatoes)
provide a significant share of food. More than a hundred types of different
vegetables are grown, including numerous varieties of cabbage, radishes and
turnips, carrots, onions.
Animal husbandry has different directions of development in the eastern and
western regions of the country. In the eastern regions, the share of animal
husbandry in the structure of production is insignificant, pig farming and poultry
farming are important. The western and partly northeastern parts of the country are
a zone of extensive animal husbandry, which uses large pastures. Sheep, goats,
horses, camels are bred here, and yaks are bred in the highlands.
Four zones are distinguished in the territorial structure of agriculture in
China.
Rainfed agriculture and animal husbandry zone of the northern part of
Eastern China (north of the Great China Plain, Northeast China and Inner
Mongolia). Half of the arable land and 1/3 of the cultivated area are concentrated
here. The zone produces a third of grain and the same amount of livestock
products.
The zone of rice sowing, subtropical and tropical crops of the southern part
of Eastern China (Eastern, Central and Southern China, basins and plateaus of
Southwestern China). This is one of the oldest areas of world agriculture, where
40% of China's arable land is concentrated, it provides 3/5 of the country's grain
and half of livestock production.
A zone of pastoral pastoralism and oasis agriculture in Northwest China.
The high mountain zone of Qinghai and Tibet.
Transport. In China, given the population and the size of the territory,
transport does not yet meet the needs of the economy. Half of the volume of all its
work is performed by railways, water transport, especially sea transport, is
important in the transportation of goods, and in the transportation of passengers -
road transport. Air transport is not yet sufficiently developed.
 The densest network of railways, highways, waterways has developed on the
Great China Plain, where the majority of the population and economic facilities are
concentrated, and in the northeast. It provides access to the ports on the coast,
through which the majority of foreign trade is carried out. The most important of
them are Shanghai - in the east, Dalian, Qinhuangdao, Tianjin and Shandong - in
the north, Guangzhou and Xiangnan - in the south.
The interior of the state is provided with roads much worse, and continental
external communications are also limited here - these are railways to Mongolia and
Kazakhstan, as well as the strategic Karakorum highway to the Hindustan
peninsula through the highest passes in the world.
China exports coal, oil, non-ferrous metals, rice, cotton, tea, cloth, clothing,
etc. Chinese light industry products are in demand on the world market.
Imports are dominated by the delivery of rental cars, mineral fertilizers and
machines. Japan, the USA and East Asia account for 3/5 of China's foreign trade
turnover.
Internal differences. The following historical and geographical regions have
formed in China: Northeast (Manchuria), North (the eastern part of the country
north of the Yellow River), East (industrial coastal areas of the Great Chinese
Plain), Center and South, Northwest and Southwest, they can be considered
conditionally as economic districts.
The Northeast is one of the leading industrial regions of China. Its economic
profile is defined by fuel and energy, metallurgical and forestry complexes. Multi-
branch agriculture (wheat, rice, sorghum, soy) is also developed here. The most
important cities in the central part of the district are Shenyang, Anshan, Fushun, in
the north - Harbin, on the coast - Dalian.
The North is the third most important industrial region of the country after
Eastern and Northeastern China. The leading place here is occupied by labor-
intensive and knowledge-intensive industries - electronics, electrical engineering,
instrument construction, production of synthetic materials, etc. In this area are the
capital districts of Beijing and Tianjin, which are the focus not only of
administrative, financial and economic activity, but also the center of science and
culture. The steppe regions of Inner Mongolia belonging to this area are still
underdeveloped.
Eastern China is the most economically important region of the country,
accounting for 30% of the population, 35% of industrial production, and 30% of
agricultural production. The textile, shipbuilding, electronic, machine tool,
metallurgical, and chemical industries are well developed here. Comprehensively
developed agriculture is a supplier of rice, wheat, soybeans, cotton, tea, various
vegetables, pork and poultry. Significant cultural and scientific potential is
concentrated in the region. The largest cities are Shanghai (the largest city in
China), Nanjing (the old capital of the country), Hangzhou, Qingdao, Fuzhou.
The Center and the South are agricultural and industrial areas. Central China
has an average level of economic development. Its main industrial core is Wuhan.
The specialization of agriculture is the same as in Eastern China. South China is
rich in raw materials. Its largest industrial and trade and economic center is
Guangzhou. Next to Guangzhou are important free economic zones for China.
Xiangang is located on the coast - one of the most powerful industrial hubs in East
Asia.
The North-West region has unfavorable natural conditions, but is rich in
natural resources. This opens up significant opportunities for its development in
the future. The main cities are Xi'an, Lanzhou, Urumqi.
Southwest. The main center of economic activity of the district is the
Sichuan basin. Multi-branch agriculture and various industries are developed here.
The main cities are Chongqing, Chengdu. The Southwest also includes the
mountainous region of Tibet, which has harsh natural conditions. Lhasa is located
here - an important religious center of Lamaism, which is one of the directions of
Buddhism.

The government of the People's Republic of China determines the direction

of the promotion of Chinese companies abroad for the long term, establishing
equal relations with the states. Researchers note that Chinese penetration into
Africa is a purposeful and profitably organized program. On the "black continent"
the PRC is firmly entrenched.
China's move towards developing countries is reminiscent of the behavior of
the USSR, which also formed and implemented long-term socio-economic aid
programs. But, unlike the USSR and even the USA, which take into account the
ideological aspect of promotion, the PRC emphasizes an economic approach. In
this regard, the Chinese state and its companies evaluate first of all the economic
efficiency of the promotion process, taking into account its costs and results.
The long-term program of relations with foreign countries determined the
place and role of each subject of the Chinese economy in this process. The field for
their activity is, of course, determined by the state. M. Dorfman notes that Deng
Xiaoping once said: "When crossing a river, one must stand firmly on the bottom
and feel the stones with one's feet." China's strategy is based on three principles:
first, to gain access to the natural resources of African countries, necessary for
Chinese economic growth; secondly, to show the whole world that China is not
just a growing superpower, but also a responsible power that sets itself a long-term
goal; and finally, China seeks to create reliable markets for its own goods.”
The implementation of the presented strategy presupposes the formation of
multilateral socio-economic foreign economic ties on a mutually beneficial basis.
On the one hand, the Chinese state exports its goods to Africa in large volumes,
lends, builds new facilities of social and industrial importance, produces
agricultural products and food. Special attention is paid to stimulating the
emigration of Chinese to the countries of the African continent.
In turn, the government always gives the opportunity to export the products
of developing countries to China, and the population of these countries can receive
education in China. Such mutual exchange makes it possible to consolidate long-
term relations between states.
Experts note that "the rapid growth of Africa's trade with China mainly
reflects the comparative advantages of each partner, taking into account the level
of economic development, and not China's one-sided interest in the exploitation of
natural resources. But based on the available information, China seems to perform
different functions in Africa - trading partner, donor, financier, investor and
contractor. International economic organizations note the great influence of China
on the economic growth of African states."
In the process of pricing in the structure of total costs, transaction costs play
a special role, as the costs of forming market transactions. Relations with
customers and owners of resources determine the direction of development of any
company. The quality of transactions largely depends on the formal and informal
norms existing in the economy. If formal norms are determined by international
organizations and national states through agreements and national legislation, then
informal norms are traditions and customs that can exist for centuries or even
millennia in these markets. Currently, in the conditions of globalization, which is
intensifying, international economic organizations are exerting an increasing
influence on the activities of companies. Numerous international agreements,
formed by two or several countries at once, determine limitations in the activities
of the states themselves and their subjects - households and companies.
The global economic crisis has changed the rules of the game for all subjects
of the world economy. While the experts of the world community are dealing with
the current situation, each state is trying to resolve the emerging contradictions in
many ways independently. One of the ways is the activation of bilateral relations
between the countries.
The Chinese government, with all the unification of its actions indicated
above, implements an individual approach to the formation of interstate relations,
taking into account the interests of both parties. This practice opens the way for
Chinese business and allows it to save transaction costs for promotion in foreign
economies. Usually, companies conclude agreements independently and are
responsible for their implementation, but the state creates a common field for their
activities. Thus, the state and companies perform their functions in the process of
formation and execution of market transactions. It should be noted that the Chinese
state, since its formation as a centralized state, has always taken an active part in
the organization of production and trade of its artisans, agricultural producers and
traders. For example, government officials organized the purchase of scarce
resources from abroad, distributed them among craft workshops, primarily state-
owned, and controlled the quality of manufactured goods based on these resources.
In general, state workshops were of special importance for the Chinese economy.
They carried out production on the order of the state. Large state-owned companies
still play a significant role in the national economy today.
Thus, the Chinese state has historical experience in organizing international
economic activity, which allows it to regulate transaction costs at the
macroeconomic level. In this regard, it is possible to note the directions of the
Chinese state's activities: readiness to cooperate with any regimes, frequent
personal contacts of state leaders, holding multilateral forums, the ability to
combine public and private initiatives. Direct assistance to Chinese companies
from the state is a well-thought-out system of measures. It includes diplomatic
support for investment programs of Chinese companies.
Financial support is differentiated by the size of the companies: large firms
can apply for credit resources from Chinese banks, in particular the Export-Import
Bank China (EXIM Bank China), which was established in 1994 and is under the
control of the State Council of China. Whereas small businesses finance their
investment activities with the help of family ties and informal capital markets. The
financial policy of the Chinese state, when lending not only to its own companies,
but also to African, Latin American and other governments, ensures faster and
large-scale advancement in foreign economies.
The policy of the PRC is distinguished by the establishment of control over
the sources of raw materials, rather than the purchase of these raw materials on
world markets. The state pays special attention to oil. The foreign activities of oil
companies are encouraged and supported with a wide range of tools. Loans and
credit lines, development aid and other initiatives, arms supplies and diplomatic
support are tools that help China win over the governments of oil-producing
countries and gain privileged access to oil sources." African countries export not
only oil, but also wood, flax, peanuts, coffee, metals, ore and fruit.
Analysis of the activities of the Chinese state shows that it provides savings
in transaction costs of large and small companies. Director of the Shanghai
consulting company APM Consulting, Jonathan Wu, notes another aspect of this
process. For multinational companies of the USA, Western Europe, and Japan,
Africa is a region that develops in conditions of high risks and low income of the
population. Chinese companies see Africa as a continent of great opportunities:
there is little competition and virtually no trade barriers; Africa has the potential
for significant growth through import substitution and intra-regional trade, as well
as through traditional export markets.
However, there are circumstances that force Chinese companies to increase
not only transaction costs, but also other types of costs. The African continent is
developing in conditions of high political, administrative, and commercial risks.
Chinese companies are more prepared for and able to deal with risks such as
corruption, bureaucracy, security issues, unlike companies in other countries.
Price formation has always been based on the use of a wide range of
information. Its search, availability, reliability, speed of acquisition play an
important role, especially in the conditions of the information economy. Moving to
another continent involves processing a constant stream of information. With the
increased risks of doing business in African countries, the prevailing importance of
traditions and customs, information is even more important. But obtaining it
requires additional costs due to its diversity and subjectivity.
In this regard, the Chinese government comes to the aid of its companies,
which helps to save costs for the organization of production and sales of products.
Special attention should be paid to the management of human capital costs of
companies. Currently, the global trend of increasing these costs is pronounced.
This is due to the objective circumstances of using high technologies, ensuring a
modern level of education and maintaining human health. In China, the trend of
increasing employee costs is also emphasized, which gradually reduces the
competitiveness of Chinese companies in the world economy. First of all, this is
manifested in the increase in wages, noted by both Chinese researchers and foreign
entrepreneurs working in China. The same process is beginning to develop in some
African countries. Practice shows that the share of production costs determined by
personnel costs increases in large and even small companies.
On the other hand, the Chinese state, in conditions of constant population
growth, needs to solve the complex problem of employment. In this regard, a
special Chinese policy of employment and wage regulation has been developed.
The specificity of the activity of Western companies is the generally accepted
principle of involving national personnel in the work of companies in the national
economy. This ensures the employment of national personnel and supports the
image of multinational companies. This practice has been used for several decades.
Chinese companies maximize the involvement of precisely Chinese workers
for the development of African and Latin American resources. T.L. Deitch notes in
his article that "Chinese companies operating in Angola bring 70-80% of their staff
from China. They write that 90% of Chevron's employees, including qualified
personnel - engineers and managers - are Angolans, while Chinese oil companies
employ less than 15% of local personnel. Such an employment policy allows you
to regulate personnel costs, which means the cost of production. At the same time,
the work of the local population is usually paid at the lowest rates. Such regulation
of the wages of Chinese workers, savings on the wages of the local population
allow to restrain the growth of the share of the cost price associated with live labor.
But it also leads to a decline in the image of Chinese companies, when China is
criticized for the low wages of local workers, unwillingness to observe the
necessary working conditions. Reprimands, as practice shows, can end in strikes
by local workers.
Strict cost savings based on reluctance to organize environmentally friendly
production, reproduction of natural resources where possible, also worries the local
population. This is especially noticeable when the Chinese advance deep into the
forests, when developing the land used for the production of agricultural products.
The international mass media quite often write about violations of the ecology of
the countries where Chinese companies operate. For example, the Russian Far East
is rapidly losing its natural resources to the aggressive influx of the Chinese. The
same processes are observed in Africa and Latin America. The extensive path of
development organized by Chinese companies is turning into serious
environmental consequences for the world economy.
Researchers admit that the prices of goods of Chinese companies are formed
taking into account the effect of scale and the effect of diversity. The basis of the
organization of these processes is the scale of the Chinese economy itself. The
final Chinese consumer is not only more than a billion people, but also the needs of
Chinese households, which are constantly growing. In this regard, large companies
are becoming even larger on the basis of modern industrial technologies, and
successful small businesses that have found their niches are growing at a rapid
pace. John Daly notes that "pricing is a difficult process primarily because there is
a close relationship between price and volume, price and costs. Price affects sales
volume if there is sufficient solvent demand, and at the same time sales volume
affects costs. Under such conditions, the amount of expenses cannot be correctly
calculated in isolation from information about the volume of sales. Moreover,
since the profit is the difference between the sales volume and the total costs, in
order to achieve the maximum profit, it is necessary to conduct a simultaneous
analysis of the sales volume and costs."
An increase or decrease in the volume of sales depends on many factors,
both objective and subjective. In this regard, any company has a limited role in
managing sales volume, which means costs and prices. First, the stability of the
environment at the macro level, which is largely ensured by the state, is of
particular importance. Secondly, the meso level determines the specifics of the
development of the industry. Thirdly, the specifics of the development of the firm
itself, its capabilities in the formation of transactions for the acquisition of
resources and the sale of finished products.
 The practice of the development of the Chinese economy in the last twenty
years shows that the volumes of production and sales increase annually at great
rates. Industries, like individual companies, develop differently. At the same time,
it should be noted that Chinese managers and employees have the ability to quickly
increase production volumes based on the growth in the number and variety of
goods. This ability of Chinese companies, being their competitive advantage, never
ceases to amaze the world economy.
The effects of scale and diversity make it possible to manage the level of
costs per unit of production, which gives companies the opportunity to more freely
manipulate the price of products produced and sold on the market. Each private
company independently determines the features of the effect of scale and the effect
of diversity. The objective limiter in this case is the type of product, the set of
resources for its production, formal and informal norms of behavior of subjects.
Currently, ethical norms are becoming more and more significant
restrictions. The increase in production in various forms encounters these norms
not only in developed countries, where they are already defined by legislation, but
also in rapidly underdeveloped countries. The African continent is no exception,
where foreign companies quite often forget about respect, justice towards the local
population, environmental protection and other problems of the life of Africans.
This also applies to Chinese companies, although they seek to reduce the negative
effect of large-scale penetration into Africa through the development of social
infrastructure.
Chinese state-owned companies determine the quantity and variety of
products based on decisions made by government officials. In addition, it is
necessary to take into account the size of the companies. Practice shows that the
functioning of large-scale production implies the active use of the effects of scale
and diversity. It is more difficult for a small business to use these patterns, because
increasing or decreasing requires making sufficiently risky decisions in conditions
of limited resources. Small producers are in a more difficult situation: increasing or
decreasing the number and variety of products requires them to spend a lot of
money from all family members. However, any company, no matter how difficult
it may be, strives to use these effects, which allow to regulate the dynamics of
specific costs, the ratio of variable and fixed costs.
Large state and private companies operate on the basis of conveyor
production. Its rapid development allowed China to become a "world factory" for
the production of various products. At the same time, practice shows that the
development of large companies very quickly crosses national borders. Then the
already international level of effects of scale and diversity begins to be used. And
if within the framework of the national economy companies have a great
opportunity for development taking into account domestic demand, then in the
world economy it is necessary to participate in international competition for the
right to obtain resources and sell finished products. In this process, the reduction of
specific costs plays a special role. Thus, there is an interdependence: in order to
reduce the total costs per unit of production, it is necessary to penetrate into new
markets, but the success of this penetration provides the possibility of reducing the
specific total costs, and therefore, the possibility of more optimal price and sales
management.
Increasing international competition poses new challenges for companies. In
this case, it is not just about reducing the cost per unit of production, but about its
structure, the dynamics of certain types of costs. This process is gaining
momentum. The global economic crisis has further intensified competition based
on the cost of production. Transnational companies that survived this crisis deepen
the analysis of the cost structure for the purpose of developing optimal
management. Today it is already clear that the company can achieve success in the
competition by actively managing the price structure. Michael W. Marn, Eric W.
Regner, Craig K. Zavada write that “price advantage has a powerful potential, it
can and should be achieved in every business, but few have managed to do it. It is
worth striving for, because pricing is a surprisingly sensitive lever that, with small
fluctuations in the price level, causes huge changes in profit."
 Above, we considered the peculiarities of the formation of transaction costs
and personnel costs in Chinese companies. It should be noted that the use of own
technologies in developing economies also allows Chinese companies to determine
the optimal costs of fixed capital, costs of research and development, not only in
the national economy, but also in the process of functioning abroad. It can be
stated that Chinese companies actively use effects in their practice in relation to
certain types of costs for the production and sale of products.
The increase in demand for resources in the world economy is seen as a
long-term perspective. This was especially acute during the boom period in the
2000s. The trends of rising prices for resources and declining profits of Chinese
manufacturers led to the decision of the Chinese leadership on centralized
procurement of the most important imported resources, which was already
observed in history. The first modern experience in May 2006 to purchase railways
at lower prices turned out to be unsuccessful. Analysts believe that the reasons for
this provision were the inexperience of Chinese parliamentarians, the conflict of
interests of Chinese government officials and direct producers.
At present, the process of price regulation of national and imported raw
materials is beginning to be interfered with by communities of interests, in
particular, associations of entrepreneurs based on the industry principle. The
formation of these entities is emphasized in other BRICS countries as well. For
example, the Chinese Association of Metallurgical and Steel Industry intends to
introduce a railway price index on an experimental basis. This was announced by
the management of the association. Starting from October 2011, the index must
officially be published every week. This indicator is divided into two: one is
intended to reflect the cost of Chinese-made iron, the other is for imported raw
materials. A similar step by Chinese metallurgists is caused by a sharp rise in
world prices for railways. From January to June 2011, the volume of crude steel
production in China reached 350 million tons. This is 9.6% more than in the first
half of 2010. At the same time, the profitability ratio of metal sales was 3.14%.
This indicator is lower than the bank's annual interest rate of 3.5%.
 Thus, the specificity of railway pricing in this case is related to the fact that
China itself has its own production and possible negotiations on the conclusion of
direct contracts for the purchase of a large amount of product abroad. At the same
time, it is recognized that Chinese companies learn the negotiation process very
quickly and are tough enough parliamentarians who strive to achieve their goals.
But Chinese companies also have such a competitive advantage as the acquisition
of deposits, starting with a small share of ownership in foreign mining companies.
We can observe the presented features of the behavior of Chinese companies
in other international markets of natural resources. However, it should be noted
that markets may have their own peculiarities of their functioning, which are
reflected in pricing. For example, in the international oil market there is a complex
system of prices that must be taken into account when forming transactions. China
is a consumer in this market whose demand is constantly growing. From an
economic point of view, China's rapidly growing demand for oil is putting
increasing pressure on the oil market, causing unpredictable price jumps and
increasing market volatility. These shocks destabilized the world economy."
The main factors of pricing are considered, on the one hand, the level and
dynamics of demand, and on the other hand, the level and dynamics of supply.
However, the oil market is also affected by conjunctural factors: speculative stock
exchange operations on oil contracts, military operations in oil production regions,
political sanctions, and force majeure. The Chinese government and companies
need to take into account the entire range of factors operating in the international
oil market.
However, there are national circumstances that affect international oil
transactions. China is believed to have no large oil reserves of its own, although
large areas of the country are unexplored. While the country holds about 6% of
world production and widely uses coal as an energy resource and a substitute for
oil. Moreover, there are a lot of explored coal reserves in China. The direction of
diversified gas purchases has been developed. The state implements a broad state
economy program in all sectors of the Chinese economy. The government,
business associations, and companies are constantly improving the negotiation
process. China regularly diversifies its oil supplies across continents and countries
in order to reduce the risk of interruption of operations for various reasons.
Especially important for Chinese companies is the issue of deliveries, in
particular the formation of transport networks, determination of delivery times, etc.
For example, World Bank experts in 2007 drew attention to the fact that the costs
of export operations from African countries (from 18 to 35% of the total cost) are
excessively high compared to exports from China (8% of the total cost) . However,
despite these obstacles, exports from African countries grew by more than 11
percentage points in the period 2003-2006. In turn, UNCTAD notes that "high
transport costs and unsatisfactory coupling of transport systems are more than ever
detrimental to the development of countries; they create special problems for
developing countries because they are landlocked. Many countries, especially in
Africa, are still better connected by air and sea to industrially developed countries
on other continents than to neighboring countries. Thus, the brake on the
development of their trade is not only distances, but also high transport costs and
unsatisfactory docking of transport systems.
 2.2. Research on international cooperation between China and African
countries

China's relations with African countries, despite China's distance from

Africa, have a long history that goes back centuries. The ancient Chinese laid the
"Great Silk Road" in the direction of the Middle East, Africa and the
Mediterranean through Bactria and Parthia as early as the II century. to n. is.
In 1405–1433, a few decades before the period of great geographical
discoveries by European navigators — Christopher Columbus, Vasco da Gama,
and Fernand Magellan, during the reign of emperors Zhu Di and Zhu Zhanji of the
Ming era, the great Chinese navigator Zheng He (1371–1433 .) led seven voyages
of the huge Chinese fleet (up to 250 ships, some of which are large in size - about
100 meters long and 40 meters wide) to Southeast Asia, the Indian Ocean and the
Persian Gulf. During the fifth, sixth and seventh voyages of the fleet, separate
squadrons of Zheng He entered ports on the Arabian and African coasts of the
Arabian Sea. In 1416, Zheng He's ships entered the harbor of Aden, visited the
ports of Mogadishu (now the capital of Somalia) and Malindi (now in Kenya).
Unlike the Europeans, the Chinese were not interested in conquering new
territories and did not seek to establish factories or create naval bases there. The
main goal of Chinese sailors was to establish friendly diplomatic relations with
local rulers. During the last, seventh voyage of Zheng He's fleet in 1431–1433, a
group of Chinese visited the holy Muslim cities of Mecca and Medina on the
Arabian Peninsula. It should be noted that almost simultaneously with Admiral
Zheng He, the first contacts between China and the African continent in the middle
of the 14th century. established by the Moroccan scientist and traveler Ibn Batuta
and the Somali researcher Said from Mogadishu.

The great Chinese navigator Zheng He (1371–1433)

However, after Zheng He, subsequent Chinese emperors, for reasons that are
unclear, stopped such distant sea expeditions and switched to a policy of
isolationism. Connections with the outside world were reduced to a minimum.
After the change of the Ming Dynasty to the Qing Dynasty in 1644, the isolation of
China increased even more. The Chinese have ceased to be interested in the
outside world. Since ancient times, they have been accustomed to consider their
country the center of the Celestial Empire, and this self-centeredness, which is
based on a mixture of Confucianism, Taoism and Buddhism, left a significant mark
on the national character of the Chinese. However, today we are convinced that
Communist China has successfully overcome isolationism and become a global
superpower that largely determines the development of all mankind. And then we
will try to illustrate this on the example of China's policy in Africa.
Diplomacy of China in Africa
 Today, the share of
Africa in the world economy is
steadily increasing. The great
powers show an increasing
interest in the continent, and the
competition between them for
African markets and natural
resources is intensifying.
According to experts, African
countries account for about
Chinese Premier Zhou Enlai with 30% of the world's mineral
Egyptian President Gamal Abdel Nasser reserves. In recent decades,
(December 1963) China has become one of the
main partners of many of the 54
countries of the African
continent in the sphere of economy, trade, military-technical cooperation and in
other fields.
China supports the training of young African diplomats in every possible
way, organizing professional training courses for them, internships at Chinese
diplomatic missions and providing grants for joint research in the field of
international relations. Yes, in May The Ministry of Foreign Affairs of the People's
Republic of China organized a tour of the southwestern Chinese province of
Guizhou for young diplomats from a number of African countries, who, in
particular, took part in seminars with representatives of Chinese companies that
have business interests there.
However, according to some experts, in the process of establishing
cooperation with African countries, Beijing uses not only diplomacy, but also
"unofficial channels of influence". In December 2018, presenting the new US
strategy in Africa, the US President's national security adviser John Bolton said
that "China uses bribes, opaque agreements, and debt mechanisms to keep Africa
captive to Beijing's wishes and demands."

Advisor to the US President J. Bolton: "China uses bribes,

opaque agreements, as well as debt mechanisms to keep Africa captive
to Beijing's wishes and demands"

It is certain that the Chinese leadership has something to answer for these
criticisms of representatives of the Donald Trump administration, whose policy in
Africa, according to some experts, is by no means ideal. At the same time, it is
emphasized that historically China has never been a colonizer and is not going to
be one, unlike the Western countries, which began to divide Africa and rule the
continent back in the Middle Ages. In addition, one should not forget that China
and the USA are in a permanent state of economic war, which extends to third
countries, including African ones.

Economic cooperation and trade

 Trade between China and Africa has grown steadily over the past 20 years.
Currently, China has
bilateral trade agreements
with 45 African countries
this share of trade was less
than 5% of China's total
trade volume, and in 2014 it
was already 16%. The largest
such amount fell in 2014 —
215 billion dollars. USA,
however, the further drop in
the price of oil on the world Trade between China and Africa, 2000–
market led to a slight 2016.
decrease in the volume of
merchandise turnover, which
in 2017 amounted to 170 billion dollars. USA, and in 2018 it grew by 20% and
amounted to 204.2 billion dollars. (For comparison: trade turnover of the Russian
Federation with African countries in 2018 amounted to 20 billion US dollars, and
in 2017 - 17.4 billion dollars. At the same time, exports from the Russian
Federation exceed imports from Africa by almost six times). In 2009, China
overtook the US for the first time in the volume of trade with Africa and still holds
this leadership. It is worth noting that in the same 2009, China took first place in
the world in terms of merchandise exports, surpassing the USA. In 2012, China
took first place in the world in terms of the turnover of all foreign trade.
Regarding the structure of trade between China and African countries, more
than 50% of China's exports to Africa are electronics, mechanical equipment,
machinery, and iron and steel products. The main African countries exporting raw
materials to China are South Africa (iron ore, diamonds, base metals), Congo (oil
and timber), Nigeria (oil), Ghana (manganese), Namibia (copper), Cameroon
(timber), Angola ( oil), Zambia (copper and base metals), Equatorial Guinea (oil
and timber), Sudan (oil) and Gabon (timber, iron ore, manganese). China's five
main African trading partners include Angola, South Africa, Sudan, Nigeria and
Egypt, which, according to the Chinese Bureau of Statistics, account for more than
70% of China-Africa trade, about $150 billion. USA.
According to data as of the end of 2018, over the past 20 years, China has
created more than 3,700 enterprises in Africa, and the amount of direct investment
has exceeded $46 billion. the USA, and in eight African countries, including the
most developed South Africa, the Chinese yuan has become a reserve currency.
According to the report of the Ministry of Commerce of China, the implementation
of the 10 main plans of China-Africa cooperation in Africa will contribute to the
construction of approximately 30 thousand km of roads, increase the throughput
capacity of ports to 85 million tons per year, increase the volume of purified water
to 9 million tons per day , as well as the creation of almost 1 million jobs for
Africans. One of the most important infrastructure projects is the creation of a
megaport worth 10 billion dollars. USA on the coast of Tanzania in the east of
Africa, which will become the largest on the continent and an important link of the
"Silk Road" from China to Europe.

Today, China is Africa's largest economic partner

 According to the international consulting company McKinsey & Company,
there are currently about 10,000 Chinese companies operating in Africa. Most of
them are in Nigeria, Zambia, Tanzania, Ethiopia, South Africa, Kenya and Angola.
About 90% of these firms are privately owned, although state-owned enterprises
tend to be larger, especially in certain sectors such as energy and infrastructure.
Chinese firms operate in many sectors of the African economy. Almost a third of
them are engaged in production, a quarter in services, the rest in trade, construction
and real estate. At the end of June in the city of Changsha (the administrative
center of the central Chinese province of Hunan) the first China-Africa trade and
economic fair was held, which was attended by 3,500 representatives of business
circles from 53 African countries, 7,000 Chinese and foreign visitors , as well as
several influential international organizations.

Chinese investments and loans in Africa

Such growing investment
activity of China causes obvious
concern in Western countries. In the
Western media, it is often claimed
that the PRC is allegedly "buying"
influence in Africa, although
Chinese investors are by no means
leaders on the continent. According
to the United Nations Conference
on Trade and Development
(UNCTAD), China ranks fourth in
accumulated investment for Africa
($40 billion in 2016), after the
China's FDI in Africa increased to
United States ($57 billion), Great
almost 50 billion dollars in one decade. USA
Britain ($55 billion) and France
($49 billion). . Obviously, the scale
of foreign direct investment (FDI) from the mentioned countries in Africa can be
compared with their investments in the whole world. So, as of 2018, the FDI of the
USA amounted to 354.8 billion dollars, the Netherlands - 316.5 billion, China -
168.2 billion, France - 47.3 billion dollars. USA. (For comparison: Russia's FDI in
2018 amounted to 28.5 billion US dollars, 17th place in the world. Russian FDI in
Africa was about 20 billion US dollars). It should be noted that the inflow of
Chinese investments to the African continent has a stable tendency to increase,
while the inflow of investments from Western countries is decreasing. Thus, since
2013, these Chinese investments have increased by $24 billion, while the inflow of
investments from the USA and Great Britain has practically not changed, and from
France it has fallen by $3 billion. As Western FDI inflows to Africa decline, China
may become the continent's largest source of FDI by 2030. Although the Export-
Import Bank of China has yet to surpass the World Bank in terms of annual
investment in Africa, if the trends mentioned above continue, it can be expected in
the near future. China's state-owned banks have already set themselves the task of
investing more than 1 trillion dollars. USA to Africa by 2025, which is unlikely to
be done by any other country, including the USA.
The largest recipients of Chinese investment in Africa are the PRC's leading
trading partners with their relatively stable political regimes. South Africa (US$6.3
billion), Zambia (US$2.5 billion), and Nigeria (US$2.3 billion) were the leaders in
the volume of accumulated Chinese investments as of 2017. Chinese investments
are mainly in energy and metallurgy. However, not all states of the continent are
interested in Chinese investments, because they are wary of falling into a "debt
trap". Such states include Sierra Leone, Uganda, Kenya, and Zambia.
 China is also the largest creditor of African countries. Researchers from the
China Africa Research
Initiative estimated that in
2000-2017, the PRC issued
loans to African countries
worth $143 billion. USA.
The main creditors of the
continent are the state
financial institutions of the
People's Republic of China.
China Export-Import Bank
accounted for 66% of all
loans in 2000-2016, and
China Development Bank
accounted for 13%. They Chinese loans to African countries in 2000–
account for 80% of such 2017.
Chinese funding. Loans
from Chinese state-owned
banks are cheaper than those from international financial institutions, and the terms
of the agreements are not burdened with obligations to ensure the transparency of
transactions. Between 2000 and 2014, Chinese banks, companies and the
government provided more than $80 billion in loans to Africa. USA. The largest
recipients of Chinese loans are Angola ($21.2 billion), Ethiopia ($12 billion),
Kenya, Sudan, and the Democratic Republic of Congo ($5 billion each). Chinese
loans are mainly directed to the construction of infrastructure facilities: highways
and railways, seaports, airfields, educational institutions, hospitals, as well as
electrification and gasification of countries and other projects. According to
American experts, most of the projects financed by the Chinese government in
African countries are aimed at ensuring sustainable extraction of natural resources
for their further export to China.
 The debts of African countries to Chinese financial institutions are steadily
increasing. For example, the average public debt-to-GDP ratio in Tropical Africa
increased from 34% in 2013 to 53% in 2017. China, as a rule, writes off the debts
of the poorest African countries, and also supplies tens of thousands of tons of rice
to the starving population of these countries.

China's Regional Diplomacy Forum

In 2000, the Forum on China-Africa Cooperation (FOCAC) was established
as a platform for discussing a wide range of topics and issues of China-Africa
cooperation, including in the financial sphere. According to FOCAC's charter, the
ministers and heads of state of the 53 member countries meet with their Chinese
counterparts every three years, alternately in China and Africa. FOCAC action
plans cover cooperation in trade, investment, infrastructure construction, human
resource development, food security, high-tech industries, peace and security. The
last China-Africa Cooperation Forum was held in early September 2018. It was
attended by heads of state and government of almost all African countries, the
Secretary General of the United Nations, as well as heads of 27 international and
regional African organizations. Within the framework of the forum, its participants
discussed, in particular, the details of the implementation of the Belt and Road
joint project called "Eight Major Initiatives".
 China-Africa Cooperation Forum in September 2018 in
Beijing

In his speech at the opening of the forum, Chinese leader Xi Jinping

promised to allocate 60 billion dollars for the development of Africa. the USA for
three years, while refusing to collect debts from a number of the continent's poorest
countries for interest-free intergovernmental loans. Xi Jinping promised to provide
this financial assistance to African leaders at the previous summit of China-Africa
cooperation in 2015. According to The Wall Street Journal, the mentioned 60
billion dollars. The USA is expected to invest in the economies of African
countries as follows: 35 billion — for grants, loans and credit lines; 10 billion will
go to the creation of a China-Africa lending fund for development projects; 5
billion will be allocated to stimulate Africa's import trade. Chinese companies are
investing the remaining $10 billion in the African economy.

Military and technical cooperation

An important place in Sino-African relations is given to issues of security
and military-technical cooperation (MTC). According to the Stockholm Peace
Research Institute (SIPRI), the largest supplier of arms and military equipment in
the African region between 2012 and 2016 was Russia, which accounted for 35%
of arms and military equipment (WMT), followed by China — 17%, in third place
is the USA — 9.6%. However, on a global scale, according to SIPRI data as of
March, yr., the export of OTD of the USA is 75% higher than that of Russia.
In connection with the fact that the competition between the USA, the
Russian Federation and the EU for the resources of Africa is increasing every year,
the importance of this direction of cooperation for the Chinese side is increasing.
Yes, only from 2016 to 2018, China provided about 60 million dollars. US
gratuitous assistance to improve the African armed forces of permanent readiness.
In sub-Saharan Africa, which accounts for 35% of the total volume of exports of
OBT to the African continent, China accounts for 27% of the total volume of OBT
exports, and Russia accounts for 19%. Until recently, Ukraine was in third place —
18%. (According to SIPRI data, as of March this year, Ukraine ranks 12th in the
list of the largest arms exporters in the world). In general, the supply of OBT from
China to the African continent is growing at a high rate. Thus, in the period of
2012–2016, the volume of exports of OVT from the PRC increased by 122%
compared to the period of 2007–2011.

China's export of the main types of OCT to African

countries, 2010–2017.

In 2017, the PRC established its first foreign military base in Djibouti, a
small African state (23,200 square km) strategically located near the Bab el-
Mandeb Strait, the Red Sea, and the Suez Canal. In Beijing, this base is called a
"logistics complex", however, according to military experts, it is a point of material
and technical support (PMTZ) of the Navy of the People's Armed Forces of the
People's Republic of China in the port of Obok in Tajura Bay. According to the
agreement, the Navy of the Ukrainian Armed Forces received the right to lease a
plot of land with an area of 0.36 square meters. km under PMTZ for a period of 10
years with the possibility of extension. The cost of renting this plot of land is 20
million dollars. for a year. The air base in Djibouti is needed by the PLA Navy to
support anti-piracy operations in the Gulf of Aden and the western Indian Ocean,
which, combined with the new Chinese-funded airfield in Djibouti, will enable the
Chinese Air Force to establish regular air links with the PLA Navy's future
strongholds in the eastern coast of Africa — Mombasa (Kenya), Dar es Salaam
(Tanzania), Durban, Port Elizabeth and Cape Town (South Africa) and a port in
Namibia.
By the way, the military bases of five countries are located on the territory of
Djibouti: the USA, France, Italy, Japan and China. If China has so far only one
base in Djibouti, the US has military bases in 34 African countries, France — in
eight, and Great Britain — in only two African countries — Kenya and Sierra
Leone. In 2007, the US created AFRICOM, a military command capable of
carrying out any military mission in any African country. An important task of
AFRICOM was the training of units of the armed forces of about 20 African states.
According to some data, the USA has already created more than 60 military
outposts and locations in Africa.

Foreign military bases in Djibouti

China takes an active part in UN peacekeeping operations in Africa. For

several years now, it has been the second largest contributor to the UN
peacekeeping budget, most of which is mainly allocated to some African countries.
Since 2013, an average of about 2,000 Chinese peacekeepers have been in Africa
as part of the UN mandate. In September 2015, China announced that it was ready
to provide 8,000 military personnel for UN peacekeeping operations.
Over the past 20 years, China has increased its economic presence in Africa,
and this trend will continue in the future, as it is extremely attractive both for
China itself and for many African countries. The predicted critical lack of natural
resources for the Chinese economy and the need to expand global demand for
Chinese goods make Africa a strategically important object for economic
cooperation and guarantees of the economic security of the Greater China. In our
opinion, China's economic and military presence on the African continent has
grown to such a large scale that possible attempts by the US to "oust" it from
Africa (which radical representatives of the US administration like J. Bolton call
for) are clearly doomed to failure or may provoke armed conflict confrontation on
a planetary scale with unpredictable consequences, equally dangerous not only for
the USA and China, but also for all of humanity. Therefore, by definition, there
can be no alternative to peaceful cooperation between the United States and China
in Africa.
According to a survey conducted by the consulting company McKinsey &
Company, more than 100 large African businessmen consider the prospects for
cooperation with China to be more profitable and far-reaching than with other
countries, including the United States, Great Britain, France, Italy, India and
Russia. According to a survey by the independent research company
Afrobarometer, 63% of respondents from 36 African countries believe that China
exerts a positive influence on the African continent, and that the economic model
of the PRC is not inferior to the American one and even surpasses it in some basic
parameters, for example, in terms of GDP. For example, according to the US CIA
for 2017, the GDP of communist China was $23.2 trillion, and the GDP of the
capitalist USA was $19.4 trillion, and this gap is increasing every year.
 Afrobarometer: 63% of respondents believe that China has
a positive influence on the African continent

It seems that the Chinese leadership does not yet intend to significantly
increase its military presence in Africa, since, judging by everything, it is not yet
ready to abandon the long-standing principle of its foreign policy of "neutrality and
non-interference in the internal affairs of other states." However, everything flows,
everything changes, and the issue of protecting its investments in politically
unstable regions of Africa is becoming more and more urgent for China. Therefore,
it is possible that in addition to the military base in Djibouti, other Chinese military
facilities may soon appear in Africa. In addition, according to the recently
announced military reform, by 2020 China must be ready to conduct combat
operations outside its borders.

According to statistics from Worlddata.info, Africa consists of 59 different

countries with a total land area of 30 million km². Now
Africa is a very promising continent and one of the most important areas of
China's foreign policy. The following main interests of the PRC in Africa can be
identified: firstly, economic. There was a need to import one's investments and sell
Chinese goods to other regions of the world, to penetrate new global markets.
Secondly, political interests. Although the PRC positions itself as a state
advocating a multipolar model of international relations, its economic and military-
political development still gives it significant claims to world hegemony. The most
important foreign policy project of China is the One Belt One Road initiative. It is
within the framework of this initiative that the PRC promotes most of its
infrastructure and scientific projects, allocates loans, builds ports and naval bases.
In the African region, the most important multilateral platform for solving many
issues, as well as establishing and intensifying the development of relations
between China and African countries, is the China-Africa Cooperation Forum
created in 2000. Although despite its presence, China attaches great importance to
bilateral contacts with each country. The first documents that are significant are the
"white books" - the White Book of 2015.
One of the main tasks of the three-year summits of the FCAS is the financial
issue itself, which is reflected in the approval of the fund or budget that the PRC
allocates to Africa as a whole and to specific countries for a three-year period to
finance projects and enterprises. An important condition for the PRC's relations
with African countries and the establishment of cooperation is the principle of "one
China", that is, the official recognition of the PRC and the termination of
diplomatic relations (if any) between African countries and Taiwan. As of 2021,
the last African country to have diplomatic relations with Taiwan is Swaziland.
The next point is the readiness of the PRC to support the activation of
Africa's activities within the framework of the UN. This especially applies to the
reform of the Security Council and the inclusion of African countries in its
composition.
Speaking about the military-political aspect of China's foreign policy, it
should be noted that for a long time the PRC adhered to the principle of non-
interference in the internal affairs of other states. But since the end of the 2000s,
documents about China's defense have more often mentioned the participation of
the People's Liberation Army (PLA) in international peacekeeping operations,
evacuations, and the fight against piracy. The 2015 and 2019 military strategies
point to the need for the PLA to operate in distant seas to protect expanding
national interests. According to the EPRS Briefing (2019), as of July 2019, China
ranked 11th in terms of troop contribution (2,521) to UN missions. In 2017, China
registered a reserve force of 8,000 peacekeepers with the UN, which is a fifth of
the number of military personnel. It accounts for 10.25% of the UN peacekeeping
budget - the second place after the USA (28.47%).
In 2003, China joined the UN mission in the Democratic Republic of the
Congo and Liberia. One of the turning points in this context is the crisis in South
Darfur in Sudan in 2007.
Also, in recent years, China has become one of the largest importers of
weapons to African countries. This is connected, first of all, with the development
of Chinese military technologies. The attractiveness of China as a trading partner
in the field of arms lies in the softer terms of trade with China. According to a 2018
report by the Stockholm International Peace Research Institute, the five largest
arms exporters in the world for the period 2014‒2021) 38
In 2018, there were the USA, Russia, France, Germany, and China, which
together provided 75% of the total volume of arms exports.
Africa accounts for 20% of arms exports from China. In general, we can say
that the level of Chinese arms trade has grown in recent years. IN
In the African region, piracy has spread in Aden and
Gulfs of Guinea. Therefore, since 2009, China has been participating in an
international operation to combat piracy and armed robbery at sea off the coast of
Somalia in the Gulf of Aden, authorized by Resolution
1816 (2008) UN Security Council.
Also, China is increasing its presence in the Indian Ocean and improving the
capacity of its foreign military infrastructure. Djibouti, where the PRC naval base
was recently built, occupies an important geostrategic position in this situation,
connecting the Indian Ocean with the Red Sea and further - with the Suez Canal.
This is China's first military base in Africa.
 In 2017, Djibouti opened the two largest projects ‒2021) 38 Port of Dorale
and the Djibouti-Addis Ababa railway financed by China under the Belt and Road
Initiative.

Military bases of the People's Republic of China and the United States in
Djibouti

Some researchers believe that China's naval base in Djibouti, which is

located 8-9 miles from the US base in Lemonnier, encourages the development of
conflicts between the countries and could cause tensions between the PRC and the
US.
With the coming to power of the fifth generation of leaders in the PRC in
2013, led by Xi Jinping, the Belt and Road Initiative (BRI) was developed to
revive an updated version of the ancient Silk Road. Already in 2017, this initiative
was enshrined in the Constitution of the Communist Party of the People's Republic
of China.
As noted on the Green BRI Center website, as of January 2021, the number
of countries that have joined the Belt and Road Initiative (BRI) by signing a
Memorandum of Understanding (MoU) with China is
140 countries, 40 of which are in sub-Saharan Africa. However, special
attention is paid to developing countries in such regions of the world as Asia,
Africa, Eastern Europe, and the Middle East. Key African countries in the Belt and
Road Initiative are Kenya, Egypt and
Djibouti, which occupies a strategic geographical position from the Indian
Ocean to Europe in the route of the Maritime Silk Road of the 21st century
(hereinafter, the Silk Road). The first port of MSH in Africa is the Kenyan ports of
Mombasa and Lamu. Further, the МШШ passes through the Red Sea and the port
in Djibouti, which also ensures the safety of the transit route in the unstable Gulf of
Aden (since 2017, a military base of the PRC has been located there). From
Djibouti, the MSH route continues through Egypt and the Suez Canal, which is the
main and fastest sea route for transporting goods and cargo from Asia to the
Mediterranean Sea and Europe.
The development of new maritime routes under the Belt and Road Initiative
enables the PRC to control international supply flows and trade.
China became the world's largest net importer of the total amount of oil and
other liquid fuels in 2013. A significant place among oil exporters to China is
occupied by African countries, especially Angola (about 13%). According to the
data provided by Deitch in his article, in terms of the volume of oil supplies to
China as of 2017, Angola ranks third after the Russian Federation and Saudi
Arabia. Deitch also notes that Angola (records in yuan increased by 22% in 2017),
Nigeria, Iran and Venezuela have already switched to paying with China in yuan.
This indicates that the Chinese currency is beginning to gradually strengthen its
international position, penetrating other states.
The second fundamental factor in the development of China's economic
power is the creation of Special Economic Zones (SEZs). With extensive and, most
importantly, successful experience in establishing SEZs within China, China has
implemented SEZs in Africa. At present, there are seven special economic zones
established by China in Africa. Of course, we understand that China pursues, first,
its own economic benefits, however, although in unequal strength, African
countries also receive their dividends from relations with the PRC, such as
financial assistance in the form of loans, infrastructure development and in the
field of security.

2.3. Identification of opportunities for the development of international

cooperation between countries

Certainly, China and Africa have established various forms of cooperation,

spanning economic, infrastructural, diplomatic, and developmental realms. Here
are some ways in which their cooperation manifests:
Economic Cooperation:
1. Trade Relations: China is a significant trading partner for many African
countries, engaging in trade agreements that involve commodities,
machinery, and manufactured goods.
2. Investment: Chinese companies invest in African infrastructure projects,
industries, and natural resource extraction, contributing to economic
development.
3. Loans and Aid: China provides loans and aid packages for infrastructure
development, such as roads, railways, ports, and energy projects in Africa.
Infrastructure Development:
1. Belt and Road Initiative (BRI): Several African nations participate in
China's BRI, benefiting from infrastructure projects aimed at enhancing
connectivity and economic development.
2. Telecommunications and Technology: Chinese firms assist in building
telecommunications networks, providing technology, and supporting digital
infrastructure development in Africa.
Diplomatic and Political Cooperation:
1. Diplomatic Exchanges: China and African nations engage in diplomatic
exchanges, high-level visits, and dialogues to strengthen political ties and
cooperation.
2. Forum on China-Africa Cooperation (FOCAC): This platform fosters
dialogue and cooperation between China and African countries, focusing on
political, economic, and social development.
Humanitarian and Developmental Cooperation:
1. Healthcare Support: China offers medical aid, supplies, and expertise to
support African countries in healthcare, disease prevention, and public
health initiatives.
2. Education and Skills Training: Cooperation includes education and skills
development programs, scholarships, and training opportunities for African
students and professionals in China.
Environmental and Sustainability Initiatives:
1. Green Initiatives: China collaborates with African nations on
environmental projects, renewable energy ventures, and initiatives
promoting sustainable development.
2. Conservation and Biodiversity: Joint efforts focus on conservation,
wildlife protection, and biodiversity preservation in Africa.
Cultural and People-to-People Exchanges:
1. Cultural Exchanges: Programs promoting cultural understanding, arts, and
exchanges between China and Africa enhance mutual understanding and
friendship.
2. Tourism and Travel: Efforts to facilitate tourism and travel between China
and African countries promote cultural exchange and economic growth in
the tourism sector.
 These diverse forms of cooperation demonstrate the multifaceted and
evolving relationship between China and Africa, showcasing mutual benefits and
shared goals in fostering economic development, infrastructure, diplomacy, and
sustainability.
China and Africa trust each other, and China-Africa friendship is rock-solid.
China is committed to consolidating China-Africa political mutual trust, expanding
pragmatic cooperation with Africa in various areas, and extending its help to boost
peace and development in the continent. China has always been on the forefront of
international cooperation with Africa. After years of dedicated efforts, the tree of
China-Africa cooperation has flourished – it is tall and strong and cannot be
shaken by any force. China-Africa friendship is in its prime. The fruitful results of
China-Africa cooperation can be seen across the continent. It has improved the
conditions for economic and social development in Africa and brought tangible
benefits to people in both China and Africa.
1. Mutual Political Trust
Since the founding of the PRC in 1949, China and African countries have
always been good friends who stand together through prosperity and adversity,
good partners who share weal and woe, and good comrades who fully trust each
other in a shifting international landscape. In 2006, the FOCAC Beijing Summit
decided to establish a new type of China-Africa strategic partnership. In 2015, the
FOCAC Johannesburg Summit decided to build a China-Africa comprehensive
strategic and cooperative partnership. In the 2018 FOCAC Beijing Summit, the
two sides agreed to build an even stronger China-Africa community of shared
future, raising China-Africa relations to a new level.
High-level exchanges play an important role in developing China-Africa
relations. State leaders of the two sides value communication and coordination on
bilateral relations and major issues of common interest. Their exchanges have laid
solid political groundwork for consolidating traditional friendship, increasing
mutual political trust, safeguarding common interests, and pursuing development
and cooperation. In March 2013, President Xi Jinping visited Africa, his first
official overseas visit after assuming the office of president. To date he has made
four visits to different locations across the continent.

During the 2018 FOCAC Beijing Summit, President Xi had one-on-one

meetings with more than 50 African leaders, renewing friendships, exploring
cooperation, and discussing the future. He also attended close to 70 bilateral and
multilateral events.
After the FOCAC Beijing Summit in 2018, 17 African leaders came to
China for state visits or meetings. Following the outbreak of the Covid-19
pandemic, state leaders of the two sides have maintained contacts and
communication via video and phone calls. In June 2020, President Xi Jinping
presided over the Extraordinary China-Africa Summit on Solidarity Against
Covid-19 via video link. Thirteen African leaders and chairperson of the AU
Commission attended the summit. Since the pandemic struck, President Xi has
talked by phone with African state leaders on 17 occasions, maintaining close
high-level contacts and exchanges with his African counterparts. President Xi has
always treated African friends as equals and fostered solid friendships and
profound trust with African leaders. This head-of-state diplomacy has guided
China-Africa relations to steady and sustained prosperity.
China and Africa consistently work to diversify and improve
intergovernmental dialogue, consultation, and cooperation mechanisms. They
make the most of the coordinating role of the mechanism to promote all-round
development of China-Africa cooperation in various areas. China has established a
comprehensive strategic and cooperative partnership with nine African countries, a
comprehensive strategic partnership with three, a strategic partnership with six,
and a comprehensive cooperative partnership with seven. China has set up bi-
national commissions and diplomatic consultation or strategic dialogue
mechanisms with 21 African countries and the AU Commission, and joint (mixed)
committees on trade and economic cooperation with 51 African countries. In 2016,
China and the AU established a consultation mechanism on human rights. In 2017,
China established the High-Level People-to-People Exchange Mechanism with
South Africa, the first of its kind between China and an African country. China-
Africa cooperation at the local level is flourishing. The two sides have held four
cooperation forums between local governments since 2012. There are currently
160 pairings of sister provinces/cities between China and African countries, 48 of
which have been established since 2013.
China and African countries conduct close exchanges between political
parties, legislative bodies and consultative bodies, building multi-level, multi-
channel, multi-form and multi-dimensional friendly cooperation. The Communist
Party of China expands exchanges and cooperation with political parties in African
countries based on the principles of independence, equality, mutual respect and
non-interference in each other’s internal affairs. It is committed to building a new
type of relations between political parties in which different political parties seek
common ground while setting aside differences, and they respect and learn from
each other. The two sides make full use of the positive role of legislation and
supervision to provide policy support for bilateral cooperation and exchanges. The
National People’s Congress of China has established mechanisms for regular
exchanges with parliaments in Egypt, South Africa and Kenya, and bilateral
friendship groups with parliaments in 35 African countries. The National
Committee of the Chinese People’s Political Consultative Conference (CPPCC)
and its subsidiary organs maintain contacts with 59 institutions in 39 African
countries. In June 2019, the CPPCC National Committee established the China-
Africa Friendship Group, the first of its kind in the history of the CPPCC.
 Over the past years, more African countries have joined the extended family
of China-Africa friendship. China restored ambassadorial-level diplomatic
relations with The Gambia on March 17, 2016, with Sao Tome and Principe on
December 26, 2016, and with Burkina Faso on May 26, 2018. China now has
diplomatic relations with 53 African countries, with the sole exception of Eswatini.
China has been active in developing cooperation with the AU and African
sub-regional organizations. The AU Conference Center, which was built with
Chinese assistance, was inaugurated in January 2012. It was the second-largest
project in Africa to be built with China’s assistance after the Tanzania-Zambia
Railway. In 2014, China sent a mission to the AU, marking a new stage of China-
AU relations. China values the AU’s leading role in advancing African integration
and building a stronger African continent through unity, and supports its dominant
role in safeguarding peace and security in Africa. China also supports the AU in
playing a bigger role in regional and international affairs, adopting Agenda 2063,
and executing the First Ten-Year Implementation Plan.
In a capacity of observer, China has attended the summit of many African
sub-regional organizations including the Economic Community of West African
States (ECOWAS), the Southern African Development Community (SADC), the
East African Community (EAC), and the Intergovernmental Authority on
Development and the Economic Community of Central African States. China has
sent ambassadors to the ECOWAS, SADC and EAC.
2. Rapidly Expanding Economic Cooperation
China and Africa have seen economic and trade cooperation expanding
rapidly in scale and extent. The 10 major cooperation plans and the eight major
initiatives adopted at the 2015 FOCAC Johannesburg Summit and the 2018
FOCAC Beijing Summit raised China-Africa economic and trade cooperation to a
new level.
– Increasing development assistance. While pursuing its own growth, China
supports African countries in seeking development and improving their people’s
lives. In the new era, China has scaled up assistance to Africa. Foreign aid from
2013 to 2018 totaled RMB270 billion. Of this sum, 45 percent went to African
countries in the form of grants, interest-free loans and concessional loans. From
2000 to 2020, China helped African countries build more than 13,000 km of roads
and railway and more than 80 large-scale power facilities, and funded over 130
medical facilities, 45 sports venues and over 170 schools. It also trained more than
160,000 personnel for Africa, and built a series of flagship projects including the
AU Conference Center. China’s assistance extended to various aspects of the
economy, society and people’s lives, and was widely welcomed and supported by
governments in Africa and the people. China has announced an exemption from
debt incurred in the form of interest-free Chinese government loans due to mature
by the end of 2018. It will apply to Africa’s least developed countries, heavily
indebted and poor countries, landlocked developing countries and small island
developing countries that have diplomatic relations with China. During the Covid-
19 pandemic, China cancelled the outstanding debts of 15 African countries in the
form of interest-free loans that matured at the end of 2020.

– Booming trade relations. China has been Africa’s largest trading partner
for the 12 years since 2009. The proportion of Africa’s trade with China in the
continent’s total external trade has continued to rise. In 2020, the figure exceeded
21 percent. The structure of China-Africa trade is improving. There has been a
marked increase in technology in China’s exports to Africa, with the export of
mechanical and electrical products and high-tech products now accounting for
more than 50 percent of the total. China has increased its imports of non-resource
products from Africa, and offered zero-tariff treatment to 97 percent of taxable
items exported to China by the 33 least-developed countries in Africa, with the
goal of helping more African agricultural and manufactured goods gain access to
the Chinese market. China’s imports in services from Africa have been growing at
an average annual rate of 20 percent since 2017, creating close to 400,000 jobs for
the continent every year. In recent years, China’s imports of agricultural products
from Africa have also risen, and China has emerged as the second largest
destination for Africa’s agricultural exports. China and Africa have seen booming
trade in new business models including cross-border e-commerce. Cooperation
under the Silk Road E-commerce initiative has advanced. China has built a
mechanism for e-commerce cooperation with Rwanda, and Chinese businesses
have been active in investing in overseas order fulfillment centers. High-quality
and special products from Africa are now directly available to the Chinese market
via e-commerce platforms. The China-Mauritius free trade agreement (FTA),
which became effective on January 1 2021, was the first FTA between China and
an African country. It has injected new vitality into China-Africa economic and
trade cooperation.
 – Promoting cooperation in investment and financing. Cooperation in
investment and financing has been one of the success stories of China-Africa
cooperation in recent years, bringing new vitality into Africa’s economic and
social development. Combining Africa’s needs and China’s strengths, China
encourages its companies to increase and optimize investment in Africa, providing
support in financing and export credit insurance for eligible projects. Thanks to the
combined efforts of the Chinese government, financial institutions, and enterprises,
China’s investment in Africa has built up sound momentum. It covers a wide range
of fields including mining, processing and smelting of ores, equipment
manufacturing, agriculture, home appliance production, aviation services, medicine
and health, and the digital economy. With this help, African countries have been
able to upgrade their industrialization, improve their industries, and increase their
capacity to earn foreign exchange through exports.
 By the end of 2020, direct investment of Chinese companies in Africa had
surpassed $43 billion. China has established over 3,500 companies of various types
across the continent. Private companies have gradually become the main
investment force in Africa; more than 80 percent of their employees are locals, and
they have directly and indirectly created millions of jobs.
 – Facilitating agricultural development in Africa. China has always been
willing to share agricultural development experience and technology with Africa,
to support African countries in improving agricultural production and processing,
and to help them in building their agricultural value chains and trade. Since 2012,
7,456 African trainees have received agricultural training in China. Through
projects such as sending Chinese agricultural experts to Africa, more than 50,000
Africans have been trained and 23 agricultural demonstration centers have been
built. To date, China has established agricultural cooperation mechanisms with 23
African countries and regional organizations, and signed 72 bilateral and
multilateral agricultural cooperation agreements. Since 2012, China has signed 31
agricultural cooperation agreements with 20 African countries and regional
organizations. In 2019, the First China-Africa Agriculture Cooperation Forum was
held, which announced the establishment of the China-AU Agriculture
Cooperation Commission and the formulation of a program of action to promote
China-Africa cooperation in agricultural modernization. By the end of 2020, more
than 200 Chinese companies had an investment stock of $1.11 billion in
agricultural sector in 35 African countries. Their investments cover areas such as
planting, breeding and processing. More than 350 types of African agricultural
products can be traded with China. All this ensures steady growth in China-Africa
agricultural trade.
– Contributing to industrialization in Africa. Industrialization is a
prerequisite for the continent to achieve inclusive and sustainable development,
and is also the key to creating jobs, eradicating poverty, and improving living
standards. China supports African countries in improving their “soft” and “hard”
environment for investment in accordance with their national conditions and
development needs. Taking industrial alignment and capacity cooperation as the
engine, China helps advance the process of Africa’s industrialization and economic
diversification. To date, China has established industrial capacity cooperation
mechanisms with 15 countries in Africa. China and African countries have worked
together to build economic and trade cooperation zones, special economic zones,
industrial parks and science parks, attracting enterprises from China and other
countries to invest in Africa. They have built production and processing bases and
localized their operations in Africa, contributing to an increase in local
employment and tax revenues, and promoting industrial upgrading and technical
cooperation. The China-Africa Fund for Production Capacity Cooperation has
focused on the construction of highways, railways, and aviation networks, and
industrialization in Africa. As of March 2021, investments had been made in 21
projects, covering energy, resources and manufacturing and boosting industrial
development in recipient countries. Dozens of Chinese-funded enterprises have
cooperated with African counterparts to build photovoltaic power stations, with a
cumulative installed capacity exceeding 1.5 GW, which has helped create
photovoltaic industry chains from scratch in Africa, while effectively alleviating
power shortages and reducing carbon emissions.
– Expanding cooperation in infrastructure. China supports Africa in making
infrastructure development a priority for economic revitalization. It encourages and
supports Chinese enterprises to adopt various models to participate in the
construction, investment, operation and management of infrastructure projects in
Africa. From 2016 to 2020, total investment in infrastructure projects in Africa
reached almost $200 billion. Projects implemented by Chinese companies
accounted for 31.4 percent of all infrastructure projects on the African continent in
2020. Since the founding of FOCAC, Chinese companies have utilized various
funds to help African countries build and upgrade more than 10,000 km of
railways, nearly 100,000 km of highways, nearly 1,000 bridges and 100 ports, and
66,000 km of power transmission and distribution. They have also helped build an
installed power-generating capacity of 120 million kW, a communications
backbone network of 150,000 km and a network service covering nearly 700
million user terminals. Built and operated by Chinese companies, the Mombasa-
Nairobi Railway was the first modern railway to be built in Kenya in 100 years.
Applying Chinese standards, technologies and equipment, the project has won
praise as a road of friendship and cooperation, and a path towards win-win
development between China and Africa in the new era. The railway has carried 5.4
million passengers and 1.3 million standard containers. It has contributed 1.5
percent to Kenya’s economic growth, and created 46,000 direct and indirect jobs.
China has guided its enterprises to explore multiple forms of cooperation, such as
BOT (build-operate-transfer), BOO (build-own-operate) and PPP (public-private
partnership). Such efforts aim to transform China-Africa infrastructure cooperation
to a wholly integrated model covering investment, construction and operation, and
push forward the sustainable development of infrastructure projects.
– Strengthening financial cooperation. Financial institutions from both sides
have been exploring each other’s markets. Their central banks have expanded the
scale of local currency settlement and currency swap, leading to a steady
improvement in China-Africa financial facilitation. As of October 2021, the Cross-
Border Interbank Payment System (CIPS) had 42 indirect participants in Africa,
covering 19 African countries. The People’s Bank of China (PBOC), China’s
central bank, has signed successive currency swap agreements with the central
banks of South Africa, Morocco, Egypt and Nigeria, to a total amount of RMB73
billion. China has signed a memorandum of understanding on cooperation in
financial supervision with seven African countries including Egypt, South Africa
and Nigeria, laying a solid foundation for steady and long-term bilateral financial
cooperation. China has joined the African Development Bank (AfDB), the Eastern
and Southern African Trade and Development Bank, the West African
Development Bank and other multilateral development financial institutions. It has
pledged to contribute a total of $996 million to the African Development Fund
under the AfDB.
– Expanding cooperation in the digital economy. China is helping African
countries to eliminate the digital divide. Rapid development and fruitful results
have been achieved in this field – building digital infrastructure, transition towards
a digital society, and the application of new technologies such as the Internet of
Things and mobile finance. Chinese companies have participated in a number of
submarine cable projects connecting Africa and Europe, Asia, and the Americas.
They have cooperated with major African operators in achieving full basic
coverage of telecommunications services in Africa. They have built more than half
of the continent’s wireless sites and high-speed mobile broadband networks. In
total, more than 200,000 km of optical fiber has been laid, giving broadband
Internet access to 6 million households, and serving more than 900 million local
people. To date, more than 1,500 companies in 17 cities in 15 African countries
have selected Chinese corporate partners on their digital transformation path.
Twenty-nine countries have selected smart government service solutions provided
by Chinese companies. China and Africa have jointly established a public cloud
service in South Africa that covers the entire African region. The two sides also
released the first 5G independent networking commercial network in the region.
The level and content of China-Africa e-commerce cooperation continue to grow.
The Silk Road E-Commerce Capacity Building Cloud Lectures have effectively
improved the digital literacy of micro, small and medium-sized enterprises in
partner countries. Promotion activities have been held to help high-quality
products from Africa to access the Chinese market. Such activities include a
government-initiated shopping festival that began in 2019, featuring Silk Road e-
commerce, as well as the FOCAC African Products Online Promoting Season.
Chinese companies actively participate in building platforms of public services in
Africa such as electronic payment and smart logistics. All these efforts are
designed to achieve win-win cooperation through promoting connectivity. At the
China-Africa Internet Development and Cooperation Forum in August 2021, China
announced its intention to formulate and implement a joint China-Africa
Partnership Plan on Digital Innovation in Africa.
3. Growing Cooperation on Social Development
China is promoting cooperation with Africa in social fields such as poverty
reduction, health, education, science and technology, environmental protection,
climate change and exchanges among young people and women. Through
strengthening exchanges, providing assistance and sharing experience, China is
helping African countries to improve their comprehensive social development,
which then provides internal impetus for their economic growth.
– Sharing experience in poverty reduction. Poverty is a common challenge
facing China and Africa. Ending poverty is the primary goal of the UN 2030
Agenda for Sustainable Development. With hundreds of millions of poor people
having worked their way out of poverty, China has created a successful path of
poverty eradication with Chinese characteristics, which has served as a reference
for addressing the problem in Africa. China has effectively implemented the
Program for Strengthening China-Africa Cooperation on Poverty Reduction. With
mechanisms like the FOCAC Africa-China Poverty Reduction and Development
Conference, and the China-Africa Youth Exchange Program on Poverty Reduction
and Development, China has supported local governments, academics, enterprises,
and youth and non-governmental organizations in both China and Africa in
carrying out various forms of exchange and pragmatic cooperation on poverty
reduction. Since 2010, 10 FOCAC Africa-China Poverty Reduction and
Development conferences have been held in countries such as China, Ethiopia,
South Africa and Uganda, with nearly 1,600 participants in total. From 2005 to
2021, China organized 160 poverty reduction and foreign aid training programs.
Some 2,700 people from 53 African countries participated in the training,
accounting for almost 60 percent of the total number of trainees.
– Enhancing medical and health cooperation. The Chinese government has
always ranked people and lives above everything else. Through concrete actions,
China has helped African countries respond to various epidemics and plagues and
build a public health system, promoting a China-Africa community of health. One
of the longest and most effective cooperation projects that involves the greatest
number of African countries is the dispatch of Chinese medical teams. The first
one, which was sent to Algeria in 1963, marked the first chapter in the story of
China’s medical aid to Africa. Over the past 58 years, China has sent a total of
23,000 medical team members to Africa, who have treated 230 million patients. At
present, there are nearly 1,000 Chinese medical workers in 45 African countries,
working at 98 medical centers. They are hailed by the local Africans as the health
messengers in white, models of South-South cooperation and most welcome
guests. Chinese medical teams carried out 34 free clinical programs under the
Brightness Action initiative, restoring the eyesight of almost 10,000 African
cataract patients. China focuses on helping African countries strengthen medical
specialties, training 20,000 African medical personnel. To date, it has helped 18
African countries establish 20 centers in different medical specialties, covering
cardiology, critical care medicine, trauma and endoscopy. Paired cooperation
mechanisms have been established between the Chinese side and 45 hospitals in 40
African countries. China supports African countries in improving their capacity in
border health and quarantine inspection, and sends disease control experts to the
Africa Center for Disease Control and Prevention to provide technical support.
– Expanding cooperation in education and human resources. China
vigorously supports education in Africa. Based on the needs of African countries
for economic and social development, it helps train much-needed professionals for
African countries and encourages outstanding African youth to study in China
through several scholarships. Starting from 2012, the two sides have implemented
the 20+20 Cooperation Plan for Chinese and African Institutions of Higher
Education as an exchange and cooperation platform among universities. China set
up an educational trust fund under UNESCO to provide teacher training for more
than 10,000 teachers in African countries. Since 2018, China has established
Luban Workshops together with colleges and universities in countries including
Egypt, South Africa, Djibouti and Kenya, sharing quality vocational education
resources with Africa and training high-caliber technical personnel to meet the
urgent needs of economic and social development on the continent.
China has helped more than 30 African universities set up Chinese language
departments or Chinese language majors. In cooperation with China, 16 African
countries have incorporated the Chinese language into their national education
systems. The two sides have established 61 Confucius Institutes and 48 Confucius
Classrooms in Africa. Since 2004, China has sent a total of 5,500 Chinese
language teachers and volunteers to 48 African nations.
– Stepping up scientific and technological collaboration, and knowledge
sharing. China actively strengthens communication and coordination with Africa in
terms of technological innovation strategies. It shares experience and
achievements, and promotes the exchange and training of professionals and
technology transfer, as well as innovation and entrepreneurship on both sides.
China and African countries have set up high-level joint laboratories, the China-
Africa Joint Research Center, and an innovation cooperation center. In recent
years, China has assisted Africa in cultivating a large number of scientific and
technological talents through projects such as the Alliance of International Science
Organizations in the Belt and Road Region Scholarship, Chinese government
scholarships, the Talented Young Scientist Program, and the Innovative Talent
Exchange Project. Breakthroughs have been made in space cooperation. Using
China’s remote sensing data, the two parties carry out cooperation in the fields of
disaster prevention and mitigation, radio astronomy, satellite navigation and
positioning, and precision agriculture. They also participate together in the Square
Kilometer Array Project. The complete satellite assembly integration and test
center built by Egypt with China’s help has laid solid foundations for Egypt’s
aerospace industry. China also assisted Algeria and Sudan to launch their first
artificial satellites.
– Expanding collaboration in eco-environmental protection and jointly
responding to climate change. The peoples of China and Africa share a common
yearning for a beautiful environment and a better life. As a result, they work
together to advocate green, low-carbon, recyclable and sustainable development
and safeguard the common homeland of humanity. Since 2012, they have co-
organized a seminar on green cooperation guiding the future economy and a
ministerial conference on China-Africa environmental cooperation, promoting
communication and coordination of environmental governance policies. The
China-Africa Environmental Cooperation Center began operations in 2020 with
the participation of China and African countries, as well as other international
organizations, research institutions, and enterprises. As of September 2021, related
institutions in seven African countries, including Angola and Kenya, have joined
the International Coalition for Green Development on the Belt and Road, devised
to contribute to the green development of the Belt and Road Initiative. China has
carried out South-South cooperation on tackling climate change, and to date has
signed 15 cooperation agreements with 14 African countries. Various approaches
have been explored in support of Africa’s response to the issue, such as
implementing mitigation and adaptation programs, jointly setting up pilot low-
carbon industrial parks, and conducting training in capacity-building. For example,
the Ethiopian Remote Sensing Satellite-1, or ETRSS-1, launched with Chinese
help, is one of the fruits of China’s first remote sensing satellite cooperation with
Africa. China and Africa crack down together on transnational organized crimes
related to endangered wildlife trafficking, through intelligence sharing in
environmental protection laws and regulations and helping each other to build
capacity in law enforcement. While implementing the Convention on Biological
Diversity and the Convention on International Trade in Endangered Species of
Wild Fauna and Flora, and dealing with other related affairs, China strengthens
communication and coordination with African countries, in an endeavor to protect
and ensure the sustainable exploitation of global wild fauna and flora.

4. People-to-People and Cultural Exchanges

As an old Chinese saying goes, “State-to-state relations thrive when there is
friendship between the peoples.” China and African countries have embraced
further exchanges in culture, media, science and technology, and think tanks, and
facilitated dialogues among youth and women. These efforts have promoted
people-to-people bonds and laid solid foundations for further developments.
– Expanding exchanges and cooperation in the cultural sector and tourism.
The two sides continue to sign implementation plans for intergovernmental
agreements on signature programs such as the Year of China, the Year of Culture,
Happy Spring Festival, Chinese and African Cultures in Focus, and Insight on
China, further enhancing cultural exchanges and cooperation. As of December
2020, 346 such implementation plans had been inked and carried out. From 2013
to 2020, Chinese art troupes made 140 visits to Africa to hold performances. Since
2013, art troupes from 28 African countries have been invited to perform in China.
Since 2016, China has held hundreds of cultural seminars for African countries,
with nearly 1,500 African participants in total. Chinese cultural centers have been
set up in Mauritius, Benin, Egypt, Nigeria, Tanzania and Morocco. The Chinese
Government has signed documents with counterparts in Tunisia, Kenya, Côte
d’Ivoire, Senegal, Ethiopia and Mozambique on establishing Chinese cultural
centers in these countries or their cultural centers in China. To date China has
signed bilateral documents on cooperation in tourism with 31 African countries. It
has listed 34 African countries as outbound group tour destinations for its citizens,
and officially launched group tourism businesses for its people with 22 African
countries.
– Working on closer cooperation in the press, the media, and film and
television. China and Africa continue to strengthen dialogue and exchanges on
furthering news cooperation, managing cyberspace, and handling media relations.
To this end, exchange events have been held such as the China-Africa Media
Summit and the Forum on China-Africa Media Cooperation. Thirty African media
outlets have joined the Belt and Road News Alliance, and 42 African countries
have participated in the Belt and Road Media Community Summit Forum. China
supports the development of the African radio, film and television industries. This
can be seen from the effort to provide satellite TV reception to 10,000 African
villages, and to support outdoor screening activities – the Caravan program – in
rural areas and remote suburbs, covering more than 70 villages and regions in 12
countries. China and Africa encourage joint development and production of more
works that tell stories about Africa and China-Africa friendship. Chinese
companies provide program resources in 11 languages on more than 600 channels
for 13 million African users. In recent years, China has carried out multilingual
translations of about 200 outstanding Chinese audiovisual works for Africa and
held Chinese film screenings and exhibitions in more than 10 African countries.
Each year, a number of African films are screened at Chinese film festivals as well.
– Encouraging academic exchanges and cooperation among think tanks.
China and Africa support various forms of cooperation among academic research
institutions, think tanks and universities in carrying out subject research, academic
exchanges and publication of works. Support is given to sharing research and
achievements, especially on topics such as state governance, development paths,
industrial capacity cooperation, culture, and law. Both sides have also been
working on enhancing research strengths. More than 80 think tanks and academic
research institutions have participated in the China-Africa Joint Research and
Exchange Plan. The Fifth Ministerial Conference of FOCAC held in 2012
proposed to implement the China-Africa Think Tanks 10+10 Partnership Plan for
long-term paired cooperation. In April 2019, China-Africa Institute was established
in Beijing.
– Increasing non-governmental exchanges. China and African countries have
actively implemented the Proposals on China-Africa People-to-People Exchanges
and Cooperation, the China-Africa People-to-People Friendship Action, the Silk
Road Community Building Program, and the China-Africa People-to-People
Friendship and Partnership Program. They support trade unions, other non-
governmental organizations and social groups in engaging in exchanges. Since
2011, the two sides have held six China-Africa People’s Forums. In addition, five
China-Africa Young Leaders Forums, four Asian-African Youth Festivals and
three China-Africa Youth Galas have been held since 2012. The 1st China-Africa
Future Leaders’ Dialogue was held in 2021. As of 2020, the Chinese Government
has dispatched 484 young volunteers to 16 African countries. It has established
contacts and exchanges with more than 100 women’s organizations in 53 African
countries. Centers dedicated to friendly exchanges or training among women have
been established in Mauritius, Lesotho, Djibouti, Zimbabwe and Sudan.
5. Cooperation on Peace and Security
Without security and stability, there can be no development. As a
constructive participant in peace and security affairs in Africa, China has always
championed the principle of African people solving African issues in their own
ways, and advocated the need to address root causes as well as symptoms and seek
cooperation for the benefit of all parties. It supports the right of African countries
and the AU to play a leading role in the region’s peace and security affairs. China
supports their efforts to promote peace and stability and fight against terrorism.
China endorses the “Silence the Guns in Africa” initiative in countries and regional
organizations such as the AU. China will continue to support the UN in providing
financial support for the AU’s independent peacekeeping operations. Based on the
principles of respecting the will of African countries, not interfering in African
countries’ internal affairs, and observing the basic norms governing international
relations, China is actively exploring constructive participation in promoting and
maintaining peace and security in Africa.

China and Africa continue to expand exchanges and hold dialogues in the
field of peace and security. Since 2019, China has co-hosted or hosted the
Dialogue on the Implementation of China-Africa Peace and Security Initiative, the
First China-Africa Peace and Security Forum, and the Video Conference on
Military Medicine under the forum. It has also actively participated in important
conferences or forums held by African countries in related fields. The Chinese
Government’s Special Representative for African Affairs has actively engaged in
mediation efforts in Africa, and played a unique and constructive role in Africa’s
peace and security endeavors. Through various means such as port calls and joint
exercises and training, China has provided strong support to African countries in
strengthening national defense and the armed forces, and to countries in the Sahel
region and those bordering the Gulf of Aden and the Gulf of Guinea in upholding
security and combating terrorism in their regions. China has launched assistance
programs and helped train African military personnel under the Belt and Road
Initiative, and in areas of law and order, UN peacekeeping missions, fighting
piracy and combating terrorism. China supports the UN in playing an important
role in maintaining peace and stability in Africa. Among the permanent members
of the UN Security Council, China has sent the largest number of peacekeepers to
the continent.
Since China first took part in UN peacekeeping operations in 1990, more
than 80 percent of its peacekeepers have been deployed in Africa. Over 30,000
Chinese peacekeepers have been sent to Africa to perform tasks in 17
peacekeeping mission areas. More than 1,800 peacekeepers are currently
performing missions in five of these areas – Mali, the Democratic Republic of the
Congo (the DRC), Abyei, South Sudan and Western Sahara. In accordance with
UN Security Council resolutions, the PLA Navy has deployed regular convoys in
the Gulf of Aden since 2008. To date it has dispatched 39 escort taskforces,
providing protection to approximately 7,000 Chinese and foreign vessels in about
1,400 groups. China also decided to donate 300,000 doses of Covid-19 vaccine to
UN peacekeepers, with priority given to those in African mission areas. As of
August 2020, a total of 11 Chinese military peacekeepers had sacrificed their lives
for the noble cause of peace in Africa.
China and Africa embrace the expansion of orderly personnel exchanges.
They have worked on consular cooperation, increased cooperation between law
enforcement departments, and acted against various cross-border crimes. In 2019
Chinese citizens made 607,000 visits to the African continent, while the number of
African visitors to China reached 685,000. Growth in personnel exchanges
promotes the rapid development of consular relations. In terms of strengthening
law enforcement capacity in African countries, since 2018 China has trained over
2,000 African law enforcement officers and provided police supplies. It has
dispatched peacekeeping police to African mission areas under the aegis of the
UN, and collaborated in dealing with criminal cases, intelligence exchanges,
experience-sharing and joint operations under the framework of Interpol.

Conclusions to section 2
Thus, after analyzing the general factors affecting China's foreign policy in
Africa, we can draw the following conclusions.
First, Africa is an important geopolitical object with great economic
prospects. In 2000
The People's Republic of China is creating the China-Africa Cooperation
Forum as the most important mechanism for the implementation of its policy in
Africa. China's strategic interests in Africa can be divided into three groups -
economic, political and geostrategic. As the main mechanism for realizing its
interests, the People's Republic of China has chosen the levers of "soft power":
diplomacy, economic aid, infrastructure projects, etc.
Secondly, due to the high conflict potential of the African continent and such
security risks as piracy and terrorism, China is beginning to pay more and more
attention to the aspect of security and peace in Africa. The need to protect the
national interests of the People's Republic of China is realized in practice by
increasing the activities of the Navy of the People's Armed Forces in distant seas
and the construction in 2017 of China's first military base in Africa in Djibouti.
Thirdly, the importance of Africa in the global initiative "One Belt One
Road" is clear. The key direction for African countries in the project is the
Maritime Silk Road of the XXI century, in which Kenya, Egypt and Djibouti are
involved.
Africa's role in the field of natural resources is also growing. Angola
currently ranks third among oil exporters to China. Also, several countries,
including Angola, carry out settlement transactions with the PRC in yuan. Due to
special economic zones, China creates preferential, comfortable conditions for
Chinese business in African markets.

Chapter 3. Directions for intensifying international cooperation between

China and African countries
3.1. Development of measures to increase international cooperation
The Principles of Sincerity, Real Results, Amity and Good Faith and the
Principles of Pursuing the Greater Good and Shared Interests
The principles of sincerity, real results, amity and good faith and the
principles of pursuing the greater good and shared interests epitomize China’s
policy to Africa. They represent the essence of Chinese culture and embody the
historical traditions of China-Africa friendship – a role model for international
cooperation with Africa. They are the overarching guiding principles for China in
building up solidarity and cooperation with developing countries, including those
in Africa.
“Sincerity” is how we treat our African friends. Nothing is more important
than a true friend. China has always considered solidarity and cooperation with
African countries to be an essential element of its foreign policy. This will never
change, not even when China grows stronger and enjoys a higher international
status. China is ready to reinforce mutual support with African countries on issues
involving core interests and major concerns of either or both. China will continue
its firm support for Africa’s position on international and regional affairs, and
uphold the common interests of developing countries. China will continue its
support for African countries’ efforts to resolve their continent’s issues in their
own way, and make a greater contribution to peace and security in Africa. China
will continue its firm support for African countries’ efforts to explore development
paths suited to their national conditions. It also stands ready to increase exchanges
on governance experience with African countries and boost common development
and prosperity, by drawing on wisdom from the time-honored civilizations and
experience of both sides.
“Real results” are what China aims to achieve in its cooperation with Africa.
China is a champion of win-win cooperation and works to put the principle into
action. China is committed to integrating its own development closely with
Africa’s development, and the Chinese people’s interests with those of African
peoples. By so doing, China sincerely hopes that African countries will grow
stronger and that African life will get better. While pursuing its own development,
China has extended support and assistance to its African friends to the limits of its
capacity. Particularly in recent years, China has scaled up its assistance and
cooperation with Africa. Whenever it makes a commitment, China will always
honor it to the letter. It will continue to expand cooperation in investment and
financing with Africa and strengthen mutually beneficial cooperation in
agricultural and manufacturing sectors. By so doing, China will help African
countries translate their strengths in resources into advantages in development and
realize independent and sustainable development.
“Amity” is a principle China follows in strengthening China-Africa
friendship. The peoples of China and Africa are destined to be good friends. Their
hearts are bonded through dialogue and concrete actions. China-Africa friendship
has its roots and lifeblood in the people, and the goal of China-Africa relations is to
benefit the people. The two sides have long valued people-to-people exchanges, so
that the Chinese people and African people know each other well and China-Africa
friendship has grown on a solid social base. China-Africa friendship is forward-
looking. To flourish, it needs continuous efforts by aspirational Chinese and
African youth from one generation to another. The two sides should promote youth
exchanges so that the friendship can maintain dynamism and vigor.
“Good faith” should be honored in solving problems arising from
cooperation. Both China and Africa are at a stage of rapid development. Their
mutual understanding should keep abreast of the times. China faces up squarely to
any new problems in their relations, and is committed to properly addressing
emerging problems in a spirit of mutual respect and win-win cooperation.
In terms of the principles of shared interests and the greater good, each is of
vital importance, but more emphasis is given to the latter. In international affairs,
China advocates political justice, mutual economic benefit, win-win cooperation,
and common development. It upholds good faith, friendship, and integrity.
Properly handling the relationship between shared interests and the greater good is
an essential requirement of China-Africa relations in the new era. The greatest
good in China-Africa relations is to closely combine Africa’s independent and
sustainable development with China’s own development, and reject the zero-sum
game and actions driven by a narrow pursuit of profit. The ultimate goal is to
realize win-win cooperation.
Mutual Respect and Common Development
China-Africa cooperation is about mutual support between developing
countries. Over the years, China has formed a distinctive approach to win-win
cooperation with Africa. The approach is in line with the traditional Chinese
philosophy, “Do not do to others what you do not want others to do to you.” It also
corresponds to the fundamental interests of African countries and the basic norms
of international relations. It is a hallmark of China-Africa solidarity and
cooperation and can serve as a useful reference for international cooperation with
Africa.
China’s approach involves upholding four principles:
– Upholding sincerity, friendship and equality. The Chinese people have
worked together with African people in pursuit of a shared future. China respects,
appreciates and supports Africa.
– Upholding shared interests and the greater good, with greater emphasis on
the latter. In its cooperation with Africa, China applies the principles of giving
more and taking less, giving before taking, and giving without asking for
something in return. It welcomes African countries aboard the express train of
China’s development with open arms.
– Upholding a people-oriented approach in pursuing practical cooperation
with efficiency. In its cooperation with Africa, China gives top priority to the
interests and wellbeing of the peoples of China and Africa, and works to their
benefit. China is committed to fully honoring the promises it has made to its
African friends.
– Upholding openness and inclusiveness. China stands ready to work with
other international partners to support Africa in pursuing peace and development.
It welcomes and supports all initiatives that further Africa’s interests.
In developing relations with Africa, there are five lines that China will not
cross: no interference in African countries’ choice of a development path that fits
their national conditions; no interference in African countries’ internal affairs; no
imposition of its will on African countries; no attachment of political strings to
assistance to Africa; and no pursuit of selfish political gains through investment
and financing cooperation with Africa.
The Lofty Goal of Building a Community of Shared Future
 At the FOCAC Beijing Summit in 2018, China and Africa reached a
strategic agreement to build a China-Africa community of shared future
characterized by joint responsibility, win-win cooperation, happiness for all,
cultural prosperity, common security, and harmony between humanity and nature.
This is a fundamental program of action, and a lofty goal for the two sides. It has
charted the course for China-Africa cooperation in the new era.
– In assuming joint responsibility, the two sides will reinforce mutual
understanding and support on issues involving each other’s core interests and
major concerns, and boost coordination on major international and regional issues.
These efforts will enable the two sides to uphold the common interests of China
and Africa as well as other developing countries.
– In pursuing win-win cooperation, China and Africa will seize the
opportunity created by the complementarity between their respective development
strategies and the major opportunities presented by the Belt and Road Initiative.
This will allow them to expand areas of cooperation and unlock new cooperation
potential.
– In delivering happiness for all and growing China-Africa relations, the
clear goal of the two sides is to make people’s lives better. The cooperation
between the two sides must deliver real benefit to the people in both China and
African countries.
– In pursuing cultural prosperity, China and Africa will work to strengthen
the bond between their peoples by increasing exchanges, mutual learning and
harmonious co-existence between the civilizations of the two sides, invigorating
their civilizations and cultures, enriching their artistic creations, and providing
richer cultural nourishment.
– In seeking common security, China is ready to play a constructive role,
and will support African countries in strengthening their independent capacity for
safeguarding stability and peace. China firmly supports African countries and the
African Union (AU), as well as other regional organizations in Africa, in their
efforts to solve African issues in African ways.
 – In promoting harmony between humanity and nature, China will
strengthen exchanges and cooperation with Africa on climate change, clean
energy, prevention and control of desertification and soil erosion, protection of
wildlife, and other areas of ecological and environmental sensitivity. Through their
combined efforts, the two sides will make China and Africa beautiful places for
people to live in harmony with nature.
Ultimately, it is for the Chinese and African people to judge the results of
China-Africa cooperation. China’s aim in developing cooperation with Africa will
always be to promote the fundamental interests of the Chinese and African people.
It will never make containment of any third country an aim of its policy in Africa.
An Exemplary Model for World Development and Cooperation
When China-Africa cooperation thrives, South-South cooperation will
flourish. When China and Africa are fully developed, the world will be a better
place. Cooperation in the new era is the sure way for China and Africa to realize
common development. It will lay more solid foundations for building an even
stronger China-Africa community of shared future, and build up strong momentum
for the rise of developing countries as a whole, and for more balanced international
relations.
Under the combined impact of the pandemic, a scale of change unseen in a
century, and a sharp conflict between multilateralism and unilateralism, the global
governance system is facing profound and unprecedented challenges. China sees
Africa as a broad stage for international cooperation rather than an arena for
competition among major countries. China-Africa cooperation has never been a
case of talk and no action. It is a case of bringing tangible benefits to people in
China and Africa, and creating more favorable conditions for others in the
international community to conduct cooperation with Africa. In the new era,
through solidarity and cooperation, the peoples of China and Africa will set an
example in increasing the wellbeing of humanity, creating a new type of
international relations, and building a global community of shared future.
 3.2. Justification of directions for the development of international
cooperation
Currently, the global governance system and the international order are
changing at an accelerating rate, and the international balance of power is
undergoing a profound adjustment. Covid-19 further shows that the fates of all
countries in the world are interconnected. Standing at a historical crossroads,
China and Africa need to further consolidate their partnership, and build a China-
Africa community of shared future in the new era. The two sides will steadfastly
reinforce their traditional friendship, promote mutually beneficial cooperation, and
safeguard common interests. They will continue to set the pace of cooperation
through FOCAC, support the Belt and Road Initiative, bring the China-Africa
comprehensive strategic and cooperative partnership to a higher level, and deliver
a brighter future together.
1. Boosting Cooperation Through FOCAC
At the initiative of both China and African countries, FOCAC was
inaugurated at its first Ministerial Conference in Beijing in October 2000, with the
goals of responding to the challenges emerging from economic globalization, and
seeking common development. Over the past two decades, FOCAC has become an
important platform for collective dialogue between China and Africa and an
effective mechanism for pragmatic cooperation. It has turned into a pacesetter for
international cooperation with Africa in the new era.
FOCAC now has 55 members comprising China, the 53 African countries
that have diplomatic relations with China, and the AU Commission. The FOCAC
Ministerial Conference is held once every three years, rotating between China and
African countries and co-chaired by China and an African hosting country, with
the co-chairs also taking the lead in implementing conference outcomes. Based on
mutual agreements, some of the ministerial conferences have been upgraded into
summits. To date three summits (the Beijing Summit in November 2006, the
Johannesburg Summit in December 2015, and the Beijing Summit in September
2018) and seven ministerial conferences have been convened. These have yielded
rich fruits, releasing a series of important documents to guide cooperation, and
promoting the implementation of a series of major measures to facilitate
development in Africa and solidify China-Africa friendship and mutually
beneficial cooperation.
At the end of November 2021, FOCAC will meet in African co-chair
country Senegal. The meeting will evaluate the implementation of the outcomes of
the 2018 Beijing Summit, and make plans for friendly cooperation in the next
phase. This will be an important diplomatic event for China and Africa to discuss
cooperation plans and promote common development, and will be of great
importance in promoting post-pandemic economic recovery and development in
Africa, China and the world at large. China will work closely with Africa to align
China’s Second Centenary Goal of building a great modern socialist country by the
middle of the century with the AU’s Agenda 2063. Together the two sides will
plan and discuss the outcomes to be adopted at this FOCAC meeting regarding
such key areas as health, investment and trade, industrialization, agricultural
modernization, climate change responses and digital economy, and both will make
every effort to produce a meeting that will build new consensus, explore new fields
of cooperation, and be of benefit to both the Chinese and African peoples.
2. Promoting Cooperation under the Belt and Road Initiative
As part of the history of the Belt and Road, Africa is a natural partner of the
initiative. In the past, the Maritime Silk Road brought Chinese tea, porcelain and
development experience to Africa, promoting friendship and mutual learning, and
it was thus recorded in history as a road of friendship. Since its inception, the new
initiative has earned active support and participation from African countries. The
cooperation between China and Africa under the initiative has a bright future.
The Belt and Road Initiative is not a “solo”, but an “orchestra” in which the
participation of both China and African countries is essential. In December 2015,
South Africa became the first African country to sign an agreement on cooperation
with China under the Belt and Road Initiative. Leaders of Kenya, Ethiopia, Egypt,
Djibouti and Mozambique participated in the Belt and Road Forum for
International Cooperation in 2017 and 2019, contributing to the initiative’s
cooperative mechanism. At the 2018 FOCAC Beijing Summit, China and Africa
agreed to strengthen China-Africa cooperation under the Belt and Road Initiative.
To date, almost all African countries with diplomatic ties with China have already
signed agreements on cooperation under the initiative. China and the AU
Commission signed the Cooperation Plan on Jointly Promoting the Silk Road
Economic Belt and the 21st Century Maritime Silk Road between the Government
of the PRC and the African Union, the first agreement of its kind signed between
China and a regional organization.
In recent years, connectivity between China and Africa under the Belt and
Road Initiative has also expanded at a faster pace. A number of transport
infrastructure projects have been completed and opened to traffic, including the
Addis Ababa-Djibouti Railway, the Mombasa-Nairobi Standard Gauge Railway in
Kenya, No. 1 National Highway of the Republic of the Congo, the Thies-Touba
highway in Senegal, the Port Gentil-Omboue coastal road and the Booué Bridge in
Gabon, and the first and second phases of the Nigeria Railway Modernization
Project. Projects such as the Doraleh Multi-Purpose Port in Djibouti and the Lome
Container Terminal in Togo have been successful in increasing entrepot trade.
These projects have played an important role in boosting regional connectivity and
integration. To date China has signed civil aviation transport agreements with 21
African countries, bilateral airworthiness agreements with 12 African countries,
and bilateral intergovernmental marine shipping agreements with eight African
countries.
Currently, both China and Africa have entered a new development stage.
China is promoting a new development paradigm with domestic economy and
international engagement providing mutual reinforcement, and the former as the
mainstay. China’s development will create more opportunities for Africa’s
development. With the official launch of the African Continental Free Trade Area,
Africa’s economic integration is accelerating, providing more room for growth in
China-Africa cooperation. The two sides will focus on boosting quality
development and further align the goals of the Belt and Road Initiative with those
of the AU’s Agenda 2063, the UN 2030 Agenda for Sustainable Development and
the development strategies of individual African countries. They will build the Belt
and Road into a road to peace, prosperity, openness, green development,
innovation and cultural exchanges, and create a China-Africa community of shared
future in the new era.
 3. Raising China-Africa Relations to a New Level
The key to the vitality of China-Africa relations is keeping abreast of the
times and developing and innovating relationships. For more than half a century, at
every critical juncture, the two sides have employed far-sighted vision and always
succeeded in finding new common ground and growth drivers. At this new
historical starting point, under the guidance of Xi Jinping Thought on Socialism
with Chinese Characteristics for a New Era and Xi Jinping Thought on Foreign
Affairs, China will adhere to the principles of sincerity, affinity, good faith and
practical results, uphold the values of shared interests and the greater good, and
work together with African countries to advance high-quality cooperation and
build a China-Africa community of shared future.
– Laying a solid foundation for friendship and raising mutual political trust
to a new level. China and Africa will maintain the momentum of high-level
exchanges, expand friendly cooperation between political parties, legislative
bodies, political advisory bodies, and local governments of the two sides. They
will share governance ideas and development experience, and reinforce strategic
communication and mutual trust. They will give full play to the positive role of
think tanks, media, institutions of higher learning and non-governmental
organizations, create a new model of multi-dimensional, multi-level and all-round
cultural exchanges, strengthen people-to-people connectivity, and reinforce the
traditional unbreakable China-Africa friendship.
– Combating Covid-19 and building a China-Africa community of health for
all. China will continue to provide anti-pandemic assistance to African countries,
share its experience in coordinating routine epidemic prevention and control with
social and economic development, and speed up cooperation with Africa on
vaccines. China-Africa health cooperation is not a short-term measure, but a long-
term and far-sighted strategy. It focuses on assisting Africa to improve its public
health system and its capacity for controlling and preventing major communicable
diseases, so as to promote a China-Africa community of health for all in the new
era.
– Boosting common development and nurturing new drivers for expanding
mutually beneficial cooperation. As China and Africa enter their new stages of
development, the advantages of their complementarity have become more obvious
and their mutually beneficial cooperation is marked by higher quality, greater
impact, and brighter prospects. The two sides will actively support their respective
businesses to tap cooperation potential, nurture new growth drivers such as e-
commerce, 5G network and green economy, and expand cooperation in future-
oriented key fields. They will support the Global Development Initiative and a
global community of shared development, so as to achieve high-quality and
sustainable common development to the benefit of the Chinese and African
peoples.
– Promoting closer international cooperation to establish a fairer and more
equitable international order. China and Africa are important forces in
safeguarding the common interests of developing countries and in promoting world
peace and development. The two sides will further strengthen strategic
communication and coordination on international affairs, and firmly safeguard the
democratization of international relations. They will make concerted efforts to
tackle common challenges facing humanity by fighting epidemics, alleviating
poverty, combating terrorism, and dealing with climate change. They will work
together to uphold true multilateralism, the common interests of developing
countries, the international system with the United Nations at the core, the
international order underpinned by international law, and the basic norms
governing international relations based on the purposes and principles of the UN
Charter.

Conclusions to section 3
China has eliminated the historical problem of absolute poverty, and
achieved moderate prosperity in all respects. It has embarked on a new journey
toward building China into a modern socialist country by the time the PRC
celebrates its centenary in 2049.
Africa is experiencing a flowing tide of solidarity and self-strengthening,
and the continent’s influence in international affairs continues to grow. It is now
forging ahead with the development of free trade zones, accelerating
industrialization and modernization, and heading towards the bright future
envisioned in the AU’s Agenda 2063.
They will work together to uphold true multilateralism, the common
interests of developing countries, the international system with the United Nations
at the core, the international order underpinned by international law, and the basic
norms governing international relations based on the purposes and principles of the
UN Charter.
 Conclusions
Friendly relations between the PRC and Africa have endured through more
than half a century and withstood the test of time. The two sides have always stood
firmly together at critical junctures and on major issues. African countries have
provided important support for China’s endeavors to safeguard its sovereignty,
security and development interests, promote reunification, and achieve national
rejuvenation through development. China has firmly supported African countries
in realizing national independence, following development paths that fit their
national conditions, promoting regional integration, and strengthening themselves
through unity. China and Africa have joined forces in confronting the grave
challenge posed by Covid-19, further reinforcing their friendship.
The world is going through profound change of a scale unseen in a century.
In the face of new opportunities and challenges, China and Africa will further
strengthen solidarity and cooperation. China will continue its steadfast support for
African countries in pursuing the development paths fitting their respective
national conditions, promoting Africa integration, and safeguarding their
sovereignty, security, and development interests.
 China will work together with African countries to promote the Belt and
Road Initiative, build an even stronger China-Africa community of shared future,
and bring more gains to the Chinese and African peoples, thus making a greater
contribution to lasting world peace and prosperity, and to a global community of
shared future.

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