Hong Kong Media: China’s Slowing Growth Rate Influences African Development

Weekly Mandarin Translation

A Hong Kong media source (China Business Focus) published an article that articulates that China's declining growth rate will undermine Africa's export of raw materials and goods. Neither the United States nor Europe can match the volume China purchases from Africa every year.

参考消息网4月13日报道 香港中美聚焦网4月4日刊发文章称，假如中国经济继续降温，非洲的原材料及大宗商品出口商就会跟着遭殃。无论是美国还是欧洲买家都无法接手中国的采购量。

This article has been translated from Mandarin. Click here to read the original version on Reference News.

For the first time, China finds it difficult to maintain its growth rate above 7%. China's annual growth rate declined from 8% in 2012 to 7.6% in 2013, and is projected to continue declining this year.

In the short term, Africa will not be affected by China's slowing growth. However, China's decreasing industrial demand will affect the societal and economic growth of even the richest African countries in the mid-term. Libya hopes China could import more oil and iron while China imports oil from Sudan or South Sudan. If China decreases its demand for oil, the African economy will confront big challenges in the future. At the same time, the declining demand for copper will also pressure Zambia and Congo to decrease its exploitation and production.

Fortunately, policy makers in China remain optimistic about China's future (for both mid-term and long-term), which is good news for Africa to maintain its 5% average growth rate. Chinese companies will continue its exploitation activities for new oil and natural gas reserves along the coast and within inland countries, such as Uganda.  Also, the construction projects on dams, railways and roads and other infrastructure will continue. China has signed long-term construction contracts.  A halt on the projects is in neither China nor Africa's interests.

China's weaker economic growth will impose a negative effect on African economic development. The recent prosperity in Africa heavily relies upon the rapid growth of China. Therefore, as an important engine for African economic growth, China's role is of great importance not only to African countries, but also to Europe and the United States, which also want to see an economically and politically strong Africa.

Article translated by Qiuyun Shang, Staff Intern for the Kissinger Institute at the Wilson Center.

Photo courtesy of Jean-Philippe Boulet via Wikimedia Commons.