The Information Office, International DECEMBER, 2018 Department of the CPC Central Committee

Special Issue on a Community With a Shared Future for Humanity

KOREAN PENINSULA QUAKES, TSUNAMI SITUATION DEVASTATE INDONESIA THE BELT AND ROAD INITIATIVE XI JINPING THOUGHT ON DIPLOMACY THE COMMUNITY WITH A SHARED FUTURE FOR HUMANITY THE BELT AND ROAD INITIATIVE MAJOR COUNTRY DIPLOMACY RUSSIA-UKRAINE WITH CHINESE CHARACTERISTICS STANDOFF CHINA-U.S. TRADE FOCAC SUMMIT IN BEIJING FRICTIONTURKISH LIRA CRISIS UNILATERAL U.S. PULLOUTSTHE INCIDENT OF GREECE EXITS BAILOUT SAUDI JOURNALIST ’S YELLOW VEST PROTESTS 11 DECEMBER, 2018

2018’s Top 10 World News Stories XINHUA XINHUA

A container ship berths at a port in Tangshan, north China’s Hebei Province, on November 19

China-U.S. Trade Friction Chinese President Xi Jinping meets with Kim Jong Un, Chairman of the Workers’ Party of Korea and leader of the Democratic People’s Republic of Korea, in Beijing on June 20. Xi’s wife Peng n March 22, U.S. President Donald Trump signed a Liyuan and Kim’s wife Ri Sol Ju also attended the meeting Omemorandum imposing punitive tariffs on Chinese products, with the threat of imposing additional tariffs. For its part, China announced countermeasures. Despite sev- The Korean Peninsula Situation eral rounds of consultations and negotiations, the two sides big step was taken in improving the situation on the Korean Peninsula. could not reach consensus. AWith efforts from the international community, particularly from China, The trade dispute between the world’s top two econo- the United States, the Democratic People’s Republic of Korea (DPRK) and the mies has not only hurt their economic development, but Republic of Korea (ROK), the security crisis on the peninsula eased. has also undermined the recovery of the global economy. Xi had three meetings with DPRK leader Kim Jong Un. Kim also held At the 2018 G20 Summit, Chinese historic meetings with Trump and ROK President Moon Jae-in on peace and President Xi Jinping and Trump reached an agreement on denuclearization of the Korean Peninsula in the border village of Panmunjom. December 1. The two sides agreed to step up negotiations A joint Panmunjom Declaration was issued after the Kim-Moon meeting, con- to remove all additional tariffs and reach a win-win deal. firming their common goal of complete denuclearization of the peninsula. XINHUA

Unilateral U.S. Pullouts n May, the Trump administration officially announced it would withdraw Ifrom the Iran nuclear deal, pressuring Iran to revise the pact and make more concessions. The U.S. move was denounced by the international community and Iran refused to make further concessions. Five months later, the United States made another unilateral pullout, announcing it was quitting the Intermediate-Range Nuclear Forces (INF) treaty it had signed with the Soviet Union 30 years ago, alleging Russia had violated the treaty. The INF is an important bilateral treaty and its absence will have far-reaching effects on U.S.-Russia relations, regional security and the development of global nuclear power. Without the curbs the treaty imposes, the United States may strengthen its military pres- ence in the Middle East and the Asia-Pacific region, which would affect the equilibrium in these areas. The unilateral pullouts have contributed to destabilizing the global security situation. U.S. President Donald Trump signs a presidential memorandum to withdraw from the Iran nuclear deal, a landmark agreement signed in 2015, on May 8 DECEMBER, 2018 2 XINHUA Quakes, Tsunami Devastate Indonesia owerful earthquakes and an ensuing tsunami Pstruck Indonesia’s Central Sulawesi Province on September 28. The toll was put at 2,090, while more than 87,000 people were forced to flee their homes. The disasters destroyed infrastructure, including over 68,000 houses, religious buildings and bridges. Roads were badly damaged in many places. The loss was estimated to be about $1 billion. XINHUA

The roundtable meeting of the FOCAC Beijing Summit is held in the Great Hall of the People on Sep- tember 4

FOCAC Summit in Beijing he 2018 Beijing Summit of the Forum on China-Africa Cooperation (FOCAC) was Theld in September. The summit, attended by Xi and state leaders from 53 African countries, was the largest of its kind since FOCAC was established in 2000. FOCAC has been an important engine for China-Africa collaboration, promoting Survivors look for salvageable items among the debris of a house cooperation in trade, investment, project contracting, cultural exchanges, finance in Donggala, Central Sulawesi, after multiple earthquakes on and security. It has also become an important platform for China and Africa to en- October 5 hance cooperation under the framework of the Belt and Road Initiative in the new era. The summit adopted the Beijing Action Plan (2019-21), drawing a roadmap for China-Africa cooperation in the coming years. France’s Yellow Vest Protests n November 17, protests erupted in France XINHUA Oagainst the government’s plan to increase the fuel tax in 2019 in the name of combating climate change. The protests developed into the Yellow Vest move- ment, getting its name from the fluorescent roadside security jackets worn by the demonstrators. The movement has since snowballed, protesting the high living costs blamed on President Emmanuel Macron’s fiscal and economic reforms. Clashes with police in led to a few casualties. The movement also spread to neighboring countries including and the . Responding to the Yellow Vests on December 10, Macron announced an economic and social emergen- cy plan to increase minimum monthly wages, scrap a tax on overtime hours, cut taxes for pensioners and People windowshop during the summer sales season in Athens, Greece, on August 22. The retail sec- pay end-of-year bonuses to workers. tor welcomed Greece’s exit from international bailout programs VCG Greece Exits Bailout n August 20, Greece formally exited the international financial rescue programs Ointroduced by the (EU) after eight years, demonstrating that it does not need to rely on foreign aid to support its own sustainable development. It was an important signal that the country, with the heaviest public debt and the first to be bailed out, was nearing the end of its debt crisis. During the eight years, European fiscal and financial governance structures have improved and a risk control network for eurozone countries has been set up. However, the conclusion of Greece’s bailout does not mean the losses and scars sus- Yellow Vest protesters near the Arc de Triomphe in Paris on tained during the European debt crisis have been totally wiped out. December 8 3 DECEMBER, 2018 XINHUA Russia-Ukraine Standoff he tension between Ukraine and Russia esca- Tlated after the Russian Coast Guard seized three Ukrainian vessels in the Black Sea near the Crimean Peninsula on November 25. Ukraine declared martial law for 30 days along the border with Russia and in Black Sea coastal areas on November 28. Russia ac- cused Ukraine of playing with fire and Ukrainian vessels of violating the Russian border despite warnings from Russian ships. Though the international community urged both sides to restore peace, Ukrainian President Petro Poroshenko submitted a draft law to parliament on December 3, which provides for the termination of the 1997 Treaty on Friendship, Cooperation and Partnership between Ukraine and Russia that is set to expire in March 2019.

Three Ukrainian ships are seized by Russian forces near the Black Sea on November 25 XINHUA The Incident of Saudi Journalist audi journalist Jamal Khashoggi, who was a columnist for The SWashington Post, went missing on October 2 after he entered the Saudi consulate in Istanbul to obtain documents for his marriage. Days later, news leaked by Turkish authorities said that Khashoggi had been killed inside the consulate, hinting that the Saudi royal family was behind the murder. The news attracted world concern. Saudi au- thorities admitted the involvement of officials in the killing but denied a connection to the royal family. The Turkish Government shared the so-called evidence—au- dio recordings of the killing—with Saudi Arabia, the United States, , France and the UK, but the whole truth is still not known. XINHUA

A man checks the exchange rate at a money exchange shop in Istanbul on May 24, after the Turkish lira’s fluctuations

Turkish Lira Crisis n August, the Turkish lira dropped sharply by 18 percent, the big- Igest in a single day since the Turkish financial crisis in 2001. The fall of the lira came after Trump’s announcement that the tariffs on steel and aluminum imports from Turkey would be doubled. Turkey is the eighth largest steel producer in the world and the sixth largest source of U.S. steel imports. In total, the lira lost more than 35 percent of its value against the U.S. dollar this year, prompting concerns that Turkey’s economy, which is heavily reliant on foreign currency loans, could affect other Journalists gather outside the Saudi consulate in Istanbul, waiting for details about emerging markets. missing journalist Jamal Khashoggi on October 10 DECEMBER, 2018 4 XINHUA

Chinese President Xi Jinping and his wife , together with Argentine President and his wife Juliana Awada, attend the welcome ceremony in Buenos Aires, , on December 2, 2018 Challenging Times, Creative Efforts The key themes of Chinese diplomacy in 2018 By Wang Huiyao

s the curtain comes down on 2018, of characters is more populous, complex it is a good moment to look back at and interconnected than ever before. It is Athe highlights and central themes of also a world where technological progress China’s diplomacy during another eventful and globalization are blurring boundaries year. and overturning traditional assumptions. The For China, 2018 has been a year to con- rise of emerging markets and developing tinue building a new type of international countries is reconfiguring balances of power, relations based on three core tenets— while the international order of the last mutual respect, fairness and justice, as well half-century increasingly struggles to accom- as win-win cooperation, with the long-term modate to the new reality. vision of building a community with a shared Against this evolving backdrop, the rest future for humanity. of the world is learning and adapting to the This 21st-century world is shaped by in- growing stage presence of China and other The author is president creasing multipolarity and cross-border flows emerging powers. China is also defining its of the Center for China of people, goods, capital and information. It is role in the world and refining how it interacts and Globalization s s a world of greater openness, where the cast with fellow nations. 5 DECEMBER, 2018

In this role, China will forge its own ap- for Asia Annual Conference, the Shanghai proach to international relations. In 2018, Cooperation Organization (SCO) Summit, the Sino-U.S. relations China has continued to expand its diplomatic Forum on China-Africa Cooperation (FOCAC) China and the U.S. are the world’s most repertoire, leveraging conventional channels Summit and the China International Import significant economic and political actors. In but also developing new mechanisms to Expo (CIIE). 2018, the twists and turns in their relations build mutual understanding. At the Boao Forum event in April, Xi sent have formed the central storyline, not just of Throughout the year, China’s diplo- a clear signal: China will continue to open China’s external relations, but of global affairs matic toolkit highlighted six key themes up its economy and promote globalization at large. As the trade dispute intensified, the which start with the central role of summit with pledges to expand market access and goal of stabilizing the relations with the U.S. diplomacy and include Sino-U.S. relations, improve the business environment for for- has been a key objective for Chinese diplo- breakthroughs with neighboring countries, eign investors. He also pledged to promote macy. cooperation along the Belt and Road, pro- import growth. This gave firm support to glo- The meeting between the two presi- tecting growing overseas interests, and balization amid the protectionist wave that dents following the G20 Summit averted finally, efforts to reform and innovate the has swept the world. further escalation of tariffs and brought global governance system. This theme was reinforced at the inau- both sides back to the negotiating table. But gural CIIE in November. Much more than a despite this reprieve, it is clear that a funda- trade fair, the CIIE served as a landmark in the mental shift has occurred in the relationship. Summit diplomacy evolution of China’s development and its eco- A bipartisan view of China as an antagonist Summit diplomacy has been the core nomic interaction with the rest of the world. and biggest strategic competitor has co- pillar of China’s international engagement in Once renowned as the “factory of the world” alesced in Washington. The U.S. approach of recent years. President Xi Jinping has been for its role as an export powerhouse, today it engagement in previous years is gradually more active in global affairs than any previous is China’s consumer market and imports that Chinese leader and 2018 saw top-level sum- serve as an engine for global growth. As Xi said being replaced by a mindset of containment. mitry become more important than ever. in his opening speech, over the next 15 years, In this regard, it was encouraging that The role of summit diplomacy was evident China is set to import $30 trillion worth of the second annual U.S.-China Diplomatic at the recent G20 Buenos Aires Summit. As goods and $10 trillion in services. and Security Dialogue was held in Beijing well as exploring joint solutions to global chal- In June, the coastal city of Qingdao in November. This gave top diplomats and lenges, this gathering became an important played host to the 2018 SCO Summit. military officials from both sides a chance to chance to prevent the Sino-U.S. trade dispute Formed 17 years ago with regional security talk and share perspectives of contentious from spiraling out of control. To the world’s re- objectives in mind, the agenda of the SCO issues. lief, Xi and U.S. President Donald Trump were has broadened to include other areas of Despite frictions, the two countries still able to reach a preliminary “ceasefire” agree- cooperation such as the economy and the have enormous potential synergies to exploit ment to start working to resolve differences environment. This year’s summit was signifi- through closer cooperation, particularly with over economic relations. cant as India and Pakistan attended as new respect to transnational challenges such While supporting existing mechanisms full members. The eight-member SCO now as climate change. China’s participation in such as the G20, China has also led the cre- accounts for nearly half of the world’s popu- California’s Global Climate Action Summit ation and strengthening of new platforms lation and over a fifth of the global GDP. in September showed that there are many to promote free trade and international These events reflect China’s efforts to channels for the two to work together. cooperation. In 2018, China hosted four build platforms and engage a broad range of Deepening cooperation at the local level such international events: the Boao Forum partners across the world. may offer an effective way to do this. XINHUA XINHUA

A Salvadoran exhibitor introduces juice products from his country to Chinese customers The 9999th Boeing 737-800 aircraft prepares to take off from the company’s Seattle at the first China International Import Expo in Shanghai, on November 7, 2018 airfield in the U.S. state of Washington on March 24, for delivery to China’s air carrier Okay Airways DECEMBER, 2018 6

are going global. According to the Chinese Ministry of Commerce, in the first half of 2018, investment in 55 countries along the Belt and Road was up 12 percent year on year. Alongside, China has directed diplomatic efforts to promote the initiative. Following the inaugural Belt and Road Forum for International Cooperation last year, as of 2018, more than 100 countries and regions as well as international organizations had signed cooperation agreements with China, extending the initiative’s scope from Eurasia to Africa, Latin America and the Caribbean, and the South Pacific region. The FOCAC Summit held in Beijing in September brought together leaders from China and African countries to explore new forms of collaboration. Xi announced $60 XINHUA billion of financing for Africa in the form of government assistance as well as from President Xi Jinping meets with Japanese Prime Minister Shinzo Abe in Beijing on October 26 financial institutions and companies. The summit built on Xi’s trip to Senegal, Rwanda, South Africa and Mauritius earlier in the the peninsula and opening a channel for last- year, the fourth African trip during his presi- Breakthroughs with ing peace in the region. dency. neighbors Countries that previously held misgivings about the initiative such as Japan and the Efforts to strengthen relations in the re- Belt and Road cooperation U.S. are gradually beginning to warm to it. gion to create a benign environment for the In the five years since its launch, the Belt During Abe’s visit to Beijing, China and Japan growth of economic and cultural links within and Road Initiative, drawing on China’s capital launched a mechanism to discuss economic Asia have contributed to breakthroughs with resources and infrastructure development cooperation projects in third countries re- three fellow nations over the year. capabilities, offers a new model of diplomacy lated to the initiative. The number of foreign First, 2018 saw a notable warming of by helping partner countries to improve con- companies and financial institutions taking ties between China and Japan. The premiers nectivity and open new paths to growth and part in Belt and Road projects is increasing, of both countries made reciprocal visits. prosperity. helping to strengthen links between China Premier Li Keqiang’s visit to Japan in May was The initiative has been supported by and its partners around the world by sharing s s followed by Japanese Prime Minister Shinzo growing numbers of Chinese enterprises that experience and mutual benefits. Abe’s visit to Beijing in October, the first stand-alone journey to China by a Japanese leader in nearly seven years. During this visit, the premiers of Asia’s two biggest economies reached a series of agreements to deepen economic and trade ties. Sino-Indian relations also experienced a positive turnaround following a period of heightened tensions caused by their bor- der friction in 2017. Indian Prime Minister Narendra Modi visited China in April, holding talks with Xi to build mutual trust and deepen cooperation. China and India, the world’s two most populous nations, share strong cultural ties and economic complementarities. It is encouraging to see that Sino-Indian relations are now on a track to closer collaboration. Third, with China’s support, there has also been progress on the Korean Peninsula nuclear issue. This has seen the Democratic People’s Republic of Korea hold break- through summits with China, the U.S. and the Republic of Korea. These are initial but A young visitor takes part in the Chinese handicraft of carving and painting on wood at the China Cultural Center important steps toward defusing tension on in Moscow, Russia on November 22 7 DECEMBER, 2018

It is not only official agencies that are engaged in this task. A growing cast of social actors is also contributing ideas and impe- tus to reform global governance. This includes non-governmental think tanks that can help to generate and disseminate ideas at home and abroad. Many of the challenges require fresh approaches and cross-border collaboration between different types of organizations. Think tanks are well placed to support China in building a new type of international relations. Through the ages, many have seen relations between ac- tors on the stage of world history as antagonistic, driven by fear and self-interest. Proponents of this view often see modern states as playing out predeter- mined roles, destined to clash and come into conflict as bal- ances of power shift. XINHUA To build a new type of in- ternational relations, China has Chinese tourists take a group photo before leaving Saipan in the Northern Mariana Islands commonwealth after it was struck by a determined to craft its own role typhoon on October 28 in a chartered flight provided by the Chinese Government as the supporter of a more open, fairer world. It is likely that 2019 Foreign Ministry handled over 70,000 cases will bring more twists and turns in world af- Protecting overseas interests of consular protection. This year, Chinese fairs. However, it is hoped that the coming Driven by China’s opening up and the nationals have been supported in a range year will also provide more chances to build Belt and Road Initiative, the number of of situations, from evacuating them from relationships, work together, and script a Chinese citizens and companies overseas natural disasters to protecting them from shared future for humanity. CI is growing. According to the National terrorist threats. Bureau of Statistics, China has been the To support this vital aspect of China’s country with the most outbound tourists overseas work, in 2018 the Ministry of China’s Poverty Alleviation in annual terms since 2013. The number Foreign Affairs released draft legislation Achievements from 2013 to 2017 of outbound tourists is expected to grow on consular protection to help safeguard million to 157 million in 2020, compared to 135 Chinese citizens overseas. 90 9% million in 2016. 8.5% 80 8% China’s accumulated outbound direct 82.49 7.2% investment (ODI) reached over $1.8 trillion by Global governance reform 70 7% the end of 2017, moving up to the second Recent years have seen multilateralism 60 70.17 5.7% 6% place in the world ranking. Chinese invest- under increasing strain. There has been a rise ment in both and Africa saw an over in anti-globalization sentiment around the 50 55.75 4.5% 5% 70-percent increase, while investment in world, and countries that helped to build the 40 43.35 4% countries along the Belt and Road accounted international order are now undermining the 3.1% 30 3% for over 12 percent of ODI, up 31.5 percent very institutions that support it. 30.46 year on year. In part, the current global governance 20 2% These trends mean protecting the deficit is a result of multilateral institutions 10 1% interests of Chinese citizens working, trav- failing to reform and adapt to new challeng- eling and studying overseas has become es. Therefore, as well as supporting existing 0 0 2013 2014 2015 2016 2017 an increasingly important task for Chinese mechanisms, part of China’s new role is to diplomatic and consular services. The promote reform of the global governance The number of people living below the poverty line evolving risk map includes security threats system according to concepts of fairness China’s poverty rate and natural dangers. In 2017, the Chinese and justice. Source: People’s Daily DECEMBER, 2018 8

Creating New Miracles in Asia By Zan Jifang

head of the Boao Forum for Asia (BFA) on the rise, and that globalization is partially economic policy, corporate responsibilities, Annual Conference, held on April 8-11, facing setbacks—Asia, as well as the whole social and cultural advancement, scientific A2018, Beijing Review interviewed world, needs to be more open and con- and technological innovation, promotion of Zhou Wenzhong, Secretary General of the nected than ever before, rather than being the Belt and Road Initiative and the strength- BFA, about his views on Asian development isolated and closed. The world needs to be ening of regional cooperation. We hope that and the world’s prosperity. more inclusive and balanced, rather than be- the 2018 conference will become a multilat- Founded in 2001, the BFA is a non- ing divided between the rich and poor. eral event of exchanges that will build greater governmental, nonprofit international Currently, world economic growth is still consensus within Asia, let its voice be better organization committed to promoting fragile; there are many uncertainties and heard and boost internal cooperation in the regional economic integration. Its annual complicated situations in the world econo- region and collaboration between Asia and conferences take place in the resort town of my. Asia and the world need to change their the rest of the world. Boao, in south China’s Hainan Province. ideas of development to economic growth How would you evaluate the develop- Beijing Review: The theme of the 2018 driven by innovation instead of simply by fac- ment of Asia? BFA Annual Conference is An Open and tor input. Under the current situation, peace In the past decades, Asia has played an Innovative Asia for a World of Greater and development remain the call of our day. increasingly important role in world eco- Prosperity. How was this theme formulat- It should be the common mission of Asia and nomic development and has created “Asian ed? What is the BFA expecting to achieve all the countries of the world to build a com- miracles” one after another. It has not only at this year’s conference? munity with a shared future for mankind, and transformed itself following a long period of Zhou Wenzhong: In May 2017, the BFA to advance the common development and poverty and underdevelopment, but has also started to solicit advice from its 29 founding prosperity of the world. injected energy into the world economy. countries, its board of directors, council of To push forward Asia’s adaptation to However, the 2008 global financial advisors, members, partners, think tanks and the new situation, the BFA invited officials, crisis gave a heavy blow to Asia’s economy, media on the theme of the annual confer- industry and business professionals and posing an unprecedented challenge to the ence and topics of discussion. We also held academics from around the world, especially economic growth of the continent. On the three seminars and a special meeting of the from the Asia-Pacific region, to gather at this one hand, the previous development mode board of directors to discuss the theme. year’s annual conference to review the past could hardly continue, while on the other, a During the process of consultation, we and discuss prospects for openness and new way of development that fits the new had a common understanding that—given innovation in Asia. The discussions at sub- situation has not yet been found. At the the fact that anti-globalization sentiment forums will focus on a variety of aspects, same time, a technological revolution led and trade and investment protectionism are including sustainable development, macro- by mobile Internet and artificial intelligences s 9 DECEMBER, 2018

has been booming and gaining momentum, North America’s 28 percent and Europe’s tion that interdependence within Asia has changing conventional ways of production, 22 percent. In particular, in the process of been unprecedentedly high, which means living, economic operation and even global globalization, Asia has become the largest Asian economies must cooperate in order governance. market of trade in goods and services and an to realize their common goals. Because of Against such a backdrop, with so many important source and destination for foreign the diversity in the history, culture, religions, changing factors overlapping, it is impos- direct investment, thus making it the region politics and economic development levels of sible for Asia to continue its success in the with the most emerging economies since Asian economies, Asia does not have a con- traditional way. To sustain prosperity in the the start of the 21st century. tinent-wide organization, which is different post-financial crisis period, Asia needs a new The rapid development of Asia’s econ- from other continents such as the Americas, round of opening up and innovation. Asian omy has benefited from two elements: the Africa and Europe. But given the deepening economies need to strengthen bilateral and openness and innovation of Asia, and the regional economic integration, Asian econo- multilateral cooperation and promote regional lasting wave of globalization. mies have become close partners, creating and sub-regional trade and investment liberal- While following the trend of globalization a good environment for them to further ization. Asia needs to create an environment and regional integration, Asian economies strengthen regional cooperation through with a fully open market that is suitable for have become more and more mutually de- policy and mechanism connectivity. sustainable economic development. pendent, with trade volume between them Although the anti-globalization trend has With a new round of technological in- far exceeding the total volume between Asia been on the rise in recent years, globalization novation, Asia needs to boost innovation and external economies. The phenomenon is irreversible. Asian economies must fur- in basic scientific research and applied is more prominent in East Asia, where before ther embrace the global tide of opening up technology. Meanwhile, Asian economies the 1980s, the trade volume between East and innovation and try to lead the current. need to adjust development thinking and Asia and North America was much higher Technological advancement, which is the explore innovative ways of implementing than that within the region itself, which is major driving force for the development of institutional, business-model and structural no longer the case. Now, the trade volume productivity, will result in innovation in a wide reforms. In this way, they can deepen struc- within the region has exceeded the region’s range of areas including institutions, policies tural adjustment while maintaining stable trade volume with North America and the and business models. Such innovation will growth; resolve the structural problems that euro-zone combined. go beyond the limits of national boundar- restrict the sustainable development of the At the same time, Asian economies have ies and will need to be carried out through continent; and ultimately realize innovative, not confined themselves to the region, but coordination and cooperation among differ- coordinated, green and open development have been active in pursuing economic in- ent countries and regions. We have reasons for everyone. tegration with other areas of the world. The to believe that Asia, led by a new round of How would you rate Asia’s status in increasingly close interdependence among opening up and innovation, will become the global economic development? economies in Asia and the closer connection most important source of dynamism for the The growth of Asia has been higher than between Asia and the rest of the world show world’s economic prosperity. the average growth of the world economy that Asia cannot realize prosperity and devel- This year is the fifth anniversary of the in the past decades. Currently, Asia’s eco- opment all by itself. Belt and Road Initiative. What kind of role nomic aggregate accounts for more than The wider and deeper openness and will it play in promoting regional coopera- 33 percent of the world’s total, exceeding innovation in Asia are based on the founda- tion in Asia? The Belt and Road Initiative, proposed XINHUA by Chinese President Xi Jinping, is based on the principle of achieving shared growth through discussion and collaboration. It provides a convenient and wide cooperation platform for opening up and innovation in the new era. It includes not only construc- tion of “hardware” such as infrastructure and industrial parks, but also development of “software” such as institutional arrange- ments and mechanisms. The Belt and Road Initiative is aimed at promoting policy coordination, infrastructure connectivity, unimpeded trade, financial in- tegration and mutual understanding among people in countries along and beyond the ancient Silk Road routes. It could be a solu- tion to realizing sustainable prosperity for the entire world economy. Thus, themes such as the Belt and Road Initiative, openness, innovation and coop- eration will become the keywords for many Zhou Wenzhong, Secretary General of the Boao Forum for Asia (BFA), speaks at a press briefing on the 2018 BFA of the activities at the 2018 BFA Annual Annual Conference in Beijing on January 25, 2018 Conference. CI DECEMBER, 2018 10 XINHUA

The first Shanghai Cooperation Organization Political Parties Forum is held in Shenzhen, Guangdong Province, on May 26, 2018 Pearls of Wisdom Political party dialogue facilitates the exchanges necessary for a cooperative world By Deng Yaqing

ith the aim of further promoting tional development, political parties play a the world’s population, the SCO has become regional peace and development, leading role in building a global community a model for peaceful development and Wthe First Shanghai Cooperation with a shared future and making the world a cultural exchange,” said Sergey Zheleznyak, Organization (SCO) Political Parties Forum better place. Promoting exchanges between Deputy Secretary of the General Council of was held in Shenzhen, Guangdong Province, SCO political parties is sure to boost its future the United Russia Party, during the forum. on May 26, 2018, marking the establishment development,” said Song Tao, Minister of the “Political parties are the most active of a brand new mechanism. International Department of the CPC Central forces in political life. When we get together Under the theme of Pooling Wisdom Committee, in a keynote speech at the under the framework of the SCO for dia- of Political Parties, Promoting the Shanghai opening ceremony. logue, we can exchange our experience of According to Song, the CPC is willing to Spirit and Building a Global Community with managing parties and nations, which could make every effort to advance the construc- a Shared Future, the forum was hosted by tion of an SCO community with a shared open a new chapter in SCO cooperation,” the International Department of the Central future featuring equality, mutual support and Zheleznyak said. Committee of the Communist Party of China solidarity together with other SCO members. “The forum is productive and pragmatic, (CPC) and attended by around 200 represen- and under the framework of SCO coopera- tatives from more than 30 political parties tion, it is necessary for all political parties to in 18 SCO member states, observers and Learning together conduct exchanges and promote partner- dialogue partners. “As a regional organization whose mem- ships in security, economic and cultural s s “As the forerunners and guides of na- ber states account for approximately half of development, education, and tourism,” 11 DECEMBER, 2018

said Nariman Umarov, President of the sion of the forum. and communication, but also contribute Adolat (Justice) Social Democratic Party of As the philosophical underpinning of the wisdom and effective approaches toward the Uzbekistan. SCO, the Shanghai Spirit espouses reciprocal building of a community with a shared future Anirban Ganguly, special representative trust, mutual benefit, equality, two-way con- for humanity. of the president of the Bharatiya Janata Party sultation, respect for cultural diversity and “The SCO has developed into a unique of India, noted that the successful conclusion the pursuit of common development. regional organization and an important of the forum signifies the efficient partner- Extremist, separatist and protectionist guarantee for security and stable develop- ships among member countries under the behaviors are in violation of these principles, ment in the Eurasian region,” said Muratbek SCO framework, and that endeavors should and cooperative multilateral initiatives Imanaliev, former Secretary General of the be made to further exchange experience of such as the Belt and Road and the Eurasian SCO. governance and promote mutual learning. Economic Union should be further strength- “Under the SCO framework, guided “It is the shared desire of all attendees ened according to Zheleznyak, who believes by the Shanghai Spirit, the platform for to learn from each other’s experience of the key to pushing forward these initiatives dialogue and communication between governance at the party and national level, lies in the Shanghai Spirit. political parties will press ahead with the and bilateral and multilateral relations will Representatives were in agreement that establishment of a new type of international inevitably benefit from the sharing of ideas the Shanghai Spirit is a dynamic set of practi- relations and propel the building of a com- on development and party construction and cal values applicable at any time and in any munity with a shared future for humanity,” governance,” Ganguly said . region, and that it is the source of strength Imanaliev said. Following the discussion, consensus was and the foundation of cooperation within the Representatives noted that the Belt and reached on maintaining the Shanghai Spirit, SCO, fundamental for all political parties to Road Initiative is the most practical approach striving to build an SCO community with a build consensus. to achieving this goal. shared future, strengthening coordination “The Belt and Road Initiative has brought on action plans and promoting the institu- about hope and well-being for people in tionalization of the forum, according to Guo A shared future the developing world, and it is the only road Yezhou, Vice Minister of the International Attendees agreed that exchanges be- which can lead the people of Asia and the Department of the CPC Central Committee, tween political parties under the framework world to common prosperity,” Pakistani at a news conference held after the conclu- of the SCO not only facilitate cooperation Senator Mushahid Hussein said. CI XINHUA

An aerial view of the China-Maldives Friendship Bridge connecting the islands of Malé and Hulhumalé in the Maldives. The 1.39 km-long bridge, opened in August, 2018, is an important cooperation project between China and the Maldives under the Belt and Road Initiative DECEMBER, 2018 12

Ties That Bind An exclusive interview with Uzbek Ambassador to China Bakhtiyor Saidov on the development of the SCO

The 18th Shanghai Cooperation Organization (SCO) tion, Uzbekistan firmly supports Summit is set for June 9-10 in Qingdao, east China’s and strictly observes the coop- eration principle that conforms Shandong Province. Before the summit, Beijing to the interests of all member Review conducted an exclusive interview with Uzbek states, helping to continually Ambassador to China Bakhtiyor Saidov, who shared his raise the SCO’s profile on the views on the development of the SCO and the future world stage. prospects for the regional cooperation organization. An As everyone knows, Uzbekistan has strictly followed edited excerpt of the interview follows: the targets, missions and prin- ciples stipulated in the SCO Charter which are all aimed at Beijing Review: As a ing open, equal and mutually safeguarding regional security founding member of the SCO, beneficial cooperative dialogue and stability. Their purpose is how does Uzbekistan see with all our partners. On the prin- also to raise the social and eco- the SCO’s development and ciple of common interests, we nomic development level of Ambassador Bakhtiyor Saidov contribution to regional peace are willing to show our sincerity member states as well as the and prosperity over the past in reaching effective coopera- international profile of the SCO. 20 years? tion by making reasonable What’s more, my country attach- Bakhtiyor Saidov: Since its concessions. es particular importance to the founding almost 20 years ago, At present, all parties of the principles of non-confrontation, the SCO has developed into SCO are actively preparing for non-blockade and openness of an authoritative regional orga- the Qingdao Summit. The ac- the SCO. nization and an effective and tion on preventing youth from We will continue to open multilateral cooperation being influenced by terrorism strengthen economic and platform. One of the key factors and other radical ideologies trade cooperation with other for the success of the organiza- proposed by Uzbek President member states and carry out a tion is that it has adapted to the Shavkat Mirziyoyev during the variety of large-scale projects complicated and continually Astana Summit in 2017 is on the together. This is of great signifi- changing world situation, and agenda of the upcoming sum- cance under the cooperation has skillfully integrated the over- mit. It is set to be approved by framework of the Belt and Road all interests of member states in the SCO Heads of State Council Initiative proposed by China. the fields of both security and Meeting this year. Thus, the prime task for prag- economic development. matic cooperation is to further Since its establishment, the From the perspective of strengthen economic coop- SCO has firmly adhered to the Uzbekistan, what is the SCO’s eration with more confidence. Shanghai Spirit, placing great greatest achievement to Firstly, we should jointly draw emphasis on amity and unity date? What does Uzbekistan up plans and carry out large- among member states and ef- anticipate for the future of the scale investment cooperation fectively coping with challenges SCO? projects in the fields of trans- that threaten regional security. As I mentioned above, portation infrastructure, hi-tech As a founding member of the role and influence of the manufacturing, the service the SCO, Uzbekistan has actively SCO have been on the rise industry and tourism. participated in all forms of the year after year, both region- What should be stressed is organization’s activities and has ally and globally. It has already that to safeguard regional devel- made important contributions become an important force opment, it is of great importance to its development. Uzbekistan that can exert great influence to establish a multilateral finan- will further expand trade and on international relations. The cial mechanism. Thus, in my investment cooperation with continually increasing number opinion, it is the right time to other member states and make of SCO member states, observer establish an SCO development efforts to facilitate trade coop- states and dialogue partners all bank. eration within the SCO. attests to that fact. In expanding regional coop- We firmly support conduct- Following the existing tradi- eration, Uzbekistan believes that s s 13 DECEMBER, 2018 XINHUA

A train stops at the entrance to the 19.2-km long Qamchiq Tunnel in Uzbekistan, which is completed on February 27, 2016, as part of the China- Kyrgyzstan-Uzbekistan Railway it is necessary to jointly develop shape the future of the orga- Uzbekistan has been showing tive domestic transportation and transportation corridors, which nization? support for this initiative which cross-border transportation cor- can help connect Central Asian The SCO is rapidly and aims to promote common ridor projects to increase freight countries with international steadily becoming one of the development. The initiative has volume, expand railway and markets. In this respect, it is most influential organizations both a clear roadmap and con- highway networks, and upgrade important for the SCO to estab- worldwide. Against the backdrop crete development plans. aviation and telecommunication lish an integrated transnational of the intensification of regional What should be pointed cooperation. This will create a transportation management conflicts, the SCO, which rep- out is that the friendly relation- good foundation for our region system among member states. resents the harmonious and ship between the Uzbek and to build a global transnational We need to formulate a legal peaceful coexistence of about Chinese people is closely con- transportation and logistics cen- framework, simplify customs half of the world’s population, is nected by the ancient Silk Road. ter. procedures, set a unified one- of special social value. This route links China’s ancient During our president’s of- stop transport expense rate The year 2016 was a mile- capital of Xi’an with the Uzbek ficial visit to China in May 2017, and modernize and standardize stone for the SCO as heads of city of Samarkand, eventually the two governments signed cargo and passenger security state made the historic decision reaching Damascus and , a motor carrier transporta- checks. to enlarge the organization at through which goods from dif- tion agreement. It is not only In addition, SCO member the Tashkent Summit by pass- ferent countries were traded a concrete step in the imple- states should pay more attention ing related memoranda. As we worldwide. mentation of the Belt and Road to cooperation in transportation all know, after the approval of We believe the construc- Initiative, but also provides a and communication projects. these documents, India and tion of the Belt and Road good opportunity to achieve Tapping into the full potential of Pakistan formally joined the together with the Uzbekistan- the shortest highway transport the existing trans-border trans- group in 2017. We believe the Turkmenistan-Iran-Oman route between the two coun- portation capacity should be a addition of India and Pakistan International Transport Corridor tries. In the meantime, it also top priority. We believe speed- will further promote the devel- is conducive to the building of helps maximize the transport ing up the construction of the opment of the organization and the shortest and safest trans- and trade potential within the China-Kyrgyzstan-Uzbekistan garner more attention from the portation route among China, SCO. Railway is a shortcut for con- SCO on problems in Central Asia. Central Asia and the Middle We firmly believe the out- necting Central Asian member East. Thus, we hope to resolve come of the upcoming SCO states to international markets. In your opinion, how can the related problems over the Qingdao Summit, the first since the Belt and Road Initiative construction of the China- its expansion, will be of great In 2017, the SCO wel- and the SCO’s framework for Kyrgyzstan-Uzbekistan Railway significance for further strength- comed two new members, cooperation complement as soon as possible. ening mutually beneficial India and Pakistan. What are each other? We also believe the ad- multilateral cooperation. your views on the expansion Since the moment President vancement of the Belt and Road I want to take the opportuni- of SCO membership and Xi Jinping proposed the Belt Initiative will create opportunities ty to wish the Qingdao Summit how will these new members and Road Initiative in 2013, for the implementation of effec- great success. CI DECEMBER, 2018 14 PAN SIWEI

Kenyans work in a transformer factory in Nairobi invested by China. Chinese investment can help increase employment opportunities for local youth Moving in the Same Direction By Benard Ayieko

he African Union (AU), established in 2001 to replace the es. World economic powers like China, India, the United States and defunct Organization of African Unity, which was founded in Japan have upped the ante by hosting African heads of state to T1963, was formed to hasten the regional integration process various development summits. Japan hosts the Tokyo International in Africa to enable it to play its rightful role in the global economy. Conference on African Development; the United States hosts the The AU has created an effective forum for its member states to U.S.-Africa Business Summit; India hosts the India-Africa Forum; adopt coordinated positions on matters of common concern to and China hosts the Forum on China–Africa Cooperation (FOCAC). the continent in international fora and defend the interests of China’s successful cooperation with Africa in economic sphere Africa effectively. It is this unity of purpose that gave birth to the has brought FOCAC’s role in pushing China-Africa cooperation into celebrated Agenda 2063—a 50-year continental people-driven sharp focus. Since FOCAC’s inauguration in 2000, the forum has plan outlining the “Africa We Want.” Agenda 2063 is a strategic focused on trade, investment and technical cooperation, resulting framework for the socioeconomic transformation of Africa. in multi-sectoral growth of the Sino-African cooperation. But what does Agenda 2063 aspire to achieve? Its main objec- tive is to create a prosperous Africa based on inclusive growth and sustainable people-driven development. It also aims to create a Continental development blueprint continent that is strong, united, resilient and influential—this has FOCAC has emerged as an engagement channel of inter- opened up Africa to numerous growth opportunities and challeng- est for most African nations because of its favorable agenda that s s 15 DECEMBER, 2018

resonates well with the development needs enabler of growth and development and of the continent. With the established diplo- will be instrumental in creating jobs for the matic relations between China and 53 African youth. countries, cooperation has been furthered through creation of sub-forums within the framework of FOCAC. Variety of cooperative Besides ministerial conferences, FOCAC projects also holds summits. The Third FOCAC Most of China’s infrastructure projects in Summit, held in Beijing in September 2018, Africa are located in urban areas and so the offered African countries a great opportu- FOCAC Beijing Summit was a good forum nity to strengthen cooperation with China to engage China on more infrastructure aimed at realizing aspirations of the Agenda projects targeting rural areas to reduce rural- 2063 in light of the evolving geopolitical urban migration, alleviate poverty and spur dynamics. The implementation of a conti- rural development. nental development blueprint was periodic, The FOCAC Beijing Summit was also use- with the first phase taking 10 years and a ful in engaging China on the need to have focus on flagship projects that include an more Chinese visit Africa as tourists. Despite integrated high-speed railway network, an the growing Sino-African relations, there is African virtual and e-university, African com- disquiet on the current number of visitor ar- modity strategy, Continental Free Trade rivals from China. In fact, the share of tourists Area, Grand Inga Dam in the Democratic from China to Africa is a paltry 1.5 percent Republic of the Congo, continental financial 1.5% of the total outbound Chinese tourists, with institutions and a single air transport net- The share of tourists only Kenya, South Africa, Mauritius, Morocco, work. These were areas where the Chinese Egypt, Namibia, Cape Verde, Botswana, shared valuable lessons and experiences from China to Africa Tunisia and Tanzania emerging as the most with their African counterparts at the from total outbound competitive tourist destinations for the FOCAC Beijing Summit. With a combined tourists Chinese. population of 2.6 billion people and a GDP For the continent to be stronger as a trad- of $16.282 trillion, China and African coun- ing bloc, it’s important to adopt competitive tries have a solid foundation for heightened global currencies away from the traditional cooperation. At the FOCAC Beijing Summit, reverence of the U.S. dollar, British pound African countries not only broadened the and the euro. The FOCAC Beijing Summit scope and benefits of Agenda 2063, but discussed not just the possibility but also the also proposed new measures to deal with 2.6 billion pros and cons of adopting the renminbi as a issues of industrialization, trade imbalance, reserve currency. This will safeguard Africa’s employment creation for the youth, food The combined currencies from unprecedented local cur- security, energy, security, public health and population of China rency volatilities, thus leading to economic disease prevention. and Africa stability. The benefits of the FOCAC Beijing Some have termed the increased Summit to Africa cannot be opposed and Chinese infrastructure loans as a new face of it will remain pivotal in catapulting Africa neocolonialism, but Professor Ching Kwan to meaningful partnerships to grow their Lee of the University of California argues exports not only to China, but also to the that China-Africa cooperation has helped other parts of the world. This can be done Africa stand on its own, rather than mak- through tapping the Chinese experience and $16.28 trillion ing her dependent on China. Lee adds that practices on trade competitiveness. African the more than 10,000 Chinese enterprises countries depend heavily on primary prod- The combined GDP of operating in Africa have promoted Africa’s ucts for exports and foreign earnings which China and Africa independence and autonomy rather than have minimal value additions. It’s imperative the usual dependence commonly associated for Africa to learn from the Chinese on the with colonialism. It’s a two-way relationship need to process primary products so that with mutual benefits. For Africa to move to- they can gain competitiveness in the inter- ward a peaceful, prosperous and integrated national markets and earn higher margins. continent based on inclusive growth and This will expand international markets for African exports that will sustainable development, in line with the Agenda 2063 mission help reduce trade deficits, and increase balance of payments and statement, collaboration with China must be given unconditional foreign exchange earnings. room to grow beyond expectation. CI African countries participating in the FOCAC Beijing Summit discussed with China on how to adopt appropriate modern and affordable Chinese technology that will promote efficiency in the production of goods and services for both domestic and inter- The writer is an economist, consultant and a regional commentator national use. Information and communications technology is an on trade and investment DECEMBER, 2018 16

An Equal Footing China’s import promotion efforts boost trade cooperation with Europe By Liu Ting XINHUA

A staff member from the Voith Group, a German company in the mechanical engineering field, takes a photo with the company’s product at the first China International Import Expo in Shanghai on November 7, 2018

tepping into the Mediterranean Village at the first China International Import Expo (CIIE) in Shanghai, exhibitors— A trade opening Smostly from Corsica, an island located southeast of the French Located in the center of the Mediterranean Sea, Corsica, the mainland—exclaimed, “Wow, this place looks exactly like a market on largest island in France, enjoys extraordinary natural conditions. Its lati- Corsica!” tude, sunshine and soil quality endow the island with a unique variety What made them feel at home in the 500-square-meter area was of products. On their first visit to China, 16 small and medium-sized not only Mediterranean-style interior design and decor, but a variety of enterprises brought wine, cookies, beer, meat products and mineral products such as olive oil, chestnut beer and ham, which are typical to water to the first CIIE. Corsica. Sixteen companies from the island set up exhibition booths, Pietra is one of the most distinctive Corsican beer brands. marking their debut in China. Established in 1996, the company is named after a small village. The “The pure natural food from Corsica arrived in Shanghai on water it uses to distill its beer is from a valley spring, while the use of November 1,” Bertrand Mulot, who represents the Regional Chamber ground chestnut in the brewing process makes the beer savory and of Commerce and Industry of Corsica, told Beijing Review. mellow. At the first CIIE on November 5-10, 2018, more than 800 exhibitor “I hope we can show and market our traditional brewing tech- companies from a total of 15 EU member states were in attendance. nique and convey our passion for the product to Chinese customers. Since China’s launch of reform and opening up, China-Europe trade in The CIIE is the key step into the domestic market,” Dylan Sanchez goods surged from $3.14 billion in 1978 to $616.9 billion in 2017, up Santacruz, from the export department of Pietra, told Beijing Review. nearly 200 fold. China has been the second largest trading partner of Also a brand from Corsica, Canistrelli produces traditional cook- the EU for 13 consecutive years. It is also the second largest automo- ies with family recipes that have been passed down for generations. bile export market for the EU and the world’s largest Airbus market. Alfred Fenech, the company’s founder, said the Chinese market used It is estimated that in the coming 15 years, China’s imported to be inaccessible to small and medium-sized enterprises like his, goods and services will exceed $30 trillion and $10 trillion, respec- but the expo served as a direct, convenient and efficient platform for tively. This will provide a huge opportunity for European companies. trade, facilitating face-to-face exchanges with Chinese buyers. s s 17 DECEMBER, 2018

“For a long time, our products were restricted to France and other At L’Oréal’s Sharing Beauty With All forum on November 6, 2018, European countries. We now expect new trade partnerships to devel- a ceremony was held to officially launch a long-term project to recycle op from the expo,” said Michel Masson, Marketing Director of Orezza, empty bottles in China between Terracycle, an innovative recycling a mineral water brand. company, and Kiehl’s, a sub-brand of L’Oréal. During the project, recy- Orezza’s source of water is near a biosphere reserve established cling bins will be placed at Kiehl’s stores to encourage people to join in by UNESCO, one of the world’s purest water sources free of pollution protecting the environment. and nitrate. Laure Lemarquis, L’Oréal China Sustainability Director, spoke “Enterprises from Corsica came to China as a group, introducing about the company’s first low-carbon factory in the Asia-Pacific re- our regional characteristics and product features together. The expo gion in Yichang, central China’s Hubei Province, at the forum, and opened a window for mutual understanding and cultural exchanges introduced ways that L’Oréal can realize a green business with its em- between China and the Mediterranean region,” Mulot said. Pure natu- ployees. More eco-friendly materials have been applied in the phase of ral products from the French island attracted a number of purchasers raw material selection and product packaging, which will be promoted at the expo, and many reached a primary intent of cooperation. in retail stores, she said. “Ecological conservation and sustainable development are em- phasized in China, and an increasing number of consumers are paying Exploring various fields attention to the environmental impact imposed by the products and Many well-known European companies participated in the first the concepts of a brand in addition to the product itself. Hence, a se- CIIE, including Danone, France Power, Lego, L’Oréal, Mercedes-Benz ries of measures for sustainable development are carried out by L’Oréal and Schneider. They took the opportunity to showcase their upgraded China. Through this, we hope to lead a new trend of green living products and technologies encompassing civil aviation, pharma- and contribute to building a Beautiful China,” Lemarquis told Beijing ceuticals, agricultural products and food, nuclear power, industrial Review. manufacturing and cosmetics to Chinese customers for further devel- She said China’s e-commerce market is very huge. In June, L’Oréal opment and potential cooperation in the future. China signed a letter of intent for green retail with China’s e-commerce On the second day of the first CIIE, a number of European exhibi- giant Alibaba, to reduce the environmental influence caused by the tors signed purchase contracts or purchase intention agreements delivery process and promote degradable materials for packaging. with Chinese trading groups and purchasers. On November 6, at the Thirty-six Fortune 500 companies and industry leading companies company cooperation forum, the joint venture FAW-Volkswagen and have already confirmed their attendance at the next CIIE in 2019. An Germany’s Volkswagen Group signed a memorandum of cooperation. enterprise alliance established on November 6, 2018 will serve as a It is expected that in 2019, FAW-Volkswagen will purchase imported platform for exchanges and cooperation among exhibitors and collect CKD auto parts and whole Audi vehicles from the Volkswagen Group their suggestions for China’s economic, trade and business develop- to meet production demand and the requirement for high-quality ment. CI cars from Chinese consumers. (Reporting from Shanghai) LIU TING

Visitors explore the Mediterranean Village area at the first China International Import Expo in Shanghai on November 6, 2018 DECEMBER, 2018 18

From Africa to China African companies showcase their products at import expo for Chinese consumers By Xia Yuanyuan

olorful roses from Kenya, fragrant coffee from Ethiopia and “The expo shows China is open for business, and it promotes succulent oysters from Namibia. These were just some of the trade partnerships and helps close trading gaps between China and Ceclectic range of products from Africa on display at the first Africa,” said Kenyan President Uhuru Kenyatta who led a delegation of China International Import Expo (CIIE) held in Shanghai on November horticultural farmers and traders to China for the event. 5-10, 2018. Among the more than 3,000 companies from over 130 countries and regions showcasing their products and services at the expo, 200 Closer to the market were from over 40 African countries, including South Africa, Kenya, Elisabeth E. Pali-Tchalla’s booth was one of the busiest at the expo, Ethiopia, Nigeria and Egypt. constantly surrounded by crowds of buyers interested in her prod- African countries were given special treatment at the CIIE. “We ucts. As General Manager of the Togolese Shea company STK, she support African countries in participating in the CIIE,” said Chinese never imagined her shea butter products could be so popular among President Xi Jinping at the Beijing Summit of the Forum on China- Chinese customers. Africa Cooperation (FOCAC) in September, adding that the least “Few Chinese customers know about shea butter. We’ve come developed African countries participating in the 2018 expo would be just at the right moment. The expo provides us with a platform to exempted from paying exhibition stand fees. let them know what our products are all about,” Pali-Tchalla told s s XINHUA

Skincare products from Ghana are displayed at the China International Import Expo in Shanghai on November 6, 2018 19 DECEMBER, 2018

Beijing Review. Extracted from the nuts of the karité tree that grow in the Sahel region extending from West to East Africa, Shea butter products can be used cos- metically to block UV radiation, as skin moisturizing cream and to heal minor injuries and scars. It is also traditionally used in food preparation. Pali-Tchalla said that with the rise in demand for natural and organic products in China, she expected a significant growth of the shea butter market in China. In Ethiopia, enjoying a cup of coffee with friends is a longstanding tradition. “Ethiopia is the birthplace of coffee. We have high-quality hand- made coffee. The CIIE is the start of Ethiopia coffee investigating entry into the Chinese market,” Mirafe Gebriel Marcos, Senior Director of Agricultural Transformation Agency of Ethiopia, told Beijing Review. Thanks to intensified promotional campaigns, more Chinese customers will have the chance to taste Ethiopian coffee for themselves. According to Marcos, Garden of Coffee, a leading coffee company XINHUA in Ethiopia, has announced a major expansion strat- egy into China, in partnership with a Chinese trading A staff member prepares coffee for visitors at the Ethiopian Pavilion at the first China International Import company. Chinese coffee lovers could expect to see Expo in Shanghai on November 6, 2018 100 stores of this chain soon. As a South African integrated energy and chemical company that markets in the form of raw material. The added value and economic has been in China since 1992, SASOL is experienced at doing business benefits of the industry are low. with Chinese partners. The CIIE offered a good opportunity for Ghanaian cocoa export- “To open the Chinese market, it is vital to understand the local ers to improve the value of their products. “With the help of the expo, market and consumption preferences,” Fleetwood Grobier, Executive apart from the market, Ghana is also looking to expand its manufac- Vice President of Chemicals Business at SASOL, told Beijing Review at turing capabilities. I hope Ghana’s businesses can learn from China’s the CIIE. “You need to supply customer-focused products designed to industrialization and industrial upgrading process, and take advantage meet the ordinary consumer needs in the Chinese market.” of new opportunities for improving industrial added value,” Edward Bearing this in mind, SASOL came to the CIIE to source the latest said. market information in its field and to understand the latest distribu- tion channels to broaden its market. Narrowing trade gap Agak Achuil Lual, Undersecretary of Ministry of Trade, Industry Increase in value and East African Community Affairs of South Sudan, was optimistic Although many African countries such as Nigeria, Ethiopia and that the CIIE would help balance the trade between China and African Rwanda rank among the fastest growing economies in the world, countries. most African countries have limited processing and manufacturing African countries were betting on the CIIE to increase and diver- capabilities, which is exacerbated by a slow industrialization process. sify their exports to the lucrative Chinese market, none more so than Exports are still dominated by raw materials and primary agricultural South Africa. South African Minister of Trade and Industry, Rob Davies, products. said, “We look forward to exporting more products to China, especially To improve the added value of African products, Timothée the ones with high added value, to narrow the trade imbalance be- Bamana Baroma Magolemièna, Secretary General of Ministry of tween China and Africa.” Commerce and Private Promotion Sector of Togo, suggested it is According to the Chinese Ministry of Commerce, China’s exports necessary to further expand China’s investment in Africa, especially in to Africa reached $94.7 billion in 2017, up 2.7 percent year on year; the manufacturing sector, to diversify the continent’s economic struc- its imports from Africa hit $75.3 billion, up 32.8 percent. China had a ture with industrial capacity cooperation and industrialization support trade surplus of $19.5 billion, down 45.2 percent year on year. programs.” The Chinese Government has made a lot of effort to narrow the Ghana is the second largest cocoa exporter in the world, behind bilateral trade gap and began to promote the entry of African prod- Cote d’Ivoire. In the country, there are currently some 800,000 cocoa ucts into China by implementing a tariff-free policy in 2005. At the farmers. Each year, cocoa exports bring about $2 billion in foreign FOCAC Beijing Summit in 2018, China made the decision to allow 33 exchange earnings, which is an important source of Ghana’s fiscal rev- least developed African countries to benefit from the zero-tariff policy enue, according to Edward Boateng, Ambassador of Ghana to China. for 97 percent of their products exported to China. This is also helpful However, only 20 percent of Ghana’s cocoa beans are processed for Chinese enterprises to reduce their own costs and expand options locally. Most of the cocoa is exported to European and American for imports. CI