Due to shrinking global demand, rising operating costs for domestic enterprises and a harsh international trade environment, China faced a difficult foreign trade situation in 2012, especially during the second half of the year.

World economic growth in 2012 was slower than expected. Statistics released in October 2012 by the International Monetary Fund (IMF) have economists predict that the global growth outlook for 2012 is 3.3 percent, down from a previous estimate of 4 percent.

 Against this backdrop, however, economic cooperation between China and African countries continued smoothly, with trade, investment and engineering project contracts steadily increasing. Economic ties between China and Africa continue to look promising for 2013, as the African economy remains strong, the pace of regional economic integration in Africa is accelerating and measures to promote Sino-African cooperation are ongoing.

Booming trade ties

Sino-African trade and China's exports to Africa grew rapidly in the first 10 months of 2012. The total volume of Sino-African trade was $163.89 billion, up 20.94 percent year on year. This 10-month increase in trade is nearly identical to the total increase in 2011, and the yearly total trade is expected to surpass $200 billion by the end of 2012.

From January to October, China's exports to Africa reached $69.44 billion, a year-on-year increase of 16.25 percent, and China's imports from Africa were valued at $94.46 billion, an increase of 24.64 percent from the same period in 2011. Sino-African trade accounts for a growing proportion of China's overall foreign trade.

The growth rate of China's imports from Africa substantially exceeded that of China's exports to Africa. This has been a consistent feature of Sino-African trade relations in recent years, and has also led to a growing trade deficit between China and Africa, which continued to widen in the first 10 months of 2012, reaching $25.02 billion.

China's exports to Africa primarily consist of mechanical and electrical products, textiles, hi-tech products, garments and agricultural products. The nation's imports from Africa include products like crude oil, mineral products and agricultural products. Africa is currently China's second largest source of crude oil after the Middle East. 

Oil imports from Africa between January and October 2012 accounted for 23 percent of China's total oil imports. Angola is China's second largest crude oil source after Saudi Arabia. China's crude oil imports from this country rose 34 percent year on year in the first 10 months in 2012. Due to unrest caused by its independence movement, China's crude oil imports from South Sudan experienced a significant decline, with the figure dropping 85 percent from January to October 2012.

The increase of overall Chinese imports, however, showed that African countries are benefiting from China's growing demand for resources as well as measures that boost Sino-African trade, including tariff-free policies. Africa has a reliable and diversified market.

Bilateral trade between China and its major African trade partners, such as South Africa, Angola, Libya, Algeria and Ghana, increased dramatically. Trade with each of these nations rose by more than one third. South Africa remained China's largest trade partner in Africa. From January to October, bilateral trade between South Africa and China totaled $49.15 billion, with China exporting $12.26 billion and importing $36.89 billion.