| In 2011, China-Africa trade reached USD 166 billion, once again reiterating the ever-strengthening trade relations between the two regions. In this edition, we report the latest China-Africa trade data, review major China-Africa trade and investment deals of 2011 and early 2012, and also spotlight China's investment relationship with the East African Community (EAC).
China-Africa Briefing: Increasing Chinese cooperation with regional African bodies; Kidnappings of Chinese workers; New AU headquarters
· In late 2011, The EAC and China signed a Framework Agreement on economy, trade, investment and technical cooperation. For China, this is the first such working mechanism with a regional bloc and the first of its kind in sub-Saharan Africa. The Agreement will attempt to further open up Sino-EAC investment and trade opportunities. The Agreement will focus on the promotion of commodity trade, exchange of visits by businesspeople from both sides, co-operation on investment, infrastructure development and human resource development and training
· 2012 opened on a sour note for China-Africa relations with several high-profile kidnapping of Chinese workers on the continent. In January, 34 Chinese workers were kidnapped in Sudan and although most were released, several were killed during the raid. In February, 25 workers from a Chinese cement factory in Egypt's Sinai region were kidnapped by Bedouin tribesmen but were later released. The kidnapping re-focused global attention on China's investments in what are traditionally high-risk areas, while also raising awareness of how China should ensure the safety of its citizens working overseas
· In January, China continued to increase its soft-power in the continent by officially launching China Central Television (CCTV) Africa in Nairobi, Kenya. The channel will cover the political, economic, social and cultural aspects of the entire African region
· The biggest Sino-Africa event of 2012 thus far is undoubtedly the opening of the new 52,000 square meter African Union (AU) headquarters in Addis Ababa, Ethiopia. The USD 124 mn centre – entirely funded by China – was opened by Jia Qinglin, the chairman of the National Committee of the Chinese People's Political Consultative Conference and Jean Ping, the current AU chairman. Moreover, in a sign of continuing co-operation with the AU, China also agreed to provide USD 95 million in aid to the AU over the next three years for additional projects to be agreed upon by the two sides at a later stage
China-Africa Trade
Total Trade
· In 2011, China-Africa trade reached USD 166 billion, and new record high and increase of 31% y-o-y. South Africa and Angola remained China's largest trading partners (see chart below: Ten Largest Partners). China's imports from Africa grew at much faster pace than its exports, widening its trade deficit with the continent
China Imports from Africa
· China's imports from Africa in 2011 totalled USD 93.1 bn, up 40% y-o-y
· Trade data for 2011 reveal that the five-biggest African exporters to China (South Africa, Angola, Sudan, DR Congo and Congo-Brazzaville) accounted for nearly 80% of China's imports from the continent during this period (see chart below: Ten Largest Partners)
China Exports to Africa
· China's exports to Africa in 2011 totalled USD 73.1 bn, up 20% y-o-y
· Trade data for 2011 reveal that the leading five export destinations for Chinese goods in Africa were South Africa, Nigeria, Egypt, Liberia and Algeria. These five countries accounted for 54% of the continent's total imports from China in 2011
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