Morocco's Ambassador to China, Jaafar Alj Hakim, credits competitive pricing for the success of Chinese telecom enterprises in Africa. "Low-cost but good-quality products are key to success in Africa," he said, adding that Chinese enterprises are usually willing to share experience and knowledge as this benefits both sides.

Liu Youfa, Deputy Director of the China Institute of International Studies, said that Chinese enterprises enjoy a competitive advantage, especially in systems engineering construction and telecommunication network construction, fields where their services are more in line with African market preferences and consumption ability.

Strong financing is another crucial factor behind the success of Chinese telecom enterprises in Africa, according to Liu. Last December, China Development Bank (CDB) and ZTE signed a new Agreement on Strategic Cooperation in Development Finance, which is the third such agreement between the two sides after two successive agreements signed in 2005 and 2009. Under the agreement, financial cooperation between CDB and ZTE will involve $20 billion over the next 5 years.

"The Chinese Government, in accordance with international practices, provides competitive Chinese companies in Africa with policy loans, as well as industrial consulting and other services, thereby further enhancing their global status in their respective industries," said Liu.

Competition and cooperation

China and Africa have cooperated very successfully in the telecom sector, with Chinese enterprises participating in a series of national fiber optic network projects in Nigeria, Ethiopia and Tanzania.

China encourages its financial institutions and enterprises to take an active part in African infrastructure projects and expand cooperation in transportation, telecommunications, energy, water supply, electricity and other fields. This is gradually improving the continent's investment and trade environment, and promoting regional economic integration, according to Gao Hucheng, Vice Minister of Commerce.

Director of Public Affairs for the Nigerian Communications Commission, Tony Ojobo, believes that China has not only promoted the development of telecom technology in Africa, but has also boosted the comprehensive development of Africa's economy. "China plays an important role in poverty reduction, agricultural development, fostering equality between men and women, and coping with climate change," said Ojobo.

But, in addition to squaring off with veteran telecommunication companies from developed countries, Chinese enterprises are facing increased competition from African telecom enterprises.

"Local telecom companies also saw fast growth in their business during the industrialization process," said Xing Houyuan, Director of the Overseas Investment Research Center of the Chinese Academy of International Trade and Economic Cooperation under the Ministry of Commerce. "Besides, different communication standards in China and Africa pose challenges for Chinese enterprises."