Zimbabwe benefits from China’s strong economy, super-sized market

IN 2023, Zimbabwe and China marked a new milestone as trade between the two countries hit a record high of US$3,12 billion, reflecting a 29,9 percent increase from the previous year.

Zimbabwe reportedly exported goods worth US$1,71 billion to China and imported US$1,41 billion from China, resulting in a trade surplus of US$307 million.

This represented an upward trajectory of the two countries’ relations, with increase in trade in traditional goods such as minerals and tobacco, while new products such as citrus, blueberry, macadamia nuts, avocado, chillies and even rabbits entering the trade matrix. There is a lot of potential for Zimbabwean products to do well in the Chinese market. There have also been concerted efforts by Zimbabwe to increase its product and trade portfolio in the Chinese market.

This situation highlights the importance of China to Zimbabwe, and information that China’s economy is growing is good news for Zimbabwe as well as the larger world economy.

China’s continued economic growth at a time other countries in the West are struggling, is a positive development.

The Chinese economy continues to grow despite negative sentiments and actions by certain global players that are pushing the so-called de-globalisation, de-coupling and de-risking, all of which are calculated to hurt the Chinese economy and prevent it from ascending to the global summit as the world’s largest economy.

Some of Chinese products from certain regions such as Xinjiang, have been sanctions on flimsy grounds, all to reduce China’s economic impact.

The negativity has even taken a comical turn, with some leading economic experts, think tanks and publications each year predicting the fall of the Chinese economy which, has not happened.

Recently, there was a significant development in the US, as lawmakers sought to grab Chinese company, Bytedance —owners of popular TikTok application, which is not just an economic warfare, but also part of US technological warfare on China, all meant to derail the Asian giant’s economic might, as leads the charge to become the world’s biggest economy by 2050.

But how healthy is the Chinese economy right now, and what are the implications for the global economy?

This has been a key talking point since China ushered in its New Year,.

At a press conference recently, China’s Foreign Minister Wang Yi told the media that the country’s economy grew by 5,2 percent last year, contributing to one-third of global growth. According to Wang, this showed that “China remains strong as an engine for growth”.

“The next China is still China,” Wang said. Wang explained that China’s development was driven not only by a reasonable growth in quantity, but also an effective upgrade in quality.

In China, emerging industries are booming, green transition has yielded impressive outcomes and social expectation is improving steadily while new quality productive forces are taking shape at a faster pace.

Wang explained that, “China’s supersized market, with over 1,4 billion people, is unleashing opportunities for the world” and that the “explosive growth” of new demands and new business forms is rapidly expanding the room for China’s own development and for its cooperation with the world.

At the same time, China is opening its door wider, opening up and reducing tariffs in line with the World Trade Organisation (WTO) standards while, among other things, China is lifting restrictions on foreign investment access in the manufacturing sector, opening up the service sector and offering return on investment for foreign businesses.

One of the key pillars of China’s economic growth is the pursuit of economic diplomacy.

According to one Western think tank, in recent years, China has expanded its global and regional economic footprint through new institutions, such as the Asian Infrastructure Investment Bank (AIIB) and the BRI as it “seeks to carve out a leadership position within the global economy.”

Economic diplomacy is more generally defined as the use of a country’s economic instruments and economic opportunities to promote its national interests and achieve its foreign policy objectives.

In this regard, China is facilitating visits, extending visa exemptions to some countries and seeking to build “fast-track” networks for cross-border travels, encourage speedy resumption of international passenger flights as well as encourage facilitate investors and tourists into China.

China is in the process of strengthening various platforms for international cooperation, including the China International Import Expo (CIIE), the China International Fair for Trade in Services (CIFTIS), the China International Consumer Products Expo (CICPE), and the China International Supply Chain Expo (CISCE).

Last year, 15 Zimbabwean companies participated at the 6th China International Import Expo (CIIE), that was held in Shanghai, China in November.

The fair, which ran under the theme, “New Era, Shared Future”, had participants from the public and private sectors.

According to media reports, since its inception in 2018, CIIE has become a significant platform for promoting global trade and facilitating international cooperation.