Imports rocket as Chinese consumers develop a taste for unique produce
The trade volume between China and Africa witnessed a record increase from January to July this year. It amounted to $139.1 billion, up 40.5 percent year-on-year, according to the Ministry of Commerce.
African products were gaining popularity in the Chinese market as the import volume from Africa rose 46.3 percent to $59.3 billion during the period.
In particular, imports of rubber, cotton, coffee and other agricultural products doubled compared with the same period last year.
The achievement can be partly attributed to the China-Africa Economic and Trade Expo, a biennial event held in Hunan province, Central China, to boost China-Africa cooperation.
As the only economic and trade platform under the framework of the Forum on ChinaAfrica Cooperation, it has helped a large number of African commodities enter the Chinese market since its first session in 2019.
“We have initiated a series of working methods with governments and industrial associations from African countries in the trade of bulk commodities and nonresource products and smoothed the whole industrial chain covering purchase, warehousing, logistics, processing, exhibition, sales, after-sales services and financial services,” said He Baoxiang, vice-governor of Hunan.
So far, three trading centers focused on cocoa, coffee and nuts have been established in Hunan, which have promoted imported coffee, sesame, natural rubber, wood, flowers and other nonresource products from Africa, He added.
On Aug 18, 2020, the Trade Cooperation Promotion Conference for China (Hunan), Ghana, Tanzania and Ethiopia was held in Changsha, capital of the province.
The African Coffee Street and Cocoa Marketing Center were launched during the event after in-depth discussions with the three countries. The event also kicked off the construction of an African nonresource product distribution, trading and processing center, making Hunan a burgeoning market for African products in China.
China is the largest importer of nonresource commodities in the world, and the market has great potential. Before the launch of the first China-Africa Economic and Trade Expo, only 2.5 percent of African nonresource commodities were exported to China. Thanks to the event, the number increased 10 times, according to foreign envoys.
Since the establishment of the three centers serving the trade of cocoa, coffee and nuts last year, the trading volume has reached a record high of $272 million.
From January to July this year, Hunan’s trade with Africa increased by 38.1 percent, of which imports from Africa increased by 30.3 percent. Most of the imports were agricultural products.
Pepper is a signature product in Hunan while the African pepper is seen as even hotter in the local market. In August, Changsha Customs issued an inspection and quarantine certificate for 200 kilograms of dry pepper produced in Rwanda, the first time China has imported African dry pepper.
According to the contract, Rwandan suppliers will export 50,000 metric tons of dry pepper to Hunan within five years.
At the first China-Africa Economic and Trade Expo in 2019, enterprises from Hunan and Rwanda reached an intention to purchase dry pepper. On March 11, the governments of China and Rwanda officially signed a bilateral protocol on the export of dry pepper.
On July 8, China’s General Administration of Customs issued the approval of the imports of Rwanda’s dry pepper under certain inspection and quarantine requirements. From that, Rwanda became the first country from which African dried pepper products were allowed to enter the Chinese market.
Hunan enterprises are also exporting pepper-planting and processing equipment to Rwanda, in a bid to help the country improve its pepper production and promote local agriculture.
The second China-Africa Economic and Trade Expo is scheduled to open in Changsha on Sunday. More than 300 enterprises from some 40 African countries are confirmed to participate.
A special area for African commodities has been set up for the first time at the event. Exhibits will include red wine, coffee, cocoa, nuts, gemstones, seafood, tea, olive oil, and healthcare and skin care products.