Category: Development

Xi Jinping sets out programme for heightened cooperation with Central Asia

Chinese President Xi Jinping visited Astana, the capital of Kazakhstan, from June 16-18, at the invitation of his Kazakh counterpart Kassym-Jomart Tokayev, to attend the Second China-Central Asia Summit. They were also joined by the Presidents of Uzbekistan, Kyrgyzstan, Tajikistan and Turkmenistan. The first China-Central Asian Summit was hosted by President Xi in Xi’an in May 2023.

Xi Jinping made a keynote speech at the summit on June 17.

Recalling the Xi’an gathering, he said:

  • Two years on, China and Central Asian countries have further deepened and substantiated Belt and Road cooperation. Our trade has grown by 35 percent, and we have made important progress in industrial investment, green mining, technological innovation, and other fields of cooperation.
  • Two years on, the China-Kyrgyzstan-Uzbekistan railway project has been officially launched. We are making steady progress in planning for the third railway link between China and Kazakhstan, in phase-II restoration of the China-Tajikistan highway, and in China-Turkmenistan energy cooperation.

The Chinese President went on to note that: “Our cooperation is rooted in more than 2,000 years of friendly exchanges, cemented by solidarity and mutual trust cultivated through more than three decades of diplomatic ties, and taken forward via openness and win-win cooperation of the new era.”

Building on our collective efforts over the years, we have forged a China-Central Asia Spirit of “mutual respect, mutual trust, mutual benefit, and mutual assistance for the joint pursuit of modernization through high-quality development”:

  • We practice mutual respect and treat each other as equals. All countries, big or small, are equal. We handle issues through consultation and make decisions by consensus.
  • We seek to deepen mutual trust and enhance mutual support. We firmly support each other in safeguarding independence, sovereignty, territorial integrity, and national dignity.
  • We pursue mutual benefit and win-win cooperation and strive for common development. We view each other as priority partners and share development opportunities together.
  • We help each other in time of need and stand together through thick and thin. We support each other in choosing development paths suitable to our respective national conditions and in taking domestic matters into our own hands.

“Today, unprecedented changes are unfolding at a faster pace across the globe, thrusting the world into a new state of heightened turbulence and volatility. A strong belief in fairness and justice and an unyielding commitment to mutual benefit and win-win cooperation are the only way to maintain world peace and achieve common development. There is no winner in tariff wars or trade wars. Unilateralism, protectionism and hegemonism will surely backfire while hurting others.” Going forward:

  • We should stay committed to our fundamental goal of unity and always trust and support each other. Today, we will sign together a treaty on eternal good-neighborliness, friendship and cooperation to enshrine the principle of everlasting friendship in the form of law. This is a new landmark in the history of the relations between our six countries and a pioneering initiative in China’s diplomatic engagement with its neighbors. It is a milestone for today and a foundation for tomorrow.
  • We should optimize our cooperation framework to make it more results-oriented, more efficient, and more deeply integrated. We have agreed to designate 2025 and 2026 as the Years of High-Quality Development of China-Central Asia Cooperation. We should focus our cooperation on smooth trade, industrial investment, connectivity, green mining, agricultural modernization and personnel exchanges, and roll out more projects on the ground. In order to promote relevant cooperation, China has decided to establish three cooperation centers, i.e. on poverty reduction, on education exchange, and on desertification prevention and control, as well as a cooperation platform on smooth trade under the China-Central Asia cooperation framework.
  • We should develop a security framework for peace, tranquility and solidarity. We should step up regional security governance, deepen law enforcement and security cooperation, jointly prevent and thwart extreme ideologies, and resolutely fight terrorism, separatism and extremism, so as to maintain peace and stability in our region. Afghanistan is our close neighbor. We should strengthen coordination to help the country boost its development capacity and achieve peace, stability, reconstruction and development at an early date.
  • We should cement the bonds of shared vision, mutual understanding and mutual affection between our peoples. We will make good use of sister-city relations and people-to-people exchanges to nurture heart-to-heart connections at central and subnational levels, [and] between official and non-governmental actors.
  • We should uphold a fair and equitable international order and an equal and orderly world structure. China supports Central Asian countries in playing a bigger role in international affairs. We stand ready to work with all parties to defend international fairness and justice, oppose hegemonism and power politics, and promote an equal and orderly multipolar world and a universally beneficial and inclusive economic globalization. This year marks the 80th anniversary of the victory of the Chinese People’s War of Resistance Against Japanese Aggression and the World Anti-Fascist War, and the 80th anniversary of the founding of the United Nations. In the strenuous times of war, Chinese and Central Asian peoples supported each other through adversity, and jointly made important contributions to the cause of justice of humanity. We should promote the correct view of history, defend the fruits of the victory of World War II, uphold the UN-centered international system, and provide more stability and certainty for world peace and development.

Concluding, Xi said: “China is building a great modern socialist country in all respects and advancing the great rejuvenation of the Chinese nation on all fronts through Chinese modernization. No matter how the international situation changes, China will remain unwavering in opening up to the outside world and embrace higher-quality cooperation with Central Asian countries to deepen the integration of interests and achieve common development.”

We reprint below the full text of President Xi’s speech. It was originally published by the Xinhua News Agency.

Championing the China-Central Asia Spirit For High-Quality Cooperation in the Region

Keynote Speech by H.E. Xi Jinping, President of the People’s Republic of China, at the Second China-Central Asia Summit, Astana, June 17, 2025.

Your Excellency President Kassym-Jomart Tokayev,

Distinguished Colleagues,

Friends,

I am delighted to join you at the second China-Central Asia Summit in the beautiful city of Astana. I’d like to thank President Tokayev and the government of Kazakhstan for the gracious hospitality and thoughtful arrangement.

During our meeting in Xi’an two years ago, we jointly outlined the Xi’an Vision for China-Central Asia cooperation. The six pomegranate trees we planted together are in full bloom today, auguring the vitality of the cooperation among the six nations.

Two years on, China and Central Asian countries have further deepened and substantiated Belt and Road cooperation. Our trade has grown by 35 percent, and we have made important progress in industrial investment, green mining, technological innovation, and other fields of cooperation. The package of projects with Chinese financial support are well underway. While more and more Chinese new energy vehicles and photovoltaic products are entering Central Asian markets, Central Asian agricultural products, including honey, fruits, wheat and poultry, are diversifying the dinner tables of Chinese families.

Two years on, the China-Kyrgyzstan-Uzbekistan railway project has been officially launched. We are making steady progress in planning for the third railway link between China and Kazakhstan, in phase-II restoration of the China-Tajikistan highway, and in China-Turkmenistan energy cooperation. Freight train services are connecting more and more Chinese cities to Central Asia. The Trans-Caspian International Transport Route has been upgraded and expanded. Green industries, digital economy, artificial intelligence, aviation and space are becoming new drivers of our cooperation. Cross-border e-commerce, online education, and other new business models are benefiting more and more people in China and Central Asia.

Two years on, China and Central Asian countries have made progress in establishing cultural centers in each other as well as in opening branches of Chinese universities and Luban Workshops. China has made mutual visa-free arrangements with Kazakhstan and Uzbekistan, facilitating more than 1.2 million travels between China and Kazakhstan alone in 2024. Tourism and culture years and art festivals of Central Asian countries are very popular in China. Chinese films and TV dramas, such as Min-Ning Town and To the Wonder, have become great hits in Central Asia. The China-Central Asia train services for cultural tourism have been successfully inaugurated. And today, we will witness the number of sister cities between China and Central Asia reach the milestone of 100 pairs.

Two years on, we have launched 13 ministerial cooperation platforms under the China-Central Asia mechanism. The Secretariat is fully functioning, and the core framework of the mechanism is largely in place.

I am pleased to see that our consensus at the first Summit has been implemented across the board — from the millennium-old Xi’an to Astana “the pearl of the steppe,” from the coast of the Yellow Sea to the shores of the Caspian Sea, from the Tianshan Mountain Range to the Pamir Plateau. The path of our cooperation is steadily widening, and our friendship is blooming ever more brightly.

Distinguished Colleagues,

Friends,

Our cooperation is rooted in more than 2,000 years of friendly exchanges, cemented by solidarity and mutual trust cultivated through more than three decades of diplomatic ties, and taken forward via openness and win-win cooperation of the new era. Building on our collective efforts over the years, we have forged a China-Central Asia Spirit of “mutual respect, mutual trust, mutual benefit, and mutual assistance for the joint pursuit of modernization through high-quality development.”

— We practice mutual respect and treat each other as equals. All countries, big or small, are equal. We handle issues through consultation and make decisions by consensus.

— We seek to deepen mutual trust and enhance mutual support. We firmly support each other in safeguarding independence, sovereignty, territorial integrity, and national dignity. We do not do anything harmful to the core interests of any party.

— We pursue mutual benefit and win-win cooperation and strive for common development. We view each other as priority partners, and share development opportunities together. We accommodate each other’s interests, and work to build a win-win and symbiotic relationship.

— We help each other in time of need and stand together through thick and thin. We support each other in choosing development paths suitable to our respective national conditions and in taking domestic matters into our own hands. We work together to address various risks and challenges, and uphold regional security and stability.

This China-Central Asia Spirit is an important guideline for our endeavor to carry forward friendship and cooperation from generation to generation. We should always uphold it and let it shine forever.

Distinguished Colleagues,

Friends,

Today, unprecedented changes are unfolding at a faster pace across the globe, thrusting the world into a new state of heightened turbulence and volatility. A strong belief in fairness and justice and an unyielding commitment to mutual benefit and win-win cooperation are the only way to maintain world peace and achieve common development. There is no winner in tariff wars or trade wars. Unilateralism, protectionism and hegemonism will surely backfire while hurting others.

I always maintain that history should move forward, not backward; and the world should be united, not divided. Humanity must not regress to the law of the jungle. Instead, we should build a community with a shared future for mankind.

Three years ago, we announced together that we would build a China-Central Asia community with a shared future, setting out the goal and direction of our six nations in building consensus, overcoming challenges and pursuing development. We should act on the China-Central Asia Spirit, enhance cooperation with renewed vigor and more practical measures, promote high-quality development of the Belt and Road Initiative, and forge ahead toward our goal of a community with a shared future for the region.

First, we should stay committed to our fundamental goal of unity, and always trust and support each other. China consistently takes Central Asia as a priority in its neighborhood diplomacy. With a firm belief in an amicable, secure and prosperous neighborhood as well as a strong dedication to amity, sincerity, mutual benefit and inclusiveness, China interacts with Central Asian countries on the basis of equality and sincerity. We always wish our neighbors well.

Today, we will sign together a treaty on eternal good-neighborliness, friendship and cooperation to enshrine the principle of everlasting friendship in the form of law. This is a new landmark in the history of the relations between our six countries and a pioneering initiative in China’s diplomatic engagement with its neighbors. It is a milestone for today and a foundation for tomorrow.

Second, we should optimize our cooperation framework to make it more results-oriented, more efficient, and more deeply integrated. We have agreed to designate 2025 and 2026 as the Years of High-Quality Development of China-Central Asia Cooperation. We should focus our cooperation on smooth trade, industrial investment, connectivity, green mining, agricultural modernization and personnel exchanges, and roll out more projects on the ground. We should do our best to get early harvests as soon as possible.

China is ready to share with Central Asian countries development experience and latest technological advances, promote connectivity in digital infrastructure, enhance cooperation on artificial intelligence, and foster new quality productive forces.

In order to promote relevant cooperation, China has decided to establish three cooperation centers, i.e. on poverty reduction, on education exchange, and on desertification prevention and control, as well as a cooperation platform on smooth trade under the China-Central Asia cooperation framework. China will provide a grant of RMB 1.5 billion yuan to Central Asian countries this year to be used in livelihood and development projects high on their agenda. China will also provide 3,000 training opportunities to Central Asian countries in the next two years.

Third, we should develop a security framework for peace, tranquility and solidarity. We should step up regional security governance, deepen law enforcement and security cooperation, jointly prevent and thwart extreme ideologies, and resolutely fight terrorism, separatism and extremism, so as to maintain peace and stability in our region.

China supports Central Asian countries in modernizing their national defense, law enforcement and security capacities. We will do our best to help Central Asian countries combat terrorism and transnational organized crime and safeguard cybersecurity and biosecurity. We will launch more Safe City projects, and conduct more joint exercises and joint training cooperation.

Afghanistan is our close neighbor. We should strengthen coordination to help the country boost its development capacity and achieve peace, stability, reconstruction and development at an early date.

Fourth, we should cement the bonds of shared vision, mutual understanding and mutual affection between our peoples. China will enhance cooperation between legislatures, political parties, women, youth, media and think tanks with Central Asian countries, conduct in-depth exchange of governance experience, and share experience in green development, poverty reduction and anti-corruption.

China is ready to set up more cultural centers, university branches and Luban Workshops in Central Asia, and launch new majors in Central Asian languages in Chinese universities. We will continue to carry out effectively the “China-Central Asia technology and skills improvement scheme” to train more high-caliber talent for Central Asian countries.

China supports deepening subnational cooperation with Central Asia. We will make good use of sister-city relations and people-to-people exchanges to nurture heart-to-heart connections at central and subnational levels, between official and non-governmental actors, and from adjacent to broader areas.

I hope that the travel-facilitation measures we adopt today will be implemented as soon as possible to help our people visit each other more conveniently, efficiently and frequently like relatives, and in the course help them become ever closer to each other.

Fifth, we should uphold a fair and equitable international order and an equal and orderly world structure. China supports Central Asian countries in playing a bigger role in international affairs. We stand ready to work with all parties to defend international fairness and justice, oppose hegemonism and power politics, and promote an equal and orderly multipolar world and a universally beneficial and inclusive economic globalization.

This year marks the 80th anniversary of the victory of the Chinese People’s War of Resistance Against Japanese Aggression and the World Anti-Fascist War, and the 80th anniversary of the founding of the United Nations. In the strenuous times of war, Chinese and Central Asian peoples supported each other through adversity, and jointly made important contributions to the cause of justice of humanity. We should promote the correct view of history, defend the fruits of the victory of World War II, uphold the UN-centered international system, and provide more stability and certainty for world peace and development.

Distinguished Colleagues,

Friends,

China is building a great modern socialist country in all respects and advancing the great rejuvenation of the Chinese nation on all fronts through Chinese modernization. No matter how the international situation changes, China will remain unwavering in opening up to the outside world, and embrace higher-quality cooperation with Central Asian countries to deepen the integration of interests and achieve common development.

Distinguished Colleagues,

Friends,

Ancient Chinese philosophy advocates “mutual care and mutual benefit.” Similarly, a Central Asian proverb compares harmony and unity to happiness and wealth. China is ready to work with all parties to carry forward the China-Central Asia Spirit, pursue the goal of a community with a shared future, and strive for new progress in China-Central Asia cooperation.

Thank you. 

Wang Yi meets leading politicians from Uganda, Liberia, Mozambique and other countries

On June 12, Chinese Foreign Minister Wang Yi held a series of bilateral meetings, for the third consecutive day, with leading politicians from a number of African countries who were in Changsha, Hunan to attend the  Ministerial Meeting of Coordinators on the Implementation of the Follow-up Actions of the Forum on China-Africa Cooperation (FOCAC) as well as the fourth China-Africa Economic and Trade Expo.

Meeting with Ugandan Prime Minister Robinah Nabbanja, Wang Yi said that Uganda is an important country in Africa and a representative of emerging economies. President Xi Jinping and President Yoweri Kaguta Museveni have established mutual trust and friendship, providing impetus and assurance for the development of China-Uganda relations. Last autumn, the Beijing Summit of FOCAC was successfully held, and the outcomes of the Summit have already been effectively implemented in Uganda. In the first quarter of this year, Uganda’s exports to China increased by nearly 90 percent year on year.

Wang Yi stated that China and Uganda maintain strategic communication and coordination on international and multilateral affairs and jointly safeguard the legitimate rights and interests of Africa and the vast number of developing countries. China is willing to work with Uganda and other African brothers and sisters to support and practice multilateralism, oppose unilateral bullying, and safeguard the basic norms governing international relations.

Robinah Nabbanja said that Uganda and China respect and understand each other and keep close communication and contact. She expressed appreciation to China for its long-term and valuable support to Uganda’s infrastructure construction and economic and social development. Uganda and China have achieved remarkable results in cooperation within the frameworks of the Belt and Road Initiative and the FOCAC.

Meeting with Vice President of Liberia Jeremiah Kpan Koung, Wang Yi extended congratulations on Liberia’s election as a non-permanent member of the United Nations Security Council. He said that China is ready to strengthen solidarity and coordination with Liberia, practice the vision of multilateralism, and safeguard the legitimate rights and interests of developing countries, especially African countries. China’s foreign policy remains consistent and stable, and China stands firmly with developing countries and speaks up for small and medium-sized nations.

Jeremiah Kpan Koung said that China is a reliable friend. He expressed appreciation for China’s long-term, selfless support and assistance to Liberia, saying that China’s zero-tariff policy for African countries has brought significant benefits to Liberia. Liberia is willing to work with China to continue implementing the important common understandings reached between the two heads of state and advance cooperation in various fields such as maritime affairs, green energy, healthcare, and agriculture. 

Continue reading Wang Yi meets leading politicians from Uganda, Liberia, Mozambique and other countries

China and Africa consolidate dynamic partnership

On June 11, 2025, the Ministerial Meeting of Coordinators on the Implementation of the Follow-up Actions of the Forum on China-Africa Cooperation (FOCAC) was held in Changsha, capital of China’s Hunan Province.

Chinese Foreign Minister Wang Yi attended the opening ceremony and read out the congratulatory letter from President Xi Jinping. Foreign Minister Jean-Claude Gakosso of the Republic of the Congo, the current African co-chair of the FOCAC, read out the congratulatory letter from President Denis Sassou Nguesso.

Xi Jinping pointed out that since its establishment 25 years ago, the FOCAC has strongly driven the flourishing development of China-Africa cooperation and become a model for solidarity and cooperation in the Global South. Through the entry into agreements on economic partnership for shared development, China implements zero-tariff measures of granting 53 African countries having diplomatic relations with China zero-tariff treatment for 100 percent of tariff lines, and facilitates greater access for exports from Africa’s least developed countries to China.

President Denis Sassou Nguesso pledged to make all-out efforts and work unwaveringly with President Xi Jinping to make greater progress in building an Africa-China community with a shared future and to enhance the well-being of the people on both sides. As the African co-chair of the FOCAC, the Republic of the Congo will work with China and other Global South countries to strengthen cooperation under the Belt and Road Initiative, jointly build a multipolar world free from unilateralism and protectionism, and usher in a new era of universally beneficial and inclusive globalisation.

Wang Yi said that since its establishment 25 years ago, the FOCAC has grown rapidly, driving China-Africa relations to achieve leapfrog development and ushering in their best period in history. The FOCAC Beijing Summit held in September last year marked the beginning of a new journey for jointly building a China-Africa community with a shared future. Guided by the consensus reached at the summit, China and Africa have actively implemented the ten partnership actions and achieved new, encouraging outcomes. Strategic mutual trust between China and Africa has become stronger, practical cooperation has been increasingly deepened, and multilateral coordination has become closer. Facts have proved that China-Africa cooperation has a solid foundation, extensive demands, and enormous potential, and is brimming with vigour and vitality. When China and Africa stand shoulder to shoulder, the development and revitalisation of the Global South will be more promising, and international fairness and justice will be more guaranteed.

The Chinese Foreign Minister emphasised that China and Africa, as the largest developing country and the continent home to the largest number of developing countries, together form the backbone of the Global South. The more complex and turbulent the international landscape becomes, the more imperative it is for China and Africa to uphold solidarity and self-reliance, stand firmly on the right side of history, actively steer the course of the times, and respond to uncertainties in the world with the stability and resilience of China-Africa relations.

Continue reading China and Africa consolidate dynamic partnership

China and Africa should continuously strengthen the power of the Global South

We previously reported the May 26 celebration of Africa Day in Beijing, in which Chinese Foreign Minister Wang Yi was joined by diplomats from more than 50 African countries along with representatives from the African Union (AU).

Subsequently, the website of the Chinese Foreign Ministry has now made available the full text of Wang Yi’s speech on this occasion.

Wang Yi noted that the theme of the commemoration of Africa Day this year is “China-Africa Solidarity for a Shared Future” and shared his thoughts on three keywords in this regard, namely friendship, cooperation, and solidarity.

He said:

  • We must cherish the traditional China-Africa friendship and strengthen our confidence in solidarity and cooperation.  Over the years, the Chinese and African peoples have supported each other in the struggle for independence and liberation and in the endeavour to defend national sovereignty and have helped each other in exploring development paths and achieving national rejuvenation. From China’s assistance in building the Tanzania-Zambia (TAZARA) Railway to the joint construction of Africa’s largest hydropower station, from our African brothers “carrying” China into the United Nations, to China taking the lead in supporting the African Union’s joining in the G20, and from dispatching medical teams to Africa shortly after the founding of the People’s Republic of China to the China-Africa united fight against COVID-19, China and Africa have forged a deep friendship marked by a shared future and close bonds. Entering the new era, President Xi Jinping visited Africa five times, put forward the principles of China’s Africa policy – sincerity, real results, amity and good faith, and pursuing the greater good and shared interests… leading China-Africa relations to their best in history. China never interferes in Africa’s internal affairs, never imposes its own will on others, never attaches any political conditions to its assistance to Africa and never seeks political gains in its investment and financing in Africa.
  • We should deepen practical cooperation and build a consensus for common development. Over the past 25 years, bilateral trade has increased 27-fold, China’s investment stock in Africa has grown more than 80 times, and we have helped build and upgrade nearly 100,000 kilometres of roads and over 10,000 kilometres of railways in Africa. In the past three years alone, Chinese enterprises have created over 1.1 million jobs in Africa. In half a month, the Coordinators’ Meeting on the Implementation of the Follow-up Actions of the FOCAC [Forum on China-Africa Cooperation] Ministerial Conference will be held in Changsha, Hunan. We should take this meeting as an opportunity to add more momentum and strength to the implementation of the common understandings reached by the leaders of both sides, [and] set a benchmark for high-quality Belt and Road cooperation.
  • We need to discern the direction of the profound changes unseen in a century and continuously strengthen the power of the Global South. This year marks the 80th anniversary of the victory of the World Anti-Fascist War and the founding of the United Nations. However, the world is not yet a tranquil place. Recently, the United States, disregarding international law and international trade rules, first abruptly cut aid to many countries, including those in Africa, and then indiscriminately imposed tariffs worldwide. Such unilateral bullying moves, which ignore the fundamental principles of international relations, would plunge the world back into the law of the jungle. History has shown time and again that in the face of injustice and power politics, compromise and concessions lead nowhere. Only by standing firm on our just position and fighting back resolutely can we safeguard our legitimate rights and interests. As the largest developing country and the continent with the highest concentration of developing countries in the world, China and Africa are both key members of the Global South. The more turbulent the international situation becomes, the more imperative it is for us to stand firmly together, strengthen solidarity and cooperation, [and] jointly oppose power politics.

Meanwhile, on June 6, at a routine Foreign Ministry press conference in Beijing, spokesperson Lin Jian announced that Wang Yi would attend the above-mentioned Ministerial Meeting of Coordinators on the Implementation of the Follow-up Actions of the Forum on China-Africa Cooperation (FOCAC) in Changsha, capital city of central China’s Hunan Province, from June 10 to 12, alongside representatives from the 54 African members of FOCAC. Wang will also attend the opening ceremony of the Fourth China-Africa Economic and Trade Expo, also to be held in Changsha.

Lin said that China will enhance coordination with African countries with a focus on implementing the six proposals and 10 partnership initiatives put forward by President Xi for jointly advancing modernisation, so that people in China and Africa will benefit more from the outcomes of the FOCAC summit.

Continue reading China and Africa should continuously strengthen the power of the Global South

Some aspects of China’s development model

The following article by Shiran Illanperuma, originally published in the Sri Lankan daily newspaper The Island, explores some of the key elements of China’s economic rise, in particular debunking the myth put forward by neoclassical economists that China is “the model par excellence of market liberalisation and the superiority of private sector driven growth”.

Shiran argues that the main competitive advantage of China’s labour force is not its low cost – after all, there are far cheaper labour markets in the world – but the fact that it is well-educated and healthy, and benefits from excellent transport and energy infrastructure. “This, combined with a domestic value chain, is China’s main strength and why economic growth has been combined with rising wages and standards of living.”

Foreign direct investment (FDI) has been leveraged very purposefully in China particularly from the 1990s onwards in order to develop the domestic economy, and to build up the country’s technological capabilities. Meanwhile, “state-owned enterprises (SOEs) are the elephant in the room when it comes to China’s development model”.

Broadly speaking, SOEs in China perform four ‘macroeconomic’ functions. First, they conduct the low-cost production of upstream inputs such as metals, chemicals, and rare earth minerals. Second, they manage essential commodity reserves and intervene in commodity markets to stabilise prices. Third, they engage in countercyclical spending on public works during economic downturns. Fourth, they are deployed to respond during emergencies and external shocks such as the 2008 Sichuan earthquake and the COVID-19 pandemic. The through line in these functions is to keep costs low and smoothen out business and commodity cycles. This is why China has not yet faced a recession comparable to many capitalist economies.

The leading role of the CPC in China’s economic strategy is also crucial:

The Communist Party of China, which has around 100 million members (almost five times the population of Sri Lanka!), has been key to the process of China’s development. The party remains committed to developing Marxist-Leninist philosophy and applying it to the country’s concrete conditions. It retains deep roots in all levels of Chinese society, engaging in consultation during the policymaking process.

As such, China’s remarkable rise cannot be separated from its system of Socialism with Chinese Characteristics.

Shiran Illanperuma is a researcher at Tricontinental: Institute for Social Research and a co-editor of Wenhua Zongheng: A Journal of Contemporary Chinese Thought

China’s rapid development over the last few decades has been the source of much debate among economists. Some claim China as the model par excellence of market liberalisation and the superiority of private sector driven growth. Others equally argue that China’s model is one of planning and state intervention.

On 28 March, I was invited by Nexus Research to deliver a presentation on China’s development model alongside former Ambassador to China Dr. Palitha Kohona. Unfortunately, the contents of this presentation have been misreported in an article in the Island published on 4 April (Dr Kohona: developing countries should covet China model). The article claimed that my presentation touched on “low-cost labour, foreign direct investments, and global trade agreements”. In fact, such simplistic tropes were precisely what I had intended to counter.

China’s development model challenges many of the axioms of neoclassical economics. If low-cost labour were the decisive factor for take-off, then investment should be pouring into much-cheaper labour markets in sub-Saharan Africa. On the contrary, rising wages in China have not led to the outflow of capital one would expect under such a model. This is because the advantage China offers is a healthy and skilled workforce (relative to price) and an infrastructural system that keeps non-wage operating costs (such as transport and energy) low. This, combined with a domestic value chain, is China’s main strength and why economic growth has been combined with rising wages and standards of living.

While foreign direct investment (FDI) has been a huge part of China’s success story, it is possible to overstate their importance. First, FDIs only really took off from the 1990s onwards, yet to begin there would be to ignore the decades of work done to develop the country’s agricultural self-sufficiency, basic industrial system, and institutional structure. Second, what has mattered for China is the quality of FDI, which is determined by government policy. By the standards of the OECD Foreign Direct Investment Regulatory Restrictiveness Index, China remains fairly selective on what FDI is allowed and encouraged. FDI is promoted not as an end in itself but as a means to acquire technology that should be transferred to national champions.

Role of Local Government

A significant portion of my presentation for Nexus Research was on the role of local governments economic policy – something that is often neglected (though there is a growing literature on the subject). China has a fairly decentralised system of governance, a product of its vast size and geography, as well as the institutional changes and experiments in direct democracy during the period of the Cultural Revolution.

Chinese economist Xiaohuan Lan, in his book How China Works (2024), has said that “In China, it is impossible to understand the economy without understanding the government.” While the central government in China formulates indicative plans and the overall goals and trajectory for development, implementation of these plans is delegated to local governments. Local governments have a broad remit to interpret these plans, experiment with implementation, and compete with each other for investment. This leads to a much more dynamic and decentralised development process that encourages grassroots participation.

A comparison between China and India on the share of public employment at different levels of government is very revealing. For China, over 60% of public employment is at the level of local government, with federal and state governments comprising less than 40% of employment. In contrast, less than 20% of Indian public employment is in local government. India, therefore, despite its much-touted linguistic federal system, is far more centralised than China. The weakness of Indian local governments remains a significant barrier for its development.

Continue reading Some aspects of China’s development model

Xi Jinping visit to Peru and Brazil strengthens pivotal China-Latin America relationship

In the following article, commissioned by China Daily, Carlos Martinez provides a brief overview of Xi Jinping’s recent visit to Latin America, where he attended the APEC Economic Leaders’ Meeting in Lima, paid a state visit to Peru, attended the G20 Summit in Rio de Janeiro, and paid a state visit to Brazil.

Carlos highlights the significance of the newly-inaugurated Chancay Port, which is set to provide enormous economic benefit not only to Peru but all the countries of the region, and which will substantially strengthen Latin American integration and trans-Pacific trade relationships.

Carlos contrasts the mutually-beneficial relationship between China and Latin America – and indeed the Global South more generally – with that between the US and Latin America, the US’s supposed “back yard”. China’s approach of respect for sovereignty, support for development, and non-interference in other countries’ affairs “stands in stark contrast to the neoliberal hegemony of the ‘Washington Consensus’, with its wars, destabilisation, unilateral sanctions, economic coercion, blackmail, tariffs, nuclear bullying, military alliances and overseas military bases.”

A version of this article is expected to appear in China Daily Global Edition in the coming days.

Chinese President Xi Jinping arrived in Lima, Peru, on 14 November to attend the APEC Economic Leaders’ Meeting and to pay a state visit at the invitation of Peruvian President Peru Dina Boluarte Zegarra.

While in Peru, Xi participated by video link in the opening of the Chancay Port, about 48 miles north of Lima. Chancay is a deep-water port with 15 berths, capable of accommodating some of the world’s largest ships. A shared project of China and Peru, built as part of the Belt and Road Initiative (BRI), it will serve as a crucial gateway linking Latin America and Asia, as well as promoting Latin American economic integration. Furthermore, it is Latin America’s first smart, green, low-carbon port, featuring advanced technologies such as automated cranes and electric driverless trucks.

With the opening of the port, average transportation time from South America to the Asian market will be reduced from 35 to 25 days. The Chancay Port will be a major boost for the regional economy, will create vast numbers of jobs, and will help to reduce poverty and inequality. In Peru alone, the port is expected to generate an additional 4.5 billion US dollars of revenue – just under 2 percent of the country’s GDP – and to create thousands of jobs.

Given that Peru shares borders with Brazil, Colombia, Chile, Ecuador and Bolivia, the port will serve as the starting point of a land-sea corridor between China and Latin America, giving rise to a dramatic increase in trade, investment, cooperation and friendship.

On 17 November, President Xi travelled from Peru to Rio de Janeiro, Brazil, to attend the 19th G20 Summit and to pay a state visit at the invitation of President Luiz Inácio Lula da Silva.

Particularly under the Workers Party (PT) governments of Lula and Dilma Rousseff, China-Brazil relations have gone from strength to strength in recent years. China has been Brazil’s largest trading partner for the last 15 years, and is a major investor in Brazilian industry and agriculture. Furthermore, Brazil is the largest supplier of agricultural imports to China.

At the conclusion of their bilateral meeting on 20 November, Presidents Xi and Lula announced that China Brazil ties would be elevated to a “community with a shared future for a more just world and a more sustainable planet”. Furthermore, the two sides will cooperate closely to align Brazil’s development strategy with the BRI.

Far from treating Brazil simply as a source of primary goods, China is increasingly cooperating with the Latin American giant on green energy, digital innovation, economic diversification, advanced infrastructure and industrial modernisation.

Unlike the West, which has always jealously guarded its technological supremacy, China’s vision of a global community of shared future involves encouraging sustainable development and modernisation throughout the Global South. With China’s support, the countries of Latin America, Africa, Asia, the Caribbean and the Pacific are starting to break the chains of underdevelopment that were imposed by the colonial and imperialist powers.

Aside from the growing economic relationship, Xi Jinping wrote in a signed article in Brazilian media that “China and Brazil, embracing our roles and responsibilities as major countries, have contributed to a multipolar world, promoted greater democracy in international relations, and injected positive energy into global peace and stability”.

China and Brazil have taken the lead in trying to reach a political settlement of the Ukraine crisis and are aligned on attempting to bring about an immediate and permanent ceasefire in Gaza. Both countries are pursuing sustainable development and modernisation, and both support a fair globalisation characterised by equality and common prosperity. In short, this is a relationship that is not only of great benefit to the two countries, but to the world as a whole.

In his speech at the G20 Summit, President Xi made a powerful call to “see the world as one community with a shared future, and shoulder our responsibility for history, take historical initiative and move history forward”. He insisted on the crucial importance of addressing global inequality, of supporting developing countries to achieve modernisation and pursue sustainable development, of supporting developing countries to adopt and integrate digital technologies, and of cooperating globally to tackle the environmental crisis.

The speech resonated loudly with the peoples of the Global South in particular. Xi’s words were a clear reiteration of China’s global vision of peace and common prosperity – which stands in stark contrast to the neoliberal hegemony of the ‘Washington Consensus’, with its wars, destabilisation, unilateral sanctions, economic coercion, blackmail, tariffs, nuclear bullying, military alliances and overseas military bases.

As the great Cuban revolutionary Fidel Castro wrote in 2004, “China has objectively become the most promising hope and the best example for all Third World countries … an important element of balance, progress and safeguarding of world peace and stability”.

For that reason, the US is desperate to throw a spanner in the works; to disrupt the growing ties between China and Latin America, and between China and the Global South more generally. In October, Biden’s trade representative Katherine Tai said she “would encourage our friends in Brazil to look at the risks” of closer ties to China, hinting that the US would punish such unacceptable behaviour.

Shortly after the inauguration of the Chancay Port, US Secretary of State Antony Blinken turned up in Peru to announce a deal for 6 billion dollars’ worth of decades-old trains – presumably an unfortunate attempt to show that the US still has something to offer. A report in South China Morning Post remarked: “as Chinese President Xi Jinping inaugurated the US$3.5 billion Chancay port in Peru this month that promises to jump-start exports in the region and create a gateway to China, US Secretary of State Antony Blinken oversaw a ceremony just a few miles away to give US$6 million in 1980s diesel locomotives to the Andean nation… One was about the future, the other about the past.”

Donald Trump meanwhile is packing his cabinet with both China hawks and Latin America hawks, and will likely be even more aggressive in pressuring countries to toe the US line on China.

Such tactics will not work. The Financial Times reported on 20 November that “Joe Biden is losing to Xi Jinping in battle for Latin America”, noting that China is meeting the region’s enormous need for infrastructure investment.

The days of the Monroe Doctrine – enshrining the entire American super-continent as the US’s “sphere of influence” – are over. The nations of Latin America are asserting their sovereignty and are joining hands with the peoples of the world to reject hegemony and to create a future of global peace and common prosperity.

Xi Jinping: Building a just world of common development

From November 13-17, Chinese President Xi Jinping visited Peru at the invitation of his Peruvian counterpart Dina Ercilia Boluarte Zegarra, to attend the 31st APEC [Asia Pacific Economic Cooperation] Economic Leaders’ Meeting and to pay a state visit to the country. He then visited Brazil from November 17-21 at the invitation of President Luiz Inácio Lula da Silva to attend the 19th G20 Summit and pay a state visit.

The first session of the G20 Summit was held on the morning of November 18 and was chaired by President Lula as the host. Its focus was on the “fight against hunger and poverty” and, on Brazil’s initiative, was preceded by the launch of the Global Alliance Against Hunger and Poverty.

Xi Jinping made a speech at the session, taking as his theme, “Building a Just World of Common Development”.

The Chinese President began by noting that, “today, transformation of a scale not seen in a century is accelerating across the world. Humanity faces unprecedented opportunities and challenges.” He recalled his previous observation that, “prosperity and stability would not be possible in a world where the rich become richer while the poor are made poorer, and countries should make global development more inclusive, beneficial to all, and more resilient.”

To build a just world of common development, he noted, “we need to support developing countries in adopting sustainable production and lifestyles, properly responding to challenges like climate change, biodiversity loss and environmental pollution, enhancing ecological conservation, and achieving harmony between people and nature.”

China’s development is an important part of the common development of the world. “We have lifted 800 million people out of poverty, and met the poverty reduction target of the UN’s 2030 Agenda for Sustainable Development ahead of schedule.

“This achievement did not just fall into our laps. It is the fruit of the strenuous, unified efforts of the Chinese government and people. Everything China does, it always places the people front and centre, and it solemnly declares that ‘not a single poor region or person should be left behind.’”

Reflecting on his own life’s journey, he added: “I have worked from village to county, city, provincial and central levels. Poverty alleviation has always been a priority and a major task I am determined to deliver.”

“China’s story is proof that developing countries can eliminate poverty… If China can make it, other developing countries can make it too. This is what China’s battle against poverty says to the world.”

Noting that “China will always be a member of the Global South, a reliable long-term partner of fellow developing countries, and a doer and go-getter working for the cause of global development,” Xi went on to list eight actions for global development being taken by China.

We reprint below the full text of President Xi’s speech. It was originally published on the website of the Chinese Foreign Ministry.

Your Excellency President Luiz Inácio Lula da Silva,
Colleagues,

It gives me great pleasure to attend the G20 Summit in Rio de Janeiro. I thank President Lula and the Brazilian government for the warm hospitality extended to the Chinese delegation.

Today, transformation of a scale not seen in a century is accelerating across the world. Humanity faces unprecedented opportunities and challenges. As leaders of major countries, we should not let our vision be blocked by fleeting clouds. Rather, we must see the world as one community with a shared future, and shoulder our responsibility for history, take historical initiative and move history forward.

I pointed out at this forum that prosperity and stability would not be possible in a world where the rich become richer while the poor are made poorer, and countries should make global development more inclusive, beneficial to all, and more resilient. At the Hangzhou Summit, China placed development at the center of the G20’s macroeconomic policy coordination for the first time, and the Summit adopted the G20 Action Plan on the 2030 Agenda for Sustainable Development and the G20 Initiative on Supporting Industrialization in Africa and Least Developed Countries. The Rio Summit this year has chosen the theme “Building a Just World and a Sustainable Planet.” It places fighting hunger and poverty at the top of the agenda, and decides to establish a Global Alliance Against Hunger and Poverty. From Hangzhou to Rio, we have been working for one and the same goal, that is, to build a just world of common development.

To build such a world, we need to channel more resources to such fields as trade, investment and development cooperation, and strengthen development institutions. There should be more bridges of cooperation, and less “small yard, high fences,” so that more and more developing countries will be better off and achieve modernization.

To build such a world, we need to support developing countries in adopting sustainable production and lifestyle, properly responding to challenges like climate change, biodiversity loss and environmental pollution, enhancing ecological conservation, and achieving harmony between man and nature.

To build such a world, we need an open, inclusive and non-discriminatory environment for international economic cooperation. We should promote a universally beneficial and inclusive economic globalization, energize sustainable development with new technologies, new industries and new business forms, and support developing countries in better integrating in digital, smart and green development to bridge the North-South gap.

To build such a world, we need to stay committed to multilateralism. We should uphold the U.N.-centered international system, the international order underpinned by international law, and the basic norms of international relations based on the purposes and principles of the U.N. Charter.

Continue reading Xi Jinping: Building a just world of common development

Jointly advance the building of an all-weather China-Africa community with a shared future

On September 6, Chinese President Xi Jinping held his final round of bilateral meetings with African leaders who had come to Beijing to take part in the summit meeting of the Forum on China-Africa Cooperation (FOCAC).

In the morning he met with President of the Republic of the Congo Denis Sassou Nguesso, who was also paying a state visit to China.

Xi Jinping congratulated the Republic of the Congo on taking over the African co-chair of FOCAC. He commended Denis Sassou Nguesso for his important contributions to the success of the FOCAC Beijing Summit. Xi pointed out that developing solidarity and cooperation with African countries is an important cornerstone of China’s foreign policy. He recalled that during his visit to Africa in 2013, he put forth the principles of China’s Africa policy – sincerity, real results, amity and good faith, and pursuing the greater good and shared interests, which have become the guiding principles for China’s relations with all other developing countries. China is ready to work with the Republic of the Congo to better play their leading role as FOCAC co-chairs, implement the outcomes of the summit, ensure that the “golden brand” of FOCAC shines even brighter over time, and show the international community the firm resolve of China and Africa to jointly advance the building of an all-weather China-Africa community with a shared future for the new era.

Xi Jinping pointed out that this year marks the 60th anniversary of the establishment of diplomatic relations between China and the Republic of the Congo. The rock-solid friendship between the two countries is rooted in a high degree of political mutual trust, the common pursuit of ideas and the firm support for each other. China-Africa relations have embarked on a new journey, and friendly cooperation between China and the Republic of the Congo will embrace the next 60 years with even more brilliance.

Xi Jinping suggested that China and the Republic of the Congo play the “four roles”, i.e. a standard-bearer for building a community with a shared future, a pioneer in Belt and Road cooperation, a model of people-to-people bonds, and an example of solidarity and collaboration. China supports the Republic of the Congo in developing a diversified economy and encourages Chinese enterprises to participate in the construction of major infrastructure and regional connectivity projects in the country. China is ready to carry out cooperation in agriculture, digital economy, green development and other fields, deepen people-to-people and cultural exchanges, and encourage the two peoples to actively participate in the cause of friendship between China and the Republic of the Congo. China is ready to work with the Republic of the Congo to carry forward the Five Principles of Peaceful Coexistence, strengthen international cooperation in global governance and other fields, and create a more favourable international environment for the development and revitalisation of developing countries.

Denis Sassou Nguesso recalled that 60 years ago, he was one of the first batch of young people from the Republic of the Congo to visit China. Over the years, he has visited China multiple times and witnessed its continuous and remarkable economic and technological development. China has become a powerful country in the world, which fills its people with great pride and earns deep admiration and heartfelt congratulations from the people of the Republic of the Congo. The Republic of the Congo firmly abides by the one-China principle and supports the Chinese government in safeguarding national sovereignty, security and territorial integrity. This position remains unwavering.

Meeting with Somali President Hassan Sheikh Mohamud, Xi Jinping pointed out that China and Somalia enjoy a long history of friendly exchanges. Somalia is the first East African country to establish diplomatic relations with the People’s Republic of China, and the friendship between the two countries has withstood many tests. China is ready to work with Somalia to uphold the original aspiration of establishing diplomatic relations and push for more new achievements in bilateral relations to better benefit the two peoples.

Xi Jinping emphasised that both China and Somalia shoulder the historical mission of achieving complete national reunification. [Here Xi Jinping refers respectively to China’s Taiwan province and to the secessionist ‘Republic of Somaliland’.] China supports Somalia in safeguarding national sovereignty and territorial integrity and supports the peace and development process in Somalia.   China is willing to continue to support Somalia’s economic and social development, tap cooperation potential and expand development space with Somalia, and take the implementation of the outcomes of the FOCAC Beijing Summit as an opportunity to strengthen cooperation in such areas as economy, trade, fishery and human resources training.  Xi Jinping congratulated Somalia on its election as a non-permanent member of the United Nations Security Council and its official accession to the East African Community. 

Continue reading Jointly advance the building of an all-weather China-Africa community with a shared future

António Guterres: China’s cooperation will help Africa achieve peace and development

On September 5, Chinese President Xi Jinping continued his bilateral meetings with African leaders who were in Beijing to participate in the summit meeting of the Forum on China-Africa Cooperation (FOCAC).

Following the summit’s opening ceremony, that was held that morning, Xi Jinping met at noon with Botswanan President Dr. Mokgweetsi Eric Keabetswe Masisi.

The Chinese President pointed out that China and Botswana enjoy traditional friendship and have always offered sincere support to each other. In recent years, the two sides have regarded solidarity and cooperation as the cornerstone of their policies, prioritised improving the well-being of the people, and promoted solid progress in bilateral relations. Next year marks the 50th anniversary of the establishment of diplomatic relations between the two countries. The two sides should systematically review the successful experience gained over the past half century since the establishment of diplomatic relations and remain committed to being partners of mutual trust, common development and close people-to-people bonds. He also called on the two sides to firmly support each other and strengthen cooperation in industry, agriculture, minerals, clean energy, education, and medical and health care, among others.

China and its African brothers have just gathered together once again, he said, integrating more closely the development of China, Africa and the world. This has yielded fruitful results and unleashed the positive energy of the Global South in promoting world peace, security, prosperity and progress. China is ready to work with Botswana to follow through on the outcomes of the summit and bring more benefits to the two peoples.

Dr. Mokgweetsi Eric Keabetswe Masisi said that today marks a historic moment for Africa-China relations. President Xi Jinping just delivered an excellent address at the opening ceremony of the FOCAC Beijing Summit, announcing new measures to advance the China-Africa partnership for modernisation, including the policy of further opening up to Africa, which greatly excited and encouraged the African side. Botswana fully supports this and believes that the vision outlined at the summit will surely be realised. Botswana firmly adheres to the one-China principle and believes that the Chinese people should and can realise national reunification. He thanked China for its long-term valuable support to Botswana, saying that his country is willing to take the 50th anniversary of the establishment of diplomatic relations between the two countries next year as an opportunity to push for further development of bilateral relations.

Xi Jinping also met with United Nations Secretary-General António Guterres, who was attending the FOCAC summit as a special guest.

President Xi said that China attaches great importance to developing China-Africa relations. After the 18th National Congress of the Communist Party of China (CPC), his first overseas visit was to Africa, where he put forward in Tanzania the principle of sincerity, real results, amity, and good faith towards Africa and attended all subsequent FOCAC summits. China has no selfish interests in its cooperation with Africa. Half a century ago, in the face of its own economic difficulties, China responded to the expectations of its African brothers by vigorously assisting the construction of the Tanzania-Zambia Railway, writing a touching story of China-Africa friendship. Just now, at the opening ceremony of the summit, he had announced new actions and measures for practical cooperation with Africa. 

António Guterres thanked the Chinese side for inviting him to attend the FOCAC Beijing Summit. He said that historically, Africa has been the primary victim of colonialism. China’s cooperation with Africa will help reduce the historical injustice suffered by Africa and help Africa achieve peace and development. China’s peaceful development is a noble cause in the history of mankind and is conducive to the peace and progress of all humanity. The United Nations is ready to strengthen cooperation with China to resist actions that create division and undermine common progress, jointly practice multilateralism, promote more just and equitable global governance, and build a community with a shared future for humanity. The United Nations is making every effort to prepare for the Summit of the Future and hopes to have close communication with China to promote the reform of the international financial architecture and strengthen global AI governance.

In the afternoon, Xi Jinping met with Namibian President Nangolo Mbumba.

He stressed that the Communist Party of China (CPC) and the South West Africa People’s Organisation (SWAPO) of Namibia are both long-ruling progressive parties. He praised SWAPO for having incorporated “building socialism with Namibian characteristics” into its party constitution. China is willing to work with Namibia to enhance friendly cooperation between the two countries and between the two parties, strengthen the exchange of experience in party and state governance, share development opportunities, and jointly advance the modernisation process of their respective countries. 

Nangolo Mbumba said he was honoured to be invited to China for the FOCAC Beijing Summit and had received a warm and friendly reception with Chinese characteristics and tradition. The two outcome documents adopted by the FOCAC Summit in the morning are conducive to consolidating the brotherly friendship between Africa and China and promoting Africa-China cooperation in various areas. In particular, a series of new measures announced by President Xi Jinping for Africa and China joining hands to advance modernisation will guide the two sides to create a bright future of common development and prosperity and promote the building of an Africa-China community with a shared future. 

Xi Jinping also met with Ghanaian President Nana Addo Dankwa Akufo-Addo.

The Chinese leader noted that Ghana is the second sub-Saharan African country [after Guinea] to establish diplomatic relations with the People’s Republic of China (PRC). Since the establishment of diplomatic relations 64 years ago, the friendship between the two countries has remained strong and enduring, regardless of changes in the international landscape. China is ready to carry forward the deep friendship forged by the elder generation of the leaders of the two countries [who include Osagyefo Dr. Kwame Nkrumah, Chairman Mao Zedong, Premier Zhou Enlai  and Chairman Liu Shaoqi] together with Ghana, so as to constantly enhance political mutual trust, promote exchanges and cooperation in various fields and be good friends who trust each other, good partners for common development, and good brothers with close cooperation. 

Nana Addo Dankwa Akufo-Addo said that Ghana was one of the first batch of African countries to establish diplomatic relations with the PRC. China has been Ghana’s most trustworthy friend and partner for over 60 years. Ghana highly cherishes its friendship with China, firmly pursues the one-China policy and supports China’s stance on human rights and other issues.

Meeting with Prime Minister of Sao Tome and Principe Patrice Trovoada, Xi Jinping pointed out that in recent years, China’s relations with Sao Tome and Principe have maintained a sound momentum of development and the two countries have achieved fruitful results in practical cooperation in various fields. Facts have proved that Sao Tome and Principe’s return to the China-Africa family of friendly cooperation fully conforms to the common interests of the two peoples. [China and Sao Tome and Principe established diplomatic relations in 1975 when the country won its independence from Portuguese colonial rule. However, they were suspended between 1997-2016 when the then government established “diplomatic relations” with the authorities on Taiwan in violation of the one-China principle.]

Patrice Trovoada said that every time he visits China, it feels like returning home. He thanked China for providing invaluable assistance to Sao Tome and Principe’s economic development, saying that the new measures announced by President Xi Jinping at the opening ceremony of the FOCAC Summit in the morning will significantly boost the development of Sao Tome and Principe and Africa.

In the evening, Xi Jinping met with President of Guinea-Bissau Umaro Sissoco Embaló.

Continue reading António Guterres: China’s cooperation will help Africa achieve peace and development

China and Senegal – friends and partners on the path to national development and revitalisation

On September 4, 2024, Chinese President Xi Jinping held 10 bilateral meetings with African leaders who were visiting China to attend the Beijing summit of the Forum on China-Africa Cooperation (FOCAC).

In the morning, he met with the new progressive President of Senegal Bassirou Diomaye Faye, who was also paying a state visit.

Xi Jinping stressed that China and Senegal are friends and partners on the path to national development and revitalisation. Over the years, the two sides have carried out cooperation in the spirit of sincerity, friendship, equality, respect and win-win cooperation, and achieved tangible results, benefiting the two peoples.

China will continue to send agricultural technological experts to support Senegal in building industrial parks, expand cooperation in new energy and other emerging fields, and boost Senegal’s industrialisation and agricultural modernisation process. China and Senegal hold similar positions on many major international issues, and China is ready to work closely with Senegal in multilateral coordination to jointly safeguard international fairness and justice and the common interests of developing countries.

Xi Jinping pointed out that FOCAC is a golden brand of South-South cooperation, leading international cooperation with Africa and making important contributions to world peace and development. Over the past six years since China and Senegal assumed the co-chairs of FOCAC, China and Africa have overcome the COVID-19 pandemic and other difficulties and successfully completed the eight major initiatives and nine programs launched at the two previous FOCAC conferences, advancing China-Africa relations into a new stage. As the fourth African co-chair of FOCAC, Senegal has made important contributions to China-Africa solidarity and cooperation. China is ready to work closely with Senegal to lead the summit to achieve complete success, join hands to advance China-Africa modernisation and start a new journey of China-Africa relations.

Bassirou Diomaye Faye said that it is a great honour for him to pay his first state visit to China and attend the FOCAC Beijing Summit. He thanked the Chinese side for the warm hospitality that has made him appreciate the beauty and friendliness of China. Since the establishment of the comprehensive strategic cooperative partnership between Senegal and China in 2016, bilateral cooperation has made continuous progress.  Senegal is willing to learn from China’s successful experience in party and state governance, advance cooperation in agriculture, industry, digitalisation, vocational training, youth and other fields, and elevate the comprehensive strategic cooperative partnership between Senegal and China to a higher level. The establishment and development of FOCAC is based on friendship, trust, mutual respect, solidarity, cooperation, practicality and efficiency, and has made important contributions to Africa’s economic and social development.

Xi Jinping also met with President of Equatorial Guinea Teodoro Obiang Nguema Mbasogo. 

Xi Jinping emphasised that China and Equatorial Guinea are good friends. High-level political mutual trust, all-round practical cooperation, and profound friendship between the two peoples are the main features of their bilateral relations. China is ready to work with Equatorial Guinea to firmly support each other, expand practical cooperation, deepen defence and security cooperation, help Equatorial Guinea diversify its economy, advance together on their respective modernisation paths, and open up new prospects for the China-Equatorial Guinea comprehensive strategic and cooperative partnership. He congratulated Equatorial Guinea on its assumption of the co-chairmanship of FOCAC from 2027 to 2030. 

Teodoro Obiang Nguema Mbasogo said that as soon as he arrived in Beijing, he felt the sincere friendship of the Chinese people towards Equatorial Guinea and the African people. The organisation of the Summit is meticulous, and the theme is in line with the dream of African countries to pursue modernisation.  Equatorial Guinea’s relations with China are based on profound friendship and a high degree of mutual trust, with fruitful cooperation and close coordination in international affairs. The investment and cooperation of Chinese enterprises have helped Equatorial Guinea take on a new look, and China has made important contributions to promoting world peace.

Continue reading China and Senegal – friends and partners on the path to national development and revitalisation

Xi Jinping: the China-Africa relationship is now at its best in history

The Summit meeting of the Forum on China-Africa Cooperation (FOCAC) was held in the Chinese capital, Beijing from September 4-6.

Hosted by President Xi Jinping, the summit was attended by 51 African heads of state or government and two presidential representatives, representing 53 of the 55 member states of the African Union (AU), along with the Chairperson of the AU Commission and the Secretary-General of the United Nations.

Delivering a keynote address at the opening ceremony on the morning of September 5, Xi Jinping said that:

“The founding of the Forum on China-Africa Cooperation (FOCAC) in 2000 was a milestone in the history of China-Africa relations. Over the past 24 years, especially in the new era, China has advanced forward hand in hand with our African brothers and sisters in the spirit of sincerity, real results, amity and good faith. We stand shoulder to shoulder with each other to firmly defend our legitimate rights and interests as once-in-a-century changes sweep across the world.”

“Thanks to nearly 70 years of tireless efforts from both sides,” he continued, “the China-Africa relationship is now at its best in history. With its future growth in mind, I propose that bilateral relations between China and all African countries having diplomatic ties with China be elevated to the level of strategic relations, and that the overall characterisation of China-Africa relations be elevated to an all-weather China-Africa community with a shared future for the new era.”

Modernisation was a key theme of the Chinese leader’s address. He noted: “Modernisation is an inalienable right of all countries. But the Western approach to it has inflicted immense sufferings on developing countries. Since the end of World War II, Third World nations, represented by China and African countries, have achieved independence and development one after another, and have been endeavouring to redress the historical injustices of the modernisation process. As we are about to celebrate the 75th anniversary of the People’s Republic of China, we are going all out to build a great modern socialist country in all respects and pursue national rejuvenation through a Chinese path to modernisation. Africa is also awakening again, and the continent is marching in solid strides toward the modernisation goals set forth in the AU’s Agenda 2063.”

He proposed that China and Africa work together to advance modernisation in six key aspects:

  • We should jointly advance modernisation that is just and equitable.
  • We should jointly advance modernisation that is open and win-win.
  • We should jointly advance modernisation that puts the people first. The ultimate goal of modernisation is the free and full development of human beings.
  • We should jointly advance modernisation featuring diversity and inclusiveness.
  • We should jointly advance modernisation that is eco-friendly. Green development is a hallmark of modernisation in the new era.

Xi stated that: “China and Africa account for one-third of the world population. Without our modernisation, there will be no global modernisation. In the next three years, China will work with Africa to take the following ten partnership actions for modernisation to deepen China-Africa cooperation and spearhead the Global South modernisation”, namely:

  • The Partnership Action for Mutual Learning among Civilizations.
  • The Partnership Action for Trade Prosperity. We have decided to give all LDCs [least developed countries] having diplomatic relations with China, including 33 countries in Africa, zero-tariff treatment for 100 percent of tariff lines. This has made China the first major developing country and the first major economy to take such a step.
  • The Partnership Action for Industrial Chain Cooperation.
  • The Partnership Action for Connectivity.
  • The Partnership Action for Development Cooperation.
  • The Partnership Action for Health. We will send 2,000 medical personnel to Africa and launch 20 programs of health facilities and malaria treatment.
  • The Partnership Action for Agriculture and Livelihoods.
  • The Partnership Action for People-to-People Exchanges.
  • The Partnership Action for Green Development. China is ready to launch 30 clean energy projects in Africa, put in place meteorological early warning systems, and carry out cooperation in disaster prevention, mitigation and relief, as well as biodiversity conservation.
  • The Partnership Action for Common Security.

Each of these proposals features specific, practical and appropriate measures and pledges that stand in stark contrast to the vacuity, conditionality and demagogy of the supposed pledges made at gatherings convened by the imperialist powers. 

Besides President Xi Jinping, President Bassirou Diomaye Faye of Senegal, Co-chair of FOCAC; President Mohamed Ould Cheikh El Ghazouani of Mauritania, rotating Chair of the AU; President Cyril Ramaphosa of South Africa, subregional representative for Africa; President of the Republic of the Congo Denis Sassou Nguesso, President of Nigeria Bola Ahmed Tinubu, President of Tanzania Samia Suluhu Hassan, special guest and Secretary General of the United Nations António Guterres, and Chairperson of the AU Commission Moussa Faki Mahamat also addressed the opening ceremony.

The African leaders:

Continue reading Xi Jinping: the China-Africa relationship is now at its best in history

China to give LDCs including 33 African countries zero-tariff treatment

President Xi Jinping announced at the opening ceremony of the Forum on China–Africa Cooperation (FOCAC) summit in Beijing on Wednesday that China would unilaterally give all least developing countries (LDCs) zero-tariff market access for all products, making China the first major economy to take such a step. This move is part of a wide-ranging action plan agreed at the forum, which includes over 50 billion dollars of investment by China in African development initiatives over the next three years.

The FOCAC summit has been taking place amidst a backdrop of increasingly hysterical propaganda about the China-Africa relationship in the Western media, particularly in relation to China’s infrastructure investment. China is painted as engaging in exploitative, neocolonial practices, but this does not chime with reality. Indeed South African President Cyril Ramaphosa said on the sidelines of the FOCAC summit that he did not believe Chinese investments in Africa were pushing the continent into a ‘debt trap’ but were, rather, part of a mutually beneficial relationship.

A few facts that Washington’s stenographers routinely ignore:

  • China has been Africa’s largest trading partner for 15 years in a row
  • China provides finance for desperately-needed infrastructure projects, with interest rates typically half those of Western lenders, and with longer repayment periods
  • China’s investment is focused on meeting Africa’s needs, particularly around energy, transport, telecommunications and green development
  • With Chinese support, Ethiopia in 2015 celebrated the opening of the first metro train system in sub-Saharan Africa
  • The African Union headquarters in Addis Ababa was funded by the Chinese government as a gift to the AU
  • The Africa Centers for Disease Control and Prevention (Africa CDC) was built with Chinese support
  • While there are endless scare stories about Chinese companies only employing Chinese workers, research shows that over 75 percent of employees in Chinese companies in Africa are local
  • A key reason for the popularity of Chinese financing is that it comes without strings attached, unlike organisations like the IMF, with its demands for austerity, privatisation and deregulation
  • 52 of the 54 African countries have signed up to the Belt and Road Initiative
  • China does not interfere in the internal affairs of African countries, and regards respect for other countries’ sovereignty as an inviolable principle
  • China-Africa energy cooperation offers the opportunity for Africa to leapfrog the fossil fuel age and move straight to renewable energy
  • Tens of thousands of African students attend universities in China, which offers more university scholarships to African students than the leading western governments combined
  • China’s approach is markedly different to that of the West. At the 2018 FOCAC summit, Xi Jinping outlined China’s “Five No” approach to its relations with Africa: 1) No interference into African countries’ pursuit of development paths that fit their national conditions. 2) No interference in African countries’ internal affairs. 3) No imposition of China’s will on African countries. 4) No attachment of political strings to assistance to Africa. 5) No seeking of selfish political gains in investment and financing cooperation with Africa.
  • China is helping Africa to break out of an underdevelopment that was forced on it by Western colonialism and imperialism. As Liberia’s former Minister of Public Works W Gyude Moore said, “China has built more infrastructure in Africa in two decades than the West has in centuries”.

So when the West accuses of China of neo-colonialism in Africa, it is really just engaging in projection and slander.

The following article is republished from Global Times.

China has decided to give all least developed countries having diplomatic relations with China, including 33 countries in Africa, zero-tariff treatment for 100 percent tariff lines, Chinese President Xi Jinping announced on Thursday in a keynote speech at the opening ceremony of the 2024 Summit of the Forum on China-Africa Cooperation (FOCAC) in Beijing, the Xinhua News Agency reported.

This has made China the first major developing country and the first major economy to take such a step. It will help turn China’s big market into Africa’s big opportunity, Xi said, Xinhua reported.

China will expand market access for African agricultural products, deepen cooperation with Africa in e-commerce and other areas, and launch a “China-Africa quality enhancement program,” Xi said.

Chinese experts said that this new trade measure will not only greatly facilitate trade between Africa and the world’s second-largest economy but also inject new impetus into Africa’s development through enhanced trade and investment.

“Our offering of zero-tariff treatment to the least developed countries in Africa … is actually a crucial component of support for trade… The core development concept is to unlock Africa’s autonomous development capabilities through enhanced trade, rather than merely increasing the volume and quality of China-Africa trade,” Song Wei, a professor at the School of International Relations and Diplomacy at Beijing Foreign Studies University, told the Global Times on Thursday.

In recent years, under the strategic guidance of heads of state from China and Africa, economic and trade cooperation has shown promising results. 

In 2023, China-Africa trade reached $282.1 billion, marking a historic high for the second consecutive year, said Lin Honghong, director of the Department of International Relations of the China Council for the Promotion of International Trade, at a press briefing for the FOCAC, on Tuesday.

Additionally, over the past three years, Chinese companies have provided more than 1.1 million jobs in Africa. “These figures fully demonstrate that China-Africa economic and trade cooperation continues to maintain strong momentum,” said Lin.

The zero-tariff policy will lead to more African agricultural products and mineral resources, which are strengths of Africa, entering China, Song said. 

At the same time, leveraging e-commerce, the new trade policy will promote the entry of more advantageous Chinese products into Africa, meeting the development needs of Africa, and improving the quality of life of the African people, the Chinese expert said.

China and South Africa to boost cooperation on renewable energy, digital economy and AI

With the Forum on China-Africa Cooperation (FOCAC) summit being held in Beijing from September 4-6, as the country’s greatest diplomatic event of 2024,  leaders of some 50 African countries began arriving in the Chinese capital from the beginning of the month. 

Among President Xi Jinping’s first bilateral meetings with his visitors was that in the afternoon of September 2 with South African President Cyril Ramaphosa, who also paid a state visit to China that day.

At their meeting, President Xi pointed out that the friendship between China and South Africa stems from their mutual support in the fight for national liberation, from their mutual assistance in advancing national development, and from their unity and coordination in pursuit of international equity and justice. This year marks the 75th anniversary of the founding of the People’s Republic of China, and also the 30th anniversary of the new South Africa. Despite changes in the international landscape, there has been no change to the mission of China and South Africa to pursue modernisation, no change to their commitment to promoting China-Africa cooperation, and no change to their aspiration to improve global governance. Greater unity and cooperation between China and South Africa meet the expectations of the two peoples and is consistent with the historic process of the growth of the Global South. It has important significance for the times and implications for the world.

The Chinese leader further stressed that transformation unseen in a century is accelerating across the world and human society is facing unprecedented challenges. The more complex the international landscape, the more important that countries of the Global South stay committed to independence, solidarity and coordination to jointly safeguard international equity and justice.

President Ramaphosa recalled the fourth successful state visit by President Xi to South Africa last year where the two sides celebrated the 25th anniversary of their diplomatic ties and brought the relationship into a golden era. South Africa and China enjoy strong political trust and deep friendship and share similar positions and the same goals on many issues, he stressed. 

Following the signing of a number of bilateral cooperation documents, the two countries issued the Joint Statement Between the People’s Republic of China and the Republic of South Africa on the Establishment of an All-Round Strategic Cooperative Partnership in the New Era.

The two sides reaffirmed that they cherish the special and ever-growing friendship between the two countries and recommitted to working together towards building a high-quality China-South Africa community with a shared future. To carry forward the friendship, consolidate mutual trust, expand cooperation and enhance coordination, the two Heads of State agreed to elevate the bilateral relationship to an all-round strategic cooperative partnership in the new era, underpinned by strong political ties and focused on a prosperous future with balanced trade and accelerated transformative economic growth.

China congratulated President Ramaphosa on his re-election as President of the Republic of South Africa, and believes that under his leadership, the South African Government of National Unity will achieve success in building a united, just, equal and prosperous country as espoused in the National Development Plan, including maintaining an independent and non-aligned foreign policy based on the principle of progressive internationalism.  China firmly supports national unity and the path of economic and social development that South Africa has chosen and respects efforts by the South African government to safeguard its national interests so as to improve the lives of all South Africans. The South African government reaffirmed its commitment to the One-China Policy, recognised that there is but one China in the world, the Government of the People’s Republic of China is the sole legal government representing the whole of China, and Taiwan is an inalienable part of China. South Africa supports efforts made by the Chinese government to achieve national reunification.

Regarding economic cooperation, the two sides agreed to work on strengthening cooperation and synergy between China’s Belt and Road Initiative and South Africa’s Economic Reconstruction and Recovery Plan and to continue implementing the 10 Years Strategic Programme of Cooperation between the People’s Republic of China and the Republic of South Africa (2020-2029).

They agreed that promoting modernisation is the joint goal in building a high-level South Africa-China community with a shared future. The two sides will deepen cooperation in traditional fields such as agriculture, health, medical sciences and infrastructure development. However, they will further seize opportunities presented by the new scientific and technological revolution and industrial transformation, focusing on key areas such as the digital economy, new energies and artificial intelligence, boost cooperation on new quality productive forces, and further expand mutually beneficial cooperation in renewable energy, energy storage and power transmission and distribution.

China is committed to sharing with South Africa experience in poverty alleviation and rural revitalisation, in building poverty alleviation model villages, and offering support for South Africa’s coordinated urban and rural development. The two sides further agreed to continue to strengthen exchanges and cooperation in the areas of culture, women, health, youth, education, sport, media, tourism, and other people-to-people cooperation fields.

The two sides applauded the recent 70th Anniversary of China’s Five Principles of Peaceful Coexistence, as these were espoused in the buildup to the Asia-Africa Summit of 1955 in Bandung and were later adopted as the main goals and objectives of the Non-Aligned Movement (NAM).

They also expressed deep concern about the serious humanitarian disaster in the Gaza Strip. Both countries called for the earnest implementation of UN Security Council Resolution 2728 and an immediate ceasefire and end to all fighting, and support resuming a process of political settlement of the Palestinian question. Alluding in particular to South Africa’s case against Israel, brought to the International Court of Justice, China commended the positive role that South Africa has played in activating the role of the international community in the conflict in Gaza and is willing to work together toward a comprehensive, just and lasting settlement at an early date. South Africa expressed its appreciation to China for successfully inviting various Palestinian factions to hold a reconciliation dialogue and to sign the Beijing Declaration.

We reprint below the report on the meeting, which was released by the Chinese Foreign Ministry, as well as the full text of the joint statement as published by the Xinhua News Agency.

Continue reading China and South Africa to boost cooperation on renewable energy, digital economy and AI

China and Africa safeguard global peace and promote development

The 2024 Summit of the Forum on China-Africa Cooperation (FOCAC) will be held in Beijing, September 2-4. It is six years since the summit was last held in China and it will be the country’s largest diplomatic event for this year.

In advance of the summit, on August 31, the Xinhua News Agency published a guest opinion contributed by Li Xiang, China’s Ambassador to Eritrea. The Ambassador notes that:

“Politically, China and Africa share the same aspirations and vision. China and Africa have supported each other in fighting imperialism, colonialism and racism, based on similar suffering in recent history. In the struggle for national independence, China and Africa, as members of the Global South, have been united in their common goal, extending mutual assistance and having been the most distinctive, steadfast and major supporters of each other’s anti-imperialist, anti-colonial and anti-hegemonic struggles.”

On economic matters, he reiterates that: “China will always walk side by side with Africa on its path to modernisation and join hands with Africa to inject strong impetus into the promotion of an equal and orderly multipolar world and a universally beneficial and inclusive economic globalisation.”

Both China and Africa, Li underlines, “have had the tragic experience of being colonised, and we cherish the golden rule of sovereign equality, oppose the big abusing the small and the strong bullying the weak, advocate the equality of all countries, large and small, and oppose interference in the internal affairs of other countries.”

Noting that, following his historic state visit to China in May 2023, President Isaias Afwerki will lead the Eritrean delegation to the summit, and alluding to the inspiration that the Eritrean people drew from the experience of the Chinese revolution during their liberation struggle, Ambassador Li writes: “China and Eritrea have established a strategic partnership and are in a unique position to build a closer community with a shared future. The two countries share similar philosophies, and their people maintain close contact.”

Meanwhile, in the Chinese Foreign Ministry’s regular press conference on August 30, spokesperson Lin Jian said that China and Africa endured colonialist and imperialist suppression and invasion, and the two sides supported each other and fought together on the road of anti-colonialism and anti-imperialism and won the independence of their countries and the liberation of their nations.

“Therefore, we deeply cherish independence, self-determination, fairness and justice; we agree on the Five Principles of Peaceful Coexistence; we are committed to building an equal and orderly multipolar world and a universally beneficial and inclusive economic globalisation; and we both aim to make the international order more just and equitable.”

China and the African countries stand for bridging the gap between rich countries and poor ones, reject all forms of interference by big powers and economic coercion, and ask developed countries to face up to their historical responsibilities and deliver on their development commitments.

“At the upcoming FOCAC Summit next week, the two sides will enhance unity and cooperation among developing countries to augment the strength of the Global South, jointly champion international fairness and justice, and advance the peace and development of the world,” Lin said.

The following articles were originally published by the Xinhua News Agency.

Jointly build a closer China-Africa community with shared future to push forward China-Eritrea strategic partnership

October 31 (Xinhua) — by Li Xiang (Chinese ambassador to Eritrea).

The 2024 Summit of the Forum on China-Africa Cooperation (FOCAC) will be held in Beijing on Sept. 4-6. Chinese and African leaders will gather in Beijing again after six years to discuss future development and cooperation and exchange governance experience. H.E. President Isaias Afwerki will lead the delegation of Eritrea to attend this summit, following his historic state visit to China in May 2023. Through this summit, China and Africa will enhance their long-standing friendship and deepen unity and collaboration to open up new vistas for faster common development and start a new chapter for a China-Africa community with a shared future.

The world today is undergoing major changes unseen in a century. The waves of anti-globalization, unilateralism and protectionism are on the rise. Global crises such as geopolitical conflicts and climate change occur frequently. Humankind is at a crucial crossroads, and China-Africa cooperation and development are facing more uncertainty. China’s answer to the question of “where is human society headed and how can China-Africa cooperation develop” is to build a closer China-Africa community with a shared future. This is the trend of the times and the common voice of the people of China and Africa.

Continue reading China and Africa safeguard global peace and promote development

Remy Herrera: the foundations of China’s economy clearly distinguish it from capitalism

The following text is the English translation of an interview with Rémy Herrera, a research analyst at the National Center for Scientific Research (CNRS) at the Sorbonne in Paris. The interview was carried out by Tang Xiaofu for the Observers’ Network, Beijing, and was recently posted in Workers World. While covering similar ground to the interview we published in June 2024, it contains a number of additional insights and is well worth reading in full.

In the interview, Herrera firmly rejects the characterisation of China by David Harvey and others of “a neoliberalism with Chinese characteristics”, and points to the foundations that clearly distinguish China’s system from capitalism:

1) The persistence of powerful and modernized planning; 2) a form of political democracy, obviously perfectible, but making collective choices possible; 3) extensive public services, conditioning political, social and economic citizenship; 4) ownership of land and natural resources that remains in the public domain; 5) diversified forms of ownership, adequate to the socialization of productive forces and boosting economic activity; 6) a general policy which consists of increasing labor remuneration more quickly compared to other types of income; 7) a desire for social justice displayed by public authorities in the face of rising social inequalities since 1978; 8) the priority given to the preservation of the environment, the protection of nature being now considered inseparable from social progress; 9) a conception of economic relations between States based on a win-win principle; and 10) political relations between States based on the search for peace and more balanced exchanges between peoples.

Herrera goes on to discuss the unique role of the state-owned enterprises in China’s economy, in particular that “the compass that guides them is not the enrichment of private shareholders, but the priorities given to productive investment and the service provided to their customers”.

The public sector “still represents a large part of industrial assets (in construction, steelmaking, basic materials, semi-finished products, etc.) and almost all of them in strategic areas for the country’s, like infrastructure in energy, transport, telecommunications, and of course armaments — in addition to the banking and financial sectors.” As such, public ownership sits at the heart of – and is able to guide – China’s development strategy.

The planning system “is the place where collective choices are developed and decided, as expressions of a general will. It is the authentic space where a nation chooses a common destiny and the means for a sovereign people to become its own master, in all areas of its existence: way of life, ways of consuming, housing and occupying or developing the national territory, precise definition of the relationships maintained by human beings with their environment and nature.”

Herrera also addresses the US’s trade war, launched by Trump and continued by Biden, assessing that the “problem” from the US’s point of view is that the unequal relationship between the US (an imperialist country) and China (a developing country) is becoming less unequal – “there is an erosion of the advantage of the United States in the exchange”. The trade war “was an attempt by the administration led by President Trump to curb the slow, continuous erosion of the advantage of the United States, observed for decades in trade with its emerging rival, China.”

The interview concludes with an appeal to move beyond a moribund imperialism. “We must dismantle the logic of crisis and war driven by high finance by imposing democratic control on it, and therefore think about alternatives to capitalism. The defense of peace and the reactivation of the socialist project are today’s priorities. In this context, China has a fundamental role to play in these transformations.”

I. How the West interprets China

Tang Xiaofu: 1) You have visited China multiple times, but now many scholars are trying to distort Socialism with Chinese Characteristics into State Capitalism. What’s your view towards State Capitalism? And what’s the difference between State Capitalism and Socialism with Chinese Characteristics?

Rémy Herrera: The speeches of many current leaders of the Communist Party of China (CPC) suggest that China would still be in the “first phase of socialism,” that is to say, in a stage considered essential for developing the productive forces and which would take a long time to reach its goal. According to them, the historical goal sought would indeed remain that of developed socialism — even if, it is true, the contours of the latter are far from being clearly and precisely defined. However, in Western countries, many researchers claim that these official political declarations claiming the persistence of socialism in China are only a facade, or the cover-up of a hidden form of capitalism, and that socialism is really dead and buried in China. I do not share the opinion of these Western researchers. On the contrary, I think that these statements by Chinese leaders deserve to be taken seriously.

Moreover, even within the debates among Western Marxists, a clear majority of them affirm that the Chinese economy would henceforth be purely and simply capitalist. This is the case of certain well-known Marxists, such as David Harvey, who believes he has seen, since the 1978 reforms, “a neoliberalism with Chinese characteristics” where a particular type of capitalist market economy has incorporated more and more neoliberal devices operated in the framework of very authoritarian centralized control. This is also the case of Leo Panitch, for example, who analyzes the contemporary integration of China into the circuits of the world economy as the duplication by China of the role of “capitalist complement” formerly held by Japan, as a support that China would provide to the United States through capital flows allowing the latter to maintain its global hegemony, and as the trend towards the liberalization of financial markets in China leading to the dismantling of instruments of control of capital movements and undermining at the same time the bases of the power of the CPC. I do not agree with these researchers either. I defend the idea that today, the Chinese system still contains key elements of socialism, and the interpretation I give of its nature is compatible with socialism.

Thus, I read the Chinese political-economic system as a market socialism, or socialism with a market, based on some pillars which still distinguish it quite clearly from capitalism. I will cite, among these foundations: 1) the persistence of powerful and modernized planning; 2) a form of political democracy, obviously perfectible, but making collective choices possible; 3) extensive public services, conditioning political, social and economic citizenship; 4) ownership of land and natural resources that remains in the public domain; 5) diversified forms of ownership, adequate to the socialization of productive forces and boosting economic activity; 6) a general policy which consists of increasing labor remuneration more quickly compared to other types of income; 7) a desire for social justice displayed by public authorities in the face of rising social inequalities since 1978; 8) the priority given to the preservation of the environment, the protection of nature being now considered inseparable from social progress; 9) a conception of economic relations between States based on a win-win principle; and 10) political relations between States based on the search for peace and more balanced exchanges between peoples. Socialism “with Chinese characteristics” is not very far from this reading grid.

Continue reading Remy Herrera: the foundations of China’s economy clearly distinguish it from capitalism

State intervention an indispensable factor in China’s economic success

The following article by Michael Roberts reviews and summarises a new book by Brazilian Marxist economists Adalmir Antonio Marquetti, Alessandro Miebach and Henrique Morrone, entitled Unequal Development and Capitalism: Catching Up and Falling Behind in the Global Economy.

The central focus of the book is measuring the progress of Global South countries in catching up with the imperialist countries in terms of economic development. Roberts summarises the authors’ key finding as follows: “The ‘follower’ countries (the Global South) will generally have higher profit rates than the ‘leader’ countries (the imperialist Global North) because their capital-labour ratio (in Marxist terminology, the organic composition of capital) is lower.” However, “as these countries try to industrialise, the capital-labour ratio will rise and so will the productivity of labour.” As a result, “capital productivity will tend to decline and this eventually will slow the rise in labour productivity.”

Consequently, “many Global South countries will never ‘bridge the gap’ on labour productivity and thus on living standards because the profitability of capital in the Global South will quickly dissipate compared to the Global North”.

How to overcome this contradiction where increased productivity of labour leads to a falling rate of profit, thereby decelerating development? The book’s authors write: “This issue is observed in many middle-income trap countries. In these cases, state intervention becomes essential, expanding investment even as the profit rate declines, as in China.” To which Roberts comments: “Exactly. China’s success in catching up, which so frightens US imperialism now, is down to state-led investment overcoming the impact of falling profitability on capital investment.”

China has “a model of development based on dominant public ownership of finance and strategic sectors and a national plan for investment and growth”. As a result, “only China is closing the gap on per capita GDP with the imperialist bloc”. This chimes with Samir Amin’s observation that “China is the only authentically emergent country”.

Brazilian Marxist economists Adalmir Antonio Marquetti, Alessandro Miebach and Henrique Morrone have produced an important and insightful book on global capitalist development, with an innovative new way of measuring the progress for the majority of humanity in the so-called Global South in ‘catching up’ on living standards with the ‘Global North’.

In this book Marquetti et al argue that unequal development has been a defining characteristic of capitalism. “Throughout history, countries and regions have exhibited differences in labor productivity growth – a key determinant in poverty reduction and development – and although some nations may catch up with the productivity levels or well-being of developed economies at times, others fall behind.”

They propose a model of economic development based on technical change, profit rate and capital accumulation, on the one hand, and institutional change, on the other.  Together these two factors should be combined to explain the dynamics of catching up or falling behind.

They base their development model on what Duncan Foley called the ‘Marx-bias’ and what Paul Krugman has called ‘capital bias’; namely that in capitalist accumulation there will be a rise in the organic composition of capital (rising mechanization compared to labour input) leading to an increase in the productivity of labour, but also a tendency for the profitability of accumulated capital to fall.

Continue reading State intervention an indispensable factor in China’s economic success

Angolan President: We know what colonisation is and the Chinese are not colonising Africa but cooperating with us

Angolan President João Manuel Gonçalves Lourenço paid a state visit to China from March 14-17 at the invitation of his Chinese counterpart Xi Jinping. 

Whilst in China he gave an exclusive interview to He Yanke for the CGTN series Leaders Talk. 

He Yanke noted that Lourenço has visited China on numerous occasions since 2000, including as the Secretary General of the ruling Popular Movement for the Liberation of Angola (MPLA), as the Special Envoy of his predecessor, and this is his third visit as head of state. 

Summing up his impressions from all these visits, Lourenço remarked that what impressed him most was that China was continually making progress and bringing surprises to the world. 

Noting that last year saw the 40th anniversary of the establishment of diplomatic relations between China and Angola, he described the relationship as exemplary. During very difficult times for his country, for example the period of post-war reconstruction, China had lent a helping hand. And the same was true, not only for his country but for the world, when humanity was suddenly faced with the Covid pandemic. 

Asked for his views on the Belt and Road Initiative (BRI), he recalled that China has provided Angola with strong financial support for infrastructure construction, including for roads, ports, airports, and hydropower plants, all of which are necessary for development. In his last few days in China, he had talked with 24 major companies, who had shown willingness to take risks and invest in his country.

Noting that China was building what will be Africa’s largest hydropower plant in Angola, and also training local personnel for the project, that will not only meet his country’s needs but also produce surplus electricity to be supplied to neighbouring southern African countries, Lourenço  was asked, given that Chinese companies are providing tens of thousands of jobs in Angola, how he would respond to the accusations levelled against China’s role in Africa from some quarters.

His answer was emphatic. Not just the Portuguese colonialists, he said, but the Europeans in general, including the British and French, had been in Africa for centuries. They had never engaged in the kind of infrastructure construction that we are seeing now. They are not just critics but slanderers acting out of malice. The facts are clear: China has not invaded any African country. The Chinese in Africa are not there for colonisation. We know what colonisation is and the Chinese are not colonising Africa but cooperating with us. China did not come to us fully armed but with funds and technology and a willingness to work with us.

The results are plain to see. In 2002 (when Angola’s long-running civil war finally ended), our country was in ruins. Thanks to the help from China, we now have land-based infrastructure connecting provinces and cities which didn’t exist before. 

The construction of roads, bridges, ports and railways was all done with the help of China. If these critics want to be part of the process, then they must act and do better than China. But we don’t believe they can.

Asked about President Xi Jinping’s three global initiatives, on development, security and civilisation, President Lourenço described the Chinese leader as a visionary and insightful statesman. Without peace and security, there can be no development – this is true both from the Angolan experience and also on a world scale.

The full interview with President Lourenço is embedded below.

China and the struggle for peace

The following text is based on presentations given by Friends of Socialist China co-editor Carlos Martinez at Morning Star Readers and Supporters meetings in Manchester (19 February), Leeds (13 March) and Brighton 24 March), on the subject of China’s global strategy.

Carlos responds to the assertion by Western politicians and media that China is an aggressive and expansionist power, comparing China’s foreign policy record with that of the United States. He shows that China’s foreign policy is based on the principles of peace, development and win-win cooperation, and explains how this approach is rooted in China’s history and ideology, and is consistent with China’s overall strategic goals.

Carlos also takes note of China’s contribution to the global struggle for multipolarity and to the project of global development. He highlights the Belt and Road Initiative and China’s role in the struggle against climate catastrophe.

The text concludes:

On questions of peace, of development, of protecting the planet, China is on the right side of history. It’s a force for good. As socialists, as progressives, as anti-war activists, as anti-imperialists, we should consider China to be on our side… Those of us who seek a sustainable future of peace and prosperity, of friendship and cooperation between peoples, have a responsibility to oppose this New Cold War, to oppose containment and encirclement, to demand peace, to promote cooperation with China, to promote understanding of China, to build people-to-people links with China, and to make this a significant stream of a powerful mass anti-war movement that our governments can’t ignore.

The Manchester event was also addressed by Jenny Clegg; the Leeds event by Kevan Nelson; and the Brighton event by Keith Bennett.

I’m going to focus my remarks on China’s international relations and its global strategy. This is a subject about which there’s a great deal of misunderstanding and obfuscation, particularly in the context of an escalating New Cold War that’s being led by Washington and that the British ruling class is only too happy to go along with.

The mainstream media is full of hysteria about China’s “aggression” or “assertiveness”. When China reiterates its position on Taiwan – a position which in fact has not meaningfully changed in the last seven decades, and which is completely in line with international law – it’s accused of ramping up the threat of war.

When China refuses to go along with the US’s illegal, unilateral sanctions (for example on Russia, Iran, Syria, Nicaragua, Cuba, Venezuela, Eritrea and Zimbabwe), it’s accused of “subverting the international rules-based order”.

When China establishes bilateral relations and trade agreements with Solomon Islands, Honduras, Nicaragua and Nauru, it’s accused of engaging in colonial domination.

When Chinese companies invest in Africa, Latin America, the Caribbean and the Pacific, they’re accused of imposing debt traps.

And unfortunately much of the left takes a fairly similar position to the ruling class on these issues, considering that China’s an imperialist power, that it’s engaged in a project of expansionism.

This sort of analysis on the left leads inexorably to a position of “Neither Washington Nor Beijing”, putting an equals sign between the US and China; putting China in the same category as the imperialist powers. According to this analysis, the basic dynamic of global politics is today that of inter-imperialist rivalry between the US and China.

And of course if that’s the case, if China’s just another imperialist power, and its only interest is growing its own profit margins and competing with the US, Britain, the EU, Canada and Japan for control of the world’s resources, labour, land and markets, it goes without saying that the global working class and oppressed – the vast majority of the population of the world – cannot possibly consider China to be a strategic ally in the pursuit of a better, fairer, more peaceful, more equal, more prosperous, more sustainable world.

China’s view of international relations

How does China consider its role in the world? What does the Communist Party of China propose regarding China’s foreign relations?

What the Chinese leadership calls for is “building a global community of shared future, with the goal of creating an open, inclusive, clean and beautiful world that enjoys lasting peace, universal security, and common prosperity.”

China consistently expresses its commitment to multipolarity; to peace; to maximum and mutually beneficial cooperation around economic development and tackling climate change, pandemics, and the threat of nuclear war; to working within the context of the UN Charter and international law in support of peaceful coexistence.

Foreign Minister Wang Yi, at his recent Meet the Press session, talked of China “advocating vigorously for peace, development, cooperation and mutual benefit”, and urged that “countries should rise above their differences in history, culture, geography and system, and work together to protect the Earth, the only inhabitable planet for us all, and make it a better place.”

Xi Jinping often talks about China’s orientation towards peace: “Without peace, nothing is possible. Maintaining peace is our greatest common interest and the most cherished aspiration of people of all countries.”

All of this is of course a pretty beautiful and compelling vision. But to what extent does it line up with reality? To what extent is China actually working towards peace, development and sustainability? To what extent does China diverge from the model of international relations pursued by the US and its imperialist allies?

Continue reading China and the struggle for peace

A rising China and a rising Africa? This is doubly frightening to the imperialist powers

What follows below is the text of a speech given by Fiona Sim on behalf of the Black Liberation Alliance at the recent Friends of Socialist China event Africa, China and the Rise of the Global South, held at the Marx Memorial Library on 16 March 2024.

Fiona describes the blossoming relationship between Africa and China – which even extends to South Africa and China collaborating to build a research base on the moon – and contrasts it with the “playbook of neo-colonial extraction and political puppeteering” that the West has used to exploit Africa for centuries. The China-Africa partnership is inspiring fear and loathing in the West, representing as it does a challenge to the global hegemony of the US and its allies:

“A rising China and a rising Africa? This is doubly frightening to the imperialist powers. It is the precursor to the fall of western hegemony altogether.”

The West’s response has been to ramp up its propaganda war against China and to try to drive a wedge between China and Africa – most obviously by denouncing Chinese “imperialism” and slandering its investments as “debt traps”. But the reality is that “China’s loans to African countries have some of the lowest interest rates, no political strings attached, mass debt relief programmes, and the massive infrastructure projects they fund and build result in positive net growth.” Chinese loans and investment are paving a road out of poverty and underdevelopment.

Fiona concludes by calling for solidarity with China and Africa in their struggle against imperialism, for countering the lies and distortions of the Western media, and for resolutely opposing the New Cold War.

It is my great honour to be included in this panel alongside our esteemed comrade from the Communist Party of Kenya and all these powerful organisers and activists. There is nothing more powerful than being united in struggle with comrades who are not only from across the diaspora but from around the globe. 

It is a reminder of the importance of internationalist, anti-imperialist solidarity that transcends borders and bureaucracy. Our struggles are connected by the chains of imperialist domination and sown from the seeds of destruction left by colonial conquest. But our joint history stretches back centuries further. 

While Europe was in its so-called Dark Ages, Africa, Asia and the Islamic world were experiencing their Golden Ages. The renowned Chinese Muslim naval navigator Zheng He led peaceful expeditions along the ancient Silk Road, with voyages as far as East Africa, where the seas connecting the two continents would go on to establish trade routes and friendly relations for years to come.

Now, centuries later, with the Silk-Road-inspired Belt and Road initiative, we are seeing the rebirth of Africa-China relations and establishment of South-South cooperation at an unprecedented scale. The relationship between Africa and China could not be stronger. Kenya is China’s number one trade partner in East Africa. South Africa and China are collaborating to build a research base on the moon. After the uprisings in the Sahel, the coup governments formed were quick to affirm their relations with China, which reiterated its policy of non-intervention and non-interference in African politics. Burkina Faso’s President Traore declared that he considered China an important trade partner early on, and Niger’s interim President General Tchiani has reportedly met with the Central and North African representative for BRICS in the last few weeks.

It is no wonder that the countries of the West – where whole civilisations have been built on the foundations of plunder and pillaging of the global South – see this as a threat. The West has seen that Africa has taken great interest in the rise of China especially in the last decade and it is running scared. Scared that its playbook of neo-colonial extraction and political puppeteering is no longer going to work on its former colonies. 

Let us be clear. The West only sees China as a threat to its hegemony because it cannot conceive a country that less than a century ago was one of the poorest in the world is now a global powerhouse whose economy rivals the US. Since the 1990s, China has been the only country whose GDP has grown exponentially, increasing on average by 9 percent a year. In 2023, China’s GDP increased by 5.2 percent – the highest among the major powers, with the US in second place at 1 percent. 

Continue reading A rising China and a rising Africa? This is doubly frightening to the imperialist powers

BRICS+ and the future of the international order

This thought-provoking article by Elias Jabbour – associate professor of theory and policy of economic planning at Rio de Janeiro State University, and member of the Friends of Socialist China advisory group – explores the shifting dynamics of global power and the emergence of BRICS+ as a significant factor in the evolving international order. The article underlines the significance of China’s socialist development in particular – which has positioned it at the centre of a rising multipolar world – and an emerging “globalisation with Chinese characteristics” which promotes development, peace and common prosperity, in contrast to the enforced inequality and violence that characterise imperialist globalisation.

Elias notes the resurgence of the Global South as a key factor in the transformation of the international order, and the role of BRICS+ in this process. While the Global South is made up of “a heterogeneous set of countries, with differentiated levels of development”, these countries collectively “have the ability to converge on some fundamental issues for their own future, and for that of humanity itself.” Put in other words, the countries of the Global South have a shared interest in opposing imperialism, defending sovereignty and pursuing peaceful development. China stands at the centre of the process of uniting the countries of the Global South in promoting a multipolar, democratic and fair system of international relations.

The article also highlights the significance of the Belt and Road Initiative as a key component of China’s global strategy, and the potential for BRI to transform the global economic landscape by promoting infrastructure development, economic integration, and a shift away from the financialised neoliberal model associated with the US.

Elias discusses the disastrous consequences of the collapse of the Soviet Union and the concurrent global imposition of neoliberalism. On the other hand, the US’s moment of triumph did not last long, and the last decade and a half have witnessed “the erosion of the ability to reinvent capitalism due to financialisation and the emergence of a socialist country (China) as an economic power whose path reflects nothing of the neoliberal recipes sold by the IMF and the World Bank have contributed to the acceleration of a systemic transition, in which a new globalisation centered on China is only its greatest expression.”

In conclusion, the article argues that the political future of BRICS+ and the broader Global South is intricately linked to China’s trajectory and its ability to offer a developmental model that counters neoliberalism. It suggests that the global struggle against underdevelopment and for independence is gaining momentum, with BRICS+ playing a pivotal role in shaping a more equitable global order.

This article first appeared in Geopolitical Economy Report.

The emergence and rise of new poles of power to the detriment of existing ones is nothing new in history. Since the 18th century, there have been countless examples of transitions in international hegemony. This accelerated with the emergence of industrial capitalism in England, which was more advanced than the Portuguese and Spanish commercial capitalism that for centuries had dominated much of the world, especially Latin America.

Even the capitalist dynamic inaugurated by England has characteristics that are not unfamiliar to economic historians with great theoretical and conceptual rigor.

Well known is Vladimir Lenin’s discovery of the uneven nature of the development of nations and the tendency of the most developed countries to lose dynamism while others begin to enjoy what economist Alexander Gerschenkron called the “advantages of backwardness”.

So the international order cannot be observed, from a historical point of view, as a march where countries change positions like in a military parade.

The emergence of monopolistic capitalism brought with it the tendency toward war, for example. We have witnessed two great world wars where the center of the dispute was world power, with results that consolidated new political actors on the international stage, mainly the United States.

A new systemic transition

I start from the historical principle that reality has shown Lenin to be correct, regarding the uneven development of the system and the tendency toward stagnation in the developed centers. These processes open spaces of power in the world.

I also say that we will have little to offer in terms of explanation for the future if we do not relate the transformation of the United States into a unified continental economy at the end of the 19th century, and its impacts on the development of the international capitalist system, with what we have witnessed in China over the past decades: the emergence of a unified continental economy in the third-largest country in the world, which is generating huge impacts on the international political economy – and is still little investigated by so-called experts.

This is a fundamental point when we want to develop a sophisticated thinking about the BRICS+ and the future of the international order. I will return to this point.

On the other hand, we are witnessing a new wave of systemic transition today. This time, there is the emergence of new poles of global power on one side, while on the other there is an accelerated stage of political, social, moral, and economic decomposition of a hegemonic power: the United States of America.

It is interesting to note that the new order that is emerging is itself the product of the order created by the United States after World War II, which accelerated in the late 1970s with the rise of neoliberalism, and especially after the end of the Soviet Union.

Globalization led by the powerful finance of the United States was a reality that transformed the economic geography of the world, but which is eroding within its own limits. Since the moment when financialization became the dominant dynamic of accumulation in capitalism, and neoliberalism won hearts and minds around the globe, the world has entered a spiral of greater instability and unpredictability.

Continue reading BRICS+ and the future of the international order
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