Africa becomes increasingly important to China amid trade, investment surge: economist

The intensification of China-Africa trade and the growing role of the Chinese yuan on the continent highlights Africa's growing importance as a trade market and investment destination for China, said Sarah Baynton-Glen, Africa economist at Standard Chartered Bank.

In an interview with China Global Television Network (CGTN), she discussed the economic turnaround many African countries have undergone in recent years and how these developments may impact relations with China.

"We've seen a very significant deepening of the economic relationship between Africa and China. Africa now composes almost six percent of China's global exports. So it's become an increasingly important export destination for China's exports, but also an important investment destination. And we've seen that following the launch of the Belt and Road Initiative, a significant amount of investment by the Chinese government in countries across the African region. And we think that the opportunities from the African market, the very fast growth that we're seeing from a number of economies across sub-Saharan Africa, is going to be a driver of a deepening of that relationship still going forwards," she said.

One of the new agendas at the 2024 Forum on China-Africa Cooperation (FOCAC) Summit is private sector involvement in Africa's business. According to Baynton-Glen, the private sector will likely play an even more important role in the growth picture for Africa and also in engagement with China.

She also highlighted the rising influence of the yuan, also called the renminbi, in African trade and investment.

"As early as 2011, a number of countries in the region expressed their intention to hold the Chinese yuan in their FX (foreign exchange) reserves. So Nigeria, Kenya, Uganda being some of those countries, and we've also seen the systems being put in place very rapidly to enable that to take place faster. We've seen bilateral currency swaps signed with a number of countries. And we've also seen renminbi clearing banks being set up in countries like South Africa. So this has been facilitating that increase in trade and investment denominated in the Chinese yuan," said the economist.

"Another growth area where we're seeing much more in terms of Chinese yuan internationalization in the region has been in terms of investment and borrowing in the Chinese yuan as well. So Egypt issued a panda bond last year, Nigeria and Kenya have been discussing the possibility of panda bond issuance as well. We've also seen announced with this Forum on China-Africa Cooperation, some lending denominated in the Chinese yuan for the first time as well. So we're definitely seeing that deepening across the region, particularly from a trade perspective, but also increasingly from an investment and a lending perspective as well," she added.

The three-day FOCAC summit, which opened on Wednesday, is the largest diplomatic event hosted by China in recent years, with the highest attendance of foreign leaders.

Themed "Joining Hands to Advance Modernization and Build a High-Level China-Africa Community with a Shared Future," the event aims to strengthen friendship and outline future cooperation between the two sides.

Africa becomes increasingly important to China amid trade, investment surge: economist

Chinese scientists have set a new record by reaching a drilling depth of 750 meters on the Qinghai-Xizang Plateau, during the country's second comprehensive scientific expedition to the hinterland of the plateau.

The team led by academician Fang Xiaomin from Chinese Academy of Sciences (CAS) is currently carrying out a resource and environment research project in the Lunpola Basin, which is the first proven oil-producing basin on the Plateau.

Overcoming a series of difficulties brought by the harsh high-altitude environment, the team managed to reach more than 750 meters below the surface.

With an average altitude of 4,600 meters, the Lunpola Basin has accumulated the most continuous Cenozoic strata of the plateau dating back for 55 million years, which makes it a key region for studying the plateau's tectonic features, climate, biology and ecology as well as their co-evolution.

The rock samples taken from deep down the earth not only record the history of tens of thousands of years of geological and climate changes on the Qinghai- Xizang Plateau, but also reveal the distribution of energy in the stratum.

"This gray-green section with continuous layered patterns is conglomerate. This part of red sedimentary rock represents the arid climatic conditions of the subtropical high-pressure zone. And this part, with many beautiful layers, is carbonate rock, and over here, it may contain some white-jade marble or gypsum. Further down is what, I just mentioned, was produced from the tropical environment. We also successfully drilled it out. The oil shale from that time has now transformed into heavy oil, indicating that the biological climate was very rich and humid, with high plant diversity and significant organic sedimentation. It's the most important oil and gas-bearing layer in the Lunpola Basin, which is the first basin on Qinghai-Xizang Plateau where we have drilled an oil outlet," Fang explained to China Central Television reporter.

The scientist said the ongoing drilling is expected to provide an important scientific basis for the simulation and prediction of the impact of global warming and the ecological environment protection on the Qinghai-Xizang Plateau, the formation of hydrocarbon source rocks, and the exploration and development of salt lake resources.

"We have designed a drilling depth of 1,500 meters, but we will reach 1,000 meters first. If all goes well, we will drill deeper to 1,500 meters. This mission is the first of its kind globally to drill so deep, more than 1,000 meters, in the core of the hinterland on a plateau," said Fang.

Chinese scientists set new drilling record on Qinghai-Xizang Plateau