VZCZCXRO2756
OO RUEHCN RUEHGH RUEHMR RUEHPA RUEHRN RUEHVC
DE RUEHBJ #2713/01 2991217
ZNY CCCCC ZZH
O 261217Z OCT 06 ZDS
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC IMMEDIATE 0877
INFO RUEHZO/AFRICAN UNION COLLECTIVE
RUEHOO/CHINA POSTS COLLECTIVE
RUEHFR/AMEMBASSY PARIS 3942

C O N F I D E N T I A L SECTION 01 OF 04 BEIJING 022713 
 
SIPDIS 
 
C O R R E C T E D COPY (ADDRESSEE) 
 
SIPDIS 
 
DEPT FOR AF, EAP, EAP/CM 
INR FOR GILLES 
 
E.O. 12958: DECL: 10/26/26 
TAGS: PREL PGOV AGOA ECON EAID CH
SUBJECT: PRC/AFRICA: MFA BRIEFS PRESS ON UPCOMING FORUM FOR 
CHINA-AFRICA COOPERATION (FOCAC) SUMMIT 
 
REF: A. BEIJING 22370 
 
     ¶B. BEIJING 7835 
     ¶C. 05 BEIJING 17598 
 
BEIJING 00022713  001.2 OF 004 
 
 
Classified By: Political External Unit Chief Edgard Kagan.  Reasons 1.4 
 (b/d). 
 
 
Summary 
------- 
 
¶1. (C) Ministry of Foreign Affairs (MFA) Assistant Foreign 
Minister Zhai Jun and Ministry of Commerce (MOFCOM) Vice 
Minister Wei Jianguo briefed the press on October 26 on the 
Beijing Summit of the triennial Forum for China-Africa 
Cooperation (FOCAC), November 3-5 (Refs A-C).  VM Wei said 
China and African countries are preparing more than 2,500 
bilateral political, cultural, economic and trade agreements 
in connection with the Beijing Summit, which will include 
representatives from 53 African countries and over 40 African 
heads of state.  As many agreements are still under 
discussion, it is uncertain how many will be unveiled at the 
Beijing Summit, but the total value will be "very large," VM 
Wei said.  The Beijing Communist Party and the Beijing City 
Government have established task forces to ensure a 
successful event, which AFM Zhai described as akin to a 
rehearsal for the 2008 Olympic Games.  Over the past two 
days, massive billboards with brightly colored photographs of 
African wildlife and pastoral scenes have appeared in Beijing 
by most major hotels and thoroughfares.  Sudan President 
Bashir will lead a senior delegation from Sudan to the 
Beijing Summit and the PRC expects to discuss Darfur with 
him, according to AFM Zhai.  VM Wei said the Beijing Summit 
would produce unspecified new initiatives by China toward 
Africa.  End Summary. 
 
A New Era? 
---------- 
 
¶2. (SBU) VM Wei noted Sino-African relations have entered a 
"new era of dialogue and cooperation" since the 
"action-oriented and results-focused inception of FOCAC in 
¶2000.  The Beijing Summit represents the largest and most 
senior dialogue in FOCAC's six-year history, VM Wei said. 
More than 40 African Heads of State or Government have 
confirmed their participation, according to AFM Zhai, who 
noted that the five African countries that recognize Taiwan 
have yet to confirm their "customary" participation as 
observers.  Chad President Deby told AFM Zhai personally he 
intends to attend, although the Zhai commented that Chad's 
domestic circumstances will ultimately decide whether he 
makes the trip to Beijing. 
 
Bilateral Contracts 
------------------- 
 
¶3. (C) During informal questions taken after the press 
conference ended, VM Wei said that Beijing and African 
countries are preparing more than 2,500 bilateral contracts 
in connection with the Beijing Summit.  As many agreements 
are still under discussion it is uncertain how many will be 
unveiled at the Beijing Summit, but the total dollar value of 
trade and economic contracts will be "very large," Wei added. 
 COMMENT: China tends to aggregate its trade and economic 
figures for maximum optical effect.  Some larger African 
embassies in Beijing have told us they do not expect to sign 
significant agreements during the Beijing Summit (Ref A), 
while smaller African embassies are busy preparing bilateral 
agreements.  It is possible that China will add some 
previously existing commitments to its tally to boost the 
appearance of tangible achievements from FOCAC.  END COMMENT. 
 
PRC: China-Africa Trade Win-Win 
------------------------------- 
 
¶4. (SBU) In prepared remarks, VM Wei said Sino-African trade 
and economic cooperation is "win-win" based on the principles 
of equality, respect and mutual benefit.  China and Africa 
have complimentary economies.  Since the first FOCAC 
Ministerial in 2000, Sino-African trade has experienced 
steady, rapid and comprehensive growth.  China and African 
countries have signed 41 bilateral trade agreements 
conferring mutual most favored nation status to the 
signatories.  In 1995, Sino-African trade totaled USD 10 
billion.  In 2005, the total reached USD 39.7 billion, with 
an annual growth rate of 30 percent.  Trade reached USD 40.5 
billion in the first three quarters of 2006 and is expected 
 
BEIJING 00022713  002.2 OF 004 
 
 
to far exceed USD 50 billion for the year.  Of that total, 
China's imports totaled USD 18.7 billion against imports of 
USD 21.8 billion.  China's bilateral trade with each of 
Angola, South Africa, Nigeria, Equatorial Guinea, Egypt, 
Libya and Algeria exceeded USD 2 billion.  Bilateral trade 
between Angola and South Africa totaled USD 9.3 billion and 
USD 6.8 billion through the third quarter in 2006.  Energy is 
only one component of Sino-African trade, as China's imports 
encompass oil, gas, minerals and agricultural products, among 
others.  China's exports to Africa primarily cover mechanical 
goods, household electronics and agricultural products, VM 
Wei said, indicating China and Africa have a "complimentary 
trading pattern."  China does have a trade surplus with some 
African countries but seeks to boost imports, VM Wei 
acknowledged in response to questions. 
 
¶5. (SBU) VM Wei said China is highly competitive in Africa 
due to the improved quality of its exports and a high 
"performance to price" ratio.  China's exports bring tangible 
benefits to African consumers, such as reducing costs and 
inflation.  China has agreements with 28 African least 
developed countries (LDCs) to give zero tariff treatment for 
imports into China of African products that fall within 190 
tax categories.  Under this Special Preferential Treatment 
(SPT), China imported USD 380 million in 2005, an 88 percent 
increase over 2004.  China has imported over USD 250 million 
under SPT in the first half of this year.  Under FOCAC, China 
also has cancelled RMB 10.9 billion (USD 1.3 billion) in LDC 
and Highly-Indebted Poor Country (HIPC) debt, VM Wei claimed. 
 
¶6. (SBU) The PRC encourages responsible and competent Chinese 
companies to invest in Africa, VM Wei said.  China has signed 
28 bilateral investment protection agreements and 8 
double-taxation avoidance agreements in Africa.  To date, 
Chinese investments in Africa total USD 6.27 billion. 
Chinese investments in African have promoted economic growth, 
increased job opportunities, introduced technology, enhanced 
self-development capacity and improved living standards by 
providing affordable products for Africans.  China's 
investments are very popular with Africans, VM Wei insisted. 
 
Sincere Aid Like Firewood In Snow 
--------------------------------- 
 
¶7. (SBU) VM Wei asserted that China is a developing country 
that receives aid but also sincerely provides development 
assistance to Africa to the best of its abilities and with no 
political conditions.  Questioned by Voice of America how 
China avoids misuse of its development assistance, VM Wei 
responded that since China's assistance seeks mutual benefit 
with no political conditions, it is sincere like "firewood in 
snow."  China makes efforts to ensure fair, transparent 
assistance, Wei insisted.  African countries must demonstrate 
their needs and propose how a given project helps their 
country.  To ensure maximum benefits accrue from each 
project, the PRC uses public tendering for project selection, 
feasibility studies and implementation, VM Wei claimed. 
 
PRC Lauds Its Development "Model" 
--------------------------------- 
 
¶8. (SBU) The Chinese companies undertaking development 
assistance projects have considerable overseas experience and 
market expertise, VM Wei said.  The PRC asks these engineers 
to study and consult with local authorities on project plans. 
 China does not provide cash, VM Wei claimed, but implements 
projects with real benefits so as to avoid "dark deeds" by 
recipient individuals or governments.  Western countries seek 
to better understand and learn from China's development 
assistance model, VM Wei contended.  Since 1956, China has 
assisted 49 African countries with 700 projects covering an 
array of areas, including agriculture, infrastructure 
development, fisheries, food processing and hydroelectric 
power.  China has financed 58 projects in 26 African 
countries with preferential loans.  Over the years, China has 
completed 137 agricultural projects and 133 infrastructure 
projects, in addition to constructing a 2000 kilometer 
railway and a 3000 kilometer road.  China's development 
assistance aims to meet the needs of Africans through 
bilateral friendship and cooperation.  China has increased 
Africans' capacity for self-development by offering 
scholarships to study in China for 18,000 Africans and 
dedicating 16,000 health care professionals to medical teams 
in Africa over the past 50 years.  Since FOCAC's inception, 
17 African countries have become PRC approved tourist 
destinations.  China's model has proven successful and has 
been warmly received, VM Wei claimed. 
 
BEIJING 00022713  003.2 OF 004 
 
 
 
New Initiatives? 
---------------- 
 
¶9. (SBU) VM Wei stated that Beijing will launch a series of 
new initiatives toward Africa during the Beijing Summit (but 
declined to specify what China might propose) and described 
the mechanics of the "High-Level Dialogue between Chinese and 
African Leaders and Business Communities and the Second 
Conference of Chinese and African Entrepreneur," (Ref A), in 
which some 1500 Chinese and African entrepreneurs are 
expected to participate.  More than 100 African enterprises 
from 20 countries have also registered for an African 
products exposition slated for November 6 and 7 at the 
Beijing International Conference Center, he added. 
 
PRC, Sudan to Discuss Darfur 
---------------------------- 
 
¶10. (U) Responding to a question on Darfur, AFM Zhai said 
that President Bashir will lead a senior delegation from 
Sudan to the Beijing Summit.  China and Sudan have a 
longstanding cooperative relationship that has progressed 
considerably in recent years.  China follows regional issues 
closely, including the problems in Darfur, and supports 
efforts in the United Nations to address regional 
humanitarian issues.  The international community has 
expressed its views on peacekeeping operations in Darfur and 
China is using its own channels to speak with Sudan's 
Government of National Unity (GNU).  In Beijing, PRC and GNU 
leaders will discuss issues of mutual concern, including 
Darfur.  China calls on all rebel groups to sign the Darfur 
Peace Agreement.  China will continue to work with others in 
the international community to resolve the Darfur issue, AFM 
Zhai added. 
 
PRC-Angola Relations 
-------------------- 
 
¶11. (U) Asked to describe China's trade relations with 
Angola, VM Wei said China and Angola pursue a commercial 
cooperation pattern under a package agreement between the two 
countries that covers energy cooperation and a host of 
development initiatives, including road, refinery, 
reprocessing plant construction, all of which have been 
requested by the Angolans.  Some projects have been started, 
some remain in feasibility studies.  The PRC will discuss 
with the Angolan delegation ways to improve the package 
agreement.  China "suspects" President Dos Santos will lead 
the Angolan delegation but plans are not yet confirmed. 
China is ready to play an even bigger role in Angola's 
postwar reconstruction, VM Wei said, adding that Angolans are 
in urgent need of China's development model to achieve 
prosperity. 
 
PRC Refutes Western Criticism 
----------------------------- 
 
¶12. (U) Asked to respond to World Bank President Wolfowitz's 
criticism of Chinese bank lending practices to Africa, VM Wei 
said China attaches great importance to Chinese companies' 
behavior in Africa.  The PRC does not approve projects that 
damage or pollute the environment in Africa.  Chinese 
companies that defy PRC orders in Africa will face severe 
punishment, including revocation of their license to operate 
anywhere outside China.  VM Wei added that most Chinese 
companies abide by Chinese law and he had not heard any 
specific allegations of illegal activities.  Chinese banks 
and financial institutions are working to ensure they better 
meet local credit needs and comply with international 
standards, VM Wei noted in response to a related question. 
Pressed on Western criticism of China's failure to address 
human rights concerns in Africa, AFM Zhai flatly rejected any 
such criticism.  China follows the five principles of 
peaceful coexistence, including non-interference, and its 
trade relations with Africa bring tangible benefits to both 
sides.  China is deeply interested in Africa's development so 
there is nothing to criticize.  China does not accept or 
impose development models, Zhai added. 
 
An Olympic Rehearsal? 
--------------------- 
 
¶13. (U) AFM Zhai declined to speculate on total attendance 
figures for the Beijing Summit but said that nearly 1000 
journalists, including about 500 from foreign news 
organizations, have registered to cover the events.  With 
 
BEIJING 00022713  004.2 OF 004 
 
 
delegations from 53 countries (including observers), African 
regional organizations, entrepreneurs and United Nations 
agencies, Beijing has never embraced so many guests, Zhai 
said.  The Beijing Communist Party and the Beijing 
Municipality have established special leadership task forces 
to ensure Beijing properly hosts the event, which Zhai 
described as akin to a rehearsal for the 2008 Olympic Games. 
Noting Beijing's notorious traffic problems, Zhai urged 
journalists to "show understanding" and not contribute to the 
traffic problems.  Over the past two days, massive billboards 
with brightly colored photographs of African wildlife and 
pastoral scenes have appeared in Beijing by most major hotels 
and thoroughfares.  The billboards offer "congratulations" on 
Sino-African cooperation. 
Randt