China-Africa Expo: despite many ‘deals’, 37 African countries still in trade deficit

As the third China-Africa Economic and Trade Expo (CAETE) concluded in Changsha on Sunday June 2, with $10.3 billion worth of projects signed, analysts say that the economic cooperation between both sides will need to build on past lessons and successes to really reshape China-Africa trade.

With bilateral trade between China and Africa totaling $282 billion in 2022, China ranks as Africa’s largest trading partner and its fourth-biggest source of investment. The expo aimed to boost business links between the two parties while opening the Chinese market to products Made in Africa.

The four-day event has attracted over 100 000 visitors and resulted in 74 cooperative projects, a first in the expo’s five-year history, according the organizing committee. African visitors claim that the Chinese market has much to offer their businesses and populations.

But according to a latest analysis in The Diplomat, although for African governments and firms looking for new export markets, China can seem like a golden opportunity, the question is whether the third expo has made any difference to long-term trade patterns between the African continent and China, although many “deals” were signed.

“The jury is out,” the authors of the analysis argue. “Despite the increase in trade volumes with China, today, 37 African countries still have a trade deficit with the Asian country. It’s unlikely that any expo will change this.” However, they also nightlight three shifts that differentiate this year’s expo from the previous two, potentially heightening its impact. First, this time, the African Continental Free Trade Area (AfCFTA) is in force. Second, several African countries are gearing up for better involvement. Third, the expo and China’s other trade promotion activities have been complemented by recent shifts in trade policy, including some extensions of duty-free treatment for African Least Developed Countries.