China and Africa collaboration soaring with trade at R111bn
THE negative spectre of the large fire Chinese breathing dragon dwarfing its investment destinations is being replaced by a warm, cuddly panda bear.
Dr Martyn Davies, the CEO of Frontier Advisory, believes that the negative perception of invading Chinese colonialists is being done away with and the trade numbers support his view.
Speaking at the merger announcement between local Promet Engineers Africa and Chinese Dadi Engineering Development Group, Davies said China was the single largest trading partner and financier of infrastructure into the African continent with trade levels showing compound annual growth of 35%. Total trade of R9,34bn in 2000 has grown to R111bn in 2011. The relationship is not all one way, Davies pointed out, with dependence on exports to China rising across the continent.
Davies said the strong, pervasive and undeniable force of China has seen it record growth levels of 9,1% during a Western economic crisis with 8,5% forecast for next year. Davies scorned the prophecies of hard or soft landings for the Chinese economy, saying: âyou ainât seen nothing yetâ.
Davies predicts that by 2020 China will overtake the US to take number one spot in terms of GDP numbers.
Davies said that the Chinese economy was overheating at growth rates of 13% and that the lower growth rates of 8% to 9%, reported since quarter three of 2010, are an indication of a steadying growth trend.