Extracts from Chinese president Xi Jinping’s speech at the Ninth G20 Leaders' Summit held in Brisbane, Australia.

President Xi Jinping attended the Summit and delivered an important speech entitled “Promoting Innovative Development and Realizing Overall Economic Growth”, advocating for becoming development partners jointly promoting economic reforms and implementing the overall growth strategy, so as to push forward the transformation of world economy from cyclical recovery to sustainable growth. Xi Jinping stressed that China will maintain its momentum of economic growth and make greater contributions to promoting the world economic growth.

Xi Jinping pointed out in his speech that over the past few years, the world economy has gradually climbed out of the trough and constantly developed toward the good direction. Meanwhile, economic recovery is not robust; risks remain in the financial market; and international trade is still staggering at a low level. He said “Our first and foremost task at present is to coordinate macroeconomic policies, jointly overcome development difficulties, decrease economic risks and realize economic prosperity, financial stability, trade development, as well as improvement in employment and people’s livelihood”.

Xi Jinping pointed out that not long ago; the Asia-Pacific Economic Cooperation (APEC) made plans for promoting growth of the Asia-Pacific region. The G20 has also been making efforts and formulated a comprehensive growth strategy. To implement this strategy, it is important to explore and cultivate the impetus for sustained growth to form a new situation featuring development innovation, convergence of interests and overall growth.

Xi Jinping suggested that the G20 make efforts in the following aspects:

First, make innovation on the development pattern. All countries should make innovation on the development concept, policy and pattern, especially through structural reforms in such fields as fiscal taxation, finance, investment, competition, trade and employment, as well as through the combination of macroeconomic policies and social policies, so as to stimulate vitality in creating wealth and bring the market force into full play. We should attach importance to the pulling effect of infrastructure construction on economy. While hosting the APEC Economic Leaders’ Meeting, China set connectivity as one of the core topics. China supports the G20 in establishing a global infrastructure center, supports the World Bank in establishing a global infrastructure fund, and will make contributions to global infrastructure investment through such approaches as the construction of the Silk Road Economic Belt, the 21st Century Maritime Silk Road, the Asia Infrastructure Investment Bank (AIIB), and the Silk Road Fund.

Second, construct an open world economy. All countries should safeguard the multilateral trade system, build a mutually beneficial and win-win global value chain, cultivate a big global market, oppose trade and investment protectionism, and promote the Doha Round Negotiations.

Third, improve the global economic governance. All countries should be committed to building a fair, just, inclusive and orderly international financial system, enhance the representation and voice of emerging markets and developing countries, and make sure that all countries enjoy equal rights and equal opportunities under equal rules in international economic cooperation.

Xi Jinping stressed that China’s economic growth is an important impetus for the world economic growth. According to the estimate made by international organizations, China is one of the largest contributors to the overall growth strategy of the G20. Such contribution comes from China’s policies and measures to maintain steady growth, adjust the structure, promote reforms and benefit the people’s livelihood. China’s economy will maintain strong, sustainable and balanced growth momentum, with an annual increase equivalent to the economic scale of a moderately developed country. China will provide more demands and create more market opportunities, investment opportunities as well as growth opportunities for the world economy. 

Xi Jinping announced that China will adopt the Special Data Dissemination Standards (SDDS) of the International Monetary Fund (IMF). In the end, Xi Jinping pointed out that the G20 members should establish the awareness of a community of interests as well as a community of destiny, and strive to form a pattern of win-win cooperation in which the growth of each country promotes and complements that of other countries, so that the G20 truly becomes the stabilizer of the worldeconomy, the incubator of the global growth, and the propeller of the global economic governance.

Xi Jinping also attended the informal discussions of the G20 Leaders’ Summit and delivered a speech on the topic of economic reforms. He introduced the goals and measures of China’s comprehensively deepening reforms, and stressed that China’s economy has entered a period of opportunities for transforming the pattern and adjusting the structure, cultivating the momentum of endogenous growth, and improving employment and the people’s livelihood, and that China’s economy has developed into a new and regular pattern, with vigorous growth momentum and bright development prospect. “I hope that all countries take on the political courage of eliminating the old and establishing the new, constantly make innovation on the development pattern, and become development partners jointly promoting economic reforms”. He said.

China’s development assistance to Kenya cannot be downplayed

Whenever a discussion on development and aid in Kenya comes up, it is highly unlikely that China will not feature. Analysts find it important to compare what China has done in relation to what other development partners have to offer. Despite the obvious grounds and motivation for this association, sophists tend to put China’s role and activities under the critical lens; however, in the face of differing views being projected by diverging interests, it is not difficult to weigh up and establish China’s critical role as the evidence is there for everyone to see.

Before China’s engagement with Kenya, traditional donors dispensed aid with political strings attached and conditions. Today, China gives unconditional aid not in form of money, but in form of infrastructural and social development that every Kenyan can see and feel. We are no longer talking about white elephants but grand projects never seen before in the country. This has not shielded Chinese aid from criticism based on historical experiences of aid money.

China gives us cheap and long term loans which reduce the pressure to pay, enabling the country achieve its development objectives. This too is being seen in terms of increasing our debt burden, forgetting that these are the same loans that Kenya and other African countries begged from the Brettonwoods institutions to fund our much needed infrastructural development.

A decade of engagement has helped Africa to develop and grow African economies by 20%, which more than 500 years of trade with the west could not. Kenya’ fast economic growth in recent years has been attributed to improved trade with and infrastructure development with China. China’s charm has been its ability to listen and consult on what is best for Kenya’s self development. During his trip in China, President Kenyatta asked for even greater cooperation with China to drive our most pressing needs. Discussions on new areas of investment mainly in infrastructure, energy and technology transfer were fruitful leading to the signing of agreements worth Sh425 billion with China.

This is the necessary capital that a country like Kenya needs to spur its economic growth. Just like in business, no country can invest big without sufficient capital and this is the path that developing countries like Kenya have to take. When the Asian giants were poor, they went through the same development path and they are now servicing their debts with ease. Having undergone the same process, China understands this concept hence its willingness to risk giving us such huge amounts of money as investment at very cheap interest rates compared to traditional lenders in the bretton woods institutions.

Meanwhile, the majority of China’s assistance is in government to government model by non-currency delivery. This protects the general populations from graft in government and ensures that the money is used for its intended purpose which is investment in infrastructure and development.  A successful investment ensures the country is able to pay back the loans without having to subject the citizens to higher taxes and a greater tax burden.

The best thing about China is the focus on concrete programs such as infrastructure, livelihood projects, education, healthcare etc, from which the people can see and feel and benefit directly. For instance, the new standard gauge railway linking the port of Mombasa and the border town of Malaba has employed over 25,000 youths from this country that apart from the income they will get, will also benefit a lot from the skills and technological knowhow from their Chinese counterparts.

It is impossible to downplay China’s significant contributions to Kenya’s economic and social development, especially the implementation of Vision 2030.  As for development, China shares much with Kenya in terms of concepts, goals and approaches.  Other development partners perceive Kenya as backward and underdeveloped, opting to instead dump outdated technologies no longer in use in their countries. Kenya Vision 2030 and the Chinese Dream have similarities that will bring both countries together to carry out common development, integrate our shared interests and combine the wishes and aspirations of both peoples. It is the shared tasks of both countries to create a bright future and fulfill common development dreams.

China has become Kenya’s largest source of financing, our largest construction project contractor and second-largest trade partner. Especially under the framework of Vision 2030, China and Kenya are working together closely in many fields, and have built or are building a number of flagship projects. These have greatly improved Kenya’s capacity of self-development and laid a solid foundation for Kenya’s future prosperity.

China is actively involved in the construction of roads, railways, airports and sea ports in the country. The Thika Superhighway is just an example of how much these kinds of infrastructure are critical to Kenya’s development. The road has opened up economic activity and development in areas along the road. Notable ones being Nakumatt Thika Road Mall (TRM), Garden City Mall, Naivas mall among others.

The Mombasa-Nairobi SGR, currently being built by China Road & Bridge, has been the largest infrastructure project since the independence of Kenya. It is expected to create more than 30,000 local jobs and lift Kenya’s GDP growth by 1.5%. When completed, it will have reduced the Mombasa-Nairobi transportation cost by about 40%, and will boost business along the railway and create numerous jobs.

The expansion of Jomo Kenyatta International Airport and the construction of Greenfield Airport will remarkably improve Kenya’s aviation capacity, and further enhance Kenya’s unique position as the transportation hub in East Africa. The Chinese participation in the Mombasa Port and Lamu Port projects will help increase Kenya’s cargo throughput and promote its imports and exports. There are far more model projects like these, which have become success stories in Kenya’s households and the symbols of China-Kenya friendship.

In the field of energy, which is the lifeline for Kenya’s economic take-off and industrialization, China has provided financing assistance and asked Chinese companies to engage in related projects. The Olkaria 140-megawatt geothermal power station, which is the largest of its kind in Africa, has come into operation recently. PetroChina and Sinopec took part in this project, which has improved Kenya’s power generation capacity and reduced local electricity price by around 30%.

It is unimaginable where Kenya would be without Chinese support of the last decade. Kenya was on a steady downward slope in terms of economic development. The country was fraught with high unemployment rates coupled with massive layoffs, essential services were deteriorating at an alarming rate, our roads were impassable and economic activities were chocked with inefficiencies.Just as we were on the brink, came in the Chinese and Kenya witnessed development activities that they had long forgotten about. We began to see infrastructure development on a scale never seen before in this country. We began to see new roads, hospitals, schools, and new communication networks.

Whereas we are not in the business of comparing that has done more to Kenya in terms of development assistance and contribution, we must not downplay China’s critical role in our development and acknowledge that China is among the dominant players in our development quest and avoid being misled by geopolitical interests.

Guest Post : Africans invest billions of dollars in China

Beyond the small businesses that attract Africans in Guangzhou—the so-called 'Chocolate city' in China because of the large number of Africans who live there—African companies have made considerable investments in China.

China, the world's newest economic superpower, surpassed the United States as Africa's largest trading partner in 2009. Since then, China's investments in Africa have been growing at a staggering speed.

But many people are not aware that the Sino-Africa relationship is not just a one-way street.

By 2012, Africans had invested a cumulative $14.2 billion in China, a 43% increase from the $9.9 billion invested by 2009.

In 2012 alone, the amount of direct investments from Africa to China was about $1.4 billion, mostly in petro-chemical, manufacturing, wholesale and retailing industries.

Some of the top African investors in China came from Mauritius, South Africa, Seychelles and Nigeria, according to the White Paper on Economic and Trade Cooperation between China and Africa published by the Chinese government.

Investing in local brands

For example, not many people outside China have heard about Snow beer, the world's best-selling beer by sales volume, because it is produced and sold only in China.

Even fewer are aware that an African company, the South African Breweries (SABMiller), runs Snow beer as a joint venture with a Chinese firm and produces many other popular Chinese beer brands as well.

SABMiller (formerly SAB before it acquired the Miller Brewing Company in 2002) began its expansion into China in the mid-1990s.

Its first move was to negotiate with the government-backed China Resources Enterprises, for joint ownership of China Resources Snow Breweries, which is now the largest brewery in China.

While most foreign breweries struggle to sell their brands in the Chinese market, SABMiller has concentrated on purchasing local Chinese breweries.

SABMiller's winning strategy is to keep on purchasing shares in local brewers and investing in the production of popular Chinese brands without involving itself in daily operations and management of the companies.

Today, 30 years after its first investments, SABMiller co-owns more than 90 breweries with Chinese Resources, producing around 30 beer brands with a 23% market share.

Tunisia's investment in China's fertilizer production has an even longer history.

Initially launched as a key project of China's 8th Five-Year Plan, the Sino-Arab Chemical Fertilizers Company (SACF) was a joint initiative reached by Tunisia and China when Tunisia's late Prime Minister Mohammed Mzali visited Beijing in 1984.

SACF wisely used the continuous investments in its technical reform and facility expansion in the new millennium, which significantly increased its production and quality control capacities.

Widely praised as a successful South-South Cooperation model, the company has grown to become one of the largest compound fertilizer producers in China.

Despite the global recession that jeopardized most countries' investment plans, the amount of direct investments from Seychelles to China reached the $100 million mark in 2009, compared to $7 million worth of Chinese investments in Seychelles during the same period.

The large number of offshore companies anonymously registered in its Indian Ocean islands could possibly be the answer to this puzzle, analysts say.

Countries like Mauritius and the Seychelles are magnets for business entities and entrepreneurs around the world because of their relaxed taxation, lighter regulation of corporate activities and greater business flexibility.

On the other hand, their strict preservation of confidentiality for business transactions and individuals has made it almost impossible to track where the investments that are flowing out of these islands actually came from.

Big dreams in 'Little Africa'

SABMiller and the other large corporations only tell part of the story of Africans seeking economic opportunities in China.

Media reports estimate that China is home to more than 200,000 African immigrants.

In the first nine months of 2014, Guangzhou, a southern Chinese city hosting the largest African community in Asia, documented 430,000 arrivals and departures at its check points by nationals from African countries.

Certain neighborhoods in Guangzhou are virtually all African, often referred to as 'Chocolate City' or 'Little Africa' by local cab drivers.

The government of Hong Kong allows 90-day visa-free stays for citizens of many African countries, such as Botswana, Egypt, Kenya, Malawi, Namibia, Swaziland, Tanzania, Zambia and Zimbabwe, making the special administrative region the easiest entry point for African traders who make up the majority of the African population in China.

Bo Li, the author, writes for United Nations Africa Renewal Magazine

China and Kenya taking stock of gender equality progress at UN human rights session

China and Kenya co-sponsored discussion on gender equality during a Human Rights Council (HRC) session. The "Beijing+20: Gender Equality” discussion is part of the HRC's 29th session taking place from June 15 to July 3 this year in Geneva Switzerland.

The discussion is meant to take stock of progress made since the adoption of the Beijing Declaration and Platform for Action (BDPA) in 1995 while identifying remaining challenges. Kenya and China were some of the main countries that contributed to the adoption of (BDPA) in 1995.

Participants and panelists including a number of NGOs applauded the progress made since the BDPA was adopted 20 years ago, and highlighted the continued relevance of BDPA's guidelines in today's gender equality agenda.

Zhao Hongju, deputy director general of international department under All China Women's Federation, warned that despite the significant progress made in terms of women's economic empowerment, education, participation and decision making, "greater efforts and resources are needed."

Maryann Njau-Kimani, Kenya's Secretary of Justice, said "No country has achieved full gender equality in all spheres of life," adding that political will on a national, regional and global level is needed to address the remaining gaps in gender equality.

Panelists further condemned the protracted use of gender stereotypes and violence against women endemic to all societies, and highlighted the importance of including women's rights and gender equality in the post-2015 sustainable development goals agenda.