China’s rebound will inject momentum into global growth, with Africa set to benefit
The World Bank has revised its global growth prospects, thanks to a strong economic rebound in China following Beijing’s optimization of COVID-19 containment measures.
China’s economy is now expected to grow by 5.1 percent in 2023, injecting new impetus into the global economy, which is now projected to expand by 2 percent, compared with an initial growth outlook of 1.7 percent, according to the World Bank.
As China is the world’s second-largest economy and home to around 20 percent of the global population, what happens there matters to the rest of the world. A healthy Chinese economy will boost demand for goods and services from other countries, leading to increased economic activity worldwide.
China is a key player in global supply chains, and disruptions to its economy can have a significant impact on the supply of goods worldwide.
A well-functioning Chinese economy is also a panacea to geopolitical stability, as it reduces the likelihood of economic and political crises that can spill over into other parts of the world. This is particularly important at this time when geopolitical tensions are mounting following the ongoing conflict in Ukraine.
The news of a positive economic performance by China has been well received in many developing countries, especially in Africa. As the largest developing country, China has demonstrated a careful understanding of the needs of other emerging economies.
For 14 years in a row, China has been Africa’s largest trading partner, with trade between the two sides hitting $282 billion in 2022. This is four times the level of trade between the United States and Africa.
China has been importing large quantities of agricultural produce, oil, gas and other natural resources from Africa, while exporting such things as manufactured goods and technology to the continent.
In the last 10 years, China has also maintained the lead as Africa’s largest investor, with Chinese companies investing in various sectors such as infrastructure, mining, agriculture and manufacturing.
Chinese investments have helped to boost economic growth in Africa by up to 20 percent in the past decade. Millions of job opportunities have been created by Chinese companies for local communities in countries across the continent.
In terms of infrastructure development, China has played a key role in upgrading Africa’s productive sectors through construction of roads, railways, ports and airports. These projects have helped to improve connectivity and reduce transportation costs, making it easier for African countries to trade with each other and with the rest of the world.
Today, Africa’s prospects of fulfilling the potential of the African Continental Free Trade Area are more feasible because of the infrastructure completed in partnership with China.
In addition, China has been sharing its technological expertise with African countries, particularly in the areas of telecommunications and renewable energy. Chinese companies have been involved in the installation of mobile networks, as well as the construction of solar and wind power plants.
Finally, with a stronger economy, China will likely take additional steps to address concerns over debt sustainability in Africa, including offering debt relief and restructuring loans.
China’s actions and decisions both bilaterally and through multilateral platforms like the Debt Service Suspension Initiative have helped to alleviate the debt burden on African countries, allowing them to focus on economic recovery from the COVID-19 global health crisis, impacts of climate change and consequences of conflict in Ukraine.
The writer is a Kenya-based scholar of international relations with a focus on China-Africa development cooperation.
The views do not necessarily reflect those of China Daily.