Zimbabwe China Trade Agreements

Harare – Zimbabwe and China have signed a currency exchange agreement following a visit by Chinese Foreign Minister Wang Yi to Harare to strengthen trade between the two countries. He said exports to agriculture and other products from special economic zones would be crucial to promoting trade between Harare and Beijing. HARARE – In the first visit by a Chinese leader to Zimbabwe since 1996, President Xi Jinping on Tuesday signed ten economic agreements, including the expansion of South Africa`s largest thermal power plant. China became the largest buyer of Zimbabwean tobacco with the purchase of more than 13,000 tonnes of tobacco between January and October 2007. Zimbabwe`s trade deficit with China was $189 million in the first half of 2007; Zimbabwe exported $16 million worth of goods to China. [3] Since June 2004, the Zimbabwean government has also purchased large quantities of military equipment from China, including a $13 million radar system, six JL-8 aircraft, 12 Thunder JF-17 fighter jets and 100 military vehicles. [1] The national airline Air Zimbabwe has also increased its recruitment of Chinese-language flight attendants and the training of existing Chinese air hostesses, and Zimbabwe, which is on the official list of authorized tourist destinations in China, aims to increase the number of Chinese tourists from 10,000 to 25,000. [1] [4] Trade is often driven to trade because Zimbabwe does not have a strong currency. China is particularly interested in supplying Zimbabwe with platinum.

[5] Zimbabwe and China yesterday signed three cooperation agreements focused on economic and social services, with the two all-time friends raising their relations to another level. On the whole, Africans see China as a good counterweight to Western influence, although Western governments accuse China of shutting down conflicts and rights violations while pursuing trade and aid policies. He said Zimbabwe and China were also considering trade, especially at a time when trade relations between China and the United States of America are frosty. To encourage the international use of the yuan, China has signed currency sweatshirt agreements with more than 20 countries around the world, including SA. A foreign exchange swap involves exchanging money in one currency for another, and companies that trade abroad often use it to obtain lower borrowing rates. Zimbabwe and China signed an economic and technical agreement in Harare on Friday that will encourage the two countries to strengthen their trade relations. In his speech at the end of his visit to Africa shortly after his meeting with President Emmerson Mnangagwa, Wang said the volume of trade between China and Africa exceeded $200 billion in 2019. China is Africa`s largest trading partner and the volume of trade between them amounted to $220 billion in 2014, according to China`s state-owned Xinhua news agency.

According to London-based BMI Research, investment in Africa amounted to $32.4 billion at the end of 2014. The value of imports and exports of trade between China and Africa increased from $10 billion in 2000 to more than $170 billion in 2017. China`s exports to Africa reached $94.74 billion, while imports from Africa reached $75.26 billion, generating a trade surplus of $19.48 billion in a single year. Wang, who was on a five-nation trip to Africa, this week ended his visit to Zimbabwe, during which the two countries agreed on strengthening trade and economic cooperation. Zimbabwe relies heavily on China to finance its major infrastructure projects, as it is not eligible for financing by international financial institutions because of its debt. In an interview after the signing ceremony, Minister Moyo said; “What was signed here was actually three agreements. As you know, our cooperation between China and Zimbabwe, as you know, is guided by eight principles and the