CAIRO: Plans are already underway for Morocco to be the only African nation to showcase at China's Shanghai Expo in September and it shows the important role the North African and Asian countries see each other. Little over a decade ago, China was just beginning to push into Africa, but today, in places like Egypt, Tunisia and Morocco, Beijing has increased its footprint, seeing these countries as gateways to Africa, and in Morocco's case, to Europe. Trade relations between Morocco and China have steadily increased since 1999, when Chinese trade with Morocco totaled some $325 million. By 2004, that number increased to $1.14 billion. According to the Chinese Embassy in Rabat trade has continued to increase, going over the $2 billion mark in 2009. “We believe in what we are doing in Morocco and it is beneficial to both countries, which is why it is so important to have them at the Shanghai Expo,” said Ling Wu, an economic adviser at the embassy, on April 25. The Expo is not necessarily the best place to see how trade relations between countries develops, but for Reda Abdel Hamid, one of the developers of Morocco's 4,000 square meter exhibit, he believes it reveals how China perceives the country's potential. “We have always had strong ties with China and the fact that we are the only African nation with an exhibition to showcase our history and culture, it gives us the pride and belief in what we are doing in terms of our relationship with China,” he said. 2002 was a landmark year for the two countries relations, with a number of important agreements that have seen China's role in Morocco push forward on a massive scale. The two governments signed agreements on the following: cooperation in the fields of social, development, employment and vocational training; environment cooperation; health cooperation; tourism cooperation and; an agreement on the administration of radio, film and television of China and the Bureau of radio and television of Morocco. The agreements have paved the way for a nearly four-fold increase in trade and industry investment from China. Most, especially in the government, in Morocco believe these agreements have done more in a short time than any previous agreements with any foreign country or corporation. Munir Hassan, a senior economist in the government, said that what happened after the agreements should not be understated. “From this point on, us and China had an understanding that we could develop certain aspects of our economy in return for greater trade with them,” he told Bikya Masr. “Morocco has seen much growth in the past 8 years since these agreements and we cannot underestimate the role China has had in helping to create a robust and forward-thinking economy in Morocco. Our companies now have greater access to one of the largest markets in the world. This was never offered to us before,” he added. And it is a win-win situation for both economies. Morocco imports light industrial products, textiles, green tea, mechanical and electronic products to name a few, while China imports from Morocco phosphates, chemical fertilizer and cobalt sand. This helps push a mutual relationship based on what each country specifically needs. As Morocco goes forward on its most ambition project to date, one aspect that China's sees as vitally important to Morocco's development is their push toward alternative energy sources. According to Ling, the projects under development in Morocco will need massive investment from foreign partners and China is well suited to deliver expertise and financing. “We have started to get into discussions with the Moroccan government on how we can help give guidance and possible investment into these initiatives,” he began. “The Chinese government is not like Europe or the US in terms of needing to get something in return because we understand the importance of investments for the local population. If we can build their sustainability up, then in the long term trade benefits will be seen and will last.” This is the crux of the matter and one of the worrying facets of Chinese efforts to boost trade in Africa that have American companies worried and on edge. According to William Jones, who is an investment consultant for the Gap Company in Egypt and North Africa, “China is proving itself to be willing to put in money to projects that will not directly benefit them in the short term. American companies or aid institutions cannot do that because they want to see an immediate return.” China has implemented an almost Wal-Mart style development policy with Africa. They come into a market, offer projects and investment at a cost far below what other development and aid institutions are offering, then get the deal and help drive out other foreign aid groups and organizations, including American and European ones. This, said Jones, is what makes African governments “keen on using Chinese investments. It's a real win-win situation and because the US is so in debt to China, they can't offer to reduce or forgive loans. It puts American and European business in a bind.” And China has no qualms. They don't push human rights or democracy in the continent. For them, it is all about trade and development. “The two go hand in hand with one another. We give countries, local corporations and people the ability to stand on their own two feet and then we see, after a few years, that trade with these countries, especially in places like Morocco, start to trickle back to Chinese markets. It is a system that is working,” added Ling. With Europe on the Morocco doorstep, Chinese investments are looking strong, as Europe looks south to North Africa for potential partners and imports. In Cairo, a visiting European Union economist Bernhard Lindt told Bikya Masr that Europe is in dire need of trade partners and “North Africa offers a close partner. We understand what China is doing and can't complain, they are developing industry in a way that the US and European nations never did. If it continues to be successful like it has proven in the past decade, the EU is going to have to follow their pattern of invest and wait.” BM
