Ethio-China cooperation to set new pace in global south-south cooperation

Diplomatic, economic, and cultural interactions between Ethiopia and China have highlighted the two countries’ longstanding relationship. These relationships have expanded dramatically over the last few decades, notably since the early 2000s, and now include a variety of features.

China has recently emerged as one of Ethiopia’s top trading partners and sources of Foreign Direct Investment. The collaborations between the two countries are significantly involved in infrastructure developments, such as roads, trains, and industrial parks. One of the most important projects is the Addis Ababa-Djibouti Railway, which was developed with Chinese finance.

Ethiopia and China have generally had a positive political relationship, particularly diplomatic relations. Both countries have conducted high-level visits and conversations, emphasizing mutual respect and noninterference in each other’s internal affairs.

Cultural exchange between the two nations is gaining traction, with educational programs, scholarships for Ethiopian students to study in China, and a variety of cultural events. Hence, Ethiopia-China relations are characterized by a strategic relationship that focuses on economic growth and development, with both nations benefiting from collaboration.

Ethiopia-China relations continue to improve year after year. Their overall relationship has been observed in all directions. But it is vital to ask, it is vital to inquire, what is the current state of the two countries’ overall relations? What are the potential areas in which these countries might enhance their relationship?

According to Ethiopian Ministry of Planning and Development State Minister Bereket Fitsehatsion, the current Ethio-China relationship is a powerful testament to the effectiveness of South-South cooperation.

As stated by him, the two countries share a rich history of friendship and cooperation, recently elevated to an All-Weather Strategic Partnership as of October 2023. Their relationship, built on mutual respect and a commitment to development, has flourished over decades, from supporting each other’s struggles for independence to the current strategic collaboration.

Therefore, the current partnership of the two countries stands as a powerful testament to the effectiveness of South-South cooperation. China has become a vital partner in Ethiopia’s economic transformation, significantly contributing to Ethiopia’s infrastructure development through projects financed by long-term loans and grants. The tangible benefits of this collaboration are deeply valued by our people.

More significantly, “China is the tenth largest destination for Ethiopian exports, demonstrating the strength of our economic ties.” He also stated that Ethiopia’s imports from China had reached a significant level, making China the leading source of imports, followed by India and the US.

In terms of Foreign Direct Investment (FDI), over the last two decades, approximately 3,300 projects have been initiated with a registered capital of 8.5 billion USD. These Chinese investments have created around 325,000 jobs, both permanent and temporary, highlighting their positive impact on Ethiopia’s development.

“Since 2008, China has also provided around 20 billion USD in loans, grants, and foreign direct investments, reflecting a strong commitment to Ethiopia’s economic development. He explained that “As we continue to enhance our cooperation, we remain committed to attracting Chinese investment and advancing the African Continental Free Trade Area (AfCFTA), which will yield substantial benefits for both our nations,” he elaborated.

As a pioneer of the Belt and Road Initiative (BRI) in Africa, Ethiopia is keen to capitalize on opportunities in sustainable development, regional connectivity, trade, investment, and tourism. As a strategic partner, Ethiopia is eager to engage with China to identify cooperative areas that serve our mutual interests, thereby enhancing regional stability and prosperity.

He reaffirmed that Ethiopia is confident to further strengthen the existing bilateral relationship to flourish with mutual respect, cooperation, and a shared commitment to development. Accordingly, it is time to forward with renewed purpose and commitment, ready to embrace the opportunities that lie ahead.

Chinese Ambassador to Ethiopia, Ambassador Chen Hai, in his part stated that during his stay in Ethiopia, he traveled several places and witnessed the country’s progress. As a result, Ethiopia is a promising land of growth and collaboration and the country’s modernization process is moving forward rapidly.

He also emphasizes that Ethio-China relations and cooperation will be strengthened in three areas in the coming stage: economic cooperation, diplomatic relations, and peace and stability efforts in the Horn of Africa.

In terms of economic cooperation, the relationship between the two countries will continue based on mutual benefit. “Ethiopia is a major African country with significant influence and distinct strengths in South-South cooperation. Hence, China will work closely with multilateral platforms such as the UN and the G20, strengthen BRICS collaboration, and amplify developing nations’ voices in international governance.”

He elucidated that China will also assist Ethiopia in speeding the process of industrialization and agricultural modernization per the Ten Partnership Actions for China and Africa to Jointly Advance Modernization.

He elucidated that China is working with Ethiopia to boost Ethiopia’s manufacturing through industrial parks, empower economic zones via the Digital Silk Road, and leverage zero-tariff treatment for 100 percent tariff lines for Ethiopian products entering China. “Recently I have seen more and more Chinese electric vehicles on the streets of Addis, which vividly exemplifies our joint commitment to a green future”.

“Since Africa’s stability is important to humanity’s shared destiny and its voice deserves world attention, China will collaborate with Ethiopia to secure peace and development in the Horn of Africa, protect regional stability, and build a stable environment for Horn of Africa development”, he mentioned.

He stated that the Ethiopia-Addis-Djibouti cooperation, popularly known as the “steel camels,” will be duplicated in various industries. “As the Addis-Djibouti Railway traverses through East Africa, robotic arms in industrial parks design development arcs, and telemedicine transcends mountains and seas to offer hope, China and Ethiopia, the two old civilizations, are writing a new chapter in the history of the Global South. China will be a committed partner in Ethiopia’s modernizing journey.

Indeed, relations between Ethiopia and China have improved dramatically during the past year. Their relations have been powerfully demonstrated in economic cooperation, development aid, infrastructure development cooperation, diplomatic forums, cultural interaction, and other contexts. These ties benefited both countries in trade, agriculture, infrastructure, and mining. To take these relations to a higher level, the two countries should strive to replicate in technology transfer, artificial intelligence, digitalization, talent development, and so on.

BY EPHREM ANDARGACHEW

THE ETHIOPIAN HERALD THURSDAY 13 MARCH 2025

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