China's Xi commits to providing over $50 billion in financial assistance to Africa to strengthen cooperation.

• On Thursday, Chinese President Xi Jinping announced that China will offer 360 billion yuan (approximately $50 billion) in financial assistance to Africa over the next three years.
• On the second day of the ninth Forum on China-Africa Cooperation Summit, Xi spoke about the expected delivery of new policies and cooperation agreements that will shape China-Africa relations in the next three years.

On Thursday, Chinese President Xi Jinping announced that China will offer 360 billion yuan (approximately $50 billion) in financial assistance to Africa over the next three years.

On the second day of the ninth Forum on China-Africa Cooperation Summit, Xi spoke about the expected delivery of new policies and cooperation agreements that will shape China-Africa relations in the next three years.

Xi stated that the China-Africa relationship is currently at its peak in history, according to an official translation of his Mandarin-language comments.

"Xi stated that China is prepared to intensify collaboration with Africa in areas such as industry, agriculture, infrastructure, trade, and investment, while encouraging mutual progress through an "open and win-win" approach."

As China seeks to adjust its economic partnerships and trade agreements with Africa and enhance its relationships with developing economies, a high-profile summit was held.

Over 50 African leaders, including South Africa's President Cyril Ramaphosa and Kenya's President William Ruto, met with Xi Jinping in Beijing this week, according to Chinese state media.

The summit is anticipated to culminate in agreements on trade and investment, with leaders from both sides signing crucial documents such as Beijing's three-year action plan. Previously, the summit has witnessed Beijing pledging significant financial resources to fund large-scale infrastructure projects in Africa.

The delegates will also be negotiating loan terms with Beijing to alleviate their mounting debt burdens.

The summit, which is the largest diplomatic event hosted by China in recent years, aims to promote the sale of green tech products like electric vehicles and solar panels to the region, despite facing high export tariffs in the West, according to Chinese Vice Foreign Minister Chen Xiaodong.

It was challenging for Xi after China failed to fulfill its promise to purchase $300 billion of African goods at the 2021 Forum on China-Africa Cooperation Summit.

Since 2009, China has been Africa's largest trading partner, with the total trade volume growing significantly from less than 100 billion yuan in 2000 to 1.98 trillion yuan in 2023, for an annual growth rate of 17.2%, according to data from China Customs.

In the first seven months of this year, China-Africa trade in goods increased to a record 1.19 trillion yuan.

In addition to being the largest creditor to many African nations, China has also invested heavily in infrastructure projects on the continent. Between 2000 and 2023, it has channeled over $180 billion towards building bridges, rail lines, and hydropower plants. Last year alone, Chinese lenders extended loans worth $4.61 billion, the highest level since 2019.

Critics argue that lending schemes, such as the Belt and Road Initiative, burden low- and middle-income governments with excessive debt relative to their GDP, making it difficult for some countries to repay their loans or default.

Xi announced that China will provide 360 billion yuan in financial support to Africa and "encourage and support" the issuance of panda bonds in China. The pledged financial assistance will consist of 210 billion yuan in credit facilities, 80 billion in various forms of assistance, and 70 billion yuan in investments made by Chinese firms in Africa.

Xi stated in his speech that a friend is someone who walks the same path as you, referencing an African proverb. He emphasized the importance of China and Africa being on a "shared path" toward modernization.

Vice Foreign Minister Chen stated in an Aug. 23 briefing that President Xi remains committed to strengthening China's ties with Africa through greater solidarity and cooperation, regardless of changes in the international landscape.