China tops Japan as second biggest economy
The shouting headline in many world news media including Nigeria's 234next, August 17, 2010 is this:
Many people saw this coming. As a matter of fact, Economists agree China will become the world's biggest economy, the only difference is over timing. PricewaterhouseCoopers expects it to take the top spot from the US in 2020, while Jim O'Neill, Goldman Sachs chief economist, has plumped for 2027 quoted the British Newspapers, The Telegraph.
We have noted and reported in this blog on the bullish attitude of the Chinese in taking new business territories (and protecting it). Despite criticisms of Chinese foray into the African market, the trade relations between China and Nigeria is becoming significant noted Nigeria's Business Day Newspapers. The bilateral trade between Nigeria and China has grown steadily as the volume of trade between the two countries in 2009 hit $6.373billion, in favour of China.
Giving a break- down of the trade relationship between the two countries, the Consulate-general of the People’s Republic of China in Lagos, Guo Kun, said China’s export to Nigeria stood at $5.476 billion, while import from Nigeria was $0.897 billion. According to him, the figures represent an increase of 76.3% compared to 2008. “Yet I couldn’t stress more that China does not pursue trade surplus with Nigeria; China wishes to work with Nigeria to balance the trade.
Mr. Guo Kun, China Consul General and Ndudi Osakwe, Consultant Infoplus/IBG Nigeria at the 50th Independence Anniversary Cocktail Party organised by the Embassy of Benin Republic in Lagos
The most important reason for China’s trade surplus with Nigeria is due to the different economic structures of the two countries. Manufacturing is an important part of China’s economy, while in Nigeria, oil industry is the prime sector with very limited crude oil currently exported to China. This naturally creates the imbalance of the trade.’’ But Kun noted that the Chinese and Nigerian governments are committed to solving the problem by cooperation.
Mechanical and electronic products, textile, and light-industrial products constitute the major commodities China exports to Nigeria. The major commodities China imports from Nigeria include agricultural products, minerals, and textile raw materials, and wishes to have further cooperation in the field of energy and infrastructure.
The Consulate-general stated further: “Our government always encourages Chinese companies to invest in Nigeria and provide subsidy, and grant preferential tax provision to companies which invest in Nigeria. Until now, China had invested 7.24 billion dollars and created more than 30,000 jobs for Nigerians. The Lekki Free Trade Zone is a very good example.” If this project becomes successful, Nigeria’s capability in manufacturing will be largely enhanced, and this will definitely contribute to Nigeria’s exports.
Now...do the Americans and Europeans care? The business potentials in Nigeria and Africa are too much to wave aside. Email us on inquiry@ibgnigeria.com for help.
SOURCE: Much of the information here was culled from Nigeria's Business Day Newspapers (www.businessdayonline.com).
China has reached another landmark by edging ahead of Japan as the world's second-biggest economy after overtaking Germany as the largest exporter.The change came in the second quarter with the Japanese Cabinet Office conceding China's economy is now bigger, with gross domestic product in the period of $1.337 trillion (£851bn) compared with Japan's $1.288 trillion.
Many people saw this coming. As a matter of fact, Economists agree China will become the world's biggest economy, the only difference is over timing. PricewaterhouseCoopers expects it to take the top spot from the US in 2020, while Jim O'Neill, Goldman Sachs chief economist, has plumped for 2027 quoted the British Newspapers, The Telegraph.
We have noted and reported in this blog on the bullish attitude of the Chinese in taking new business territories (and protecting it). Despite criticisms of Chinese foray into the African market, the trade relations between China and Nigeria is becoming significant noted Nigeria's Business Day Newspapers. The bilateral trade between Nigeria and China has grown steadily as the volume of trade between the two countries in 2009 hit $6.373billion, in favour of China.
Giving a break- down of the trade relationship between the two countries, the Consulate-general of the People’s Republic of China in Lagos, Guo Kun, said China’s export to Nigeria stood at $5.476 billion, while import from Nigeria was $0.897 billion. According to him, the figures represent an increase of 76.3% compared to 2008. “Yet I couldn’t stress more that China does not pursue trade surplus with Nigeria; China wishes to work with Nigeria to balance the trade.
Mr. Guo Kun, China Consul General and Ndudi Osakwe, Consultant Infoplus/IBG Nigeria at the 50th Independence Anniversary Cocktail Party organised by the Embassy of Benin Republic in Lagos
The most important reason for China’s trade surplus with Nigeria is due to the different economic structures of the two countries. Manufacturing is an important part of China’s economy, while in Nigeria, oil industry is the prime sector with very limited crude oil currently exported to China. This naturally creates the imbalance of the trade.’’ But Kun noted that the Chinese and Nigerian governments are committed to solving the problem by cooperation.
Mechanical and electronic products, textile, and light-industrial products constitute the major commodities China exports to Nigeria. The major commodities China imports from Nigeria include agricultural products, minerals, and textile raw materials, and wishes to have further cooperation in the field of energy and infrastructure.
The Consulate-general stated further: “Our government always encourages Chinese companies to invest in Nigeria and provide subsidy, and grant preferential tax provision to companies which invest in Nigeria. Until now, China had invested 7.24 billion dollars and created more than 30,000 jobs for Nigerians. The Lekki Free Trade Zone is a very good example.” If this project becomes successful, Nigeria’s capability in manufacturing will be largely enhanced, and this will definitely contribute to Nigeria’s exports.
Now...do the Americans and Europeans care? The business potentials in Nigeria and Africa are too much to wave aside. Email us on inquiry@ibgnigeria.com for help.
SOURCE: Much of the information here was culled from Nigeria's Business Day Newspapers (www.businessdayonline.com).
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