"No friends, no business," said Ruan Xiaoming when summing up his success in Africa.

The 39-year-old farmer-turned entrepreneur founded in 1993 GEMSY Holding Group Co. Ltd with the sale of sewing machines overseas as its main business. Now his company has representative offices in South Africa, Algeria, Morocco, Tunis and Egypt, with sales volume topping 10 million U.S. dollars every year.

Ruan attributed the rapid growth of his business in Africa to his company's respect for the African people, technical innovation and localization.

"Wherever I go in Africa, I always make friends with local people and respect their custom and cultural heritage," he said.

The technical team of his company responded quickly to the needs of local consumers by developing the latest products and technology. The company's African offices recruit most of their staff locally.

Ruan said competition from western companies is quite intense in Africa. In order to achieve win-win results, Chinese companies should suit the demands and needs of the African people. Localization and technological innovation are therefore the natural choice, he said. Now his company has hired more than 50 African employees.

"I'm considering moving factories to Africa in the near future, " Ruan said.

Ruan's story testifies to the manner in which many Chinese companies do business in Africa. Since Chinese businessmen cherish a long-standing motto that "amiable temper brings wealth," they are sincerely willing to share the benefits with host countries.

Khalid Malik, UN resident coordinator in China, said China and African countries have much in common in their business culture. Both sides emphasize friendship and loyalty.

"Equality and mutual benefits, diversified forms, emphasis on substantial results and common development" have always been the principles that China pursues in expanding trade and economic cooperation with African countries, said Zhong Manying, deputy director of the West Asia and North Africa Department of China's Ministry of Commerce.

Chinese customs figures show that in the past five years, the trade volume between China and Africa has grown from 10 billion U.S. dollars per year to more than 37 billion U.S. dollars per year.

Under the encouragement of the Chinese government, investment in Africa is growing rapidly. In the first ten months of 2005, Chinese companies actually invested 175 million U.S. dollars in African countries, accounting for one-tenth of the total investment that China made in Africa over the years.

In order to facilitate exports from African countries to China, the Chinese government began to give zero-tariff treatment to 190 kinds of goods from the 28 least developed African countries in January 2005. These goods make up the majority of the African countries' exports to China, which more than doubled last year.

On the other hand, high value added products, such as machinery, electronic equipment and high- and new-tech products, have become the fastest growth section of China's exports to Africa. In 2005, such products made up nearly 50 percent of the country's total exports to Africa. The volume will continue to grow this year, according to the Ministry of Commerce.

Zhong said the exports of Chinese goods helped break up the monopoly of western companies and expand diversification in Africa, thus improving the standard of living of the African people. At the same time, the rapid growth of imports from African countries has helped maintain trade balance and increased the incomes of African countries, Zhong said.

Zhong said Chinese companies also contribute to the common development of African countries by adding tax revenues and training professional talents.

Liu Jianjun from Hebei Province in north China has led a group of Chinese farmer-technicians to Africa to carry out agricultural joint ventures. Their farms in Mali helped local residents end their reliance on the import of vegetables. Before they went there, the price of cabbage in this West Africa country was 1.12 U.S. dollars per kilogram. Now it has dropped to 50 cents.

In order to facilitate Chinese companies to invest in Africa, the Chinese government has signed investment protection agreements with 28 African countries and set up mixed committees for economic and trade cooperation with 35 African countries.

So far, 16 African countries have become the destinations of overseas travel for Chinese citizens. The number of Chinese tourists visiting Africa has been growing by leaps and bounds, bringing great business opportunities for African countries.

Last September, Chinese President Hu Jintao put forward five measures for promoting common development of China and other developing countries. African countries have become major beneficiaries of these measures, including additional aid, debt write-offs, tariff exemption and personnel training.

China has trained more than 6,000 professional personnel from African countries in the past two years. The number is expected to grow this year.

Zhong refuted western criticism that China is pursuing a pragmatic policy in developing relations with African countries.

Zhong said China and African countries have been "all-weather friends." China regards it as both virtue and duty to help African countries eliminate poverty and develop economically.

"China and African countries vow to continue their efforts to strengthen mutually beneficial cooperation in trade and economy," Zhong said.

Source: Xinhua