(2009-10-15)

1. Rapid Development of Chinese Export

Since Opening-up and Reform 30 years ago, Chinese Export experienced a speedy development. The average development rate exceeded 20%. Chinese import and export valued US$20.64 billion in 1978. By 2008, same value reached US$2.56 trillion, with US$1.4285 trillion in export. At present, China has become the world third largest country in terms of trade, while export the second. The trade between China and Africa also expanded quickly. It exceeded US$100 billion by 2008. Today, Chinese trade is developing swiftly toward a higher level, from “made in China” to “Innovated by China”.

The opening up of Chinese door toward the outside world and linking with international market is the main reason behind the fast development of Chinese trade. Constantly adjusting to market needs, uplifting compatibilities and integrity by the Chinese export enterprises, good quality of exported products, reasonable price, products welcomed by people all over the world also contributed to the development.

2. A brief introduction to the China-Tanzania economic and trade ties

China and Tanzania have forged brotherly traditional friendship. We two countries have established multi-tier cooperation involving various sectors. Chinese government provides Tanzania with financial support every year, it is now implementing a series of assistance programs set within and without the framework of the Beijing Summit of the Forum on China-Africa Cooperation (FOCAC), among other things, including construction of 3 primary school in Tanzanian rural areas, a heart surgery clinic and training center, an anti-malaria center, an agricultural demonstration center, water-supply projects in some rural areas, and the Nyerere International Convention Center.

China’s direct investment to Tanzania, against the backdrop of the current international financial crisis, is on a rise. The aggregated investment in the first six months of 2009 has amounted to USD11.17 million, which enable Tanzania to become the 10th largest Chinese investment destination in Africa. Until now there are over 100 Chinese private enterprises operating throughout Tanzania.

Chinese enterprises are also playing active roles in infrastructure development, such as building roads, houses and telecommunication projects, in this country. To date, they are involved in 120 projects, with aggregated turnover reaching 1 billion USD. China-Tanzanian trade also developed rapidly, the 2008 bilateral trade volume stood at $ 1060 million.

This multi-tier bilateral cooperation involving various sectors contributes to the social and economic development of Tanzania, as well as the well-being of Tanzanian people. To sum it up, the bilateral economic and trade cooperation between China and Tanzania, in general, are win-win deal of mutual benefit. The counterfeits problem represents only one little finger while the win-win economic cooperation are the other 9 fingers.

3. How to see the quality problem

I will not deny the existence of some poor quality Chinese products in Tanzania market. We are paying great attention and watching carefully about such problems as our Tanzania friends do. Many factors have attributed to such problems. A. In an economically globalized world as today, according to the “free trade” principle of WTO, economy in the world has literately melted together. Commodities flow faster across boarders. Trade participants are much more complicated. B. Chinese and Tanzanian economic systems have many similarities. Market rule plays a great role. Under market economy, commodities flow is decided by market. Such system is good to promote economic vitality and progress. At the same time, it also creates opportunities for some profit-persuade-only individuals to act irresponsibly in their production, trade and sale process. C. Both Chinese and Tanzanian trade supervision, quality control and custom systems exist incomplete rules and imperfect implementation areas, some individuals are taking advantages to engage in illegal or improper activities.

As mentioned above, Chinese products and “made in China” have good names and are highly respected in general. Few fake products cannot represent Chinese products as a whole. Look at the composition of Chinese exports to Africa, electronic products, textile, high-tech products, clothes and steel are the most important parts. Export of agricultural products, shoes and ships increased rapidly. The Chinese product quality problem mainly occurs in articles for daily use, which consist of only a small part of Chinese trade. However, as such products are closely linked to Tanzanian people’s daily life, they have drawn more attention. Of course, there exists also a few media, been influenced by interests groups, deliberately exaggerating problems of Chinese products to Africa.

4.Chinese government’s efforts to secure the quality of commodities exported to African countries

Chinese government attaches great importance to the quality and standard of commodities bound for Africa. In May 2007, the competent authority made a decision to put in place nine measures to improve inspection and supervision of China-made products bound for Africa. And a 3-month long campaign focusing on quality and standard of products was initiated to improve the quality and safety standard of commodities, especially everyday consuming products such as toys, clothes, wood-products, furniture, artificial ornaments and food, to be exported to Africa.

Up to now, measures taken by Chinese government toward that end include:

1. to establish overall supervisory system and information database in order to better oversee the status of export products.

2. to strengthen the quality supervision and check of commodities destined for Africa in accordance with reported quality problems related to Chinese products overseas, and accordingly, to supervise and direct Chinese enterprises to develop their product quality and standard control system..

3. to investigate and strictly penalize those enterprises breaching rules or directives regarding quality and standard control requirements, and to either to place those enterprises on ‘blacklists’ or to revoke their licenses when necessary.

4. to conduct bilateral cooperation, especially to implement the bilateral agreement on cooperation in products quality control with some African countries, including, Ethiopia, Sierra Leone, Egypt, with focus on pre-load check.

5. to establish a collaborative mechanism of stakeholders comprising Chinese central government, local government, the competent departments, media, and various quarters of the society, to act against counterfeits or fake products.

It is fair to say that Chinese government’s official determination on curbing the counterfeits bound for Africa is firm and definite, with these resolute measures in operations, the overall situation is improving. However, we must realize that the healthy development of China-Tanzania trade calls for the collaboration between the competent authorities of both sides, given the complexity of counterfeit problems and intricacies of effective supervision. Chinese government stands ready to cooperate with Tanzania toward that end.