Trade between China and Ethiopia rose 68% to more than US $300 million in 2005, according to the Chinese Ministry of Commerce. The figures were released following trade talks in Beijing on 10^th January between Ethiopian Minister of Finance and Economic Development, Sufian Ahmed, and the Chinese Vice-Minister of Commerce, Wei Jianguo.

After the meeting the two sides signed an agreement establishing the framework for bilateral economic cooperation. Vice Minister Jianguo said China attached “great importance to economic and trade relations with Ethiopia” and expressed his belief that the countries should enhance their cooperation in many areas.

The volume of trade between China and Ethiopia has been steadily increasing over the last few years; by the end of 2004 it exceeded $200 million for the first time. In an interview with Chinese and Ethiopian journalists in March 2004, Chinese Ambassador to Ethiopia Lin Lin described the encouraging investment climate of Ethiopia.

“With a stable political climate, a conducive macro-economic policy, a steady exchange rate and a huge local market of about 70 million people, the investment climate of Ethiopia proves favourable to Chinese entrepreneurs,” he said.

China imports natural gum, coffee, hides, skins and oil seeds like sesame from Ethiopia, and exports light industry products, machinery, chemicals, medical products, building materials and textiles.

ENDS