China-Ethiopia Economic and Political Relations Post 1991 Period

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Date

2014-06

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Addis Ababa University

Abstract

Since the establishment of diplomatic ties in 1970, particularly since the creation of Forum on China-Africa Cooperation in 2000, China and Ethiopia have forge fruitful exchanges and all-round interaction in the political, economic and cultural areas and also enjoyed closer cooperation in international and regional affairs. Based on this, the main objective of this study is to examine the economic and political relations between China and Ethiopia post 1991. The study used both quantitative and qualitative methodologies to assess the economic and political ties. Data were also collected both from primary and secondary sources. The economic and political cooperation between the two countries has shown improvement particularly since 1991. Bilateral political relations have been undergoing healthy and sustainable development and exchanging high level visits are made frequently. Economic cooperation between China and Ethiopia has also expanded rapidly, especially in the areas like agricultural cooperation, renewable and clean energy industry, railway and expressway constructions, and telecommunications. Four important factors have strengthened the current bilateral political and economic relations between China and Ethiopia, and make the bilateral relations indeed bright and promising. However, there have been many challenges to the bilateral relationship between the two countries. FOCAC reflects the form and content of Sino-African relations. Mapping a future for both sides to achieve common prosperity, and Ethiopia greatly benefits from FOCAC, especially from the binding mechanism of FOCAC, diversifying product and export market, financial cooperation, debt relief and cancellations, job creation and poverty alleviation, tourism development, health sector development, human resources development and so on. Further cooperation between China and Ethiopia and China‘s experience of its own development shows that a country cannot develop through dependence on aid, and as a result China‘s cooperation with Ethiopia is based on trade and investment over aid for development. Ethiopia can benefits from pro-business cooperation investments with China. Finally, some suggestions are given to Ethiopian government in order to enable Ethiopia secure the full benefits following the Chinese development model.

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International Relation

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