On Friday, President Xi Jinping stated that China backs Zambia’s efforts to protect its national sovereignty, security, and development interests while promoting more imports from Zambia. Zambia is located in southern Africa.
China’s national news agency Xinhua said that President Xi Jinping met with Zambia’s President Hakainde Hichilema in Beijing, and the two leaders agreed to upgrade their relationship to a “comprehensive strategic cooperative partnership.” Xi expressed his optimism that China and Zambia may deepen their cooperation in infrastructure, agriculture, mining, and clean energy by working together.
Developing China’s collaboration with African nations, as stated by President Xi in July, is an “important cornerstone” of China’s foreign policy, according to Xi.
Zambia is interested in renegotiating the terms of its external debt with China and expanding its commercial connections with what is currently the world’s second-largest economy.
According to Xinhua, Hichilema commended China for its constructive contribution to settling Zambia’s debt situation and supporting the African Union’s entrance to the Group of 20 major economies at its September 9-10 summit in New Delhi. Hichilema also hailed China for supporting the African Union’s membership to the Group of 20 big economies.
Late on Friday, China and Zambia issued a joint statement that did not reference any debt deals or other financial arrangements.
However, both nations will work to increase the use of local currency settlement in their respective trade and investment transactions, according to the joint statement, which the state news agency of China reported, Xinhua.
The move would assist businesses in both nations lower their exposure to exchange rate risks and exchange cost costs.
Additionally, the countries have agreed to increase their collaboration in resource exploration and will conduct high-level military exchanges.
China has encouraged its companies to invest in developing Zambia’s new energy battery value chain. At the same time, Zambia has invited Chinese mining enterprises to continue actively participating in mining cooperation.
According to data from the American Enterprise Institute think tank, China has considerable business interests in Zambia. Between 2014 and 2023, China is expected to invest in more than 30 projects as part of its Belt and Road Initiative.
It reveals that the projects had a total value of $11.3 billion, and their scope extended from the energy industry to the agricultural and aviation industries.
Additionally, China purchases around one-fifth of Zambia’s exports, most of which are composed of copper.
“Zambia abides by the one-China principle, highly appreciates the guiding concepts and principles of Chinese-style modernisation, and hopes to learn from China’s development experience,” Hichilema said during the meeting with Xi. “Zambia hopes to learn from China’s development experience,” Hichilema said.
Xi stated that China was supporting an increase in the number of Chinese-funded businesses that invest in Zambia and encouraging an increase in the number of high-quality Zambian goods to reach the Chinese market. Hichilema is going to remain in China till this next Saturday.