Sudan China Economic Ties

Mohamed Abdalla

The relation between Beijing and Khartoum goes back to early 1950s; the ties between the two countries were characterized by transparency and none intervention in the domestic issues, since 1997, following the US economic sanctions, the trade relations between Sudan and China has developed due to the strategic agreements which is signed in the 2015.
Earlier in 2018 Chinese Ambassador to Khartoum Li Lianhe stated that relations between the two countries have developed rapidly, revealing further cooperation with Khartoum during the coming period, particularly on oil, agriculture and industry fields.
He also described ties between the two countries as strategic, saying his country is keen to promote relations with Khartoum for the benefit of the two peoples. China supports Sudan in different fields, it gives grants and loans to upgrade infrastructure in Sudan, the coordination between the two countries were appeared on the UN debates, so China’s support to Sudan in international forums is encouraged Sudan to establish strong economic ties with Chinese business houses at both public and private sectors.
China has been Sudan’s largest foreign investor, particularly in oil and. It has invested more than $20 billion in Sudan mostly in the oil sector during the past two decades. Beijing provides low-interest loans and weapons transfers in return for oil. Sudan’s total debt is estimated at $ 10 billion, accounting for about one-fifth of Sudan’s estimated $ 50 billion foreign debt.
In February 2012, China agreed to delay its debts for a period of five years. At the time, said it needs time to rebuild its economy after losing oil revenues as the result of South Sudan cession in July 2011.
In 2017, the Chinese Vice-Premier of the State Council Zhang Gaoli announced while he was visiting Sudan that a debt relief for Sudan worth $160 million, adding that his country would provide additional 500 million Yuan (about $75 million) in financial assistance to Sudan.
China–Sudan relations refers to the bilateral relations between the People’s Republic of China and the Republic of Sudan. China is Sudan’s biggest trade partner, importing oil from Sudan while exporting low cost items. China and Sudan enjoy a very robust and productive relationship in the fields of diplomacy, economic trade, and political strategy. The two nation-states established diplomatic relations on January 4, 1959 and have since become strongly close global allies.
It is to be noted that Sudan’s most important export is gold (70 percent of total exports) followed by livestock (25 percent). Others include: oil, arabic gum and cotton. Main import partner is China (78 percent) followed by UAE, Japan, Saudi Arabia and Italy.
While the major imported goods are Primary resources such as agricultural, including cotton, peanuts, gum Arabic, and sesame seeds. Although the country is trying to diversify its cash crops, cotton and peanuts remain its major agricultural exports.

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