The EU and the African country Kenya signed the multi-year Economic Partnership Agreement, which is the first time that the EU and an African country have reached a broad-based agreement, marking that the EU regards Africa as a new growth point for future economic development and has begun to put it into action. According to the content of the agreement, the two sides will establish a flexible and convenient bilateral mechanism to reduce tariffs and cancel quota restrictions, so as to create better conditions for cooperation between the two sides.
The signing of this agreement is of great significance for both the EU and Kenya. The EU will first remove tariffs on various types of Kenyan exports to facilitate the entry of Kenyan products into the European market, which is good news for Kenyan exporters. Kenya's removal of tariffs on EU exports of manufactured goods will attract more European companies to its market and boost its economy. However, in the short term, it will be difficult for Kenya to make more profits in its ** with the EU, as European imports to Africa rarely impose tariffs, and exporters of commodities are not sensitive to tariffs. However, with the further development of the bilateral **, Kenya is expected to achieve economic growth through cooperation with the EU.
In 2021, the European Union launched the "Global Gateway" initiative, which aims to help developing countries achieve economic development by investing in infrastructure. The plan is expected to cost 300 billion euros by 2027. Some analysts believe that this plan is the EU's move to counter China's "One Belt, One Road" initiative. However, in response, China welcomed all initiatives to help developing countries build infrastructure and promote common development, and believed that different initiatives should form synergies rather than exclude each other.
In fact, China does not see the EU's plans as a competitor, but is willing to cooperate with them. From China's point of view, the EU's move to invest in Africa can share the risk, because the market in Africa is small and consumers tend to be **sensitive, and it is more difficult for Chinese companies to profit directly in Africa. In addition, the EU's assistance and support, especially in the areas of industrial technology transfer and infrastructure construction, is of positive significance for the development of African countries. As a result, China is happy to see the EU cooperate with Africa, rather than seeing it as a competitor.
The model of infrastructure and resource exchange for Chinese companies in Africa is now in its second decade, and the EU's "Global Gateway" program has been slow to make progress in this regard. Since investing in developing countries takes a long time to recoup costs and profits, the EU's choice to invest in Africa is a relatively rational decision. However, in addition to the strategic layout in the general direction, the EU lacks a concrete implementation plan in terms of support and assistance.
In contrast, Chinese companies began building infrastructure in Africa as early as a decade ago, cooperating with African countries. This has allowed Chinese companies to be at least a decade ahead of the EU in terms of cooperation with Africa. In addition, the accumulation of experience and capabilities of Chinese enterprises in Africa, as well as their competitiveness in infrastructure and industry, also give them more advantages.
However, the EU's choice to cooperate with African countries and provide assistance to help them develop their infrastructure and industries is also based on certain considerations and needs. The EU wants to be able to control its relations with African countries, ensure its control over their markets and resources, and match African industries through aid and technology transfer.
Overall, the EU's agreement with Africa and the EU's proposed "Global Gateway" plan show its intention to see Africa as a new growth point for future economic development and to compete with China. However, the EU's actual actions in Africa are far behind China's, and there are still deficiencies in cooperation and investment with Africa. China, on the other hand, is happy to see the EU's cooperation with Africa, and is willing to work with it to develop the African market, share risks, and support EU investment in Africa.