Freitag, 25. April 2025

Xi invites Ruto for talks.

Xi invites Ruto for talks.
China established diplomatic relations with Kenya on December 14, 1963. In 2023, the total trade volume between China and Kenya was US$8.106 billion. Of this, China imported US$227 million from Kenya and exported US$7.88 billion to Kenya. China mainly exports textiles and clothing, steel products, energy and communications equipment, and construction machinery to Kenya, while Kenya mainly imports titanium, zirconium, manganese ore sand, nuts, coffee, and tea from China. The Chinese Embassy in Kenya announced this. This is Ruto's second visit within six months. "At the invitation of Chinese President Xi Jinping, Kenyan President William Samoei Ruto will pay a state visit to China from April 22 to 26," the embassy stated. Ruto praised the strong diplomatic relations between Kenya and China, emphasizing the benefits that have accrued over the years. Relations between the two countries are deep-rooted, with frequent multi-level exchanges and practical cooperation in numerous areas. Ruto must be friendly. He had taken out a large loan from the IMF. The IMF program supported reforms such as subsidy cuts and tax adjustments, but these were controversial in Kenya due to their impact on the cost of living and sparked protests. Despite these challenges, IMF financing enabled Kenya to avoid a default on the repayment of a $2 billion Eurobond in 2024. In March 2025, Kenya and the IMF agreed to skip the ninth and final review of the current program, leaving approximately $800 million undisbursed. Kenya has officially applied for a new IMF program, but the missed disbursement is hampering Kenya's efforts to reduce its debt service costs and could delay further funding from institutions like the World Bank. Ruto is desperately in need of money. Just last year, he raved about "our friends." This refers to international allies like the US under the Biden administration, with whom Ruto maintained close ties. He was sent a private jet to fly him to the US, something he was very proud of. China is pleased about the visit of Uncle Sam's former favorite. Ruto is reportedly focused on finding new funding for projects, including the extension of the Beijing-backed standard gauge railway to the border with neighboring Uganda. Ruto's visit is said to be aimed at strengthening diplomatic relations with the People's Republic of China, while the country is engaged in a trade war with the United States, which is also a key ally of Kenya. At the 9th Forum on China-Africa Cooperation (FOCAC) Summit, where Ruto managed to secure billions of shillings for infrastructure projects, a lucrative market expansion for Kenyan agricultural products, and the approval of strategic partnerships. A key outcome of the visit was the securing of Ksh 40 billion in soft financing. Kenya wants to build a modern headquarters for the Ministry of Foreign Affairs in Nairobi, which could come a step closer to reality this week with the signing of an agreement between Kenya and China. This represents a significant milestone in strengthening diplomatic relations between the two countries. The Deputy Foreign Minister confirmed the development without disclosing the cost. He said the agreement was one of several high-level agreements to be signed during the visit. In addition, Ruto is scheduled to hold high-level bilateral talks with President Xi Jinping, Premier Li Qiang, and Chairman of the National People's Congress Zhao Leji. The discussions will focus on shared economic transformation, sustainable development, and global cooperation. In a speech at Peking University, Ruto emphasized the growing cooperation between Kenya and China in education and technology, particularly in areas such as AI, biotechnology, and the creative industries. China and the United States are currently engaged in a war of wits. The dispute between the United States and China has become a global issue, putting Kenya in a difficult position. Kenya must rely on an ally to finance its development projects. Now that tariffs have been imposed, resulting in a 10 percent surcharge on Kenyan products under an existing tariff-free agreement under the African Growth and Opportunity Act (Agoa), President Ruto has responded subtly, saying he will seek to partner with allies who would guarantee Kenya a win-win relationship. President Ruto said Africa has enormous potential and could leverage the African Continental Free Trade Area (Afcfta), a $1.5 billion market, to expand trade. In Nairobi, Kenya, the "Route to Market" strategy 2025-2027 was unveiled, which aims to position the country as a globally competitive exporter of high-quality and sustainable goods. The plan aims to expand exports beyond traditional destinations, using instruments such as the African Continental Free Trade Area to tap into new and untapped markets. At the same time, there are apparently problems with payments. A member of parliament warned that, given the country's mounting debt, it risks joining Africa's growing list of defaulters. Any indication that Kenya is unable to service its debt could be "even more catastrophic for our economy," one MP said. The MP also criticized the government's tax system, saying it has had a negative impact on the economy: "Raising taxes to raise more revenue is a fallacy. Ultimately, they distort economic decisions." Biden is no longer Ruto's best friend; Trump, the current president, is keeping a low profile. Overall, Trump's approach to Kenya was pragmatic but focused primarily on security issues. His rhetoric and political stance toward Africa raised concerns and led to a degree of alienation between the US and African nations, including Kenya. Donald Trump is currently critical of Kenya in the areas of trade and foreign aid. In April 2025, he imposed a 10% counter-tariff on Kenyan exports to the US, which particularly burdens Kenya's agriculture and textile industries. This was done in response to Kenya's value-added tax and tariffs on US goods and is intended to address trade imbalances and currency manipulation. In addition, in February 2025, Trump almost completely stopped US foreign aid through USAID for Africa, including Kenya. This led to massive problems with humanitarian and development projects, layoffs, and a sharp decline in US support on the ground. Trump justified this by demanding that US funds only benefit projects that advance American interests. At the same time, Trump had already announced his intention to begin trade negotiations with Kenya in 2023, indicating an interest in an economic partnership. Overall, Trump's stance toward Kenya appears ambivalent: On the one hand, he is tightening trade tariffs and cutting development aid, while on the other, he is signaling interest in trade agreements. This leaves Ruto with little room to maneuver. Ruto also sought proximity to the United States. In May 2024, under his leadership, Kenya was recognized as a "Major Non-NATO Ally," which strengthened military and security cooperation. The United States views Kenya as an important partner in Africa, particularly in the fight against terrorism and as a counterweight to China's growing influence on the continent. Kenya is a key partner in the Belt and Road Initiative (BRI) proposed by China. The flagship BRI projects in Kenya, such as the Nairobi Expressway and the Mombasa-Nairobi Standard Gauge Railway, are testament to the vitality and mutual benefits of the partnership between Kenya and China. Kenya wants to strengthen cooperation with China to accelerate the transition to a green economy. What was decided during the visit? China and Kenya agreed that the Forum on China-Africa Cooperation (FOCAC) has significantly improved relations in the past 25 years since its establishment. The world we live in is changing, and it is important to put forward visions and proposals—including building a community with a shared future for humanity, high-quality cooperation through the Belt and Road Initiative, the Global Development Initiative (GDI), the Global Security Initiative (GSI), and the Global Civilization Initiative (GCI). China and Kenya are committed to being a steadfast force in safeguarding the common interests of developing countries and upholding the multilateral system. 1. Both sides agreed to continue to follow the strategic leadership of head-of-state diplomacy and maintain close high-level exchanges. 2. Both sides firmly support the independent choice of development paths that suit their respective national circumstances. They reaffirmed their firm mutual support on issues concerning each other's core interests and major concerns, and firmly reject external oppression and interference. 3. High-quality cooperation has been achieved within the framework of the Belt and Road Initiative.  4. Both sides agreed to make full use of mechanisms such as the Joint Committee on Trade, Investment, Economic and Technical Cooperation and the China-Kenya Joint Working Group to better identify needs for economic and trade cooperation. China would encourage more leading Chinese companies to invest and establish operations in Kenya to support Kenya's efforts to expand its competitive manufacturing capacity.  5. Both sides will advance the integrated development of infrastructure and industry through the implementation of major projects such as the Mombasa-Nairobi Railway, promote the development of growth cycles for China-Africa industrial cooperation, and work together to build a China-Africa network with land-sea connectivity and coordinated development. 6. China values ​​Kenya's role as a financial center in East Africa and will support Chinese financial institutions in establishing branches in Kenya and explore new and diverse forms of financial cooperation with Kenya. 7. Both sides will strengthen exchanges and cooperation in the health sector. Kenya aims to benefit from China's valuable experience in inclusive healthcare. 8. Kenya warmly welcomes and supports the Global Development Initiative (GDI) proposed by President Xi Jinping. Both sides believe that the GDI represents the common goals of countries in the Global South and is a powerful driver for international development cooperation and the implementation of the UN 2030 Agenda for Sustainable Development. 10. Kenya commends the Initiative to Support African Industrialization, the Plan to Support African Agriculture Modernization, and the Plan for China-Africa Cooperation on Talent Cultivation put forward by President Xi Jinping. Both sides will further expand cooperation in areas such as industry, agriculture, higher education, vocational training, and human resource development. 11. China welcomes Kenya's accession to the Group of Friends for International Cooperation in AI capacity building. 12. China commends the successful hosting of the first Africa Climate Summit in Kenya in September 2023 and commends President Ruto's contribution to promoting African unity in the fight against climate change. 13. Kenya actively welcomes and supports the Global Security Initiative proposed by President Xi Jinping. 14. Both sides call on the international community to support the efforts of African countries, the African Union (AU), and other regional organizations in Africa to independently resolve African issues in an African way. 15. Both sides agreed to further enhance exchanges at all levels in the field of peace and security and strengthen cooperation in areas such as personnel training, defense industry and trade, counterterrorism, and joint exercises and training. 16. Both sides will actively negotiate and sign a Memorandum of Understanding on cooperation between their law enforcement agencies, establish cooperation mechanisms, and work more closely to combat transnational crime and enhance law enforcement capacity in a joint effort to protect the security interests of both countries and their peoples. 17. Kenya actively welcomes and supports the Global Civilization Initiative proposed by President Xi Jinping. 18. Both sides will continue their time-honored friendship through exchanges and mutual learning. 19. Both sides will consolidate the foundation of China-Kenya friendship through people-to-people exchanges. 20. Both sides will reach consensus on their visions through the exchange of experiences. 21. Both sides agreed to resolutely safeguard the international system, with the United Nations at its center, and the international order based on international law and the fundamental norms governing international relations, which are rooted in the purposes and principles of the UN Charter. 22. Both sides are committed to strengthening the representation and voice of the Global South in the international system. 23. Both sides call for the necessary reform and strengthening of the United Nations, including the Security Council, to right the historical injustices against Africa. 24. Both sides agreed to continue reform and to make unremitting efforts with other African countries and the international community to resolve global hot spots, including those in Africa, to promote world peace, stability, and prosperity. 25. Both sides are convinced that the development of human rights should be people-centered and that every country has the right to independently choose the path of human rights development that corresponds to its own reality. Conclusion The talks between Kenyan President William Ruto and Chinese President Xi Jinping produced significant results in strengthening bilateral relations. - Expanding Relations: - Both countries agreed to develop their relations into a "China-Kenya community with a shared future for the new era." This represents a deeper strategic partnership. - Agreements and Memoranda of Understanding: - The leaders witnessed the signing of 20 cooperation documents. These agreements cover various sectors, including: - The Belt and Road Initiative (BRI) - New and cutting-edge technologies - People-to-people and cultural exchanges - Economy and trade - Media cooperation. The main areas of focus were: - Trade expansion - Investment promotion - Infrastructure development - Sustainable development - Digital superhighway programs. Economic Agreements: - Investment agreements worth approximately KSh 137 billion (USD 1.06 billion) were signed during a related economic forum. Joint Declaration: - Both sides issued the Joint Declaration between the People's Republic of China and the Republic of Kenya on creating an inspiring example in the changing China-Africa community with a shared future for the new era. Shared International Views: - Both leaders emphasized the importance of a peaceful and rules-based international order. - The importance of the Global South within the international community was also discussed. In essence, the talks consolidated and expanded the partnership between Kenya and China, focusing on mutual benefit and cooperation in various key sectors. 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