ThefastdevelopmentofbusinessrelationsbetweenChinaandAfricainrecentyearshasbroughtaboutfrequentcivilandcommercialtransactionsbetweenbothsides.
In2000whentheForumonChina-AfricaCooperation(FOCAC)wasestablished,thetradevolumebetweenChinaandAfricahadjustreached$10billion.Inthefirst11monthsof2016,thisfigurereached$134.59billion,accordingtostatisticsfromGeneralAdministrationofCustomsofChina.ZhuWeidong,researchfellowwiththeInstituteofWestAsianandAfricanStudies,ChineseAcademyofSocialSciences,sharedhisthoughtswithChinAfricaontheimportanceofcrossborderlegalissuesinthefrequentcivilandcommercialtransactionsbetweenbothsides.Editedexcerptsofhisthoughtsfollow:
Atpresent,thebilaterallegalframeworkbetweenChinaandAfricancountriesstillneedstobeimprovedtoprovideasoundlegalguaranteeforthesustainablebusinessrelationsbetweenbothsides.Therefore,theChineseandAfricangovernmentscanworktogetherinfuturetowardacomprehensivelegalframeworkwhichwilldefinitelyenhancetheconfidenceofthepeopletoparticipateincross-bordertransactionsandsustainablebusinessrelationsbetweenbothsideswilltherebybemaintained.
ZhuWeidong,researchfellowwiththeInstituteofWestAsianandAfricanStudies,ChineseAcademyofSocialSciences
ChinahasbeenthelargesttradingpartnerofAfricasince2009andwiththerapidgrowthintermsofthecountry鈥檚directinvestmenttoAfrica.Inthefirst10monthsof2016,China鈥檚non-financialdirectinvestmentinthecontinentexceeded$2.5billion,ayear-on-yeargrowthof31percent,accordingtotheMinistryofCommerceofChina.Morethan3,000Chineseenterpriseshaveinvestmentin52countriesandregionsinAfrica.ThismakesthecontinentthesecondlargestcontractprojectmarketforChina.AccordingtotheFOCACJohannesburgActionPlan(2016-18),ChinawillscaleupitsinvestmenttoAfricaandplantoincreasethestockofdirectinvestmentinAfricato$100billionin2020,whichwillleadtomorecivilandcommercialtransactionsbetweenbothsides.
Thefrequentcivilandcommercialtransactionsbetweenbothsideshaveresultedinvariouscross-borderlegalissueswhichwillhavenegativeimpactonthesustainablebusinessrelationsiftheyarenotdealtwithproperlyandefficiently.Thecross-borderlegalissuesarisingfromChina-Africabusinesstransactionsaremainlythoseconcerningcivil,commercialandcriminalmatters.ThenumberofcasesinvolvingChinesepartiesintheAfricancourtsorarbitralinstitutionsandthecasesinvolvingAfricanpartiesintheChinesecourtsorarbitralinstitutionsarerisingrapidly.
Thecivilandcommercialdisputesbetweenbothsidesaremainlyfromcontracts,investments,delictandfamilymatters;andthecriminalmattersaremainlyfromillicitdrugtrafficking,dealinginpreciousanimalandplantproductsandtelecommunicationfraud.Theincreasingcross-borderlegalissueshave,tosomedegree,impededthehealthydevelopmentofbusinessrelationsandattractedattentionfromgovernmentsinvolved.InsomeoftheactionplansadoptedbytheFOCACMinisterialConference,proposalshavebeenmadetotacklesuchcross-borderlegalissues.
Theproperandefficientsettlementofthecross-borderlegalissuesbetweenthepartiesinvolvedrequiresacomprehensiveandsoundbilaterallegalframeworkcoveringcivil,commercialandcriminalmatters,investmentanddoubletaxation.Butatpresent,thebilaterallegalframeworkbetweenChinaandAfricancountriesisfarfromcompleteandneedstobeimproved.
CurrentlytherearealsoveryfewAfricancountriesthathaveratifiedthemultilateralconventionsincivilandcommercialjudicialassistance.OnlyEgypt,Morocco,Botswana,MalawiandSeychellesaccededtothe1965HagueConventionontheServiceAbroadandonlyMorocco,SouthAfricaandSeychellesbecamepartiestothe1970HagueConventionontheTakingofEvidenceAbroad.Itismanifestlynecessaryfortherelatedpartiestoconcludemorebilateraljudicialassistancetreatiesincivilandcommercialmatterstosmooththewayforthesettlementofcross-borderlegaldisputes.Otherwise,itwillcausemuchinconveniencetothepartiesparticipatinginthecross-borderbusinesstransactions.ChinesePremierLiKeqiangspeaksatthe54thAnnualSessionoftheAsian-AfricanLegalConsultativeOrganizationheldinBeijingThelargeincreaseofcross-bordercrimesbetweenChinaandAfricainrecentyearsalsonecessitatesthenegotiationandconclusionofmorebilateraljudicialassistancetreatiesinsuchareasasextraditionandthetransferofthesentencedpersonstofightagainstsuchcrimeseffectively.However,uptonow,onlyNamibia,Algeria,Tunisia,SouthAfricaandEgyptconcludedbilateraltreatiesonjudicialassistanceincriminalmatterswithChina;andonlyNamibia,Algeria,Tunisia,SouthAfricaandAngolaconcludedbilateraltreatiesonextraditionwithChina.AccordingtotheinformationfromtheMinistryofForeignAffairsofChina,KenyaandChinaareveryinterestedinreachingsuchabilateraltreaty.Additionally,thenegotiationofthebilateraljudicialassistancetreatyandextraditiontreatybetweenChinaandMauritiusisnowinprocess.
Finallyandofgreatimportanceisthedoubletaxationtreaties(DTT)betweenChinaandAfricancountries.TheDTTisaveryimportantlegalinstrumentforthoseinvolvedincross-borderbusinesstransactions.Itcanavoidthelevyingoftaxbytwoormorejurisdictionsonthesamedeclaredincomeorfinancialtransactions,thusmitigatingtheeconomicoperators鈥檛axburden,andhelptoboostthebusinessrelationsbetweenbothsides.AccordingtotheinformationfromtheChineseStateAdministrationofTaxation,Chinahasconcluded14DTTswithAfricancountries,includingMauritius,Uganda,Botswana,Sudan,Egypt,SouthAfrica,NigeriaandZimbabwe;buttheDTTswithUganda,ZimbabweandBot-swanahavenotyetcomeintoeffect.
Noonewilldoubttherolethatthelawplaysinthemaintenanceofbusinessrelationsandsocialorder,especiallyforthecross-bordercivilandcommercialtransactions.Thereisnouniformlegalsystemtogovernthecross-bordercivilandcommercialtransactionsintheworldduetothenationalsovereigntyanddiversifiedlegaltraditions.Therefore,itisveryimportantforthecountriesinvolvedtoconcludebilaterallegalframeworkstogovernsuchtransactions,whichcanprovidethelegalcertaintyandpredictabilityandasafetransactingenvironmentforthoseparticipatinginsuchtransactions.
Atpresent,thebilaterallegalframeworkbetweenChinaandAfricancountriesstillneedstobeimprovedtoprovideasoundlegalguaranteeforthesustainablebusinessrelationsbetweenbothsides.Therefore,theChineseandAfricangovernmentscanworktogetherinfuturetowardacomprehensivelegalframeworkwhichwilldefinitelyenhancetheconfidenceofthepeopletoparticipateincross-bordertransactionsandsustainablebusinessrelationsbetweenbothsideswilltherebybemaintained.