Mutually beneficial and win-win, China Mauritius economic and trade cooperation has a long history

On November 28, 2022, the completion ceremony was held for the side slope treatment project of B104 Highway, a major traffic road in Mauritius, which was undertaken by the Ninth Hydropower Engineering Bureau of POWERCHINA, and the completion of the project was unveiled by Mauritian Prime Minister Jagnat; On December 8, the main part of the cruise terminal building project in Port Louis, Mauritius undertaken by CRBC was completed; On December 16, the Mauritian RMB clearing bank service was officially launched... From infrastructure to finance, China and Mauritius continued to promote practical cooperation in various fields, with fruitful results.
The year 2022 marks the 50th anniversary of the establishment of diplomatic relations between China and Mauritius. Over the past half century, the two countries have respected, supported and vigorously developed economic and trade cooperation, setting a good example of developing mutually beneficial and win-win economic and trade cooperation in Africa.
Establish RMB clearing mechanism
The cooperation between China and Mauritius in the financial field is deepening, and Mauritius has become an important platform for China and African countries to carry out offshore RMB business. On December 16, 2022, the RMB clearing bank service in Mauritius was officially launched. The launch of RMB clearing bank service in Mauritius is very important for the economic development of Mauritius and will facilitate cross-border transactions between the two countries.
The rapid development of BOC Mauritius's international settlement business has contributed to the economic and trade development between China and Mauritius. Statistics show that in 2021, Bank of China (Mauritius) Co., Ltd. completed international settlement business of US $2.504 billion, a new high since the bank was established. From January to October 2022, the Bank's international settlement business volume reached US $2.491 billion, a year-on-year increase of 22.47%, and is expected to reach US $3 billion in 2022.
The international influence of RMB is increasingly apparent, and it plays a very important role in the global monetary system. The establishment of the RMB clearing mechanism will further facilitate the local currency settlement of bilateral trade between China and Mauritius, effectively improve the quality of capital circulation, efficient flow of labor, technology, talents and other factors, and create new opportunities for the development of financial institutions in both countries. Li Lianhong, President of the Mauritius Branch of the Bank of China, said that in the future, China and Mauritius will deepen cooperation in the financial field and promote new development of bilateral relations.
Undertake infrastructure construction
Mauritius is a transit point to the African continent, and the expansion of ports and airports is a key development project of its government. Chinese enterprises are actively participating in the construction or investment of these projects. At present, about dozens of Chinese enterprises have carried out cooperation in infrastructure fields such as roads, water pipelines and communications in Mauritius. Chinese enterprises have shown a good development trend in contracting projects and infrastructure cooperation in Mauritius.
In 2022, the projects undertaken by Chinese enterprises in Mao will be completed successively. On December 8, the main part of the cruise terminal building project in Port Louis, Mauritius undertaken by CRBC was completed. During the construction of the project, Chinese enterprises overcame the difficulties caused by the COVID-19 and promoted the construction in an orderly manner. As one of the key projects in the "Vision 2030" plan of the Mauritian government, the completion of the Louie Port Cruise Terminal Project will enhance the external image of Mauritius's tourism industry and help the local economic recovery.
The side slope treatment project of B104 Highway, a key traffic road in Mauritius, undertaken by the Ninth Hydropower Engineering Bureau of Powerchina, was also completed on November 28. After the project is officially put into use, it will effectively connect many famous scenic spots and regions nearby, which will help promote the revival and vigorous development of the local tourism industry in Mauritius, effectively guarantee the travel safety of local residents and vehicles, further improve the local traffic accessibility, promote the local industrial layout, and adjust and optimize the local investment environment.
Negotiate bilateral and multilateral free trade agreements
China is currently Mauritius's largest trading partner and largest source of imports.
On January 1, 2021, the Free Trade Agreement between China and Mauritius came into force. The China Mauritius Free Trade Agreement is the 17th free trade agreement signed by China and the first free trade agreement between China and African countries. Before the China Mauritius Free Trade Agreement came into force, Mauritius mainly exported sugar, watch accessories and flowers to China. After the agreement came into force, it opened the door to export opportunities for many Mauritian products, including rum and textiles.
Despite the impact of the COVID-19 epidemic, the FTA has greatly boosted Mauritius' exports to China. The total export of Mauritius to China in 2021 will increase by 9 million US dollars compared with 2020. It is worth mentioning that Beijing will become the largest trading partner of Port Louis, the capital of Mauritius, in the first quarter of 2022.
In addition to injecting new impetus into bilateral economic and trade cooperation, the China Mauritius Free Trade Agreement is also expected to become an important platform and link between the member countries of the Regional Comprehensive Economic Partnership (RCEP) and the African Free Trade Area. At the beginning of 2022, RCEP will take effect in China, and Mauritius has also participated in the construction of the African continent free trade area. Taking Mauritius as the gateway can further promote the trade between the RCEP member countries and the African continent free trade zone. The products and investments of the RCEP member countries can enter the African continent through Mauritius, and the products and investments of Africa can also enter the RCEP member countries through Mauritius. The China Mauritius Free Trade Agreement will better connect RCEP member countries and the African continent.