Hong Kong Media: China Africa Economic and Trade Cooperation Achieves a Win Win Situation Relationship | China | Situation
According to the website of the South China Morning Post in Hong Kong on June 23, overseas travel began immediately after China reopened its borders in early January. Thousands of Chinese manufacturers are starting to participate in foreign exhibitions and trade fairs, eager to attract new customers and personally meeting with old customers for the first time in three years.
Some people go straight to events like the Consumer Electronics Show in Las Vegas, but a trade delegation of 30 people has a completely different destination - industrial parks and trade zones in Africa.
According to the report, during a trip organized by the local commerce department, these people departed from the manufacturing center of Foshan in southern Guangdong Province, China in May, with the aim of helping Foshan's industry go global and maintain competitiveness. Their idea is that Africa can provide undeveloped opportunities, lower production costs, and fewer trade barriers compared to many other destinations.
Delegation member Feng Jianping has utilized this advantage to obtain contracts to sell rechargeable fans to households in various African countries. The small home appliance exporter said, "The explosive growth in the African market has not yet arrived." She said, "Africa has over 1.4 billion people, and there are still many unmet demands in the market."
The report points out that Africa has successfully elevated its position in the minds of Chinese businessmen seeking to expand overseas business.
In the coming days, Changsha, Hunan will hold the third China Africa Economic and Trade Expo. It is expected that from June 29th to July 2nd, more than 50 African countries and 8 international organizations will participate in this expo, further deepening trade relations between China and Africa.
According to reports, in the East African country of Tanzania, Huang Zaisheng, the chairman of the Zhongtan Industrial Park located in the suburbs of Dar es Salaam, said, "Investing in Africa is a longer-term business strategy."
The industrial park started construction last year and will be completed within the next 5 to 8 years. At that time, the industrial park will cover an area of nearly 4 square miles, with the goal of attracting over 200 enterprises to settle in.
Huang Zaisheng stated that in terms of economic development, Africa has enormous potential in the next 10 years.
The report points out that many factors have made the African continent more attractive. Africa has a relatively young and rapidly growing population, which provides a huge potential consumer market. The relatively low labor costs and abundant natural resources, including mineral and energy reserves, also provide lucrative investment opportunities.
As trade relations between China and Africa continue to strengthen, Chinese investors are taking advantage of these favorable factors to establish mutually beneficial relationships and seize the enormous potential that Africa can provide.
According to reports, as early as 2009, China surpassed the United States to become Africa's largest trading partner. According to official Chinese data, the trade volume between China and Africa reached a record high of 282 billion US dollars last year, more than 26 times that of 2000.
As of the end of 2020, China's direct investment in Africa was approximately 47.35 billion US dollars. More than 70% of China's investment comes from the private sector. Most of the funds are used to build industrial parks and factories, which helps promote industrialization in the host country.
According to reports, Martin Mpana, the head of the African Embassy in China and the Ambassador of Cameroon to China, stated in April that "Africa welcomes China's investment with open arms." He also said that the African side is eagerly looking forward to more Chinese companies visiting the African continent to explore investment opportunities.
In addition to the private sector, the most eye-catching investment of China in Africa comes from the "the Belt and Road" initiative - a government effort that has lasted for 10 years and aims to connect various economies to China centered trade networks, including many African countries.
The report points out that the Eastern Industrial Park in Ethiopia, invested by Chinese companies, has helped local people improve their technical skills and create employment opportunities, especially in industries such as textiles and clothing manufacturing. The industrial park has played a crucial role in enhancing Ethiopia's manufacturing capacity and turning the country into a regional manufacturing center.
"Chinese industrial parks bring much-needed foreign direct investment, not 'hot money'," said X.N. Ilaki, a professor of economics and management at the University of Nairobi. "They also bring competition, thereby improving the quality of goods and services and lowering prices. This is a win-win situation. African governments welcome Chinese investors because they bring technology, new skills, and connect Africa with the larger Chinese market."
