"Hunan Manufacturing" Booms in Africa as "Complementarity" Becomes a Keyword in China-Africa Economic and Trade Ties

2024-09-04 3382 0人评论

The 2024 Summit of the Forum on China-Africa Cooperation (FOCAC) will be held on September 4. On the afternoon of the 3rd, the Ninth Ministerial Conference of FOCAC was held, with more than 300 participants including foreign ministers and economic ministers from 53 African countries as well as representatives of the African Union and other regional and international organizations. The meeting made comprehensive preparations for the upcoming FOCAC Beijing Summit.

China-Africa economic and trade cooperation can be said to be one of the highlights of previous summits. What tangible development has the summit brought to China-Africa trade? In recent years, along with the rapid growth of China-Africa trade, what opportunities has it brought to China and African countries, as well as to local people?

Since 2009, China has remained Africa's largest trading partner for 15 consecutive years. Last year, China-Africa trade volume set a new historical peak for the second consecutive year. As the "barometer" and "wind vane" of China-Africa trade development, the China-Africa Trade Index also exceeded 1,000 points for the first time last year. The strong reversal of the downturn brought by the pandemic and the achievement of a robust recovery and even higher climb also reflect the resilience and vitality of China-Africa trade.

  Madagascan businesswoman Mi

Bringing "Made in Hunan" to Africa

Every week, Mi from Madagascar comes with her son and daughter to play ball at a gymnasium in Changsha.

Because they have lived in China since childhood, the children have already mastered Chinese. This year is Mi's 12th year of settling in China. In Changsha, Hunan, at the International Youth Entrepreneurship Port, she founded a trading company mainly engaged in import and export trade between China and African countries.

In Mi's office, there are several models of construction machinery made in Hunan, which are also the main export products of her company.

Madagascan businesswoman Mi: This is our partner. We export the construction machinery they manufacture from Changsha to Madagascar. This company is very well known; they all know this brand, and the quality is very good.

If you want to get rich, build roads first. Infrastructure construction is an important foundation for Africa's development. Across the whole of Africa, from the Mombasa-Nairobi Railway in Kenya to the Abuja-Kaduna Railway in Nigeria, from Egypt's "tallest building in Africa" to Senegal's Rosso Bridge, "Made in Hunan" can be seen everywhere. As a major manufacturing province, Hunan's construction machinery and equipment have participated in major project construction in more than 50 African countries and regions.

Madagascan businesswoman Mi: All the products here are used for engineering and construction. I know Madagascar needs this kind of equipment.

Mi told us that the reason she chose to settle in Changsha, Hunan, is that it is the permanent venue of the China-Africa Economic and Trade Expo, which can bring her more business opportunities and a broader development platform.

Madagascan businesswoman Mi: The China-Africa Economic and Trade Expo makes cooperation closer and closer. During exhibitions or conferences, we can have more cooperation opportunities. We can go to suppliers and customers to participate in activities, and we can also enhance exchanges with the Chinese government and Chinese entrepreneurs.

The goods Mi deals in travel between her home island and the distant East, connecting the supply and demand ends of the China-Africa trade market and also linking the development of the two countries. Recently, she wants to introduce Madagascar's specialty agricultural products, vanilla and cloves, to China, so that while sharing good things with Chinese friends, she can also open up a broader consumer market for her hometown and help Madagascan farmers increase their incomes and become better off.

Madagascan businesswoman Mi: If you want to make ice cream, you can use vanilla. If you want to make cookies, you can also use vanilla.

Mi told us that in Africa there are still some women who have no job and no stable source of income. She hopes that one day her company will be able to hire these women. It is precisely millions of young entrepreneurs and dream chasers like Mi, traveling between China and Africa, who light up the sparks along the new Silk Road.

Madagascan businesswoman Mi: Chinese people are like my family. They are very friendly when they meet you. They always greet you with a smile and say "nihao," which makes me very happy. Here I have friends and feel very happy and free.

China-Africa economic and trade cooperation has complementary advantages and fruitful results

"Made in Hunan" goes to Africa, while agricultural products such as vanilla and cloves come to China. The two hotbeds of development are thousands of miles apart, yet closely interconnected.

"Complementarity" is a prominent feature of China-Africa economic and trade exchanges. Mechanical and electrical products are the "main force" of China's exports to Africa. In 2023, exports of the "new three" items—new energy vehicles, lithium batteries, and photovoltaic products—grew by 291%, 109%, and 57% year on year, respectively.

Agriculture has always been a pillar industry of many African countries, and the value of China's imports of agricultural products from Africa has grown for seven consecutive years. Last year, China's imports of nuts, vegetables, flowers, and fruits from Africa grew by 130%, 32%, 14%, and 7% year on year, respectively.

Not only fruits and vegetables, but also Ethiopian coffee, Rwandan chili sauce, Kenyan black tea, Ghanaian chocolate... African specialty agricultural products and processed finished products are becoming popular in the Chinese market. On the one hand, they meet the diverse needs of Chinese consumers; on the other hand, African farmers also obtain tangible benefits.

  Fragrant flowers and fruits reach "Xiang"

China's market, Africa's opportunities

Hunan is a pioneering zone for in-depth China-Africa economic and trade cooperation. Walking into the largest fruit wholesale market in central and southern China, trucks come and go frequently. In the imported fruit trading area, wholesalers and consumers making purchases stream in endlessly.

Hunan imported fruit wholesaler Zou Xueping: South African Fuji apples are a must-sell every year and are also a very popular product every year. Their annual sales volume is basically more than one ton.

Purchasing Director of Hunan Fruit Wholesale Market Cui Shizhen: In January and February there will be South African grapes; in March and April there will be South African Forelle pears; in May there will be Kenyan avocados; and in the future there may also be some blueberries.

Besides fruit, African fresh flowers are also gradually entering the Chinese market.

Kenyan commodity importer: We have roses, Ornithogalum, hydrangeas, delphiniums, and many other varieties. For roses alone, a single category can reach 550 varieties.

Kenyan fresh flowers have many varieties, large heads, and long vase life. Even after crossing 7,000 kilometers, they still stand tall and beautiful. Agricultural exports have always been an important source of foreign exchange for African countries. To promote China-Africa economic and trade exchanges, the customs authorities created the China-Africa Countries SPS Cooperation Information Website, which provides detailed introductions to the customs inspection and quarantine requirements of China and African countries in import and export trade.

Li Yang, Deputy Section Chief of the Changsha Customs Office: The laws and regulations of African customs and Chinese customs are scattered across a great many websites, so at that time we came up with this idea. We gathered all the laws and regulations related to customs inspection and quarantine of China and Africa onto this website, so that for enterprises, they can find the information they want with one click.

As of the end of June this year, China had implemented zero tariffs on 98% of tariff lines for products originating in 27 least developed African countries, established a "green channel" for African agricultural products exported to China, and signed 22 protocols on market access for agricultural products to China with 14 African countries. At present, high-quality specialty products from Africa such as aquatic products, honey, sesame, peanuts, soybeans, coffee, and fruits have achieved stable exports to China. China-Africa trade is mutually beneficial: it meets the diverse needs of Chinese consumers, and African farmers can also gain income from the Chinese market.

  Why has China-Africa trade maintained a good momentum for a long time?

Why has China-Africa trade been able to maintain a good momentum for a long time? What does it bring to both sides? In what areas will breakthroughs be made in the future?

He Wenping, Senior Research Fellow at the Institute of West-Asian and African Studies, Chinese Academy of Social Sciences: Because China and Africa are highly complementary. The manufactured goods and mechanical equipment Africa needs are all high-quality and inexpensive products from China.

We need Africa's mineral resources and the large quantities of agricultural products we now import from them, which are also needed by Chinese consumers. In recent years, there has also been strong policy support. Since 2018, the China International Import Expo has been held, providing many preferential measures. Their enthusiasm for participating in the expo is also very high.

Now, of course, there are many new changes. For example, products are more diverse. Among agricultural products, Kenyan avocados are now very popular among ordinary Chinese people. Beef from Namibia and southern Africa is of particularly high quality.

So these African agricultural products coming to the Chinese market have driven Africa's agricultural development, and for China it is also very good—our table food has become more abundant.

The future of China-Africa economic and trade cooperation is certainly promising. For example, we go to Africa to invest and build factories, help them modernize agriculture and upgrade agricultural products, including processing—for example, coffee beans can become coffee—giving agricultural products the wings of modernization and upgrading.

Many new Chinese products are very popular in Africa. For example, new energy vehicles and our solar panels can be seen in rural areas of Africa. There is also the digital economy and food delivery. These new economic forms and business formats are also appearing in Africa. These are all new business formats and new directions for cooperation in China-Africa economic and trade relations.

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