New Benchmark For Economic And Trade Cooperation Between China And Africa

A few days ago, Ethiopia ambassador to China, Mesfin, in the media interview stressed: "in addition to China, who can we learn? For a long time, China has been an important development partner in Ethiopia."

We are moving from the agricultural economy to industrialization and are looking forward to strengthening cooperation with China in the field of capacity.

China's assistance to Ethiopia is enormous, not only by greatly improving its hardware conditions through building bridges and paving, but also by forming industrial parks and industrial parks to form industrial agglomeration effects. It also provides technical support and personnel training to local authorities, introduces the development experience of China's special economic zones, and improves software conditions.

Reporters have learned that most of the specific facts cited by Mesfin, Ambassador of Ethiopia to China, are Huajian group (founded in 1996, the largest in the world.

One of the manufacturing enterprises, specializing in the production of high-end women's shoes, headquartered in Dongguan, the main production base distributed in Dongguan, Ganzhou and Ethiopia in Ethiopia's development initiatives.

At present, Huajian has 4200 employees and 6 production lines in Ethiopia.

The factory exports 2 million 400 thousand pairs of women's shoes annually, with an average profit margin of 10%. In 2015, it made 15 million yuan profit.

In order to further expand the industry, Huajian group plans to build an industrial park in Addisababa.

Shoes, hats, electronics and other light industries are the main manufacturing industries.

The total investment will be 400 million dollars, and the first phase 80 thousand square meters plant will be built by the end of 2016.

The project will be completed in 2020.

Zhang Huarong, a member of the CPPCC National Committee and chairman of Huajian group (Nanchang people, vice chairman of the Jiangxi Provincial Federation of industry and Commerce), told China Industrial Daily reporter that Africa is a traditional Chinese rear area with the cost advantage of production factors that China does not have. The Huajian group stays in the core business of R & D, financial settlement and so on, and puts the manufacturing sector in Africa, so as to combine the advantages of production capacity with the cost advantages of foreign production factors and achieve international cooperation in production capacity.

With the deepening of the strategy of "one belt and one road", Sino African Economic and trade cooperation is facing a rare opportunity for development. It provides more opportunities for Huajian's internationalization strategy, and hopes that more Chinese enterprises will join hands and go to Africa to develop together.

New benchmark for economic and trade cooperation between China and Africa

In May 5, 2014, Chinese Premier Li Keqiang and his delegation inspected the Huajian international Ethiopia factory during their visit to Ethiopia. This indicates that Ethiopia China Huajian light industrial city (invested by China Huajian group) will become a new benchmark for economic and trade cooperation between China and Africa.

In August 2011, when he was Prime Minister of Ethiopia, Ms Meles was on his way to Shenzhen to attend the opening ceremony of the World University Summer Games.

The more important purpose of his trip is to bring back China's labor-intensive manufacturing industry and develop light industry by utilizing the low price advantage of production factors to solve the problem of up to 47% unemployment in China.

Under Yifu Lin's suggestion, Meles went to Dongguan to inspect Huajian group, which manufactures footwear products for developed economies, and invited Huajian group to conduct business investigation in Ethiopia.

In less than a month, Zhang Huarong, chairman of Huajian group, led his team to Ethiopia to investigate the basic investment, tax, customs and logistics policies.

Later, he sprouted the idea of investing in Ethiopia.

Zhang Huarong believes that Ethiopia has low labor costs, abundant leather resources, and enjoys a global preferential import and export zero tariff policy, and the local government attaches great importance to foreign investment in foreign exchange earning and resettlement.

More importantly, Au headquarters are in Ethiopia, and the society is relatively stable.

Under the guidance of China's "going out" policy, Zhang Huarong finally decided to invest in October 2011. First, he took the shoemaking equipment to Ethiopia, arranged for Chinese personnel to work in Ethiopia, and recruited Ethiopia staff to go to Dongguan for training.

In January 5, 2012, Huajian group set up a new factory in Ethiopia Dongfang Industrial Park.

China, as Ethiopia's largest trading partner and largest source of foreign investment, has been expanding its investment in Ethiopia in recent years.

The Oriental Industrial Park built by Chinese funded enterprises was listed as a priority project of industrial development by the government of Ethiopia in 2008. Now it has become the largest scale, most advanced and most perfect platform for attracting investment in Ethiopia.

There are many manufacturing enterprises in the park, such as shoemaking, car assembly, cement production and so on.

The Huajian international light industrial city is the largest footwear manufacturer in Ethiopia. The women's shoes account for more than 50% of the export volume of the footwear industry in Ethiopia, which has led to the development of leather processing, pportation, logistics, farms and other fields.

Ethiopia China Huajian international light industrial city covers an area of 126 hectares, with an overall development volume of 1 million 369 thousand square meters, of which 638 thousand and 600 square meters of industrial development, 538 thousand and 800 square meters of residential development, and 191 thousand and 600 square meters of commercial development.

The industrial city fully embodies the Chinese elements, bringing the symbols of Chinese characteristics into the overall space design, relying on the Huajian Road, Huarong Road, and civilization Avenue to develop the production and living function plates, and create a sustainable, efficient industrial city with the vitality and charm of the city and the integration of the city and the city.

The new town is mainly divided into 9 parts: industrial area, industrial comprehensive area, apartment residential area, townhouse, single family villa area, business office area, commercial district, shopping center area and Waldhotel area.

Ethiopia China Huajian light industrial city will strongly promote the development and construction of Ethiopia's local economy. The whole industrial cluster is expected to employ 100 thousand people.

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Leading African manufacturing centers with capacity advantages

In September 8, 2015, Premier Helmyriam Desaleni and his wife led the Ministry of foreign affairs, the Ministry of Finance and economic development, the Ministry of agriculture, the Ministry of industry and the Ministry of mining and other officials of Ethiopia to visit Huajian group. They also attended the Ethiopia - (China) Dongguan investment cooperation forum, and witnessed the signing of cooperation intentions between Huajian group and 16 representatives of enterprises stationed in Ethiopia, Ethiopia.

Haier made a speech at the Ethiopia - China Investment Cooperation Forum in Dongguan.

He pointed out that Ethiopia - China Dongguan Huajian international light industrial park is one of the largest investment projects in Dongguan to Africa.

The current Ethiopia is a fast developing and dynamic country. In the past 12 years, GDP has continued to show two digit growth.

The investment cooperation forum will open up more space for investment and cooperation between Dongguan and Ethiopia. The investment cooperation forum is a new start for cooperation between the two sides. We hope that the two sides will deepen their cooperation in various fields and make joint efforts to achieve win-win development.

Haier said that the investment of Huajian group in Ethiopia has been increasing. It is hoped that more "Huajian" can come to Ethiopia and take Ethiopia as an important node for Dongguan enterprises to go to Africa.

Under the strategic layout of "one belt and one road", Ethiopia hopes to work together with Dongguan to build an African manufacturing center.

Zhang Huarong said that as long as the Huajian group's productivity advantages and Ethiopia's production factor cost advantages are combined, Ethiopia will be able to make great achievements.

To this end, Huajian group finally decided to invest in Huajian international shoe city (Ethiopia) Co., Ltd. in the Eastern Industrial Park of Banan, the capital of Asia, in the capital of Asia, as the OEM manufacturing base for Huajiao group's African women's shoes.

Huajian international shoe city started from construction to operation only three months ago. After three months of production, the export of leather products increased by 57%. It created the speed of "Hua Jian", and created the poorest country in Africa. It produced the most powerful myth of the world's most powerful women's shoes in the world. It became the largest export enterprise of Ethiopia, giving full play to Huajian's productivity advantages and esse's production factor cost advantage.

In 2014 alone, it created a profit of 15 million yuan.

By the end of April 2015, Essex international shoes city exported 3 million 840 thousand pairs of finished shoes to Europe and America, creating the most scarce foreign exchange market of $44 million 490 thousand for Ethiopia.

In April 2015, the total investment amounted to 400 million US dollars, covering a total area of 137 hectares, with a construction area of 1 million 600 thousand square meters. The Huajian International Light Industrial Park was officially launched and completed in 2020.

At that time, the industrial park will become a new focus of the development of Ethiopia light industry. It expects to earn 2 billion US dollars per year, and will also promote the development of the domestic shoemaking industry to the cluster.

Let "one belt and one road" promote China manufacturing to Africa

Zhang Huarong believes that the "belt along the way" is continuing to release enormous economic energy.

To this end, we must accelerate China's manufacturing to Africa.

Because China's labor-intensive industries have encountered development bottlenecks.

Accelerating China's manufacturing to Africa is a good way to accelerate the development of China's labor-intensive industries.

30 years of reform and opening up in China, the economy has been developing rapidly.

In particular, the "migratory bird industry" known as labor-intensive: textile, clothing, shoes and hats, bags, toys, electronics, etc., has solved a large number of labor employment for China, created a large number of foreign exchange, and made a significant contribution to economic development.

With the structural adjustment of China's economy and the rise of labor force wages, most of the labor-intensive industries are facing difficulties in the domestic market.

These industries have mature global market business resources, complete industrial chain supply system, and mature equipment matching and management system.

At present, many African countries have stable political situation, accelerated economic development, strong urbanization momentum, infrastructure investment and service industry has become a new driving force for development, emerging industries are rising, and market consumption power is constantly increasing.

Against this background, increasing investment in manufacturing industry and participating in the process of African industrialization can become a new highlight of Sino African Economic and trade cooperation.