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Hunan takes advantage of the CAETE to grow mutually beneficial ties with Africa
 | VOL.11 July ·2019-06-27

CZ6043, the first flight from Changsha, Hunan Province of China, to Africa, arrives in Nairobi, Kenya, on June 12 (LU SHUAI)

The First China-Africa Economic and Trade Expo (CAETE) in Changsha, capital city of central China’s Hunan Province, is poised to further stimulate the cooperative partnership between the world’s largest developing economy and the continent with the largest number of developing economies.

In a recent interview with ChinAfrica, Xu Xiangping, Executive Deputy Secretary General of the Secretariat of the CAETE Organizing Committee and Director of the Hunan Provincial Department of Commerce, spoke about the expo’s preparation and Hunan’s thriving business ties with Africa. An edited excerpt of the interview follows:

ChinAfrica: What are Hunan’s advantages to be chosen as a permanent venue for hosting the CAETE?

Xu Xiangping: Hunan’s advantages are abundant. The province lies in a transitional area between the coastal region in the east and the central and western regions, where the Yangtze River Economic Belt and the Coastal Economic Belt, both characterized by an open economy, intersect. This has allowed Hunan to develop into a transportation hub. Moreover, it boasts a solid industrial foundation. Businesses engaged in engineering equipment, rail transit, nonferrous metals and auto manufacturing are influential and competitive not only in China, but also in the global market.

In recent years, Hunan has taken the initiative in adapting to economic globalization and regional integration by capitalizing on its strengths. It has been actively involved in the Belt and Road Initiative, implemented a strategy calling for innovation-led, open development, and stepped up economic and trade cooperation with other countries and regions. To date, Hunan has forged commercial ties with nearly 200 countries and regions. Some 200 of the world’s top 500 companies have invested in the province.

People in Hunan have established a close rapport with African nations. Their industrial structures are highly complementary with the huge potential for cooperation. There have been frequent exchanges of high-level visits between Hunan and African countries. Leaders of Sierra Leone, the Republic of the Congo, Ghana, Ethiopia and Guinea-Bissau have visited Hunan. Hunan, for its part, has sent delegations to Ethiopia, Nigeria, Uganda, Kenya and Angola.

Since 2015, Hunan has hosted major Africa-focused trade events for four consecutive years. These include the Fourth Investing in Africa Forum, African Envoys Visiting Hunan, Hunan-Africa International Industrial Cooperation Conference & Business Cross-Border Networking Event, and Hunan-Africa Local Industrial Cooperation Event. In addition, it has put in place a multi-dimensional platform for business cooperation with Africa, by creating economic and trade cooperation zones and setting up commercial representative offices in African countries.

What makes the CAETE different from other expos?

First, the CAETE prioritizes experience sharing, being the first expo with a signature book. We have compiled a collection of 101 case studies on China-Africa economic and trade cooperation, which were selected from 245 submissions from around China. These are all success stories that can be duplicated, popularized and sustained.

A selection of 40 cases will be showcased during the expo in a multimedia format. They will help Chinese and Africans know more about the outcomes of China-Africa economic cooperation as well as the Chinese experience gained during the process. The book will be published in Chinese, English and French, and we hope it will be of relevance to the African delegates.

Second, the idea of “Internet Plus” has been incorporated into the CAETE. It is only natural that the more than 10,000 participants gathered in Changsha may not see everything on show in just three days. An online expo will therefore be launched to present information, projects, policies and mechanisms on China-Africa economic cooperation. Chinese and African companies and local governments can continue matchmaking on this digital platform.

In addition, we will build an African commodity pavilion at the Gaoqiao Grand Market in Changsha where goods from Africa will be exhibited and sold on a permanent basis. With the online expo and the offline pavilion, the CAETE will be accessible all year round.

 

Xu Xiangping

What has Hunan done to ensure the CAETE’s success? What measures has it taken to promote economic and trade cooperation with Africa?

The CAETE is a concrete step to strengthen the China-Africa community with a shared future. It also demonstrates China’s resolve to further its opening up and enhance solidarity and cooperation with African countries.

After Hunan was designated as host of this event, a leading group overseeing its preparation was set up with the secretary of the provincial committee of the Communist Party of China as the head and the governor as the first deputy head. We have conducted extensive research on new mechanisms, approaches and measures.

On the one hand, Hunan is ready to avail itself of the opportunity to introduce its competitive production capacity, industries and products to Africa and deepen technology, economic and trade cooperation. On the other hand, the African commodity pavilion at Hunan Gaoqiao Grand Market will promote the export of Africa’s non-resource products to Hunan and other parts of China.

Hunan has adopted a series of supportive measures. Some of them have come to fruition, while others are being put into practice. For instance, a direct flight between Changsha and Africa was launched on June 12, making the flow of personnel and goods between Hunan and Africa more convenient. We will establish project and information databases to collect more information on investment, trade, industrial development and tourism.

We will establish an academy on China-Africa economic and trade cooperation based on academic resources in Hunan’s universities and research institutes to study African countries and industries. Many enterprises do not have a clear idea of what Africa can offer, what they can do in Africa and how to do it. We hope the academy will provide answers to these questions. We will mobilize companies, state-owned and private alike, to develop a mutually beneficial model of China-Africa economic and trade cooperation featuring government guidance, enterprise participation and market-based operations.

What is the general picture of Hunan’s trade and investment relations with Africa? What deals are expected to be signed during the First CAETE?

Recent years have seen a rapid rise in Hunan’s trade with and investment in Africa. Hunan maintains trade relations with 50 African member countries of the Forum on China-Africa Cooperation. Its trade with Africa soared more than 30 percent year on year for the fourth consecutive year to reach $2.8 billion in 2018. More than 120 Hunan companies have made a contractual investment of nearly $1 billion in African countries in sectors such as mineral resource exploration and development, foreign trade, construction, textiles and manufacturing.

For instance, products and technologies from companies such as the steelmaker Valin, Yuan Long Ping High-Tech Agriculture, and machinery giants Zoomlion and Sany have penetrated the African market. The Central South University, in collaboration with the China Nonferrous Metal Mining (Group) Co. Ltd., established a biohydrometallurgy demonstration base in Zambia in 2010 to promote the efficient use of the country’s low-grade copper resources. Then Zambian President Rupiah Banda attended its opening ceremony.

Africa has been a key destination of international project contractors in Hunan, with their turnover reaching $1.34 billion in 2017. The Hunan Road and Bridge Construction Group, the Hunan Construction Engineering Group and the China Construction Fifth Engineering Division are among the leading players in this field.

A number of agreements are expected to be signed during the First CAETE. Hunan is a major agricultural province in China with a highly developed agricultural product processing industry. Yuan Longping, an eminent agricultural scientist known as the father of hybrid rice, is based in Hunan. Deals on China-Africa agricultural cooperation are expected to be signed at the expo.

Hunan is also a manufacturing powerhouse that has made great strides in economic restructuring and upgrading in recent years. It is expected therefore that manufacturing agreements will also be signed. In addition, negotiations on investment and infrastructure construction in economic and trade cooperation zones will be conducted with deals expected to be finalized.

(Comments to niyanshuo@chinafrica.cn)

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