Chen Deming, Minister of Commerce of China (Front Left) and Rupiah Banda, former Zambian President (Front Right) XINHUA

China's first overseas economic and trade cooperation zone in Africa has celebrated its fifth anniversary. the country's nonferrous metal giant, China Nonferrous Metal Mining (Group) Co. Ltd. (CNMC),held a ceremony in February to mark the occasion of Zambia-China Economic and Trade Cooperation Zone's (ZCCZ) achievement as the zone's founder and developer. 

Cluster effect

The year 1998 was a special one for CNMC. It was the year the company made its first investment in Zambia, and acquired 85 percent of shares of Chambishi Copper Mine through an open bid.

At a time when other investors were hastily packing their bags, leaving local workers stranded, the CNMC's Vice President Tao Xinghu recalled, the company offered to run the Chambishi Copper Mine and reopened it in 2003 after 13 years of closure, creating employment and helping secure the livelihood of people in the mining area.

Without this bid, there would not have been a Zambia-China trade zone, established in 2007 as the first multi-facility economic zone to get Zambian governmental endorsement.

Zan Baosen, General Manager of ZCCZ, said the construction of the economic cooperation zone was based on win-win cooperation. "The zone can not only help [CNMC] develop a multi-level marketing business, but is uplifting the lives of the local people, and reviving economic prospects in the district," said Zan.

CESince its inception five years ago, the zone has attracted 17 companies and a total investment of nearly $1 billion. ZCCZ has generated almost $500 million in taxes and sales revenues of $4.35 billion, according to data released by CNMC at the zone's five-year anniversary. It also created 12,000 jobs for Zambia in the past five years.

Since Zambia's new President Michael Sata took office in 2011, he has stressed that Zambia welcomes CNMC's investment.

Charles Khamala, a Zambian coal miner, said, "I must say that workers here used to complain about the unemployment [rate], but Chinese investment is creating new jobs now." Local media in Zambia also reported that many Zambians welcomed the economic cooperation with China because any opportunities that open up trade for their country mean increasing the trading opportunities.

Overseas hardships

CNMC is one of the earliest of China's enterprises in its industry to look for global cooperation.

"Going global is not an easy task for Chinese enterprises and investing overseas is a challenging job," said Zan. He added that China and Zambia have built a cooperative economic partnership, while enjoying a deep friendship. However even in the best friendships there are challenges.

Last October, workers at Zambia's Chambishi Copper Smelter went on two-week-long strike demanding higher wages. In fact, CNMC increases its workers' salaries in Zambia every year in accordance with its business operations. "We had offered [workers] a pay rise of 12 percent in 2010, and were planning to raise pay in 2011 at the time when the strikes occurred," said CNMC's Vice President Tao Xinghu.