China-Africa industrial cooperation is win-win

Recently, industrialcapacity cooperation has become a catchphrase in the China-Africa relations as many African countries seek to become hosts of Chinese investors, so as to add fuel to their own industrialisation strategies. Sino-Africa industrial capacity cooperation presents an historic opportunity for the two sides to achieve win-win cooperation for mutual development and make the world a more balanced, stable and prosperous place for all. In fact, such cooperation is the urgent need for Africa to realize independent and sustainable development. Decades of international development aid given to post-independent African countries has proven largely ineffectual and only confirmed that it is impossible to realize real political independence without economic autonomy. Industrial cooperation would help end the practice of donating fish rather than teaching Africa how to fish in order to feed its people and reduce poverty. Of course, by giving someone fish, one might help address some of the continent’s immediate needs. But it’s only after “learning how to fish” that Africa can truly set up its own industrial systems and move out of the disadvantage of exporting raw materials at a low price and importing expensive finished products. Therefore, the essence of industrial capacity cooperation is to “let African countries know how to fish” in order to get rid of the two most persistent bottlenecks of insufficiency in infrastructure and capacity issues; which are hindering its development. To this end, the government of the People’s Republic of China encourages Chinese businesses to invest and transfer their technologies to Africa. After more than 30 years of reform and opening up, China has developed a large number of leading industries which provide advanced equipments and products to the world, and numerous internationally competitive businesses have grown in China. Investing in Africa means creating more job opportunities, boosting tax revenue and adding value to primary products and the local people through improved incomes thus translating Africa’s abundant natural into real development results. Recent increments in industrial labour costs in China means a large number of labour-intensive businesses in China need to move overseas where they can access cheaper labour. China can and need to bring its industrial capacity overseas, including, to Africa; this would help develop other countries while at the same time achieving China’s own development. This is not a new phenomenon, it’s in line with the rule of world economic development; Japan and the four Asian tigers all realized economic takeoff after taking over industrial capacity from overseas, and later became source countries to export industrial capacity to overseas markets. Africa’s opportunity is that the continent has a population of close to 1.1 billion, which might reach 1.4 billion by 2025; this is a huge demographic dividend which makes it one of the most ideal locations for investments from other parts of the world. But in order to realize industrialisation, Africa needs advantageous industrial capacity from countries such as China. The Chinese government is sincere in helping Africa to improve both “software” and “hardware” of investment, assisting them to “build a nest to attract phoenix”, and creating better environment for industrial capacity transfer. Poverty and underdevelopment have always been the root causes of instability and unrest in Africa, which also provide the breeding ground for terrorism and improving Industrial capacity can safeguard against such threats to world peace and prosperity. Chinese leaders attach high importance to developing a new type of partnership with Africa and recently, Chinese Foreign Affairs Minister Wang Yi summarized the four principles that China adheres to in international industrial capacity cooperation. Those principles are “the right approach to righteousness and benefit, win-win cooperation, openness and inclusiveness, and market-based operation.” Wang also stressed that China’s industrial capacity cooperation with other countries will not come at the cost of the environment and long-term interests of others pledging never to take the old colonial path of looting resources. There are already successful examples of the China-Africa cooperation in Ethiopia and Angola. In Ethiopia for example, the first city ring road, the first express way, the first city light rail, the first electrified railway, and the first wind power generation project are all financed by China. These have created good conditions for the country to attract foreign investment and the rapid growth of local industries and economy. Ethiopia’s Oriental Industrial Park built with private investment from China is the country’s first industrial park, which has attracted a host of Chinese investors. Among them is now the well known Huajian Group, a large shoe maker, with only 35 Chinese employees, offers more than 3500 jobs for local people, and contributes over US$10 million to Ethiopia every year. But there are threats as well. As China-Africa industrial capacity cooperation prepares to sail, some western media, far away from Africa, claim that China will transfer unwanted industrial capacity and pollution to Africa. They appear to be concerned about the ecological environment of Africa, but their actual worry is that Africa might advance its industrialization and realize real political and economic independence. But tides rise and fall. Colonial time ended and “zero-sum” mentality must be abandoned; Africa belongs to the African people and is an important member of the international community. The writer is the Secretary-General of the Chinese Follow-up Committee of Forum on China-Africa Cooperation and Director-General of the African Department of the Ministry of Foreign Affairs

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China-Africa industrial cooperation is win-win