Products carrying the three words "made-in-China" are finding a
ready market in Africa according to a recently issued official
report.
The African continent with a population of 700 million is a vast
market for light industrial products, household appliances and
electronics which has been neglected by many Chinese
businessmen.
This was explained in a report issued by the International
Economy Research Office under the National Development and Reform
Commission (NDRC).
With labor cost increases and overproduction, some manufacturers
of household appliances have entered a low-profit phase in China.
However, Africa is a huge market with a relatively cheap labor
force waiting for Chinese products and investors.
According to the report, in North African countries like Egypt,
Chinese products used on a daily basis are popular. In East Africa
where agriculture dominates, Chinese farming products and plastics
have been identified as bright prospects while light industrial
goods and textiles sell well in South Africa.
According to Shi Yongxiang, one of the report's authors and
chief expert with the International Economy Research Office, the
Chinese and African economies were complementary. Africa needs to
import a variety of goods and China is in a position to provide
them.
After a lengthy period of market testing, Chinese businesses
involved in textiles, garment production, household appliances,
mobile phones, IT and agriculture possessed a strong competitive
edge in overseas markets.
At the same time many Chinese enterprises like Huawei
Technologies, Haier Group and Lenovo have accelerated the pace of
building up their global production and sales networks.
Chinese enterprises in the above industries may explore the
African market while those in coastal areas could gain entry
through sea farming, light textile processing and logistics,
suggested Chi Changsheng, executive director with the International
Economy Research Office. The processing projects are more welcomed
in Africa, Chi added.
At the end of June 2004, Chinese enterprises in Africa which had
been approved and recorded by the Ministry of Commerce reached 674
with a total investment value of US$1.509 billion. The Chinese part
of that figure is around US$1.13 billion.
China has invested in 49 African countries in a wide range of
ventures including trading, processing, resource
exploration, transportation, construction, telecommunications,
farming and agricultural products.
(China.org.cn by Li Shen, June 1, 2006)