China builds new platform for Sino-African entrepreneurship to enhance cooperation between the two states.
For Taiwan-based China Communications Media Group, venturing into Africa begins closer to home in Hunan, a central province on the Chinese mainland.
Aiming to expand its electric vehicle sales network into Africa, the company plans to establish a subsidiary in the China-Africa Economic and Trade Headquarters Building in Changsha, Hunan’s capital, utilizing the area’s preferential policies and the presence of numerous Chinese and African companies.
“We’ve long wished to explore the African market, but our journey had been circuitous,” said chairman Liu Yao-yuan. “Now many like-minded companies gather here. I believe our exchanges and cooperation can lead to common prosperity.”
Opened on June 13, the building is a new Sino-African landmark in Hunan, known for its active economic ties with Africa and leadership in China-Africa cooperation.
Covering over 100,000 square meters, the building is designed to host Chinese and African firms engaged in bilateral trade and investment, offering subsidies and a range of services from policy consultation to financial support.
Since its launch, more than 30 companies and associations in engineering, technology, research, telecommunications, and other fields have settled in the building. The trade with Africa is projected to reach 30 billion yuan (4.2 billion U.S. dollars) over the next three years.
The Mali Business Center, one of the first occupants, aims to serve Malian companies in China and assist Chinese firms in investing in Mali.
“We hope to become a home for the numerous Malian companies operating in China and help them explore the Chinese market,” said center director Khalifa A. Sy Diop.
The Guangdong-based Africa-China Association for Cooperation, Development, and Investment (ACACDI) also plans to register a company at the Changsha headquarters, which offers rent exemption, subsidies, and other support.
“Hunan is famous for leading China’s cooperation with Africa,” said ACACDI vice chairman Abdualla Elfrid. “We believe the building will become a bridge for deepening exchanges, enhancing understanding, and expanding cooperation between China and Africa.”
China has been Africa’s largest trading partner for 15 consecutive years, with bilateral trade reaching a record 282.1 billion U.S. dollars in 2023, according to the Ministry of Commerce.
While large state-owned enterprises building railways, ports, and power stations often represent Chinese investments in Africa, smaller private companies are increasingly credited with boosting trade, creating jobs, and channeling technology and investments into diverse sectors.
With significant participation from private companies, China-Africa cooperation has diversified from infrastructure, mining, and agriculture to logistics, digital economy, clean energy, and finance, said Xu Xiangping, head of the China-Africa Economic and Trade Promotion Council.
“These companies are bringing technologies and knowhow into Africa, especially in renewable energy, agriculture, and digitalization, which is beneficial to Africa’s modernization,” Xu said.
In recent years, China has introduced various mechanisms to spur private cooperation with Africa, including the China-Africa Economic and Trade Expo and the China (Hunan) Pilot Free Trade Zone. Hunan frequently hosts such pioneering policies, leveraging its strengths in agricultural technology, equipment manufacturing, and infrastructure construction.
Shen Yumou, head of Hunan’s department of commerce, said the building would encourage more small and medium-sized Chinese companies to invest in Africa by pooling resources and providing channels and localization services.
“Micro, small, and medium-sized companies are more concerned about the costs and risks involved in their journey to Africa, so our goal is to create a safer and more efficient ecosystem for them,” he said.
Meanwhile, the building is expected to guide more African companies into China to tap into the world’s second-largest economy.
Due to efficient government handling of Africa-related services and proximity to Guangdong, Hunan has become an ideal springboard for African companies hoping to enter China, said Luo Qin, general manager of Changsha Starlink Foreign Enterprise Comprehensive Services Co., Ltd.
“Many African companies have set their sights on Hunan and the new headquarters,” said Luo, whose company offers foreign trade services. “We expect the building to become a leading platform for China-Africa trade in the near future.”
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