By 2027, the zone is expected to be “an important international platform for opening up and cooperation with Africa,” Hunan authorities said. And by 2035, the province aims to become a “globally competitive economic and trade hub for cooperation with Africa”.
US$3 billion trade boost as Hunan bids to become China-Africa hub
US$3 billion trade boost as Hunan bids to become China-Africa hub
Chinese provinces are racing along Xi’s “green lanes” to Africa
Chinese provinces are racing along Xi’s “green lanes” to Africa
President Xi Jinping proposed the green lanes at the 2021 Forum on China-Africa Cooperation in Senegal, where he also outlined a proposal for the new trade zone.
Observers said Hunan was likely chosen for the free trade zone because of its established agricultural ties with the mainland, as well as its complementary industries.
The province has also expanded its trade routes with the continent, with combined rail-sea transport channels reaching 11 maritime hubs in Africa, which are connected by 20 inland road and rail networks to Hunan.
Yun Sun, co-director of the East Asia Program and director of the China Program at the Washington-based Stimson Center, said Hunan had developed a diverse portfolio for cooperation with Africa in agriculture, industry, infrastructure and education.
“Hunan [has been] the center of hybrid rice research and development for decades. And the province deliberately pursued agricultural cooperation as a highlight in relations with Africa,” Sun said.
The hybrid rice technology, pioneered in Hunan by agronomist Yuan Longping, has been exported to 20 African countries. Technology has increased yields in countries such as Madagascar and Burundi.
Sun noted that Hunan’s industrial sector, including heavy machinery, is another potential area of cooperation with Africa.
Across the continent, it is increasingly common to see excavators or wheel loaders made by Sany Heavy Industry Co, based in the capital of Hunan province, Changsha, deployed on construction sites or mines.
Sun said it would not count high-tech as a special focus area, “but with China exploring lithium for EV batteries, you never know.”
Lauren Johnston, an associate professor at the University of Sydney’s Center for China Studies, said there were “a lot of industrial complementarities” between Hunan’s competitive industries and developing industries in Africa.
“[China’s] Focusing on Hunan not only takes advantage of Hunan’s strong advantages in heavy industrial and agricultural manufacturing, but also offers Hunan itself more opportunities to integrate into China’s coastal borders. It is also an opportunity for Hunan.”
He noted that e-commerce company Kilimall, which operates in several African countries, was founded by a native of Hunan.
![Employees work at a Sany Heavy Industry factory in Changsha, Hunan province in 2019. The company’s excavators and wheel loaders have become a common sight at construction sites around Africa. Photo: Reuters](https://cdn.i-scmp.com/sites/default/files/d8/images/canvas/2024/02/17/03e73cdc-e706-4d4c-8df2-0fe7f7fbd9ef_fc12843e.jpg)
![Employees work at a Sany Heavy Industry factory in Changsha, Hunan province in 2019. The company’s excavators and wheel loaders have become a common sight at construction sites around Africa. Photo: Reuters](https://cdn.i-scmp.com/sites/default/files/d8/images/canvas/2024/02/17/03e73cdc-e706-4d4c-8df2-0fe7f7fbd9ef_fc12843e.jpg)
Johnston said the primary objective of the zone was to overcome barriers – in standards, communications, transport, currency, language, talent and e-commerce – to elevate trade between China and Africa, especially in non raw goods.
Carlos Lopes, a professor at the Nelson Mandela School of Public Administration at the University of Cape Town in South Africa, said China typically exports high-value manufactured goods, while African exports to China were mostly raw materials and commodities, which were generally of lower value. .
He said non-tariff barriers and regulatory barriers could limit African exporters’ access to the Chinese market, limiting the growth of African exports to China.
“This is why the China-Africa Deep Economic and Trade Initiative Zone has the potential to enhance China-Africa trade by providing a platform for increased trade and investment, while offering streamlined processes, reduced bureaucratic barriers and enhanced logistical infrastructure for trade facilitation,” said Lopez.