Xiao Junzheng MKs "Real Name Praise" Enterprises in TEDA Cooperation Zone

Xiao Junzheng MKs "Real Name Praise" Enterprises in TEDA Cooperation Zone
Source: Chinese Embassy in Egypt official website

On September 22, Egypt's "Daily News" published a signed article by Ambassador Xiao Junzheng, "China-Africa Investment Cooperation is mutually beneficial and win-win, and the future is promising." The article points out that Chinese enterprises, such as Jushi, Xidian and Midea, are "rooting in Africa", "cultivating Africa" and "helping Africa", and promoting Africa's industrialization process with real industrial cooperation ...... The full text is as follows:

Since 2000, under the promotion of the Forum on China-Africa Cooperation, China-Africa economic and trade cooperation has achieved fruitful results, and China-Africa investment cooperation has contributed. Chinese enterprises' investment in Africa meets the needs of Africa's development, achieves mutual benefit and win-win results, and has gradually become the main force in China-Africa economic, trade and investment cooperation. Throughout the process, Chinese enterprises' investment in Africa has the following characteristics:

First, China's investment in Africa is stable and strong. It is estimated that the stock of direct investment by Chinese companies in Africa should be no less than $56 billion by the end of 2020. Over the past 20 years, China's direct investment flows to Africa have grown at an average annual rate of more than 25%. Under the epidemic situation, Chinese investment in Africa bucked the trend from $2.71 billion in 2019 to $2.96 billion in 2020. Chinese enterprises "take root in Africa", "cultivate Africa" and "help Africa", promote Africa's industrialization process with real industrial cooperation, and create a large number of employment opportunities for Africa. The survey shows that half of Chinese companies have introduced new products or services to local African markets, and 1/3 have transferred new technologies.

Chinese companies investing in Egypt are represented by Jushi Group, China XD, Angel Yeast, New Hope Group, Midea, Konka and other manufacturing companies. Take the Jushi Egyptian glass fiber project, one of China's largest investment projects in Egypt, as an example. The project has filled the gap in the Egyptian glass fiber industry and made Egypt the fifth largest glass fiber industrial producer and exporter in the world. The Jushi Egypt production base was completed and put into operation in August 2018, with an annual production capacity of 200000 tons and a cumulative investment of US $0.58 billion, creating 2500 local jobs.

Second, China and Africa are highly complementary in their development advantages. Africa has superior resource endowments, huge demographic dividends, accelerated urbanization, and manufacturing in the ascendant. China has advantages in capital, technology and development experience. China-Africa cooperation has greatly improved the efficiency of resource allocation. Labor-intensive manufacturing and park construction are the traditional advantages of Chinese enterprises' investment in Africa. Chinese enterprises regard industrial parks as important investment areas, and according to the supporting capacity of the local market and the development of the industry, they will build an integrated industrial chain of upstream and downstream to promote and drive the development of local industrialization. For example, since its establishment in 2008, the China-Egypt TEDA Suez Economic and Trade Cooperation Zone has gradually focused on the four flagship industries of new building materials, petroleum equipment, high and low voltage equipment, and machinery manufacturing, which has improved the industrialization level of local related industries.

In recent years, new fields such as high-end technology manufacturing and medical medicine have become new highlights of China-Egypt investment cooperation. In October 2019, Foton and Egypt launched an electric vehicle manufacturing cooperation project and delivered 50 pure electric buses. This is the first cooperation project for the localization of new energy buses between China and Egypt, and it is also the largest pure electric bus order in Egypt so far. The project will become a model of Sino-Egyptian cooperation in automobile production and bring the industrial revolution of new energy technology to Egypt. On July 18, 2021, State Councilor and Foreign Minister Wang Yi and Egyptian Foreign Minister Shukri attended the 1 million-dose production ceremony of the China-Egypt New Crown Vaccine Cooperative Production Project. The first batch of vaccines off the production line means that Egypt has become the first country in Africa to cooperate with China to produce a new crown vaccine. The World Health Organization's representative in Egypt, Naima Gassir, praised the China-Egypt vaccine production cooperation as a successful example of international cooperation and global expertise flow, which will not only accelerate the Egyptian vaccination programme, but will further promote the fight against the epidemic in Africa.

Third, China-Africa investment cooperation is mutually beneficial and win-win. China is striving to build a new development pattern that focuses on the domestic cycle and the domestic and international double cycles promote each other. Chinese enterprises' investment in Africa is conducive to unblocking the global industrial chain and promoting two-way exports. While realizing their own development, Chinese enterprises have made outstanding contributions to the social stability and economic prosperity of African countries by actively carrying out technology transfer, strengthening local procurement and employing local employees. According to the "Africa Attraction Plan" released by Ernst & Young, since 2005, Chinese companies have created more than three times as many jobs in Africa as American companies, and China has become an important contributor to new jobs in African countries.

The McKinsey report believes that 89% of the employees of Chinese companies in Africa are locals, and about 2/3 of Chinese companies provide technical training and guidance to African workers. While promoting employment, Chinese enterprises' investment in Africa has also greatly increased the income of local residents.

The Dakar meeting of the Forum on China-Africa Cooperation in 2021 is of great significance to China-Africa economic and trade cooperation and will become another milestone and a new starting point for the Forum on China-Africa Cooperation. The Chinese government always encourages enterprises to actively cooperate with Africa's development strategy, integrate into local society, take the initiative to fulfill their social responsibilities, give back to local people, and contribute to the independent and sustainable development of African countries. I believe that the development prospects of China-Africa investment cooperation are bright and promising. In the future, it will surely achieve a rise in quantity and quality, and promote China-Africa practical cooperation to a new level.

The original title: Egypt's Daily News published a signed article by Mr. Xiao Junzheng, "China-Africa Investment Cooperation is mutually beneficial and win-win, and the future is promising."