Korean Media Commentary On China'S Move To Africa

South Korea's Central Daily recently published an article entitled "

The article analyzes the phenomenon of China's manufacturing industry migrating to Africa, and argues that China's development of resource based investment in Africa has been developed to the next stage -- investment in manufacturing.

A factory of Huajian, a Chinese enterprise, is located on the outskirt of Addisababa, capital of Ethiopia.

The company is the largest footwear manufacturer in Dongguan, Guangdong, known as "world shoe city". In 2012, the factory was set up in Ethiopia.

The Ethiopia plant has 3500 employees, and produced 2 million pairs last year.

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Most of them are supplied to American brands such as Nine West and GUESS, and President Zhang Huarong stays in Ethiopia for more than half of the year.

We plan to invest $2 billion in the future and employ more than 50 thousand workers to make Ethiopia a sales base for Europe and North America.

As the "world factory", China has moved the manufacturing base to Africa, the biggest reason is manpower.

In China, the manufacturing base of cheap labor has disappeared.

With the development of the economy, not only the price of labor is rising, but the young people after 90 are unwilling to work in factories.

And the rise in electricity and water costs leads to rising costs and increased environmental regulations, which are the reasons for the big migration of factories.

African local staff have low proficiency and low productivity.

According to the world bank, their productivity is only half that of Chinese workers.

But Africa's human resources make up for the gap in productivity, and even employ more than two or three people to make profits.

The average Ethiopia staff in the Huajian factory earned 40 dollars.

This is only the 1/10 of the local staff in China.

And Hisense, a Chinese household appliance company in Cape Town, South Africa, employs more than two times of staff to achieve production targets.

In the Hisense China factory, which assembles fridge and flat screen televisions, usually one person is responsible for one machine.

In Cape Town, there are two people in charge of a machine.

But Zeli Liou, the factory leader interviewed by the Wall Street journal, said that "one step at a time can achieve the target value".

It is not just because of this, not only because of the labor costs, but also because Chinese enterprises can get the additional effect, that is, "made in China" into "made in Africa".

For us and European countries, we can break through all kinds of regulations made by China in order to contain China. We can make breakthroughs in "made in Ethiopia" or "made in South Africa".

In addition, the charm of the African market is also part of the reason.

6 of the 10 countries that are developing rapidly in the world are in Africa.

Ethiopia's growth rate will also exceed 10%.

And there is a large population here.

The population of Nigeria is 170 million and Ethiopia is 96 million.

Sun Chaoming, a Chinese clothing export entrepreneur, reports on the possibility of consumption.

He said, "clothing packed with containers exported to Ethiopia will be sold out within two weeks".

Just as Huajian Zhang has said, "Africa is like China 30 years ago", Africa is likely to become producer and consumer.

At the same time, African countries are also actively attracting Chinese enterprises in order to promote development and achieve the goal of changing the industrial structure.

Nearly 80% of the economically active population in these countries are engaged in the primary industry and can carry out labor intensive manufacturing.

Huajian was also approved by the government of Ethiopia, allowing low-cost electricity and enjoying tax concessions.

It is expected that the relocation of Chinese factories will continue.

Uganda is operating fiber and steel plants. China FAW Group has built a truck and small car factory in Port Elizabeth, South Africa.

Yifu Lin, honorary president of the National Development Research Institute of Peking University, who has served as vice president of the world bank, is expected to provide about 80 million manufacturing jobs to Ethiopia, Rwanda, Senegal and Tanzania.

In particular, China's investment in Africa will expand to the private sector, which deserves attention.

According to the analysis, the "hard power" government focused on Resource Diplomacy and social infrastructure construction and private investment in "soft power" will bring about the effect of departmental cooperation.

China has been doing its best to Africa since Premier Zhou Enlai visited 10 countries in Africa in 1963.

Since 1991, the first visiting place of the Chinese foreign minister has been African countries.

Such changes in China are expected to pose a greater threat to the United States.

Earlier this month, the president of the United States

The heads of 50 African countries are invited to the United States Africa summit.

President Obama promised to invest $33 billion in Africa, saying: "we do not see Africa as a resource, and we hope to provide everyone with opportunities to achieve economic growth".

This is a statement made by China that China's investment in Africa has always been focused on resources.

But China's ambassador to South Africa, Tian Xuejun, said that "we are giving fish instead of giving fish."