By 2027, the zone is expected to be “a significant 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 collaboration with Africa”.
Bumper US$3 billion trade boost in Hunan bid to become China-Africa hub
Bumper US$3 billion trade boost in Hunan bid to become China-Africa hub
Chinese provinces race along Xi’s ‘green lanes’ to Africa
Chinese provinces race 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 links to the continent, 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 seaport hubs in Africa, which are linked to 20 inland road and rail networks to Hunan.
Yun Sun, co-director of the East Asia Programme and director of the China Programme at the Washington-based Stimson Centre, said Hunan has developed a diverse portfolio for cooperation with Africa across agriculture, industry, infrastructure and training.
“Recall Hunan [has been] the centre of hybrid rice research and development for decades. And the province has deliberately pursued agricultural cooperation as a highlight in relations with Africa,” Sun said.
Hybrid rice technology, which was pioneered in Hunan by the agronomist Yuan Longping, has been exported to 20 African countries. The technology has increased yields in countries such as Madagascar and Burundi.
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Why the global rice supply is in crisis
Why the global rice supply is in crisis
Sun noted that Hunan’s industrial sector, including heavy machinery, is another potential area for cooperation with Africa.
Across the continent, it is increasingly common to see excavators or wheel loaders made by Sany Heavy Industry Co, based in Hunan’s provincial capital Changsha, deployed at construction or mining sites.
Sun said she would not count hi-tech as a special area of focus, “but with China exploring lithium for EV batteries, you never know”.
Lauren Johnston, an associate professor at the University of Sydney’s China Studies Centre, said there were “a lot of industrial complementarities” between Hunan’s competitive industries and growth industries in Africa.
“[China’s] focus on Hunan not only takes advantage of Hunan’s heavy industrial and agri-processing strengths, but also offers Hunan itself more chance to integrate with China’s coastal frontier. It is a catch-up chance for Hunan too.”
She noted that the e-commerce company Kilimall, which has operations in several African countries, was founded by a Hunan native.
Johnston said the zone’s overriding goal 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 commodities.
Carlos Lopes, a professor at the Nelson Mandela School of Public Governance at the University of Cape Town in South Africa, said China typically exports high-value manufactured goods, while African exports to China are mostly raw materials and commodities, which generally have lower value.
He said non-tariff barriers and regulatory hurdles might limit African exporters’ access to the Chinese market, constraining the growth of exports from Africa to China.
“That is the reason Hunan’s China-Africa Deep Economic and Trade Cooperation Pioneer 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 to facilitate trade,” Lopes said.
