Chongqing - The Third China-Africa Economic and Trade Expo, with the theme of Common Development for A Share Future, was held in Changsha, Hunan, from June 29th to July 2nd. Chongqing organized 11 companies to participate in the exhibition and set up a themed pavilion, including Chongqing Intelligent Manufacturing, Crafts, and Flavors. 

As an important logistics hub and the central city in western China, Chongqing plays a driving role in promoting the co-construction of the Belt and Road Initiative. The total foreign trade value between Chongqing and Africa exceeded 11.8 billion yuan (about USD 1.63 billion) in the first five months of 2023.

Africa is an important participant in the Belt and Road Initiative, with 52 African countries and the African Union Commission having signed cooperation agreements with China. In the past decade since the Belt and Road Initiative proposal, China-Africa exchanges have achieved rapid development. 

The trade value between China and Africa has increased by 42% compared to ten years ago, reaching 282 billion dollars in 2022. China's exports to Africa amounted to 164.5 billion dollars, while imports from Africa reached 117.5 billion dollars, both reaching historic highs. China has also maintained its position as Africa's largest trading partner for 14 consecutive years.

There are foreign trade statistics between Chongqing and Africa in 2022 and 2023 and between China and Africa in 2022. (Graphics/Chen Yuting)

Aligning with the infrastructure needs of African countries 

The trade value between Chongqing and Africa continues to grow, providing a solid foundation for economic and trade cooperation between the two regions. 

In 2022, Chongqing's total foreign trade value with Africa reached 24.637 billion yuan (about USD 3.4 billion). The top two trading partners of Chongqing with Africa are South Africa and Congo, with trade values of 4.11 billion yuan and 2.06 billion yuan, respectively.

Although Chongqing's trade value is relatively small in the overall trade with Africa, it regards Africa as an important market for incremental growth. By strengthening trade exchanges with Africa, Chongqing not only ensures the original trade transactions but also opens up new markets. 

With the continuous improvement of the ILSTC, the prospects for trade cooperation between Chongqing and Africa can be even broader.

Chongqing's advanced technology in infrastructure construction is at the forefront domestically in areas such as bridges, tunnels, and rail transportation. This aligns with the infrastructure needs of African countries and provides strong support for Chongqing's development in the African market.

Most African countries are still in the early stages of industrial development and rely significantly on industrial equipment and technology. As an industrial city, Chongqing has vast development potential in this regard.

Besides, Africa possesses abundant mineral and metal resources, which meet the raw material needs of Chongqing's manufacturing industry. African products, such as distinctive spices, coffee, meat, and their unique regional characteristics, have attracted the attention of Chongqing.

More companies plan to cooperate with Africa

In 2022, Chongqing's exports to Africa mainly focused on laptops, automobiles, motorcycles, and smartphones, while imports mainly comprised mineral products, metals, and their derivatives.

"From the current foreign trade situation, it is possible to achieve connectivity in economic and trade exchanges between Chongqing and Africa," said Li Guotian, Director of the Foreign Trade Management Department of the Chongqing Municipal Commission of Commerce.

"We started selling our products to Africa a long time ago. Sales declined somewhat in the past two years due to the impact of the pandemic, but they are steadily recovering this year," said a staff member from Zongshen Industrial Group. "Last year, Zongshen exported approximately 10,000 motorcycles to countries like Egypt in Africa."

The latest model of motorcycles from Zongshen Industrial Group. (Photo/cqnews.net)

In addition, some state-owned enterprises from Chongqing, such as China Metallurgical Construction Engineering Group Co., Ltd. and CISDI Engineering Co., Ltd., have also made inroads into Africa. They have participated in aid projects in Algeria, showcasing the strength of Chongqing enterprises in the African market. 

Meanwhile, some companies plan to bring their products to the African market. "Our products sell well in ASEAN and Latin American countries, and now we want to venture into Africa," said Zheng Li, General Manager of Chongqing Advance Commercial Co., Ltd. Their main products are small diesel engines, and Africa is an untapped market for the company. This year, they plan to visit Africa to explore opportunities for cooperation and introduce their products.