Africa set benefit from China’s industrial overcapacity

By Elias Mhegera – Africa stands a better chance of benefiting from China’s industrial overcapacity. This is according to Chinese investors and officials of the Investments National Reform Commission.

A team of journalists when they visited the Foton Pavilion

A team of journalists when they visited the Foton Pavilion

According to Mr. Jianjun Wang, the Director Department of Foreign Capital and Overseas Investment, National Development and Reform Commission, Peoples Republic of China, overcapacity has threatened closures of industries and hence unexpected rapid increase of unemployment which could fuel other negative developments.

Due to this turn of events the Chinese investors in Africa have been counseled to abide to the local laws and regulations of the recipients countries because partly their role is economic diplomacy.

However, the main challenges from Africa have been political instability in some countries, bureaucracy and unpredictability of how to curb the business risks given the low level of technological development in this continent.

Moreover, other challenges are lack of reliable sources of energy, poor infrastructure, general technological backwardness, lack of an efficient supply of domestic skills and a recent wave of terrorist threats.

An ambulance produced by the Foton car plant

An ambulance produced by the Foton car plant

A visit to a number of industries indicated that currently Chinese goods have attained international standards of quality in many items.

A visit at the Jayu factory which apart from dealing with research and development it also deals with design, fabrication, construction and maintenance of building energy-saving door, has now managed to gain acceptance in the global market to as far as Australia, Vietnam and European countries.

The industry which was established in 1987 and whose core product was windows and curtain walls has now developed more than 150 patent products that are used in many projects. It is now one of the leading suppliers of building door, window and curtain wall system both home and abroad.

The immediate eight consumer regions  with 50 branches and subsidiaries are: North China, East China, Southeast China, Central China, Southwest China, Northeast China, Hainan, Beijing Overseas Division; with 20 production bases.

Escalators produced in Jiangsu China

Escalators produced in Jiangsu China

But even in motor vehicle production one could see how China has reached the level of self sufficiency.  A visit a the Foton pavilions during the recent Beijing International Automotive Exhibitions indicated that cars of various types are produced from those of international rallies, luxurious to the ones which can serve in the rough African roads.

A recent visit to Yiwu showed that China has been one of the major producers and exporters of elevators the biggest importers of such technologies in Africa being Egypt and the Democratic Republic of Congo (DRC). Apart from these there are other products like industrial and medical chemicals.

Moreover other products are music instruments, sports gears, televisions, and radio receivers. A visit to the JOC International Technical Engineering Company Limited (JOCITE) has indicated that this company which has invested in Shinyanga Tanzania in its bid to promote industrial co-operation has also contributed a lot to industrialization in Tanzania in various ways.

Some of the projects are the JOC textile in Tanzania which aimed at revamping the economy through an established market of the cotton industrial chain. Moreover, this has gone hand in hand with job creation.

These companies, particularly the JOC International Technical Engineering Company Limited has entered into partnership with other countries of the world including those in the African continent in the areas of global partnership of buyers, consultancy, and corporative digitalization processes.

One of the luxurious cars that are produced in China

One of the luxurious cars that are produced in China

There have been frequent exchanges but also incorporation of technical, mechanical and professional exchanges as well as finding solutions mutually to the competitive international market.

Other areas of co-operation have been recycling, environmental protection, production of fertilizers. According to the Managing Director Lin Min his company has faced some hindrances in African countries due to bureaucracy, heavy taxation at times and economic volatility which has led to frequent devaluation of currencies but this has never put his  of from the ambition of promoting Africa into a big place of middle class consumers.

A visit to the Suning.Com revealed that logistical supply can be enhanced once there is an establishment of a well guided system of data transfers. In this sense a one stop service centre that reduces the logistics cost for customers and enhances efficiency in forwarding, transport, storage, customs clearance and tariff refunds.

A unified contact point enhances the management efficiency of and the utilization of both international airport and marine ports logistics supplies. This company which applies an internet of things technology can as well facilitate knowledge in investment risk analysis and market volatility.

Their vast experience in virtual applications has been a reserved advantage in analyzing creative investments in the areas of commerce, residential estate, media, and advertisements. This has as well been in areas of customer perception marketing.

This refers to the process by which a customer selects, organizes, and interprets information or stimuli inputs to create a meaningful picture of the brand or the product. It is a three stage process that translates raw stimuli into meaningful information.

The company also offers quality merchant options, statistics and summary of businesses in order to enhance knowledge in entrepreneurship, and big scale businesses.