The first China International Import Expo (CIIE) in Shanghai on November 5-10 2018, gathered more than 3,600 exhibiting companies, 400,000 purchasers and government officials from 172 countries, regions and international organizations across the world.

Under the theme New Era, Shared Future,” the expo, intended to strengthen business cooperation, open China’s market wider and promote free trade. Over 100 African companies signed up for the event.

Numerous trade agreements were made, with total trade deals of 57.83 billion USD on a yearly basis, demonstrating China’s determination to further open up, and the world’s strong desire to strengthen cooperation and promote global trade.

African countries were amongst the biggest winners of the China International Import Expo, strengthening the China-Africa bilateral economic and trade cooperation.

The small and medium-sized enterprises (SMEs) from Africa, enjoyed the uniqueness of showcasing their products in a supersized expo, with over 400,000 imports on display, giving them an opportunity to capitalize on the growing middle-class Chinese consumer to experience the African ‘cuisine’ fast hand.

According to President Xi Jinping, the least developed African countries would be exempt from exhibition fees. He also pledged to increase China’s imports from the region, especially non-resource products.

China’s deputy minister of commerce, in a media interview in August 2018 noted that China exempts from duties about 97 percent of products from 33 less developed African countries.

Indeed, China is providing a showground for all players, huge and lesser alike.

Over 100 African countries set up either national pavilions or company-based booths at in Shanghai, they secured a place in this vast market which mistakably demands both quality and diversity.

The Chinese Market

China is the second largest economy in the world, as well as the second largest importer and consumer in the world.

China’s has a huge market of over 1.3 billion people with the capacity to buy value-added products from Africa.

China’s consumption keeps Increasing, indicating an enormous potential for the growth of consumption and import.

China has been Africa’s largest trading partner for nine consecutive years. By the end of 2017, the value of that trade was US$170 billion, 17-fold higher than that in 2000. Growth is expected to remain in double digits for the next five to 10 years.

According to China’s General Administration of Customs, in 2017, China’s imports from Africa hit US$75.3 billion, up 32.8 percent. Similarly, China’s exports to Africa reached US$94.7 billion, up 2.7 percent the same year. The trade surplus was around US$19.5 billion, down 45.2 percent year-on-year,

The CIIE is an opportunity for Africa to counter the idea of trade imbalance in global trade. China is not only able to offer investment, infrastructure, loans, but can also offer a market for Africa products.

The CIIE is therefore, a significant platform that provided Africa with an opportunity to promote her products in the international market and key into the global value chain,

Trade deals

According to CIIE Bureau, a total of US$57.8 billion worth of deals had been secured, the greatest winners included the smart manufacturing industry representing almost a third of all deals at US$16.5 billion, followed by food and agriculture (US$12.7 billion), and the automotive industry (US$12 billion).

Apart from expanding Africa exports to China, the CIIE also provided an excellent platform for Africa to attract Chinese investment.

Guangdong Silk-Tex Group of China has announced its plans to set up a silk processing plant and a silk farm in Kenya, which are expected to create over 300,000 jobs for Kenyans.

President Uhuru Kenyatta on a successful bilateral meeting with H.E. President Xi Jinping, signed two MOUs, including the establishment of a working group on promoting trade and the cooperation on the Sanitary and Phytosanitary Measures, which paves the way for Kenyan agricultural products to enter the Chinese market. In addition, also signed an SPS agreement on the export of Kenya’s Stevia to China.

Handmade treasures from African top-class coffee beans, from Kenya and Ethiopia, are likely to cater to the increasingly demanding of the Chinese consumers.

Value addition

The China International Import Expo in Shanghai deepened international business cooperation seeking to address the trade imbalance between China and Africa.

However, while the expo has been deemed a significant move by China to embrace foreign products and services from Africa,

The main concern of many African experts is how the continent will make the best use of the opportunity.

African exports to Beijing are too little compared to high value-added imports products in return and the depth and complexity of China’s economy make it difficult for many African countries to compete.

The China International Import Expo is a good opportunity for Africa to explore the Chinese market to gather what is working and how best to harness the existing potential towards win-win trade relations.

There is also a need for Africa to diversify her export market and tap into new areas of comparative advantage such as tourism to the Chinese market.