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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (106063)	5/16/2014 12:52:05 PM
From: elmatador	Read Replies (2) \| Respond to of 219919

Why ‘Made in Ethiopia’ Could Be The ‘Next Made in China’ China’s was once known as cheapest factory floor on the planet, but in the last two decades its economy has transitioned to become one of the world’s most advanced industrial powers. That means someone else needs to start making all those shoes and sweatshirts, hence all those apparel companies in recent years moving their factories to Vietnam and other cheap spots throughout Asia. And it’s not just Asia. China’s Huajian Group plans to invest up to $2 billion in Ethiopia in the next decade, turning the country into a shoe manufacturing base for exports to the U.S. and Europe. As the WSJ’s Peter Wonacott reports: Mounting labor costs in China are part of what makes Africa so attractive. The average monthly wage for a low-skilled Ethiopian factory worker, for example, is about 25% of the pay for a comparable Chinese worker, according to the World Bank. As the wage gap widens between unskilled Chinese workers and their counterparts elsewhere in Asia and in Africa, as many as 85 million factory jobs could leave China in the coming years, according to former World Bank chief economist Justin Yifu Lin. In addition to its pool of low-cost labor, Africa represents an enticing market for Chinese products manufactured on the continent. Africa is now home to six of the world’s 10 fastest-growing economies, according to the International Monetary Fund, and many African countries are reducing their dependence on extracting resources, such as oil, metals and gems. Africa’s poor infrastructure and uneven distribution of skills erode its cost advantages, however. The World Bank study estimated that a Chinese worker making shirts, for example, could produce about twice as many per shift as an Ethiopian worker. Chinese factory wages have been rising an average of 20% a year for the last decade, pushing low-cost manufacturers toward places where salaries are stagnant. Here’s a chart the WSJ put together last year: And as China steps more prominently into Africa, what do its officials say in response to suggestions the country could act as a new form of colonial power? In an interview with the WSJ, Chinese ambassador to South Africa Tian Xuejun had little time for such claims: Some media say China assists Africa only for the market and resources, and they talk about “neocolonialism,” but I say these kinds of criticisms are absurd. One reason is that they don’t know much about China-Africa cooperation. Another reason is maybe that they have other agendas. China has assisted in the building of infrastructure, roads, bridges and railway stations. This has greatly improved the investment environment in many African countries. China has invested in manufacturing and sent agricultural experts to other countries. China also has helped to build many hospitals, schools and stadiums. People are talking about neocolonialism but what is neocolonialism? People in Africa know very well about colonialism—this is about using gunfire to open the door to Africa to grab their resources. It is China who buys resources with a fair price under internationally recognized rules.

To: TobagoJack who wrote (106063)	5/16/2014 1:07:50 PM
From: elmatador	Respond to of 219919

China exports the model: signs deals with Ethiopia as premier Li Keqiang begins Africa tour Updated Mon 5 May 2014, 6:32am AEST China has signed a raft of agreements with Ethiopia as the country's premier, Li Keqiang, arrived for the first leg of his four-nation Africa tour. Chinese ministers and company executives accompanying Mr Li have signed 16 deals with their Ethiopian counterparts, including loans and cooperation agreements for the construction of roads and industrial zones. "This right track in the relationship between us has been laid. I am sure it will lead us to stronger growth in our ties," Mr Li told a press conference. Chinese firms have invested heavily in Ethiopia in recent years with their worth swelling well over $US1 billion in 2014, according to official figures. Beijing is also a key partner in Ethiopia's bid to expand infrastructure such as roads, railways and telecom services. Huawei Technologies Co Ltd - the world's second largest telecom equipment maker - and ZTE Corp are working to introduce a high-speed 4G broadband network in the Ethiopian capital Addis Ababa and a 3G service throughout the country. Officials said both firms have now signed an $80 million deal to lay optical ground cables to form a nationwide network. Along with Ethiopia, Mr Li will also visit Nigeria, Angola and Kenya as part of his tour of Africa. This is the Chinese premier's first visit to Africa and follows a trip to the continent by President Xi Jinping in March 2013, when he renewed an offer of $US20 billion in loans to Africa between 2013 and 2015. Not pursuing "colonialist path"Li Keqiang said the Chinese government was willing to sit down with African countries to resolve any issues between the two sides, but said these were "isolated" cases in a relationship based on equality and mutual benefit. "I wish to assure our African friends in all seriousness that China will never pursue a colonialist path like some countries did, or allow colonialism, which belongs to the past, to reappear in Africa," Mr Li was quoted as saying in the official news agency Xinhua. Meanwhile, Mr Li has urged Chinese companies to be accountable for the quality of their projects in Africa ahead of his tour of the continent. He said Chinese firms in Africa need to abide by local laws and regulations, as well as take responsibility to protect the interests of local communities and the environment. China's enterprises have spent heavily on infrastructure, mining and energy projects in Africa as the country seeks to expand its access to supplies of vital commodities such as oil and copper. But in some cases, Chinese firms have been accused of treating local staff unfairly. Oil workers at two China-invested projects in Chad and Niger went on strike in March in protest against unequal pay. Beijing has also been accused of holding back the continent's economic development by focusing on the pursuit of raw materials rather than the creation of local jobs and markets. Angola has become one of China's biggest oil suppliers, with crude deliveries rising 9.9 per cent to 10.66 million tonnes in the first quarter of 2014, second only to Saudi Arabia. In 2009, China overtook the United States as Africa's biggest trading partner, with Xinhua reporting that more than 2,500 Chinese firms operate on the continent. Bilateral trade between China and African countries reached $210 billion in 2013. ABC/Reuters