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Research Article

China’s economic and trade cooperation zones in Africa: from static model emulation to dynamic learning

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Pages 268-290 | Received 25 Oct 2022, Accepted 27 Dec 2023, Published online: 29 Jan 2024
 

ABSTRACT

This article explores the intricacies of replicating China’s structural economic transformation through special economic zones (SEZs) in Africa, with a focus on the Eastern Industry Zone (EIZ) in Ethiopia. Combining insights from empirical research and the literature on China’s development model, African SEZs and Chinese economic and trade cooperation zones (ETCZs) in Africa, we contend that while static industrialisation policies can be transposed more readily, the dynamic aspects that underpin China’s model face challenges due to differences in institutional capacity and contextual synergies (internal and external). This hampers the efficacy of ETCZs in steering structural economic transformation. The article advocates for a more creative adaptation process, urging dynamic learning and leadership level innovation to address institutional and structural weaknesses while reducing vulnerability to externalities.

摘要

中国在非洲的经贸合作区: 从静态模型仿真到动态学习。Area Development and Policy. 本文探讨了通过非洲经济特区复制中国结构经济转型的复杂性, 重点是埃塞俄比亚的东部工业区(EIZ)。结合实证研究和有关中国发展模式、非洲经济特区和中国在非洲的经济合作贸易区的文献, 我们认为, 虽然静态工业化政策可以更容易地转换, 但是由于体制能力和环境协同效应 (包含内部和外部) 的差异, 支撑中国模式的动态方面面临许多挑战。这阻碍了经济技术合作区在引导结构经济转型方面的效力。本文探讨在提倡一个更具创造性的适应过程, 敦促动态学习和领导层创新以解决体制和结构上的弱点的同时, 减少外部因素的脆弱性。

Resumen

Zonas de Cooperación Económica y Comercial de China en África: desde la emulación del modelo estático al aprendizaje dinámico. Area Development and Policy. En este artículo se analizan las complejidades a la hora de replicar la transformación económica estructural de China a través de las Zonas Económicas Especiales (ZEE) en África, prestando especial atención a la Zona Industrial Este (ZIE) de Etiopía. Al combinar las perspectivas de la investigación empírica y la bibliografía sobre el modelo de desarrollo de China, las Zonas Económicas Especiales africanas, y las Zonas Comerciales Económicas y de Cooperación chinas (ZCEC) en África, sostenemos que aunque las políticas de industrialización estáticas son fácilmente extrapolables, los aspectos dinámicos que respaldan el modelo de China se enfrentan a retos debido a las diferencias en la capacidad institucional y las sinergias contextuales (internas y externas). Esto dificulta la eficacia de las ZCEC para orientar la transformación económica estructural. En este artículo defendemos un proceso de adaptación más creativo, y recomendamos un aprendizaje dinámico y una innovación al nivel del liderazgo con el objetivo de abordar las debilidades institucionales y estructurales reduciendo a la vez la vulnerabilidad frente a efectos externos.

Аннотация

Зоны экономического и торгового сотрудничества Китая в Африке: от имитации статической модели к динамическому обучению. Area Development and Policy. В этой статье исследуются тонкости воспроизведения структурных экономических преобразований Китая с помощью специальных экономических зон (SEZ) в Африке с акцентом на Восточную промышленную зону (EIZ) в Эфиопии. Объединяя результаты эмпирических исследований и литературу о модели развития Китая, африканских SEZ и китайских зонах экономического сотрудничества и торговли (ETCZ) в Африке, мы утверждаем, что, хотя статичная политика индустриализации может быть легче трансплантирована, динамические аспекты, лежащие в основе китайской модели, сталкиваются с проблемами из-за различий в институциональном потенциале и контекстуальной синергии (внутренней и внешней). Это снижает эффективность ETCZ в управлении структурными экономическими преобразованиями. Статья выступает за более творческий процесс адаптации, призывая к динамичному обучению и инновациям на уровне руководства для устранения институциональных и структурных недостатков при одновременном снижении уязвимости перед внешними факторами.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Notes

1. The enduring preference for the American model in public perception is attributed to associating China’s blueprint with a less democratic option.

2. We thank Gideon Jalata for the key role he played in this endeavour.

3. The meeting of the China Africa Think Tanks Forum (CATTF, 12–13 October 2012) was co-hosted by the Institute for Peace and Security Studies (IPSS) of Addis Ababa University (AAU) and the Institute of African Studies (IAS) of Zhejiang Normal University.

4. AGOA, signed into law in May 2000 by President Bill Clinton, is a unilateral trade instrument granting Sub-Saharan African countries preferential access to the USA market. It provides non-reciprocal duty-free access for approximately 6500 products, including textiles and apparel, leather products, motor vehicles and parts and agricultural products. Its aim is to boost US-Africa trade by promoting the African manufacturing sector. To qualify and maintain AGOA benefits, African countries must exhibit progress in the rule of law, human rights and core labour standards. Originally set to expire in 2008, AGOA has been extended twice, most recently in 2015, ensuring its validity until 31 December 2025. Its extension was under negotiation at the time of writing. For more information see: https://agoa.info/about-agoa.html

5. Personal Interview, Ministry of Foreign Affairs, FOCAC Secretariat, Beijing, 3 June 2010.

6. Personal Interview, Ministry of Foreign Affairs, FOCAC Secretariat, Beijing, 3 June 2010.

7. Geoff de Freitas (Citation2019, December 12), China’s First Nigerian Free Trade Zone Reaches 10-Year Milestone. HKTDC Research. Retrieved 21 May 2021, from: https://research.hktdc.com/en/article/MzE0NzgyOTM3

8. Information in this paragraph according to personal interview, Ministry of Commerce, Department of Trade and Economic Relations, Beijing, 3 June 2010.

9. Figures according to information collected during fieldwork conducted by the authors in April-May 2018 in Ethiopia.

10. Fieldwork conducted by author in April 2023 in Mauritius.

11. According to information gathered in our interviews conducted during fieldwork to Ethiopia in 2018.

12. Personal Interview, Ethiopia Investment Commission officer, Addis Ababa, 11 May 2018.

13. Various personal interviews, EIZ Dukem and Addis Ababa, April–May 2018.

14. A cornerstone of Ethiopia’s long term development strategy, outlined in Growth and Transformation Plan I and II, (issued in 2010 and 2015, respectively), is the expansion of the manufacturing sector’s contribution to the national GDP (which was less than 5% in 2010) and export volume.

15. By 2022, 22 economic zones/industrial parks had been established in the country.

16. Personal Interview, Huajian manager, EIZ Dukem, 14 October 2012.

17. Personal Interview, Huajian manager, EIZ Dukem, 14 October 2012.

18. A parallel trend is evident in Ethiopian apparel exports, experiencing exponential growth from 2015 onwards, with 98% occurring under AGOA.

19. Personal Interview, EIZ One Stop Shop official, Dukem, 20 April 2018.

20. Personal Interview, EIZ One Stop Shop official, Dukem, 20 April 2018.

21. Some of our interviewees attributed the limited impact of knowledge transfer to greater focus of the government on attracting investment and creating jobs at this early stage.

22. By 2020, nearly half of Addis manufacturing exports were apparel (up from 8% in 2011). Of these, 98% were exported to the US market under AGOA (Citation2021).

Additional information

Funding

This work was supported by the Singapore Ministry of Education (MOE) Academic Research Fund, Tier 2 [MOE2016-T2-02-87].

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