#China #Hunan Province #Changsha #China-Africa #Economic Cooperation

Hunan Province Enhances Economic Ties with Africa

Hunan Province in Central China is actively pursuing new avenues for economic and trade collaboration with Africa. This initiative is being spearheaded by Shen Xiaoming, the Party Secretary of Hunan, who highlighted the importance of innovation in business models and effective policy coordination at a recent interview. This strategic move comes ahead of the fourth China-Africa Economic and Trade Expo, set to take place in Changsha, the capital of Hunan.

The expo, themed “China and Africa Together Toward Modernization,” will host approximately 4,700 companies and over 30,000 participants from both regions, emphasizing the collaborative potential between Hunan and various African nations. Shen indicated that expanding and upgrading barter trade is a priority, aiming to foster integrated growth in production, industry, and commerce.

For five consecutive years, Hunan has ranked first among central and western Chinese provinces in trade volume with Africa. The province boasts strong capabilities in sectors such as equipment manufacturing, energy, mining, and comprehensive agricultural development—fields that align closely with the needs of African countries seeking to modernize their industries and agriculture.

As part of its ongoing efforts, Hunan is implementing pilot reforms aimed at enhancing barter trade with African partners. Key actions include relocating inspection and testing institutions closer to entry points, effectively streamlining the logistics process for businesses engaging in bilateral trade. This year alone, the province has completed 103 new barter trade transactions, solidifying its position as a leader in this unique trade model in China.

Hunan's ambitions are founded on a long-standing history of exchanges with Africa, and the region is determined to contribute to a robust China-Africa partnership characterized by mutual benefits. Shen emphasized that Hunan’s strategy includes showcasing the province as a hub for reform and opening-up initiatives in inland China.

To achieve these goals, several comprehensive reforms have been put in place to facilitate the market-based allocation of resources in key metropolitan areas such as Changsha, Zhuzhou, and Xiangtan. Additionally, the province is committed to synchronizing its development with several major national initiatives, including the Central China strategy and the Yangtze River Economic Belt.

In pursuit of a better business environment, Hunan has also achieved a reduction in logistics costs by 0.2% last year, alongside a significant decrease in industrial electricity rates by 6%. Currently, the province hosts 212 Fortune Global 500 companies and has established commercial ties with 235 countries and regions worldwide.

This year marks the fifth anniversary of the establishment of the China (Hunan) Pilot Free Trade Zone. Since its inception, it has achieved remarkable milestones by driving reform and opening-up through various innovative business practices, including the introduction of over 109 institutional innovations and attracting investment of about 740 billion yuan (roughly $103 billion). This free trade zone recorded import-export transactions exceeding 800 billion yuan, comprising approximately one-third of the province's total trade volume.

Hunan's endeavors to advance its free trade zone development include key initiatives that have stemmed from lessons learned in other regions. In total, 349 innovative strategies have been executed to foster synergies across industries, technologies, and regulatory systems.

Highlighting the transformation within Hunan's construction machinery sector—one of its major industries—Shen spoke about the proactive measures taken to address recent economic pressures. Consequently, companies have diversified into emerging fields like new energy and autonomous machinery, whilst also innovating throughout their production chains.

Hunan has also bolstered cooperation with the Hainan Free Trade Port through the creation of the Hunan-Hainan Advanced Manufacturing Industrial Park. This collaboration aims to position the park as a significant center for exporting and maintaining manufacturing products, enhancing local companies' competitiveness and optimizing the industrial framework within the Hainan Free Trade Port. As of now, the park has attracted 29 projects with a total investment amounting to 13.02 billion yuan.

As Hunan stays dedicated to promoting cooperation with Africa and enhancing its economic capabilities, the province is set to play a vital role in fostering growth across both regions amid a rapidly changing global landscape.