Observation on import and export between Chongqing and Africa- industrial complementarity across mountains and seas

Observation on import and export between Chongqing and Africa- industrial complementarity across mountains and seas

Recently, under the guidance of Chongqing Customs, a significant shipment of motorcycles valued at several million yuan is being prepared for export to Africa via the Western Land-Sea New Corridor. This follows the recent arrival of chrome ore from South Africa to Chongqing. The growth in import and export trade, especially concerning motorcycles and chrome ore, is helping to forge a complementary industrial relationship between Chongqing and Africa.

Wang Hua, the manager of the overseas department at Chongqing Hongli Motorcycle Manufacturing Co., Ltd., shared insights about their expanding market in Africa. “Africa is a key market for our motorcycle exports. In the first eight months of this year, we exported products worth 150 million yuan to Africa, representing nearly a 20% year-on-year increase,” he said. Wang highlighted the appeal of Chongqing-made motorcycles in Africa due to their durability and cost-effectiveness.

He elaborated on how the company has adapted its motorcycles to better fit the African market in terms of climate, body types, and dressing styles. “We’ve improved motorcycle seating for comfort and designed various models, including curved and flat beams, to enhance convenience for local consumers,” Wang explained.

“Our market research indicated that in many African nations, motorcycles are not just important but also the primary mode of transportation,” he said. Many motorcycles serve as personal transport, while some are utilized for taxi services. Looking ahead to 2024, Wang is focusing on emerging markets such as Tunisia, Mozambique, and Morocco, expressing strong confidence in the potential of the broader African market.

On the subject of chrome ore, its importance may not be immediately recognizable, but it is a vital raw material integrated into everyday items like stainless steel cookware, cutlery, plumbing fixtures, windows, handrails, elevators, and even vehicle wheels, as well as in leather shoes, bags, and sofas.

China has a substantial demand for imported chrome ore, much of which comes from Africa. According to data from the Stainless Steel Branch of the China Iron and Steel Industry Association, from January to August 2024, China’s total chrome ore imports reached approximately 13.72 million tons, reflecting an 18.65% year-on-year increase. Imports from South Africa accounted for about 11.26 million tons, a rise of 20.95%, while imports from Zimbabwe surged to 767,600 tons, an 82.81% increase.

Chongqing has established vital connections with major African ports through the iron-sea intermodal trains of the Western Land-Sea New Corridor, positioning it as a key import hub for chrome ore. Liu Xiangjin, executive director and general manager of Chongqing Kaimingtai Trading Co., Ltd., a seasoned player in the chrome ore trade in the region, stated, “We utilize iron-sea and river-sea intermodal transport to import chrome ore from Africa to Chongqing and Tianjin, from where it is distributed nationwide.”

An official from Chongqing Customs pointed out the region’s stable export patterns of products like laptops, motorcycles, and mobile phones to Africa, alongside a diverse range of mineral products and metals received from the continent. This exchange significantly supports the demands of Chongqing’s modern manufacturing sector. Statistics indicate that from January to August 2024, the value of trade between Chongqing and African countries via the Western Land-Sea New Corridor reached approximately 760 million yuan, marking a year-on-year increase of 60%.

Li Jing, president of Chongqing Three Gorges University and vice chairman of the China Regional Economics Society, noted that while Africa boasts rich natural resources, a youthful population, and rapid urbanization, its manufacturing capabilities are still developing. Conversely, Chongqing stands as an industrial powerhouse with a well-established manufacturing sector, presenting substantial complementary opportunities between Chongqing and Africa.

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