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The Investment of Huajian Group in Ethiopia – a Case Study of Chinese Enterprises’ “Going Out” (No.149, 2018)

Oct 31,2018

By Chen Xiao &Shen Qiu, Research Team on “International Development and Cooperation”, China International Development Intelligence Center

Research Report, No.149, 2018 (Total 5424) 2018-9-7

Abstract: In recent years, cooperation between China and Ethiopia has been in the forefront of Sino-African cooperation, and Huajian Group’s investment in Ethiopia has been praised as “a model of Sino-Ethiopian economic and trade cooperation”. Huajian’s basic investment experience in Africa is to make full use of the comparative advantages of the invested countries, actively share the knowledge and experience of China’s industrialization, and maintain close communication and cooperation with various institutions. However, both Huajian and Chinese enterprises in Africa are facing the challenges of insufficient governance capability, weak development foundation, lacking of domestic support and protection for foreign investment, and weak operation and management capability. The “going out” of Chinese enterprises is a systematic project. Specific suggestions are as follows: first, we need to follow the economic law, design the long-term planning and short-term countermeasures, and constantly enhance the competitiveness of enterprises; second, we need to integrate resources and forces from various sections, establish and improve the support and security system for foreign investment; third, we need to strengthen the cooperation with some international organizations in Africa, third-party state aid agencies, market-oriented and socialized institutions to promote the investment in Africa and achieve shared growth through consultation and collaboration.

Key words: Sino African cooperation, enterprises’ “going out”, Ethiopia