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AFrICA boasts almost all kinds of minerals， but most industrial goods， including needles， are imported. There is adequate arable land， abundant sunshine， plenty of water and a huge labor force， the main ingredients for agriculture. Yet Africa faces food shortages， South Africa being the exception.
My long years of observation tell me what is missing is production capacity， which is of paramount importance to Africa’s sustainable development. So the capacity cooperation initiative has been tabled at an opportune time and will work out well for the following reasons：
First， development strategies between China and Africa are highly aligned. Africa has maintained an average annual growth of over 5 percent since the turn of the century and become a bright spot in the gloomy world economy. Most African countries are formulating medium- to long-term development plans to speed up their industrialization and agricultural modernization. The African Union has set ambitious and encouraging development goals in its Agenda 2063. All of them are looking for foreign investments and technologies.
Since it began reforms and opened up more than three decades ago， China has become the second largest economy in the world and an engine of world economic growth. It is deepening reforms and restructuring to transform and upgrade its economy. Chinese enterprises need to seek further development overseas and transfer their production capacity to other developing countries for China to move up on the economic ladder. To realize their respective objectives， both China and Africa need collaboration.
Second， a high degree of economic complementation exists between the two sides. Africa possesses advantages like a huge labor force， rich natural resources， a large emerging market and favorable climate for agriculture. China has a rich development experience， relatively abundant capital， mature technologies， cost-effective equipment and quality production capacity.
Third， the political will to upgrade cooperation is stronger on both sides. China is pursuing new concepts of development： innovative， coordinated， green， open and shared development. It wishes to share opportunities with African countries to promote inclusive development. Africa is， in general， eager to learn from China’s useful and applicable experience and practices in its reform and development process.
In May 2015， as China’s Special Envoy on the Forum on ChinaAfrica Cooperation （FOCAC）， I paid a visit to five African countries for consultations on industrial cooperation and capacity transfer. Most of the leaders I met were very positive. They said they wanted to seize the opportunity as enhancing industrial and agricultural production capacity was exactly what they needed. Fourth， industrial cooperation and capacity transfer is logical and natural. Capacity transfer is not a Chinese invention. It is a common practice and a law of economic advancement in the globalization process. Means of production like capital， technologies and equipment tend to flow from better developed to less developed countries. In the past decades China accepted considerable production capacity and investments from developed economies in its modernization drive and they contributed to China’s economic boom. The investors secured their China market and reaped their due profits while the recipient gained its much-desired development and experience.
Now that China has become the second largest economy in the world， it has the material ability and moral responsibility to transfer its capital， technologies and production capacities to other developing economies， including African countries. In fact， some labor-intensive industries have already been transferred to China’s Asian neighbors. I am confident that Africa can do what China has done and that China’s today will be Africa’s tomorrow.
What needs to be done
To make the implementation suc- cessful， a few things need to be done.
Special efforts to facilitate capacity cooperation. Capital and production capacity doesn’t come automatically. It requires certain conditions. During the 10-year chaotic “cultural revolution” （1966-76）， not even a penny of foreign investment or a single production line came to China. But after 1978， when China started reforms and opening up， foreign investments and industrial projects， particularly labor-intensive ones， flocked in. It happened because China stabilized its domestic situation， opened its doors， carried out reforms， and demonstrated its strong desire for foreign investments and technologies. China enacted and revised laws and regulations， formulated preferential policies， improved infrastructure and enhanced government services. As the Chinese saying goes， the phoenix can be attracted only when a nice nest has been built.
Capacity transfers in the order of possibility and priority. Capacity transfers may have to be first tried out in a few select countries that are willing and better prepared. China’s model of setting up special economic zones or industrial parks should be made available for African consideration and use. Industries that are labor-intensive and manufacture goods to take the place of imported ones， do agro-processing and use local raw materials should be the priority in the initial stage. This can be gradually expanded into other areas and other countries at later stages after sufficient experience. Green capacity cooperation to be emphasized. The new initiative， while bringing golden opportunities for development in Africa， may also create ecological and environmental pressures. Therefore， from the very beginning， an appropriate threshold should be established to prevent industries that consume high energy and cause high pollution from being transferred to Africa. Capacity cooperation should be conducted in an environment-friendly manner. Challenges to be tackled
There are some deficiencies on both sides. On the African side， the political and social environment is not stable enough in some countries. Specific strategies and policies for attracting capacity transfer are absent in some parts of the continent. Education is yet to be fully geared to industrialization and modernization. There are severe shortages of qualified scientists， technicians and skilled workers. Infrastructure in many countries is still weak.
On the Chinese side， despite China learning a great deal in its business with the outside world in the past decades， the business sector still lacks knowledge and understanding of Africa. There still aren’t sufficient executives competent to handle capacity cooperation. International business practice norms are still new to some potential investors. Both sides need to improve and excel in their new endeavor. There must be ample onthe-job training.
The new FOCAC Action Plan will cover only three years but the capacity cooperation initiative will be extended well into the future if it works well. It can be a long-term component of FOCAC schemes.
I envisage China-Africa cooperation yielding a bumper harvest in the next few years. However， it is unrealistic to expect too much from China alone. Being a developing country itself， what China can do is limited. Therefore， China will be happy to see Africa diversify its partnership with other countries and is ready to participate in tripartite and multilateral cooperation in Africa. ca
My long years of observation tell me what is missing is production capacity， which is of paramount importance to Africa’s sustainable development. So the capacity cooperation initiative has been tabled at an opportune time and will work out well for the following reasons：
First， development strategies between China and Africa are highly aligned. Africa has maintained an average annual growth of over 5 percent since the turn of the century and become a bright spot in the gloomy world economy. Most African countries are formulating medium- to long-term development plans to speed up their industrialization and agricultural modernization. The African Union has set ambitious and encouraging development goals in its Agenda 2063. All of them are looking for foreign investments and technologies.
Since it began reforms and opened up more than three decades ago， China has become the second largest economy in the world and an engine of world economic growth. It is deepening reforms and restructuring to transform and upgrade its economy. Chinese enterprises need to seek further development overseas and transfer their production capacity to other developing countries for China to move up on the economic ladder. To realize their respective objectives， both China and Africa need collaboration.
Second， a high degree of economic complementation exists between the two sides. Africa possesses advantages like a huge labor force， rich natural resources， a large emerging market and favorable climate for agriculture. China has a rich development experience， relatively abundant capital， mature technologies， cost-effective equipment and quality production capacity.
Third， the political will to upgrade cooperation is stronger on both sides. China is pursuing new concepts of development： innovative， coordinated， green， open and shared development. It wishes to share opportunities with African countries to promote inclusive development. Africa is， in general， eager to learn from China’s useful and applicable experience and practices in its reform and development process.
In May 2015， as China’s Special Envoy on the Forum on ChinaAfrica Cooperation （FOCAC）， I paid a visit to five African countries for consultations on industrial cooperation and capacity transfer. Most of the leaders I met were very positive. They said they wanted to seize the opportunity as enhancing industrial and agricultural production capacity was exactly what they needed. Fourth， industrial cooperation and capacity transfer is logical and natural. Capacity transfer is not a Chinese invention. It is a common practice and a law of economic advancement in the globalization process. Means of production like capital， technologies and equipment tend to flow from better developed to less developed countries. In the past decades China accepted considerable production capacity and investments from developed economies in its modernization drive and they contributed to China’s economic boom. The investors secured their China market and reaped their due profits while the recipient gained its much-desired development and experience.
Now that China has become the second largest economy in the world， it has the material ability and moral responsibility to transfer its capital， technologies and production capacities to other developing economies， including African countries. In fact， some labor-intensive industries have already been transferred to China’s Asian neighbors. I am confident that Africa can do what China has done and that China’s today will be Africa’s tomorrow.
What needs to be done
To make the implementation suc- cessful， a few things need to be done.
Special efforts to facilitate capacity cooperation. Capital and production capacity doesn’t come automatically. It requires certain conditions. During the 10-year chaotic “cultural revolution” （1966-76）， not even a penny of foreign investment or a single production line came to China. But after 1978， when China started reforms and opening up， foreign investments and industrial projects， particularly labor-intensive ones， flocked in. It happened because China stabilized its domestic situation， opened its doors， carried out reforms， and demonstrated its strong desire for foreign investments and technologies. China enacted and revised laws and regulations， formulated preferential policies， improved infrastructure and enhanced government services. As the Chinese saying goes， the phoenix can be attracted only when a nice nest has been built.
Capacity transfers in the order of possibility and priority. Capacity transfers may have to be first tried out in a few select countries that are willing and better prepared. China’s model of setting up special economic zones or industrial parks should be made available for African consideration and use. Industries that are labor-intensive and manufacture goods to take the place of imported ones， do agro-processing and use local raw materials should be the priority in the initial stage. This can be gradually expanded into other areas and other countries at later stages after sufficient experience. Green capacity cooperation to be emphasized. The new initiative， while bringing golden opportunities for development in Africa， may also create ecological and environmental pressures. Therefore， from the very beginning， an appropriate threshold should be established to prevent industries that consume high energy and cause high pollution from being transferred to Africa. Capacity cooperation should be conducted in an environment-friendly manner. Challenges to be tackled
There are some deficiencies on both sides. On the African side， the political and social environment is not stable enough in some countries. Specific strategies and policies for attracting capacity transfer are absent in some parts of the continent. Education is yet to be fully geared to industrialization and modernization. There are severe shortages of qualified scientists， technicians and skilled workers. Infrastructure in many countries is still weak.
On the Chinese side， despite China learning a great deal in its business with the outside world in the past decades， the business sector still lacks knowledge and understanding of Africa. There still aren’t sufficient executives competent to handle capacity cooperation. International business practice norms are still new to some potential investors. Both sides need to improve and excel in their new endeavor. There must be ample onthe-job training.
The new FOCAC Action Plan will cover only three years but the capacity cooperation initiative will be extended well into the future if it works well. It can be a long-term component of FOCAC schemes.
I envisage China-Africa cooperation yielding a bumper harvest in the next few years. However， it is unrealistic to expect too much from China alone. Being a developing country itself， what China can do is limited. Therefore， China will be happy to see Africa diversify its partnership with other countries and is ready to participate in tripartite and multilateral cooperation in Africa. ca