China–Africa Cooperation: Leveraging industrial transformation and global value chains

AS the global economic influence increasingly shifts to the Global South, China–Africa economic and trade cooperation has become a key partnership influencing Africa’s industrial development. Starting in the early 2000s, what was once mainly based on resources has developed into a complex and multi-faceted relationship involving infrastructure, manufacturing, trade, finance and technology.

Today, this partnership not only transforms Africa’s industrial landscape by significantly contributing to its industrialisation, boosting self-sustaining development and fostering mutual benefits and win-win cooperation as China opens its market to Africa, but also positions the continent to join global value chains and benefit from a new wave of industrial transformation.

This progress is supported by Africa’s rich mineral resources and expanding market access to China, including the landmark zero-tariff policy announced by President Xi Jinping, effective from May 1, 2026.

For those observing China’s ongoing role as a true development partner to African nations, you’ll agree that in the last twenty years, China–Africa economic and trade collaborations have become one of the most significant relationships influencing the continent’s development path.

What began largely as a raw-materials trade has gradually evolved into a multifaceted relationship encompassing infrastructure development, industrial investment, manufacturing and technology transfer.

Today, the evidence increasingly shows that this cooperation has made significant contributions to Africa’s industrialisation and its integration into global industrial and value chains, although not without structural challenges, especially for better engagement that still needs to be addressed.

At the heart of this transformation lies the sheer scale and growth of China–Africa economic engagement. Since the early 2000s, bilateral trade has expanded at an average annual rate of about 20 per cent, while Chinese foreign direct investment (FDI) in Africa has grown even faster, at roughly 40 per cent annually over certain periods.

This rapid expansion has made China Africa’s largest trading partner for over a decade, fundamentally reshaping the continent’s external economic relations.

More recent figures indicate that China–Africa trade reached approximately 283.5 US billion dollars in 2022; 282.1 billion dollars in 2023; 296 US billion dollars in 2024; and 348 US billion dollars in 2025, reflecting both resilience and deepening interdependence, with 2025 marking the strongest expansion in recent years, driven largely by rising Chinese exports and sustained African commodity exports. Beyond trade volumes, the nature of engagement has changed significantly.

The relationship, which was once mainly about exporting raw materials from Africa to China, is now shifting towards higher-value sectors like manufacturing, the digital economy, agricultural processing and green energy.

This shift is important because industrialisation is about more than just making goods; it includes upgrading along the value chain from exporting raw materials to creating finished and semi-processed products.

One of the most tangible contributions of China–Africa cooperation to industrialisation has been infrastructure development, which forms the backbone of any industrial economy.

Chinese financing and construction companies have historically led and still lead efforts in developing roads, railways, ports, power plants, airports and industrial parks throughout the continent.

Moreover, when learning opportunities arise, provide practical training for citizens of friendly countries through the Beijing-based AIBO institution, enabling them to observe and understand how policy and ideological shifts promote the country’s growth.

These investments and educational efforts tackle Africa’s enduring infrastructure gap that has historically hindered industrial development. Improving transportation networks lowers logistics expenses, dependable electricity boosts manufacturing and advanced ports enhance export capacity together, these improvements help African economies integrate more successfully into global value chains.

Equally important is the development of economic and trade cooperation zones (industrial parks), a model China has successfully exported to Africa. According to official data, Chinese-built industrial zones across Africa have attracted over 1,000 companies and created more than 1.1 million local jobs in recent years.

These zones are not just clusters of factories; they function as ecosystems that integrate manufacturing, logistics and services, thereby accelerating industrialisation. Countries such as Ethiopia, Egypt and Nigeria have leveraged these zones to develop export-oriented manufacturing sectors, particularly in textiles, footwear and light industry.

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These industrial parks also serve as entry points to global value chains. By hosting exportoriented firms, many of which are integrated into Chinese or global production networks, African countries gain access to international markets, technology and managerial expertise.

This step is crucial for industrial upgrading. Instead of staying at the upstream end of the value chain providing raw materials African economies start participating in downstream activities like assembly, processing and manufacturing.

Another key dimension of China–Africa cooperation is technology transfer and skills development. Chinese firms operating in Africa often bring with them technical knowledge, production techniques and management practices. Over time, this fosters the growth of local human capital and industrial capabilities.

The increasing influence of Chinese private enterprises currently making up over 70 per cent of Chinese firms investing in Africa has further supported this development by adopting more flexible and market-driven business models.

This cooperation’s impact is also clear in the diversification of African economies. While traditionally dependent on a limited set of commodities, many African countries are now developing new sectors such as manufacturing, telecommunications, digital services and renewable energy.

Chinese investment has diversified beyond traditional sectors like mining and construction to include technology, finance, green development and aviation, indicating a more advanced form of engagement.

This variety of areas helps strengthen economic resilience and lowers susceptibility to commodity pri ce fluctuations. Furthermore, trade and investments between China and Africa have driven export growth and foreign exchange earnings, both crucial for macroeconomic stability and industrial progress. Chinese-backed industrial projects have expanded Africa’s ability to export, especially in processed goods.

At the same time, policy initiatives such as zero-tariff access for African exports to China are opening new opportunities for African producers to access one of the world’s largest markets. From its initial application to 33 least developed countries in Africa in December 2024, to its full expansion to all African countries with diplomatic relations with China by 2026, the policy covers all sectors including agricultural products, minerals, light industry and manufacturing.

Supporting measures such as the green channel for African agricultural exports to China, digitalisation of rules of origin and mutual recognition of inspection and quarantine are being upgraded simultaneously, greatly reducing customs clearance costs and time and enabling quality African products to reach the Chinese market directly.

This is the first time a major global economy has introduced across-the-board zero tariffs on African products a move aimed at breaking trade barriers and upholding multilateralism. In addition, there are supporting measures such as China International Import Expo (CIIE), which fully leverages the functions of four major platforms international procurement, investment promotion, people-to-people and cultural exchanges and open cooperation.

Relying on China’s ultralarge market, it connects China with Africa and China with the world. Another emerging trend is the evolution of Chinese financing models.

Recent data indicate that Chinese lending to Africa has declined from its peak, with a shift towards more commercially viable, smaller-scale projects, often supported by FDI rather than large sovereign loans.

This reflects a more sustainable approach but also signals a transition from state-led infrastructure financing to marketdriven investment, which may require African countries to strengthen their investment climates to attract private capital. Despite these challenges, the overall trajectory of China–Africa cooperation points toward deeper integration into global value chains.

The growing role of intermediate goods trade, which now accounts for a significant share of bilateral trade, indicates that African economies are becoming more integrated into global production networks. This is a key indicator of industrial development, as it reflects participation in multi-stage production processes rather than simple commodity exports.

Furthermore, China’s global leadership in sectors such as clean energy, digital infrastructure and manufacturing creates new opportunities for Africa to integrate into emerging global industries. Investments in renewable energy, for example, not only support sustainable development but also position African countries within the global green value chain, which is expected to drive future economic growth.

The truth stays constant, even if some people don’t completely understand China’s role in supporting African nations or other countries where it operates. China–Africa trade and economic cooperation have played a crucial role in boosting Africa’s industrial growth and linking it more closely to global value chains.