What to Expect at 4th China-Africa Economic and Trade Expo (CAETE) 2025 ?
The 1st edition of the China-Africa Economic and Trade Expo (#CAETE) took place in Changsha, Hunan, in June 2019. This Expo is the materialization of the decision aimed to boost trade volume and economic cooperation between China and Africa. It is in line with the spirit of the Beijing Declaration which was arrived at during the Forum on China-Africa Cooperation (#FOCAC) Summit in 2018.
During the inaugural edition, Rwanda was selected to implement the first Electronic World Trade Platform (#eWTP) in Africa. It is hoped that the #eCommerce platform will contribute to boost trade between China and Africa via #digitalization. Since then, newer Chinese eCommerce outfits, notably Temu (NSDQ: PDD) and Shein, have taken Africa, if not the world by storm.
Initially, the program saw the participation of Ethiopian Airlines, the largest African airline company, and Alibaba, the Chinese eCommerce giant, which is headquartered in Hangzhou, Zhejiang. It is worth noting that Zhejiang has emerged as the province with the largest trade volume with Africa and accounts for nearly a quarter of all China-Africa trade.
Other than the main event which is scheduled to take place every two years in Changsha, several bilateral events have been held in various African capitals since. Most recently and in preparation for #CAETE2025, events were held in Kenya in October 2024 and in Nigeria in November 2024, as part of the promotional roadshow.
In Kenya, the emphasis was on SME and their integration into the international trade dynamics with China. #SME form the backbone of several Africa economies and, more often than not, they are also run by women or young entrepreneurs.
In Nigeria, the Chinese side promoted agricultural and industrial machinery. The China-Africa Green Development Collaboration Report was also officially released during the event. It is worth noting that Nigeria is the largest country Africa with a population of 225 million and thus represents a sizable market, not only for consumer goods but also in terms of infrastructure development needs.
In February 2025, a delegation of Chinese entrepreneurs led by Ren Hongbin, Chairman of the China Council for the Promotion of International Trade (CCPIT), visited South Africa, which is China’s largest trading partner in Africa. In addition to the #CAETE, they also invited South African businesses to the China International Supply Chain Expo (CISCE) which will be held in Beijing from 16 to 20 July 2025.
During the previous 3rd edition of the CAETE held in Changsha in April 2023, the Expo welcomed 1,700 exhibitors from Africa and China. Some 120 deals were signed worth a total of over USD 10 billion. As per previous editions, we can expect a showcase of successful China-Africa cooperation projects under the #FOCAC or #BRI.
According to the preliminary agenda, smart mining, clean energy as well as Traditional Chinese Medicine (#TCM) will feature prominently during this edition. As usual, exhibition space will be reserved for agricultural produce from Africa looking to expand into the Chinese market as well as agricultural & industrial machinery to support African entrepreneurs to grow their businesses.
At the beginning of 2025, China Customs released data that showed that the China-Africa trade reached nearly USD 300 billion in 2024. However, Africa exports mostly hydrocarbons or minerals to China whereas China exports mostly finished goods to Africa. It is no surprise that the trade balance will remain largely in favor of China until the economic structure of Africa undergoes substantial transformation to move up the global value chain (#GVC).
Therefore, Africa has been yearning for industrialization and modernization without sacrificing sustainability. In the early phase, China placed development ahead of the environment, but now it is pushing for ‘high-quality development’ and the unleashing of ‘new productive forces.’
However, it is not clear what all this actually means in the context of the China-Africa ties, or how the ‘high-quality development’ of China will marry with the ‘sustainable modernization aspirations’ of Africa. Perhaps, we will get a sense of where the wind is blowing at the upcoming 4th China-Africa Economic and Trade Expo (#CAETE2025) which is scheduled to take place in Changsha from 12 to 15 June 2025.