From the FT:
The World Bank and Beijing are in discussions about setting up low-cost factories in industrial zones in Africa to help the continent develop a manufacturing base and reverse its declining share of global trade.
Robert Zoellick, the president of the World Bank, said Beijing had shown "strong interest" in the proposals.
"There is not only willingness but strong interest among some in China and I've discussed with the minister of commerce, Chen Deming, that there may be possibilities of moving some of the lower-value manufacturing facilities to sub-Saharan Africa, toys or footwear," Mr Zoellick told the Financial Times in an interview. Chinese officials have been debating proposals to use the country's vast foreign exchange reserves to stimulate demand in developing countries - ideas sometimes referred to as 'China's Marshall Plan'.
...
Mr Zoellick said that African countries needed to build the infrastructure necessary to attract Chinese investment.
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However, any plan to shift production to Africa that goes beyond the symbolic is likely to meet stiff resistance within China. ...
This is the first I've heard of this, and I'm eager to learn more. A number of questions come to mind:
-- Does this mean closing down existing Chinese factories and building new ones in Africa? Building new ones in Africa that might otherwise have been built in China? Or building some in Africa that are not really needed, as something of a development tool?
-- Are the Chinese companies that would be doing this state-owned or private? What exactly is the Chinese government's role in this? Are there going to be significant amounts of subsidies?
-- Are any other countries thinking about joining this initiative? Why just China?
-- Are the amounts involved going to be anything more than symbolic? The article refers to Chinese resistance to anything more than symbolic. Does this refer to concerns about "offshoring"? Who is expressing concerns? Chinese workers? Companies? Government officials?
