The Hunan Model: China’s Zone for the China–Africa Future
Summary
The document analyzes the transition from the 'Angola model'—characterized by infrastructure-for-resources swaps—to a 'Hunan model' centered on the Hunan province's comparative advantages. This new approach focuses on agricultural technology, construction machinery, and digital trade to foster a more diversified economic relationship between China and Africa, implemented through national platforms like the China–Africa Economic and Trade Exhibition (CAETE) and the China–Africa Economic and Trade Deep Cooperation Zone.
Key insights
- The 'Angola model' of development finance, which involved exchanging financing and infrastructure for resources, primarily benefited resource-rich countries but failed resource-poor African economies, leading to imbalances where resource-poor nations were 'systematically under-exporting to China'.
- The emerging 'Hunan model' leverages the specific economic strengths of Hunan province, particularly in 'agriculture, construction machinery, and mining and metallurgy', to move China–Africa ties into a phase focused on non-resource products.
- Hunan hosts two national-level platforms to implement this model: the biennial China–Africa Economic and Trade Exhibition (CAETE) in Changsha and the China–Africa Economic and Trade In-depth Cooperation Pilot Zone.
- The China–Africa Economic and Trade Deep Cooperation Zone aims to reach a trade level with Africa exceeding RMB 100 billion (approximately $14 billion) by 2025, representing an average annual growth rate of over 30%.
- To address foreign exchange shortages in African countries, the China–Africa Cross-Border RMB Centre is testing 'barter trade' mechanisms where goods are exchanged and settled in local currencies rather than foreign exchange.
- Hunan's industrial clusters in construction and mining machinery are being used to support the Belt and Road Initiative (BRI) infrastructure goals; for example, Sany Heavy Industry exports over RMB 10 billion ($1.5 billion) in machinery to Africa annually.
- China is utilizing Hunan's agricultural expertise to improve African food security and diversify its own food sources due to climate change and trade tensions with the US and Australia; this includes the commercialization of hybrid rice and the export of African avocadoes to China.
- The 'Luban workshops' and the China–Africa Vocational Education Federation aim to export Chinese technical standards and vocational training to Africa, though this may lead to graduates primarily finding employment in Chinese-invested projects.
- Logistics are being optimized through new 'three-dimensional' systems, including a rail-sea intermodal train from Hunan to Africa that reduces shipping time by 15 days compared to traditional sea-river routes.
Cite the original document
- APA
- JOHNSTON, L. (2023). The Hunan Model: China’s Zone for the China–Africa Future. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2023/08/SAIIA_OP-349_TheHunanModel.pdf
- Chicago
- JOHNSTON, LAUREN. The Hunan Model: China’s Zone for the China–Africa Future. South African Institute of International Affairs, 2023. https://saiia.org.za/wp-content/uploads/2023/08/SAIIA_OP-349_TheHunanModel.pdf.
- Wikipedia
- {{cite report |last1=JOHNSTON |first1=LAUREN |title=The Hunan Model: China’s Zone for the China–Africa Future |publisher=South African Institute of International Affairs |date=July 2023 |url=https://saiia.org.za/wp-content/uploads/2023/08/SAIIA_OP-349_TheHunanModel.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{johnston2023hunan, author = {JOHNSTON, LAUREN}, title = {{The Hunan Model: China’s Zone for the China–Africa Future}}, institution = {South African Institute of International Affairs}, year = {2023}, month = jul, url = {https://saiia.org.za/wp-content/uploads/2023/08/SAIIA_OP-349_TheHunanModel.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }
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