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Goodbye, low-cost era! 16 countries are taking over Chinese manufacturing, are you ready?

03-15

China has completed its cycle of high growth and low wages. As one of the global manufacturing hubs, China is showing signs of business relocation. So, which countries and regions will become the new recipients?

It should be noted that international capital requires a country or region with low wages and high economic growth to achieve high returns on venture capital. In the 1980s s, international capital favored the United States. Over the past decade, China has replaced Japan as one of the main forces in global manufacturing production and created "MADE IN CHINA " thus becoming the main engine driving global economic growth. But such an era is gradually fading away. People have noticed that, many primary manufacturing enterprises have moved to Southeast Asia, Africa, and a few Latin American countries after leaving China . The US geopolitical think tank Stratfor has drawn the following map, showing these 16 countries, including Vietnam, Laos, Indonesia, Philippines, Kenya, Peru etc.

As can be seen from the map above, many of these new target regions are concentrated in the Indian Ocean basin, including Sri Lanka, Indonesia, Myanmar, and Bangladesh Most interestingly, many are located in the eastern fringe of sub-Saharan Africa, commonly known as "Black Africa": Tanzania, Kenya, Uganda, Ethiopia, Nigeria, etc. For these countries and regions, the editor has specially compiled 2016 major exhibitions held or to be held in the region, which might be a great springboard!

Exhibition Name	Time	Location	Exhibits Scope
Philippines International Poultry and Livestock Industry Exhibition	2017 May Month	Philippines Manila	Livestock, poultry, aquaculture and related equipment, veterinary drugs, feed, additives, livestock machinery, slaughtering equipment, etc.
Bangladesh International Textile Fabric and Yarn Exhibition	9 Month 2-5 Day	Bangladesh Dhaka	Woven fabrics, knitted fabrics and other fabrics; garment accessories and apparel
Indonesia International Livestock and Dairy Exhibition	2017 October Month	Jakarta, Indonesia	Livestock machinery and equipment, dairy processing equipment, poultry, pig feed, slaughtering and processing equipment, feed additives, etc.
Indonesia Jakarta International Building Materials Exhibition	5 Month 28-29 Day		Construction machinery, architectural hardware, kitchen and bathroom, HVAC equipment, building materials, architectural design
Indonesia Jakarta International Textile Fabric & Yarn Exhibition JIFS	11 Month		Various synthetic fibers, natural fiber fabrics (woven/ knitted), yarns and fibers, fancy finishing, bags, accessories; various home textiles, garment accessories
Vietnam International Textile, Garment Accessories and Yarn Exhibition	4 Month	Vietnam Ho Chi Minh City	Various types of yarn; fabrics for clothing; home textile fabrics; garment accessories and apparel
Vietnam International Poultry and Livestock Industry Exhibition Vietstock	10 Month 19 -21 Day	Vietnam Ho Chi Minh City	Livestock, poultry, aquaculture and related equipment; veterinary drugs; feed, additives; livestock machinery, slaughtering equipment
African International Trade Fair	6 Month 19-21 Day	South Africa Johannesburg	Hardware tools, light industrial products, home appliances and electronics, household goods, building materials machinery, stationery and sports goods, food and food processing machinery, etc.
Kenya China Trade Week (Phase I)	6 Month 29 Day - 7 Month 1 Day	Kenya Nairobi	Vehicles, auto parts, heavy machinery, printing and packaging, rubber and rubber products, light industrial consumer goods
Kenya China Trade Week (Phase II Building Materials)	7 Month 6-8 Day	Kenya Nairobi	Building materials; architectural hardware; building materials machinery; construction equipment
East Africa (Tanzania) International Construction Exhibition	7 Month 2-4 Day	Tanzania Dar es Salaam	Building materials; architectural hardware; building materials machinery; construction equipment; engineering and mining machinery
Nigeria (Lagos) China Commodity Exhibition	11 Month 8-12 Day	Nigeria Lagos	Mechanical and electromechanical equipment, building materials, hardware tools, vehicles and parts, home appliances and household goods, security and fire protection, plastics industry and products, beauty and hairdressing products, textiles and clothing, fitness equipment, sporting goods, pharmaceuticals and health products and medical devices, IT Technology and products
Sri Lanka International Building Materials and Construction Machinery Exhibition	8 Month 28-30 Day	Sri Lanka Colombo	Hardware tools, hardware building materials, building materials machinery, construction machinery, building hardware, kitchen and bathroom, HVAC equipment, building materials doors, stairs and wood products

Many of the companies that first moved to these countries were in the garment and footwear manufacturing industries, because it is relatively easy to train these workers to enter the production line. Wall Street News previously mentioned that Vietnam's garment, footwear, and textile industries have huge development potential. The country joined the Trans-Pacific Partnership (TPP) in February this year. This will promote the growth of Vietnam's textile, footwear, and agricultural and aquatic product exports, with textiles and footwear expected to grow by at least 20%. Mobile phone assembly companies are also gradually entering these countries. Because the low prices in these countries are very competitive.

For example, the unit cost of setting up a garment factory in Ethiopia is currently 50% lower than in China. China's worker wages increased by 17.1% last year, an increase of 18% the previous year, now exceeding Mexico and Turkey. Although Ethiopia is one of the poorest countries in the world, its economy is now growing rapidly, with GDP growth of around 10%.

Pakistan lowers additional import tariffs on some auto parts

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The 41st PLMA Show in the Netherlands has concluded successfully, with Zhenghe Exhibition leading a hundred companies to shine across Europe.

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Zhenghe Exhibition visited Nigerian automotive technology and other industry associations to promote cooperation on the 2025 Nigeria (Lagos) China Goods Expo.

From January 3rd to 6th, 2025, representatives of Zhenghe Exhibition's overseas staff successively visited the secretariat of the Nigerian Automotive Technicians Association (NATA), the Amalgamated Union of Automobile Motor Mechanics and Technicians of Nigeria (AUOMMATON), and the Motor Mechanics and Technicians Association of Nigeria (MOMTAN). This visit primarily focused on in-depth discussions and exchanges regarding cooperation for the 2025 Nigeria (Lagos) China Commodities Fair. During the meetings, representatives of Zhenghe Exhibition's overseas staff introduced the basic situation of the Nigeria (Lagos) China Commodities Fair to the heads of the business associations. The heads of the various business associations acknowledged the significant achievements made by the exhibition in recent years. During the discussions, the three industry association leaders provided detailed information about their respective associations. As leaders and promoters of associations related to the automotive industry in Nigeria, these three associations have a wide influence in Nigeria and even West Africa. Against the backdrop of continuously deepening and upgrading China-Africa cooperation, they expressed high expectations for actively promoting trade cooperation between Nigeria and China in the automotive industry. The heads of the associations also stated their willingness to work with Zhenghe International Exhibition to jointly promote the continuous development of the Nigeria (Lagos) China Commodities Fair, uniformly organize member units to participate in the exhibition, and conduct one-on-one matchmaking discussions with Chinese exhibitors. As Africa's second-largest economy and most populous country, Nigeria has a huge demand for automotive and auto parts products, largely relying on imports. In Nigeria, over 90% of Nigerians tend to choose 'tokunbo' (used cars), which makes the 'tokunbo' distribution business very profitable in Nigeria. With the Nigerian government relaxing age restrictions on imported used cars, the volume of used car imports will further increase. Consequently, the auto parts market, both upstream and downstream of Nigeria's used car industry chain, will also see more opportunities. After years of operation by Chinese automakers, Chinese cars have established considerable 'prestige' in Nigeria. At the same time, the scarcity of local car repair outlets and the high cost of spare parts in Nigeria also indicate immense potential for Chinese auto parts exports to the Nigerian market.

01-09

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Deep cultivation of fertile soil ensures abundant blossoms - The 2025 Nigeria Lagos China Commodities Fair embarks on a new journey!

Nigeria is an important trade partner and investment destination for China in Africa, and also China's largest contracted project market in Africa. In 2023, the new contract value for Chinese enterprises' contracted engineering business in Nigeria reached 10.45 billion USD, with a turnover of 3.98 billion USD. On September 3, 2024, China and Nigeria issued a joint statement announcing the establishment of a comprehensive strategic partnership, promoting the building of a high-level China-Nigeria community with a shared future, and explicitly strengthening cooperation in areas such as infrastructure construction. Chinese Products are Hot-selling in the Nigerian Market under the Framework of China-Africa Cooperation According to data from the General Administration of Customs, from January to July 2024, China's imports and exports with Africa totaled 1.19 trillion CNY, a year-on-year increase of 5.5%. In 2023, China-Africa trade reached a historical peak of 282.1 billion USD, a year-on-year increase of 1.5%, demonstrating the strong resilience of China-Africa trade. Among them, trade between Nigeria and China is booming. In 2023, the total trade volume between China and Nigeria soared to an astonishing 281.777 billion USD, with China's exports to Nigeria reaching 172.469 billion USD, highlighting the immense appeal of Chinese products in the Nigerian market. The main hot-selling products fall into the following major categories: 1. Electromechanical Products and Agricultural Machinery Products From efficient power generation equipment to reliable electrical products, China's electromechanical products have continuously met Nigeria's growing needs and directly promoted the rapid development of its infrastructure construction. In addition, hardware tools, power tools, construction machinery, and other electromechanical products are also very popular. The import of agricultural machinery, food machinery, and packaging machinery has adapted to the development needs of Nigeria's agriculture and food processing industries. At the same time, industrial manufacturing-related electromechanical products such as machine tools provide strong support for Nigeria's industrial development. 2. Textile and Garment Products Nigeria is Africa's most populous country, with a current population exceeding 227 million, leading to huge domestic market demand. Textiles and clothing are major export items from China to Nigeria, accounting for 15% of China's total exports to Nigeria. Statistics show that in 2022, Nigeria's textile and garment imports reached 110 million USD, with China being its largest source country, accounting for approximately 47% of the total imports, almost half. As Nigeria's urbanization accelerates, more young people are eager to express themselves. In terms of fabrics, wax prints with unique craftsmanship and patterns, and brightly colored African jacquard fabrics are popular; for finished garments, shirts and sportswear with Chinese cultural elements or designs that align with local aesthetic preferences are highly sought after; regarding accessories, exquisite embroidery and unique buttons could also be among the featured products. 3. Auto Parts Products Nigeria is considered Africa's largest potential automotive market. In Nigeria, over 90% of Nigerians prefer "tokunbo" (used cars), making the "tokunbo" distribution business very profitable in Nigeria. With the Nigerian government relaxing age restrictions on imported used cars, the volume of used car imports will further increase. Therefore, the auto parts market, both upstream and downstream of Nigeria's used car industry chain, will also see more opportunities. 4. Wigs and Hair Products Eight out of every 10 Nigerian women wear wigs. Nigerian women have a particular preference for wigs and hair extensions, creating a substantial market for hair products of various sizes and prices. Furthermore, there is also significant demand for hair care products such as shampoos, relaxers, hair creams, and detangling brushes. 5. Building Materials, Hardware Accessories With the acceleration of urbanization and the continuous advancement of infrastructure construction in Africa, the African building materials and hardware market is showing vigorous development. 70% of hardware products in the African market rely on imports. The demand for hardware products is mainly concentrated in saw blades, steel pipes, and various types of mechanical hardware. From "Whether to Go" to "How to Go," Enterprises "Have a Soft Spot" for the African Market From surveying the Nigerian market in 2002 to bringing the Nigeria (Lagos) China Commodities Expo to the public's attention in 2007. In the blink of an eye, Zhenghe Exhibition has been organizing the Nigeria (Lagos) China Commodities Expo for over 17 years. Throughout the 53 years of China-Nigeria diplomatic relations, Zhenghe Exhibition has made every effort to actively assist in deepening the economic and trade relations between enterprises of both countries! Over these 17 years, we have organized thousands of enterprises from over 20 provinces and cities, including Hebei, Jilin, Liaoning, Shandong, Fujian, Zhejiang, Henan, Hubei, Hunan, Jiangsu, Anhui, Guangdong, Beijing, Shanghai, Tianjin, and Chongqing, to participate in the exhibition. Exhibits covered various fields such as agricultural machinery, vehicles and parts, construction machinery, hardware building materials, power equipment and new energy products, textiles and garments, beauty products, and daily necessities. With the strong support of the nation, we worked together with the participating enterprises to overcome difficulties, enabling each exhibiting enterprise to take root, blossom, and bear fruit in Nigeria! According to incomplete statistics, the 2024 Nigeria Lagos China Commodities Expo achieved an intended transaction volume of 82 million USD on-site, with many popular products signed on the spot. 2025, Embarking on a New Journey In nearly two decades of deeply cultivating Africa, we have witnessed the beautiful scenery and unique charm of the African continent, and even more strongly felt the African people's fervent aspiration and passionate pursuit of a better life. We have also jointly witnessed the transformation of Chinese enterprises in Africa from scratch to growth, from daily necessities to steel, aluminum, and mechanical equipment. The African market has demonstrated unprecedented investment potential and development opportunities. At this critical period in the development of China-Africa relations, Zhenghe Exhibition will actively combine our "first-mover advantage" with "African endowments," act as a bridge, and facilitate more "Made in China" products entering and becoming popular in Africa.