Why Would Angola’s President Want to Go to China’s Shandong Province?

Why Would Angola’s President Want to Go to China’s Shandong Province?

Angolan president Jo?o Louren?o will arrive in?China on Thursday to begin a three-day state visit, which will include meetings with his Chinese counterpart Xi Jinping and Premier Li Qiang.

The Chinese Foreign Ministry, as per usual,?did not provide many details of the visit, but from what is known, there are few notable differences between?Louren?o’s itinerary and those of other African leaders who’ve recently visited China.

First, the visit is going to be much shorter than the recent tours by Sierra Leone President?Julius Maada Bio and trips made last year by both DR Congo President Félix Tshisekedi and Kenyan President William Ruto, which were all at least five days long.

Louren?o’s itinerary is also a bit unusual.?

In recent years, it’s become increasingly common for visiting heads of state to first tour the southern China tech hub of Shenzhen, where there’s an obligatory stop at Huawei’s headquarters. Then, they move on to Shanghai to visit the New Development Bank HQ and finally land in Beijing.

However, the Angolan president isn’t doing any of that and will instead start his trip in Beijing before heading to the northeast province of Shandong.

Rustbelt provinces like Shandong, known for its heavy industry, is not an obvious choice for a high-profile diplomatic visit from the leader of an African country that doesn’t manufacture much of anything.

And it’s unclear if Louren?o or the Chinese side decided to go to Shandong. Regardless, though, it does make sense for several reasons:

  • INDUSTRIALIZATION:?Louren?o is working hard to diversify the Angolan economy beyond just selling oil. Like other African countries, Angola wants to move up the manufacturing value chain. So, what better place to learn how to do that and also try to lure industrial FDI than one of the key hubs of Chinese manufacturing?

  • HISENSE & HAIER:?Louren?o’s visit to Shandong will likely include a stop at one or both of the headquarters of appliance/electronics giants Hisense and Haier. Both companies are already active in Angola and have operations across most of Africa.?Hisense, in particular, has large manufacturing plants in South Africa, and Louren?o is probably keen for the company to set up similar facilities in Angola.

  • TRADE:?Shandong is a $1.3 trillion economy and one of China’s largest and wealthiest provinces. Its diversified industries include manufacturing, tech, and pharmaceuticals. Shandong is also a major port city that offers many opportunities for direct trade links with a country like Angola, which is seeking to expand non-oil exports to China.

WHY IS THIS IMPORTANT??Angola remains one of China’s most important countries in Africa. It’s still one of the top ten oil suppliers and remains China’s largest borrower on the continent.?Angola is also increasingly a frontline state in the great power rivalry between the U.S. and China. So, there’s a lot at stake here for Xi Jinping in terms of managing this relationship effectively.

Unlike other African presidents who returned home largely empty-handed, it’s likely Louren?o will be different given his country’s enormous geopolitical importance.

Adrian Hall

Founder & CEO RigbyHall ltd. Providing access to technology where it is needed

5 个月

An interesting perspective, thanks for sharing Eric. Angola certainly has a lot of untapped potential and plenty of room for growth. It seems President Lourenco is not confining engagement to China but is actively engaging the US (with a visit in 2023) and the three day visit to China was followed by a three day visit to South Korea so it seems the President has set a precedent, economic with time and liberal with diversification.

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小雷Nicola

太阳能行业 | 生产流程 与 供应链审计 | 上海

8 个月

Seems like Shandong is competing with Hunan ?? provincial level engagement and trends are so fascinating

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Dr. Lauren A. Johnston (江诗伦)

Associate Professor; Government Economic Adviser, Consultant

8 个月

To check out where Africa's donkeys are ending up??? (indeed beyond oil, shipping, good universities, wealth management in Yantai, Weihai.. )

Anna Ridgway

Communications specialist

8 个月

Hi Eric - thank you for this thoughtful analysis. Your paragraph on ports is particularly interesting. It would be interesting to know your thoughts on port arrangements vis-a-vis Shandong Port Group, AGL and Logink. Where does/might Logink fit in in this context, as it builds data aggregation through integration into port operating systems globally and control over global trade routes/trade? Many thanks.

Chen Shen

Entrepreneur, Consultant, Investor, jewelry, Gemstone, Luxury retailing, Packaging, Import/Export

8 个月

Angola has oil. And Shangong has many small private refinery companies who buy oil on spot market

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