China has been Ethiopia's biggest trade partner, foreign investor and contractor for a number of years, and Chinese companies are involved in most of the major infrastructure, energy and telecommunications projects

Deputy Prime Minister Demeke Mekonnen, told the China-Ethiopia Business Forum in Beijing last week that Ethiopia would welcome more Chinese companies to invest in the country, especially in manufacturing, agriculture and services.

The Deputy Minister also spoke about the opportunities Ethiopia presented to the representatives of Chinese companies keen on expanding to Africa, noting that it had averaged double-digit annual growth in the past decade and its products could enter the US and European markets duty-free and with no quota restrictions. China-Ethiopia bilateral trade has grown about 20% annually for the past decade, and its valued reached $2.19 billion in 2013.

China has been Ethiopia's biggest trade partner, foreign investor and contractor for a number of years, and Chinese companies are involved in most of the major infrastructure, energy and telecommunications projects. Ethiopia's first expressway, from Addis Ababa to Adama, was built by a Chinese company. Chinese entrepreneur, Lu Qiyuan invested in and built the Eastern Industry Zone, Ethiopia's biggest industrial park.

Shoe exports by the Huajian Group account for more than half of Ethiopia's total shoe exports and this has led to a significant expansion in logistics, leather processing and other sector. Zheng Yuewen, chairman of the China-Africa Business Council, organizer of the forum, said Chinese companies' investments in Africa have accelerated Chinese industrial upgrades while also expanding Africa's development.

He noted that Ethiopia had good conditions for the development of labor-intensive industries, including a favorable investment environment, a wealth of available labor and great market potential. He said China and Ethiopia should work together to improve the investment environment and train more skilled workers and managers in Ethiopia. This would make Ethiopia an even more important destination for the transfer of sectors of China's manufacturing industry to Africa.