China, World Bank discuss moving factories to Africa

World Bank President Robert Zoellick said China had shown "strong interest" in participating in efforts to set up low-cost factories in new industrial zones in Africa, the Financial Times reported. Zoellick has held discussions with Minister of Commerce Chen Deming with a view to "moving some of the lower-value manufacturing facilities to sub-Saharan Africa – toys or footwear." The proposals put forward by the World Bank would help reverse Africa’s declining share in global trade. They also appear to be in tune with recent discussions among Chinese officials and academics about using the country’s foreign exchange reserves to stimulate demand in developing countries. However, the principal objective of these discussions is to find ways of nurturing new markets for Chinese-made goods, not to persuade domestic manufacturers to relocate. Beijing remains under pressure to create jobs at home.