Overseas Chinese businessman Zhang Huarong- Step into a pit and gain experience

In a recent interview with China News Service, Zhang Huarong, the Vice President of the China-Africa Friendship Association, encapsulated his 40-year entrepreneurial journey with four clear statements: “Start in Jiangxi, develop in Guangdong, grow in Ganzhou, and achieve recognition in Africa.”

Zhang, who was born into a rural family in Jiangxi in 1958, has vivid memories of his impoverished upbringing. He reminisces about drinking rice soup as a child, dropping out of school due to financial hardships after just a few days in middle school, and enlisting in the army at the age of 20. Following his service, he ventured into the workforce as a craftsman and trader.

In 1984, Zhang relocated to the coastal region of Zhejiang to apprentice at a shoe factory. By 1996, he had established Dongguan Huajian Shoe Industry Co., Ltd. at a time when Dongguan was emerging as the “world’s factory,” with a rapidly expanding contract manufacturing landscape.

Zhang commented, “The growth of a business is closely connected to national reforms and social needs.” His commitment to mastering women’s shoe production led to significant expansion of his factory.

In 2011, he traveled to Ethiopia to assess the market. “While the local business environment wasn’t optimal, the low labor costs and abundant high-quality leather made it an ideal location for shoe manufacturing,” he noted.

Just over a hundred days later, a factory employing over 500 workers was up and running. This rapid construction took merely three months, during which more than 100 Ethiopian employees traveled to Ganzhou for training, returning equipped with essential shoemaking skills alongside over a hundred Chinese colleagues.

Despite the many challenges of language barriers, legal differences, and cultural dynamics in Africa, Zhang stressed the importance of determination, sincerity, and perseverance. He also called for government policies that better protect the interests of companies operating overseas.

“Every setback I encounter adds to my experience,” Zhang often shares with others, particularly regarding his lessons learned abroad. “For example, we faced significant losses due to currency fluctuations stemming from varied contract and payment cycles. It’s essential for businesses looking to expand internationally to be mindful of exchange rate risks.”

Since investing in Ethiopia in 2012, Huajian has committed a total of $100 million to the country. Their shoe exports have generated nearly $200 million in revenue, representing 27% of Ethiopia’s total leather exports, 65% of its shoe exports, and 7% of its overall manufacturing exports. The Huajian industrial park in Ethiopia aims to house 50,000 workers and has already created over 8,000 local jobs, with more than half filled by women.

“China was once the world’s factory; now it is the world market,” Zhang remarked. He highlighted Africa’s need for industry, rather than just capital. He acknowledged that Chinese investment in construction and manufacturing has significantly bolstered Africa’s infrastructure and connectivity, paving the way for numerous job opportunities that provide local communities with stability and tangible benefits.

Zhang expresses optimism about the potential for mutually beneficial cooperation between China and Africa in agriculture and industry, which he believes aligns with the economic and social aspirations of both regions.

In recognition of his contributions, Zhang was honored with the title “Father of Ethiopian Industry” in 2017. He was later named one of the top 100 outstanding private entrepreneurs during China’s 40 years of reform and opening up in 2018 and became Vice President of the China-Africa Friendship Association in 2019.

Currently, Zhang is exploring opportunities in the renewable energy sector. He views Africa’s vast landscapes not only as rich in natural resources but also as a burgeoning market for renewable energy.

“The success of renewable energy projects relies on advanced technology and economic viability, but it also hinges on gaining local community recognition and support,” he explained. To this end, Zhang has been proactive in involving local communities in the planning, construction, and operations of projects to ensure they benefit the public and stimulate regional economic development.

“By tackling one issue and moving forward, resolving conflicts and ascending to new heights—we continually evolve through challenges,” he emphasized. “Addressing problems and conflicts and getting to the root of an issue to enhance efficiency is a necessary journey for everyone.”