China-Africa Cooperation in Green Mobility Gains Momentum

Officials from African and Chinese countries called for strengthening interaction to combat corruption and protect investments, as the states aim to expand industrial development and infrastructure projects on the continent.

This call was made at the China-Africa Forum on Anti-Corruption, which took place in Cairo. Forum participants discussed issues of governance, law enforcement, and methods to enhance cooperation in investment and development projects.

Amr Darwish, a member of the Egyptian parliament, noted that corruption remains a serious economic problem for Africa. He referred to estimates suggesting that the continent loses about $148 billion annually due to corrupt practices. According to Darwish, although there is no precise data on the level of corruption in Africa, research centers have calculated that corruption costs approximately $148 billion per year, which accounts for about 25% of Africa's GDP.

The scale of these losses threatens resources that could be directed towards supporting infrastructure, public services, and industrial growth. Previously, the African Union also mentioned estimates of $148 billion in annual losses from corruption, although the exact cost is difficult to measure.

Egyptian President Abdel Fattah el-Sisi stated that the fight against corruption requires coordinated action across the continent. He emphasized that eradicating corruption and changing the reality of the continent is only possible through cooperation and the implementation of joint African anti-corruption mechanisms, mentioning Egypt's adoption of laws consistent with the African Union Convention on the Prevention and Combating of Corruption.

Darwish also advocated for closer cooperation between Egypt, China, and other African countries participating in the 'Belt and Road' initiative. He suggested that China's experience in governance could contribute to the expansion of infrastructure projects. This initiative represents China's global program for investment and infrastructure, where Africa is one of the main recipients of investment and construction participation.

Sabri El Gendy, advisor to the Egyptian Minister of Local Development and an anti-corruption expert, argued that informational campaigns alone are insufficient to solve the problem of bribery. He insisted that applying strict laws and imposing severe penalties without exceptions or favoritism would lead to the eradication of corruption, calling on African and Arab countries to learn from China's example.

The forum highlighted the economic significance of accountability, as African countries seek investment to expand manufacturing, energy, and transport infrastructure. Participants noted the need to strengthen oversight and cooperation to curb corruption, protect public resources, and ensure that development projects bring long-term benefits.

The World Intellectual Property Organization (WIPO) has published its ranking of the 100 leading global innovation clusters for 2026. China is represented in 25 such clusters and has become the world leader in this area for the fourth consecutive year. The top 10 include the Shenzhen-Hong Kong-Guangzhou, Beijing, and Shanghai-Suzhou clusters.

This ranking identifies regions with a high concentration of innovative activity, based on indicators such as the number of international patent applications, scientific publications, and venture capital deals. China's consistently high positions across numerous regions demonstrate both the scale and depth of its innovation ecosystem.

This leadership status is the result of years of targeted investments in coordinated regional development. Regional innovation networks have become a crucial pillar of the national innovation structure, providing the foundation for China to become a leading country in science and technology.

Regional Development Coordination

Deeper cooperation has been established in the Beijing-Tianjin-Hebei region: Beijing focuses on research and development, while Tianjin and Hebei concentrate on implementing scientific discoveries into production processes. Concurrently, the integrated development of the Yangtze River Delta has strengthened ties between innovation centers along the G60 Science and Technology Innovation Corridor, creating a cross-regional platform for joint innovation spanning nine cities.

The strengthening of regional interaction has fostered a sustainable model of innovation where multiple centers operate in coordination. Beyond mere quantity, the rankings point to the comprehensive modernization of China's entire innovation system.

Innovation clusters reflect close ties between research institutions, enterprises, talent, and investment. In recent years, China has accelerated the commercialization of scientific and technological achievements while simultaneously developing and expanding new high-productivity forces. Many clusters included in the list are also major industrial hubs.

In Hubei province, central China, Wuhan, ranked 17th, demonstrated an increase in added value of industrial enterprises exceeding the established size in high-tech manufacturing by 65.7 percent compared to the previous year in the first half of the current year, thanks to the revitalization of the optoelectronics and information technology industries. Meanwhile, Nindai city in Fujian province rose 24 places in the ranking, largely due to innovations in the power battery industry.

This positive cycle between development and innovation allows new and future-oriented industries to gain momentum and grow rapidly within these clusters.

China's leadership in the number of global innovation clusters among the top 100 also opens valuable opportunities for international partners. The number of foreign companies choosing China for research and innovation activities is growing, many of which are establishing R&D centers specifically within these clusters. In the first seven months of this year, foreign applicants filed over 42,000 invention applications in China. In 2025, the share of foreign investment actually used in scientific research and technical services accounted for nearly one-fifth of China's total utilized foreign investment.

China is also committed to sharing innovation benefits through openness and cooperation. In the first half of this year, Chinese developers of innovative drugs signed 81 licensing agreements with foreign partners, and Chinese industrial robots were exported to 141 countries and regions.

As noted by WIPO Chief Economist Karsten Fink, Chinese innovations are pushing the boundaries of global science and technology across a wide range of fields, and more and more countries worldwide benefit from this. Today, global innovation resources are increasingly concentrating in China through its innovation clusters.

Automobile manufacturers from China are changing their model, which was previously focused on exports, by moving towards localized production abroad. According to Moody's Ratings, this step will strengthen the long-term competitiveness of the companies, but financial and regulatory risks will increase over the next one to two years.

This analysis was published in a report in Hong Kong on October 15, 2026, according to information from Moody's Ratings. The agency links this transition to increased competition in the domestic Chinese market and rising export tariffs. Production abroad will allow for improved access to international markets and reduce companies' exposure to tariff barriers. Furthermore, expanding production capacity overseas will help localize supply chains and create growth opportunities for Chinese auto parts manufacturers.

Foreign markets are becoming a key growth driver for the industry. In 2025, sales of Chinese cars abroad reached a record seven million units. Moody's expects exports to continue growing steadily over the next one to two years, which will help offset weakening domestic sales amid the phased cessation of government subsidies. Rising tariffs and local content requirements are also accelerating the move toward overseas production.

Manufacturers are applying various localization strategies depending on their scale, available resources, and priorities. BYD is building factories from scratch. This approach requires significant time and financial investment to achieve full production capacity but provides greater control and minimizes integration risks. Meanwhile, Chery and Great Wall Motor are acquiring existing factories. This limits costs and speeds up market entry but creates risks related to modernizing outdated facilities, integrating workforces, and restructuring supply chains.

Geely, which has a Baa3 rating with a Stable Outlook, and Leapmotor are using partnership models with local companies. These agreements reduce capital and operational risks but limit control, technology protection, and profit share. The success of each of these strategies, according to Moody's, will depend on financial stability, brand positioning, and quality of execution.

The agency forecasts increased financial pressure on automakers during the expansion period. Significant initial investments will increase debt burden and weaken free cash flow, especially while new facilities are under construction. Startup costs, low plant utilization, and rising compliance expenses will put pressure on profitability during the first one to two years.

Regulatory compliance presents another major challenge. Chinese automakers will need to adhere to local labor laws, environmental standards, and sustainability requirements. They will also have to comply with data protection rules for intelligent vehicles and undergo foreign investment reviews in advanced technology sectors. To manage these risks, Moody's advises companies to implement robust global compliance systems, adopt locally adapted management practices, and strengthen supply chain oversight.