China and India and Ethiopia final report - FES Ethiopia

He also noted that there are some groups that gain from this Ethio-Chinaengagement as there are others that lose from it. The former category includesconsumers, commercial traders who bring manufactured consumer goods fromChina for sale in Ethiopia, entrepreneurs engaged in establishing small scalefactories and service centers by buying machineries from China. The possiblelosers group includes small scale firms engaged in clothing and footwearsectors and their employees; traditional suppliers and contractors in the road,electric power and telecommunication sectors of the economy, which areinvariably firms from industrialized countries.Another key research in this vein is the one conducted by Gedion Gamora(…)titles, “Ethiopia and China Political and Economic Relations:Challenges and prospects after 1991” he analyzes post 1991 Ethio-Chinapolitical and economic relations as well as challenges and prospects.He came up with factoring in a number of variables that contributed for thegrowth of the bilateral relations. One, Ethiopia needs China for economicassistance; as an alternative source to the west and China’s development isgenerally considered as a role model for Ethiopia to follow. Two, China alsosupports Ethiopia on different international issues. On the part of China, thereare also several factors egging China to look towards Ethiopia especially interms of Ethiopia’s strategic importance and market potential. Three, Ethiopiacould be a commercial launch pad for Chinese companies and China is alsogetting diplomatic support from Ethiopia for its policy on Taiwan amongothers. Four, there are also common factors both from Ethiopia and China’sside which have enhanced the bilateral relations.He also noted major challenges including, one the balance of trade is highlyslanted in favor of China. Moreover, China is coming in as a donor and Ethiopia as16