China and Mozambique part 2 – The proof
… I found it. I went to Inhambane’s Chinese store today. It is really like a supermarket, and it has excellent prices. I had just bought a plug adapter from a street vendor for 100 meticais (about US$ 3.6); in the Chinese market a similar product was four times less (!), 25 meticais (US$ 0.90). Hard to compete with that. Products were not of much quality, but you could find anything. I have just tried to upload a picture, but for some reason the internet connection is not working today… will do so as soon as possible.
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The model sounds like China supplies infrastructure and in return, China can export anything it wants to Mozambique. Tough call on whether Mozambique is benefitting. The infrastructure is nice to have, but cheap Chinese imports will destroy local firms trying to manufacture the same products. What do you see?
[...] As I mentioned, this is the chinese store at Inhambane. It is almost a supermarket. Products are not high [...]
Sounds about right; however, I am not sure if they are producing much manufactured/consumer goods now. All around I see imported products. Perhaps instead of destroying an existing industry, these cheap imports will hinder the development of an industrial sector for that kind of product. From what I’ve been reading, their industry is mostly concentrated in mining outputs and the such….