Based on the cross⁃border supply chain network covering all African countries, Hunan Cross⁃border New Trade Co., Ltd. ( New Trade) aims to build a sound ecological platform for China⁃Africa two⁃way trade that integrates research and consultation, economic and trade promotion, project development, business incubation and talent training. The AEGG Queen Tetu Manor project is a success story against such a context.
Ⅰ. Background
For a long time, fresh flowers cannot be shipped over a long⁃time span and long distances due to their characteristics. There are also high standards in inspection and quarantine, cold chain preservation and other aspects. Therefore, it is very difficult to run trans⁃regional fresh flowers logistics worldwide.
In 2020, as the COVID⁃19 struck the world, the flower turnover of the worlds largest flower distribution center in Amsterdam, Netherlands, dropped, thus making flowers from Ethiopia, the second largest flower exporter in Africa, hard to be exported, which dealt a heavy blow to the flower industry and the entire economy in Ethiopia.
In view of this, New Trade hopes to catch the wind of China⁃Africa friendship and Hunan⁃Africa cooperation to make Hunan the largest flower distribution and processing center outside of Ethiopia and Africa.
Ⅱ. Overview
Launched in the second half of 2020, the project has yielded a number of milestone achievements.
1. A 48⁃hour fresh journey from Ethiopia to Hunan.
On August 22, 2020, a plane fully loaded with fresh roses from Ethiopia's AEGG Queen Tetu Manor took off from Bole International Airport in Addis Ababa and arrived in Hunan in less than 48 hours. This seemingly ordinary journey of flower shipment is in fact extraordinary. As a result of the concerted efforts of various Chinese and African institutions, it is a milestone marking a breakthrough in the speed of logistics be⁃ tween China and Africa.
2. A new cross⁃border direct channel for China⁃Africa economic and trade cooperation.
This logistics project is an outcome of in⁃depth cooperation among New Trade, African Smart Logistics, SF Express ( Africa ) and Ethiopia's Eastern Industry Zone. This not only symbolizes a new development stage of Hunan⁃Africa economic and trade cooperation but also represents the addition of a new China⁃Africa direct channel.
3. Co⁃branding with Xiaomang E⁃commerce.
.In December 2020, Xiaomang E⁃commerce, a video e⁃commerce platform, launched its trial operation. With the advantages of quality and logistics guarantee, AEGG Queen Tetu Manor flowers were selected as one of the first brands to promote. After the launch of the products, they have been received by suppliers, channel partners and customers, representing a successful exploration of cross⁃sectoral cooperation
4. A promising China⁃Africa New Cultural Trade Industrial Park.
Responding to the Belt and Road Initiative ( BRI) and the Eight Major Initiatives, New Trade plans to build the China⁃Africa New Cultural Trade Indus⁃ trial Park to include more projects into the national framework of China⁃Africa cooperation, thus realizing leapfrog development of the new cultural trade between China and Africa and common prosperity.
Ⅲ. Methodology
1. Building the logistics chain for the smooth transport of African products into the Chinese market.
With the expansion of China⁃Africa trade as the core, the project will form a whole industry chain integrating market access, transportation, customs clearance, and delivery to provide high⁃quality and reliable logistics support for the import of Ethiopian flowers and other quality African products into the Chinese market.
2. Tracing the origin of products to ensure the quality of African non⁃ resource products.
Each rose in AEGG Queen Tetu Manor grows on the plateau at altitudes between 1,600 and 2,400 meters, where the average temperature is about 16 degrees Celsius and temperatures vary greatly between day and night. Grown in volcanic soils, the roses boast a longer flowering period, larger heads, and longer stems.
3. Cross⁃sectoral innovation for new China⁃Africa brand cooperation.
The cooperation between the project and Xiaomang E⁃commerce is a successful exploration and has created a new mechanism for China⁃Africa brand cooperation for broader China⁃Africa trade prospects.
Ⅳ. Prospects
The project has successfully opened up a new China⁃Africa logistics channel, expanded international markets for Ethiopia's flower industry during the pandemic, and made a positive contribution to the sales of local products and local employment, presenting good prospects for cooperation and deveopment.
Submitted by Hunan Cross⁃border New Trade Co. Ltd.