Africa is seeing a potentially historic transformation in its economic relationship with China. After two decades in which Chinese engagement was primarily associated with infrastructure construction, resource extraction and commodity trade, a new phase is emerging. Chinese companies are increasingly establishing manufacturing operations on the continent, bringing capital, technology, production expertise and employment. East Africa, particularly Kenya and Tanzania, is becoming a principal destination for this industrial expansion. The significance of this development goes well beyond the growing volume of Chinese investment. It denotes a shift in the economic geography of China-Africa relations: from extracting resources and building infrastructure to producing goods, developing supply chains and accessing expanding consumer markets.