This book explores the diverse nature of Chinese manufacturing activity in Ethiopia and highlights how investments can be guided by local political economy conditions. It examines the economic potential of foreign direct investment and its role in facilitating structural change within African economies. The approaches taken by Ethiopia to steer investment towards development objectives are compared with global trends of industrial relocation and corporate adaptation to illustrate how foreign direct investment can benefit both China and African countries. Ethiopia’s proactive industrial policies are highlighted to show that African states can leverage Chinese manufacturing capital to enable industrial development and economic growth. This book provides unique detail into the specific strategies used in Ethiopia to maximise foreign development and drive economic development. It will be relevant to students, researchers and policymakers interested in development economics, industrial policy, and the international political economy.