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These small business clusters making a single product are typical of Zhejiang and a double-edged sword. Resource and labor intensive manufacturers have lost dominance as capital drains into Southeast Asia where costs are lower. There is also government pressure to "empty the cage for new birds" -- shutting down polluters to make room for environment-friendly, high-value added industries.

The founding of the firm is a strategic move that will help enhance national power as well as the capacity of the armed forces, Xi said in a written instruction.

"We believe that the African people have all the wisdom and capability to solve their issues," he added.

With the economy on fire and a long tradition of entrepreneurship, local magnates are taking the fight around the globe. Automaker Geely became a global name in 2010 when it bought the ailing Swedish brand Volvo from Ford for 1.8 billion dollars. Today China's listed companies are targeting acquisitions in automobiles, electronics, chemicals and bio-medicine in Europe and North America. From 2012 to 2014, Chinese enterprises made 29 such acquisitions, 10 of which originated in Zhejiang.

"China and Cambodia are good neighbors, good friends and good partners," said Li, adding that China backs Cambodia's efforts to preserve sovereignty and independence, maintain domestic stability, and promote economic development.