The paper's objective is to examine why and how Chinese investments have developed in Ethiopia and how this impacted on the country. In particular, it seeks to assess whether Ethiopia is a case of a win-win partnership, focusing in particular on the potential contribution of SEZs. The paper starts out by explaining the context of the Sino-Ethiopian economic partnership, then moves on to examine the form of Chinese economic presence in Ethiopia in detail before finally assessing its impact on the local economy.