Moses Kuria, Trade and Industry Cabinet Secretary says Kenya and China must trade within a framework that will ensure both countries win.
In a statement after China Square announced that it had halted operations this Sunday for evaluation of its strategy, the CS welcomed the move.
He said both Kenyan and Chinese business communities must create an environment in which both co-exist and compete favourably.
"We need nothing short of a win-win solution," Kuria tweeted.
Kuria said he will work with the Chinese owner to ensure that they built a manufacturing plant in Kenyan so that they can produce goods that Kenya can trade in rather than competing with local businesspeople in the retail business.
"I will assist China Square Owner Mr Cheng to set up a manufacturing plant in Kenya and work on a distribution partnership with Gikomba, Nyamakima, Eastleigh, Kamukunji, Muthurwa and River Road Traders,"he added in another tweet.
China Square on Saturday announced that they will be halting operations on Sunday to rethink their strategy following an uproar from a section of Nairobi traders.
"We regret to inform you that China Square Limited will be temporarily closed on Sunday, February 26, 2023," the statement reads in part.
"Our commitment to providing you with the highest level of service remains as strong as ever, and we look forward to re-opening on Monday, February 27, with a renewed focus on meeting your expectations," the retailer added,
Nyamakima and Gikomba traders met Deputy President Rigathi Gachagua last week during which they aired their concerns, among the China Square.
The business entity has been the talk of the town after reports went rife that it is selling commodities at a cheaper and affordable rate.
The reports have seen hundreds of Kenyans troop to Unicity mall owned by Kenyatta university to have an experience of China Square, a move that Kenyan traders felt will elbow them out of business.
On Friday, Trade CS Moses Kuria said that as much as Kenya welcomes Chinese investors, they were here as manufacturers and not traders.
He said he had held talks with the Kenyatta University Vice Chancellor Prof Paul Wainaina on the shop's lease.
"I have today given an offer to Prof Wainaina the VC Kenyatta University to buy out the lease for China Square, Unicity Mall and hand it over to the Gikomba, Nyamakima, Muthurwa and Eastleigh Traders Association," he said.
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