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  China dangles trade, aid before Africa
Last updated: 2006-11-04


China dangles trade, aid before Africa
2006-11-04

Category
Trade
Nations
Sudan
Zimbabwe
China
Burkina Faso
Sao Tome and Principe
Gambia
Swaziland
Malawi
Gabon
Liberia
Ghana
Egypt
People
Paul Wolfowitz
Event
2006 China-Africa Forum
Company
Sinopec
Leaders of more than 40 African nations converged on Beijing on Friday for a summit at which China will seek to bolster its influence on the resource-rich but economically backward continent.

The weekend summit, which follows a dialogue and trade forum, underscores China's deepening links with Africa, whose mineral and oil wealth it covets and whose countries form an important strategic bloc vote in world bodies.

China is expected to announce a package of aid, trade and social development measures for Africa during the meeting, amid concerns from rights groups about links with Sudan and Zimbabwe.

Foreign Ministry spokesman Liu Jianchao declined to put figures on aid and loan concessions to be announced and dismissed accusations that China was practicing a new form of colonialism.

"No African governments or people accuse China of practicing neo-colonialism on the continent," he told a news conference. "The people who once suffered under colonialism in China and Africa know best what is colonialism."

China's trade with Africa is expected to top $50 billion this year, and while the summit is largely about handshakes and banquets, analysts also expect it to be an opportunity to cement trade and investment deals that have been in the pipeline.

China and Liberia have signed a preliminary deal for Chinese state oil and gas firm Sinopec Group to explore for oil and gas in the western African state, Henry Boima Fahnbulleh, Liberian Assistant Minister for African-Asian Affairs, told Reuters.

Ghana's energy minister said on Thursday it was close to typing up a $600 million deal with China's Sino Hydro Corporation to build a 400 megawatt hydroelectric dam in the north of the West African country.

A Chinese consortium also recently signed a $3 billion iron ore deal in Gabon, which includes extending a railway and building a bulk commodities and container port.

"It would be remiss of me if I failed to mention the very commendable step that was taken by China to facilitate greater access for commodities from Africa," Ethiopian Foreign Affairs Minister Seyoum Mesfin told the conference.

NO SHOW FROM TAIWAN ALLIES

The volume of African exports to Asia has risen by 20 percent in the past five years, mainly due to China buying raw materials.

China had also invited the five countries in Africa which have diplomatic ties with ideological rival Taiwan -- Gambia, Malawi, Burkina Faso, Swaziland and Sao Tome and Principe -- but none turned up, Foreign Ministry spokesman Liu said.

Aside from trade deals, analysts say the summit could bring new pledges from China on debt reduction or training and scholarships for students, an effort to build goodwill.

"China has so much experience to communicate, it's such a success story," Aly Houssam el-Hefny, Egypt's assistant foreign minister for Asian affairs, told Reuters. "It is only natural that African countries should turn to China."

But rights groups say China's policy of non-interference in domestic affairs mean its engagement with Africa is bolstering governments in places like Sudan and Zimbabwe, with which Western countries have long since curbed trade ties.

"China's policies have not only propped up some of the continent's worst human rights abusers, but also weakened the leverage of others trying to promote greater respect for human rights," Human Rights Watch said in a statement.

Liu rejected criticism from World Bank President Paul Wolfowitz that China was ignoring human rights and environmental standards when lending to Africa.

"The World Bank is not the only aid provider to Africa," he said. "Nobody, no international organization and no country can monopolize aid to Africa."

(Additional reporting by Lindsay Beck and Chen Aizhu)

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