investment

Chinese ambassador to Ethiopia on Sino-African relations

Posted by Olivia Wainwright at 3:48 pm China vs. the West, In the News, Interviews No Responses »

Jul 292011

Zeray Hailemariam from the Walta Information Centre interviewed the Chinese ambassador to Ethiopia, Gu Xiaojie, this week, about the relationship between the two countries and China’s special relationship which Africa.

China has had a relationship with Ethiopia for over 40 years. Gu Xiaojie said that the countries share mutual trust that there has been an increase in relations between the two countries.

Trade

According to Gu Xiaojie there are “healthy trade ties” between the two countries. China has invested heavily in Ethiopia’s National Network of Telecommunications. Its has also seen a 30% increase in imports from Ethiopia, while China’s exports to Ethiopia have also increased. Gu also said that China provides as much economic assistance to Ethiopia as it can, but that China’s ability to extend aid is limited because it is still a developing country. He emphasised that the relationship between the two countries is more than purely economical, saying there is also a relationship between the peoples of the two countries.

“The people to people relationship is the important one which laid foundation to the over all relations, we see more people coming from China to Ethiopia to do business, studying, working groups and other to get know each other.”

Investment

The Chinese ambassador believes that there are currently over 130 Chinese investors in Ethiopia. While in the past investment was more clear cut, it now appears that investors are diversifying their investments in the country.

“The unique characteristics of the Chinese investment are the ever growing interest of Chinese investors to invest in Ethiopia in diversification. Leather processing and building materials were the first investment sectors by Chinese in Ethiopia. But they are expanding and diversifying to other areas.”

Indirect Colonialism

Zeray Hailemariam asked the Chinese ambassador to Ethiopia about his views on China’s activities in Africa being labelled indirect colonialism. Gu Xiaojie argued that Africa has chosen Chinese involvement.

“From some media, I have read some irresponsible accusations made in this regards. What convincing them to do this unwarranted accusation against China could be the fact that African Governments and the people are in the best position to make a judgement on China’s involvement.”

Gu accused the Western media of portraying the Chinese government as only taking natural resources from Africa. He emphasized that the relationship between Africa and China is not colonial, but brotherly.

“China and Africa know how to treat each other on equal basis and of course the African people have acknowledged and developed sincerity to the Chinese helps.”

Climate Change

Gu Xiaojie also said that China wants to reduce carbon emissions as it recognises that the country has a fifth of the world’s population, but blamed developed nations, which have, he said, been polluting for decades. He said China is working with African countries to reduce emissions. For example, in the Africa China Cooperation Forum, it aims to develop new sources of clean energy with African countries.

China and India: Strategic competition in Africa

Posted by Eric Olander at 11:38 pm China vs. India No Responses »

Aug 262010

Africa is now the latest front in an increasingly global competition between India and China for new markets, arable land and access to natural resources. While Western media and politicians have reacted with varying degrees of alarm to the surge of Chinese trade and investment in Africa, Indian companies have been quietly building their presence on the continent.

As China drives deeper into what many Indians consider their sphere of influence in South Asia, Africa offers an ideal opportunity for Indian firms to challenge China’s growing influence in the region. For many Indians, particularly in certain political circles and in the blogosphere, competition with China is often presented in a classical real politik paradigm. The headlines misleadingly frame the issue in terms of win/lose or even as a “race” between the two countries. Although it may be compelling, even somewhat entertaining, to draw on 19th century colonial clichés (e.g. the Scramble for Africa or the Great Game) it is entirely misleading as both Indian and Chinese strategies are radically different to strategies employed by earlier European powers.

Ironically, the enhanced competition among Chinese and Indian companies will most directly affect European and American firms, which are rapidly being shut out of Africa’s emerging markets. “We just can’t compete when both Chinese and Indian [construction] companies are undercutting us by 50 to 60 percent,” complained a senior executive of General Electric’s infrastructure systems group. He requested anonymity because of ongoing negotiations with North African and Middle Eastern governments, where he is competing directly with Chinese contractors. “Our cost structure and profit requirements are simply too high compared to the Chinese and Indians,” he added. General Electric is not alone. Continue reading »

Zimbabwe Flirts with Yuan

Posted by Iain Manley at 4:03 pm In the News, Translations 4 Responses »

Aug 162010

Robert Mugabe was in China last week. He attended the World Expo’s Zimbabwe Day on Thursday, met Hu Jintao and Xi Jinping in Beijing on Friday and spent the weekend shopping with his wife, Grace, in Hong Kong, where he owns a home and his daughter, Bona, attends university.

The visit coincided with a meeting about economic ties between China and Zimbabwe in Shanghai. The Zimbabwe Commerce Meeting received no attention from Western media, but according to a report in Chinese newspaper First Finance Daily (第一财经日报), Zimbabwe chose the occasion to announce that it is considering using Chinese yuan as legal tender.

The article – translated in full below – highlights just how different Chinese and Western views of events in Africa can be. According to First Finance Daily, Zimbabwe “was once called the breadbasket of Africa and the Zimbabwe dollar had a one-to-one exchange rate with the US dollar. But since 2000, when Zimbabwe implemented its ‘fast lane’ land reform policy, sanctions imposed by Western countries have caused economic collapse.” The contrast between this and an AFP report on Mugabe’s visit, which doesn’t mention the Zimbabwe Commerce Meeting, couldn’t be more stark. As AFP has it, “once a breadbasket of southern Africa, Zimbabwe’s food shortages have been brought on by drought and Mugabe’s crippling land-reform programme.”

Hopes of Yuan becoming Legal Tender in Zimbabwe
12 August

During the Zimbabwe Commerce Meeting held in Shanghai this week, Zimbabwe’s tourist department head Hon. Walter Mzembi said he had recently discussed currency issues with Chinese officials. Mzembi stated that changes to Zimbabwe’s currency system are going to be made, including allowing the yuan to circulate and become one of the country’s official currencies . ”I hope that in the future, people in Zimbabwe will be able to use Chinese bank cards and the yuan to make purchases, even take out RMB loans,” he said. Continue reading »