Chinese leader's almost triumphal trip to Africa

Growing skepticism met President Hu the further south he went as leaders signaled the end of the China-Africa honeymoon.

from the February 9, 2007 edition

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It is this same issue of competition that has begun to irk South African manufacturers and retailers, says Raymond Louw, editor of the Southern African Report, in Johannesburg. But unlike Zambia, the pressure has not built to the point where it spills out into street protests.

China's ability to launch business partnerships, and also to offer massive loans for infrastructure clearly gives it the advantage over multinational corporations, who come just to do business. It also comes without all the colonial baggage that British, French, and even US companies carry.

Avoiding colonialism

"Africa has a long history with colonial powers, and the colonial powers ripped off Africa, period," says a former South African diplomat, speaking on condition of anonymity. "Then along comes China, this emerging giant, and they play a very clever game. They want certain things from certain parts of the world, and they say, 'We will not interfere in local issues.' That is attractive to Africa; when you look at Zimbabwe and at Darfur, those are controversial places to do business, but the Chinese are there, and they don't interfere."

Like other African leaders, Zambian officials maintain that the Chinese government treats them with respect – and understands the social and political environment they deal with, as opposed to many Western donors.

"They know what it means to go to bed without a meal.... There is more understanding between the Chinese and ourselves," says Vernon Mwaanga, Zambia's minister of information and broadcasting.

Yet increased trade is bringing increased public discontent in places, and that's something African and Chinese leaders will have to address. Responding to South African fears about imports undercutting the local market, Hu last year cut textile imports to South Africa by one-third. Trade between the two countries still roared ahead another 36 percent this year.

Hu Jintao's trade safari

China's President Hu Jintao and a 130-strong delegation is concluding an eight-nation tour of the African continent with trips to Mozambique and the Seychelles on Friday and Saturday. As part of China's bid for Africa's mineral resources, Mr. Hu inked trade and economic assistance deals in each nation.

Here's what Hu did during his 12-day swing:

Cameroon: Canceled Cameroon's debt (amount unspecified), pledged $100 million in grants and soft loans, and signed agreements to build two schools and a hospital in the capital of Douala.

Liberia: Signed a memo canceling all of the $15 million of debt Liberia owed to China and announced a tax exemption on all Liberian exports to China.

Sudan: Signed seven documents on economic and technological cooperation and canceled debts amounting to $19 million.

Zambia: Inaugurated the Zambia-China Economic and Trade Cooperation Zone, including a massive mining partnership in the country's copper belt, to spur development in the smelting, construction, home-appliance, and food-processing industries.

Namibia: Signed a $139 million soft loan (of which $59 million was interest free), a grant, and dozens of scholarships. Made a four-point proposal to boost political and cultural ties between the two nations.

South Africa: In his first state visit and his ninth meeting with President Thabo Mbeki, Hu pledged a "new strategic partnership" including opening the Chinese market to local fruit exports and assistance to South African development programs.

Mozambique: Expected to announce the cancellation of $15 million in debt Mozambique owes China.

Seychelles: This 110-island archipelago is of strategic importance to oil routes and military bases in the Indian Ocean – two areas China has a significant interest in developing.

Compiled by Leigh Montgomery from wire reports

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