China's Hu to sign deals in S.Africa on tour
Source: Reuters
By Michael Georgy JOHANNESBURG, Feb 6 (Reuters) - Chinese President Hu Jintao arrives in South Africa on Tuesday to sign more economic deals as part of his African tour, but there are concerns the trade agreements will only hurt the continent's poor countries. He is scheduled to sign energy and agricultural deals in South Africa -- the continent's biggest economy -- after pledging to provide Namibia with funding and expertise for schools and tourism. Although many African governments welcome closer ties with Beijing, analysts say the continent's poor countries must examine deals with the economic powerhouse and protect weak manufacturing sectors from a flood of cheaper Chinese goods. There has been a rise in anti-Chinese sentiment over fears that is exploiting local workers and that its growing economic muscle in Africa could undermine regional industries. Trade links between China and Africa have jumped since 2004, when Hu announced a drive to boost ties with the energy- and mineral-rich continent. At a landmark Sino-African summit in Beijing last year, Hu offered $5 billion in loans and credits to Africa along with a doubling of aid. Over the past year Beijing has seen its oil workers kidnapped in Nigeria, its investment policies attacked in Zambia's elections and its textile exports to South Africa criticised for destroying jobs. The Chinese president's most sensitive stop has been Sudan, where his country's "no strings attached" aid policy has infuriated many in the West who want China to use its economic muscle to persuade Khartoum to end atrocities in its violent Darfur region. Hu is expected to sign several agreements in South Africa that will cover agricultural trade, energy and minerals cooperation and an economic and technical pact. South African Deputy Foreign Minister Aziz Pahad has said Pretoria will push to cut Beijing's $3 billion trade surplus, but still believed China's courtship of Africa was hugely beneficial. Pahad told state radio on Tuesday that it was encouraging that Chinese companies like mining and trading firm Sinosteel Corp. had decided to invest millions of dollars in South Africa. In Zambia, Hu pledged $800 million in investment as part of an eight-nation tour. On Saturday, Zambia President Levy Mwanawasa and Hu declared the little mining town of Chambishi, 420 km (260 miles) north of Lusaka, a special economic zone where Chinese firms will be exempted from paying certain taxes. Zambia has seen unrest over China's growing power in Africa, including a riot at a Chinese-owned mine over pay. The opposition Patriotic Front (PF) has accused the government of selling out to Beijing.
| AlertNet news is provided by |  |
