CHINA: China's Hu pledges loans and aid to Africa

Chinese Premier Wen Jiabao (pron: wehn djee-ah bah-ow) welcomed African leaders in Beijing on Saturday (November 4) to a business forum aimed at tightening trade ties between the continent and the Asian superpower. China's investments and lending in Africa, fuelled by its voracious appetite for oil and commodities, have been criticised for ignoring human rights and governance. But at the summit its self-styled role as a champion and leader of the developing world was on display. Hundreds of African entrepreneurs and delegates crowded into the capital city's Great Hall of the People to hear Premier Wen tout the benefits of doing business with Beijing. Later, Beijing's Great Hall of the People filled with leaders from around Africa attending a banquet and gala on Saturday (November 4) night - closing a day of handshakes and business forums aimed at stepping up trade ties between China and the continent. China is projecting soft power and seeking hard deals with the more than 40 African leaders at the weekend China-Africa Forum. Chinese President Hu Jintao told the roomful of African delegates that the day's events had reminded him of his April 2006 visit to the continent. He said continuing the frienship between China and Africa was in the best interest of all. "To keep on with our traditional friendship, deepen all-around cooperation, and fully develop a new Sino-Africa strategic partnership is in the realistic and long-term interests of both China and Africa," said Hu. Trade between China and Africa has boomed to a projected 50 billion U.S. dollars this year from 11 billion U.S. dollars in 2000 and China's president, premier and foreign minister all toured the continent in the past year, visiting 15 countries between them. And while summits of this scale are about handshakes and photo ops, this one is also likely to spur new deals. Chinese investments include a 3 billion U.S. dollars iron ore mine, rail and port deal in Gabon and an agreement by offshore producer CNOOC to pay 3 billion U.S. dollars for a stake in a Nigerian oil and gas field -- China's largest-ever overseas acquisition. China fought off rival Taiwan to restore diplomatic ties with oil-rich Chad earlier this year. Now it sources more than one-third of its crude from Africa, with Angola its largest supplier on the continent. But with its relationship with Africa criticised by everyone from lenders urging China to consider debt sustainability and social standards, to miners in Zambia who rioted over pay and working conditions at a Chinese-owned copper mine, Beijing is using its position as host to project a kinder, friendlier image. The capital city organised an extravagant gala festival to entertain the African delegates following a day of meetings - the audience was treated to a stellar line-up of traditional Chinese ribbon dancers, fan dancers, and African dance troupes from around the continent. China also offered delegates something more substantive in the form of new aid packages. Earlier in the day President Hu announced China will offer 5 billion U.S. dollars in loans and credits, and double aid to Africa by 2009. And China will also forgive all interest-free loans that matured at the end of 2005 owed by the most heavily indebted and underdeveloped African nations. While the red carpets and performances that characterise the summit may on the surface be only ceremonial, the gathering reinforces a message to Africa's leaders that they are important to China at a time when the continent gets little attention from investors in the West.

ITN Source | November 4, 2006

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