China reaches out to Africa with $20B credit

Chinese President Hu Jintao (R) shakes hands with South African President Jacob Zuma before for a group photo session for the 5th Ministerial Conference of the China-Africa Forum co-operation at the Great Hall of the People in Beijing on July 19, 2012. / GettyImages

(AP) BEIJING - Chinese President Hu Jintao on Thursday pledged African governments $20 billion in credit over the next three years and called for more China-Africa coordination in international affairs to defend against the "bullying" of richer powers.

South African President Jacob Zuma also took take a swipe at European trade partners who he said tended to engage Africa for their sole benefit. But Zuma said Africa must be cautious and avoid allowing that sort of pattern to govern its relationship with China.

Hu made the lending pledge during the opening ceremony of the Forum on China-Africa Cooperation in Beijing. The credit line is double the amount offered in 2009 at the last forum held in Egypt.

Hu promised more Chinese help for African countries in building agricultural technology centers, training medical and other personnel, and digging wells to expand access to clean water. China will encourage investment and assistance in infrastructure that facilitates trade within Africa, he said.

China has emerged as Africa's main trading partner and a major source of investment for infrastructure, pouring billions of dollars into roads and developing the energy sector across the continent.

Trade between the two sides hit a record $166 billion last year, a three-fold increase since 2006.

But China's presence in Africa has also sparked concerns about labor abuses and corruption. Some observers see Chinese investment in Africa as an unequal partnership between an emerging economic giant and the world's poorest continent and accuse Beijing of offering no-strings-attached investment for repressive regimes.

Hu, in his remarks, put a positive spin on that hands-off approach saying China would "give genuine support to African countries' independent choice of development path and genuinely help African countries strengthen capacity for self-development."

He pledged China would "forever be a good friend, good partner and good brother of the African people."

Zuma, speaking just after Hu and before dignitaries including U.N. Secretary-General Ban Ki-moon, took a more cautious tone, warning that African nations must avoid repeating the mistakes of their colonial past.

Zuma said China has provided Africa human resource development, debt relief and investment, while Africa in return has given China "a supply of raw materials, other products, and technology transfer." He called this trade pattern "unsustainable in the long term."

"Africa's past economic experience with Europe dictates a need to be cautious when entering into partnerships with other economies," Zuma said.

"We certainly are convinced that China's intention is different to that of Europe, which to date continues to tend to influence African countries for their sole benefit."

China has tried hard to avoid being seen as neocolonial power in Africa, stressing its own status as a still-developing country. In his remarks Thursday, Hu again underscored this point and said China and Africa, as developing powers, should align themselves more closely in global forums such as the United Nations.

"China and Africa should increase coordination and cooperation in international affairs," Hu said. "We should oppose the practices of the big bullying the small, the strong domineering over the weak and the rich oppressing the poor."

[hypnotoad72]

Global loans, YAY!!!!

[Molly-Pchr]

Come into my parlor, said the spider to the fly.

[hypnotoad72]

Agreed

[sjc_1]

Former Treasury Secretary Paul O'Neil went to Africa and found out that if we help them, they help us. Bush accused him of being a "truth teller" and dismissed his recommendations.

Africa has tremendous potential and every investment has a possible payoff in the long run. Africa needs to eliminate corruption then establish rule of law with modern ways, but it can be done.

[hypnotoad72]

Every country on this sad planet needs to eliminate corruption.

[hypnotoad72]

Also, don't forget about the spirit of the law along with the rule of law...

[wardwww]

It is not a loan. The Chinese are buying Africa, one dictator at a time.

[realpatriot1776]

China wants something that Africa has and the only market I can think of is Diamonds, but when you think of China's interest in Oil and Northern Africa having oil than possibly China is thinking of building refineries in Africa, cheap labor, no EPA, and ditto we have the making of a human crisis, that only one country will be called on to assist America,

[MagnaCartaUK]

Mr. Zuma apparently forgets quickly that a good many in Britain and Europe opposed Apartheid and spoke out against it - thanks Mr. Zuma. There was an interesting documentary shown here about China's involvement in Zambia. It featured a journey on their railway system which was promised Chinese 'investment', and it was striking how many Chinese 'technical advisers' were in the country, and how reluctant they were to be interviewed or speak about their work there. The Zambians who were interviewed didn't speak highly of them, had seen next to nothing of any Chinese investment, and were suspicious of their motives. An official mentioned that a lot of natural resources seemed to be leaving the country, but not a great deal was being given in return. Britain and the West should be helping the continent far more, but thanks to greed, exploitation, and the banking-induced financial crisis and its lack of regulation, we've shot ourselves in the foot somewhat, and allowed China to extend its influence. Still, that's the usual short-sighted Western politics at work for you.

[karlejohn]

The rich oppressing to poor and middle class. Where have I heard that before?