China plans to strengthen its ties with Africa

By SHAI OSTER

Oct 19, 2006 (BEIJING) — China plans to increase its involvement in peacekeeping missions in Africa while increasing its trade with the region, officials said ahead of the biggest summit of African leaders that China has hosted.

The gathering of 48 heads of state in Beijing in early November highlights China’s growing involvement in a region that provides one-third of its oil imports and other crucial mineral resources. It underscores how China is increasingly willing to wield its diplomatic clout.

Officials declined to state the value of Chinese aid supplied to Africa, including loans and construction. But they did note that China had recently forgiven $10 billion worth of yuan-denominated loans.

One area of cooperation between the two regions is oil. Propelled by robust economic growth and a fast-growing car culture among its emerging middle class, China has become the world’s second-biggest consumer of oil, after the U.S.

To keep up with that demand, Chinese oil companies have begun to invest billions of dollars in oil-rich states such as Nigeria, Chad and Angola. In some cases, like Angola, the government has offered infrastructure loans to be repaid in oil.

While the development of power plants, roads and railroads has been a boon to struggling African nations, some Western critics charge that the money is fostering corruption because China’s lending doesn’t come with any conditions for transparency or human rights.

Particularly contested is China’s involvement in Sudan, where China’s oil interests are blamed for stymieing international efforts to end ethnic clashes.

(Wall Street Journal)