11/6/06

China pledges $5 billion to Africa

China's president pledged to double aid to Africa at a conference with dozens of African leaders on Saturday as Beijing tries to build ties in a search for oil sources and export markets.

China is trying to present itself as Africa's partner in economic development. But it faces complaints it is practicing neo-colonialism and supports regimes with poor human rights records.

"Without combined development between China and Africa, there will be no global peace and development," President Hu Jintao said in a speech to the conference's opening session at Beijing's Great Hall of the People, the seat of China's parliament.

Chinese-African trade grew to nearly US$40 billion last year, ten times the 1995 level, according to the Chinese government. China's state oil companies are expanding in Africa, signing deals in Nigeria, Angola, Sudan and elsewhere. Manufacturers are trying to expand exports to African markets.

Hu said Beijing will double aid to African countries from its 2006 level by 2009.

China will provide US$3 billion in preferential loans and US$2 billion of export credits over the next three years, while creating a US$5 billion fund to encourage Chinese investment in Africa, Hu said.

He said Beijing will forgive the poorest African countries' debts to the Chinese government and increase the number of categories of their exports that receive tariff-free import status.

China will train 15,000 African professionals, build schools, hospitals and anti-malaria clinics and send agriculture experts and youth volunteers to Africa, Hu said. He said China would double the number of scholarships given to African students to 4,000 by 2009.

World Bank President Paul Wolfowitz accused Chinese banks last month of ignoring human rights and environmental standards as they lend more to Africa. He warned that the flood of new credit could fuel corruption and African debt burdens.

[AP]

No comments: