BEIJING - Chinese
President Hu Jintao on Thursday offered $20 billion in loans to African
countries over the next three years, boosting a relationship that has
been criticised by the West and given Beijing growing access to the
resource-rich continent.
The loans offered were double the amount China pledged for the
previous three-year period in 2009 and is the latest in a string of aid
and credit provided to Africa's many poverty-stricken nations.
The pledge is likely to boost China's good relations with Africa,
a supplier of oil and raw materials like copper and uranium to the
world's most populous country and second-largest economy.
But the loans could add to discomfort in the West, which
criticises China for overlooking human rights abuses in its business
dealings with Africa, especially in Beijing's desire to feed its booming
resource-hungry economy.
Hu brushed off such concerns in his speech at the Great Hall of
the People, attended by leaders including South African President Jacob
Zuma and Equatorial Guinea's Teodoro Obiang Nguema, a man widely
condemned by rights groups as one of the world's most corrupt leaders.
"China wholeheartedly and sincerely supports African countries to
choose their own development path, and will wholeheartedly and
sincerely support them to raise their development ability," Hu said.
China will "continue to steadfastly stand together with the
African people, and will forever be a good friend, a good partner and a
good brother", he added at the summit held every three years since 2000.
Hu also pledged to "continue to expand aid to Africa, so that the
benefits of development can be realised by the African people". He did
not provide an amount.
Hu said the new loans would support infrastructure, agriculture,
manufacturing and development of small and medium-sized businesses in
Africa.
"CHEQUE BOOK" APPROACH
Critics say China supports African governments with dubious human rights records as a means to get access to resources.
The EU has rejected what they call China's "cheque book" approach
to doing business with Africa, saying it would continue to demand good
governance and the transparent use of funds from its trading partners.
Such criticism draws rebukes from China that the West still views
Africa as though it were a colony. Many African countries say they
appreciate China's no-strings approach to aid.
"Africa's past economic experience with Europe dictates a need to
be cautious when entering into partnerships with other countries," Zuma
told the forum.
"We are particularly pleased that in our relationship with China
we are equals and that agreements entered into are for mutual gain,"
Zuma added.
"We certainly are convinced that China's intention is different
to that of Europe, which to date continues to intend to influence
African countries for their sole benefit."
China's friendship with Africa dates back to the 1950s, when
Beijing backed liberation movements in the continent fighting to throw
off Western colonial rule.
GROWING TRADE LINKS
Chinese state-owned firms in Africa also face criticism for using
imported labour to build government-financed projects like roads and
hospitals, while pumping out raw resources and processing them in China,
leaving little for local economies.
"Certainly quite a number of us are thinking we need to move into
more value addition," South African's Trade and Industry Minister Rob
Davies told Reuters.
"We need to export mineral products in a more processed form ... We need to bite this bullet very seriously."
Trade has jumped in the past decade, driven by Chinese hunger for
resources to power its economic boom and African demand for cheap
Chinese products.
China's trade with Africa reached $166.3 billion in 2011,
according to Chinese statistics. In the past decade, African exports to
China rose to $93.2 billion from $5.6 billion.
Industrial and Commercial Bank of China 601398.SS, for example,
the world's most valuable lender, has invested more than $7 billion in
various projects across the continent.
Source: Reuters
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