China seeks to establish commercial foothold in Africa

CHINA: A spate of trade and aid deals is part of China's aim of improving relations with the continent, writes Clifford Coonan…

CHINA: A spate of trade and aid deals is part of China's aim of improving relations with the continent, writes Clifford Coonan in Beijing

Africa may not be a priority for leaders in Washington or the capitals of Europe these days, but China is actively wooing African nations to boost its diplomatic muscle on the continent, win contracts for Chinese companies and help meet its ever-growing energy needs.

Foreign minister Li Zhaoxing is on a six-nation tour of Africa, signing co-operation accords, trade deals, aid agreements and debt writeoffs as part of China's stated aim of improving relations with Africa.

President Hu Jintao underlined his country's commitment to strengthening relations with Africa during a visit in 2004.

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Since then China has been busy working on signing investment and energy deals with African nations to secure oil supplies for its expanding economy.

Africa is rich in oil and other natural resources.

As the world's second-biggest consumer of oil and petrol after the US, and a country whose factories need iron ore and copper to keep churning out the industrial goods fuelling the country's economic boom, China is keen to maintain good relations with the world's poorest continent.

Last week China's top offshore oil producer, CNOOC Ltd, agreed to pay €1.9 billion for a stake in a Nigerian oil and gas field, its largest-ever overseas acquisition.

China has steadily built up its influence in Africa since the 1960s and 1970s when it offered its support to newly independent African states, especially communist ones, and was a firm backer of independence movements.

Beijing has a "no strings attached" policy of economic aid, unlike western donors, which demand that African countries pledge to fight corruption and improve human rights.

Mr Li signed an aid deal with Senegal, which resumed diplomatic relations in October after a 10-year break by switching allegiance from Taiwan to the mainland.

Of Africa's 53 countries, 47 have established diplomatic relations with China.

China is a popular ally in Africa these days, and Beijing is keen to convert this good will into trade deals.

Mr Li, whose visit also takes in Mali, Liberia and major oil producers Nigeria and Libya, said he did not plan to sign any fresh energy deals during his trip, but he stressed the sector's importance for China's relations with Africa.

"My main purpose is to enhance understanding and mutual trust and to accelerate mutually beneficial co-operation in all possible fields," said Mr Li.

China has signed a host of major deals in the past two years, including a €660 million crude oil deal between Petrochina International and the Nigerian National Petroleum Corporation to supply 30,000 barrels of crude per day to China.

It has also signed oil deals with Gabon and major raw materials deals including nickel, copper and platinum in southern Africa, as well as a huge telecoms deal for China's biggest telecoms equipment-maker, Huawei Technologies.

Last year China lent Angola €1.6 billion to repair infrastructure wrecked during the civil war there.

The following month, China gave Kenya over €30 million in aid to modernise its state-run utilities.

To underline its intent on Africa, China last week adopted a policy document aimed at strengthening its ties with the continent.

China will promote high-level military exchanges between the two sides and actively carry out military-related technological exchanges and co-operation, the policy document said.