China electricity giants urged to cut emissions

Greenpeace has urged China’s top power companies to play a role in cutting emissions and easing the country’s reliance upon coal, by dramatically increasing energy efficiency and the use of renewables.

China’s top ten power companies and their heavy dependence on coal are hindering the country’s efforts to tackle climate change, a new Greenpeace report released on Tuesday said.

The top ten power companies provide almost 60% of China’s total electricity, says the report, entitled “Polluting Power: Ranking China’s Biggest Power Companies.”

By burning 20% of China’s coal in 2008, the companies emitted an equivalent of 1.44 billion tonnes of CO2. And emissions by the largest three, namely Huaneng, Datang and Guodian, surpassed Britain’s total emissions in the same year, according to the report.

"Climate change is humankind’s most urgent environmental problem. China’s power companies are not only the key coal consumer but also the major CO2 emitter. All parts of Chinese society must play a role in moving China away from intensive coal dependence and these major polluters must not be exempt from this responsibility,” said Greenpeace Climate Campaign Manager Yang Ailun,

During the past three and a half years, China has closed down the least efficient coal-fired plants with installed capacity totalling 54.07 gig watts, which is higher than the total capacity of Australia.

Greenpeace urges the Chinese power companies to phase out all inefficient coal-fired plants under 100 megawatt by 2012, saying that by doing so, China could reduce coal consumption by 90 million tonnes and avoid 220 million tonnes of CO2 emissions a year.

According to China’s renewable energy mid-and-long term development plan, by 2010, large power companies, including the top ten listed in this report, are obliged to have at least 3% of their installed capacity from non-hydro renewable sources.

But by the end of 2008, eight out of the ten were not even half way to
meeting this modest target, the report points out. “Yet, China has a huge potential to become the world leader in renewable energy and energy efficiency technologies,” Yang said.

Greenpeace also calls on the Chinese government to introduce a price signal for coal that not only effectively drives power companies to rapidly move to renewable energy, but also ensures that, during the transition, coal is used as efficiently as possible.

However, electricity price in China is regulated and fails to reflect the higher market price of coal. Power companies have expected a small rise of coal price to make a profit.

China must also double its national renewable energy target to 30% by 2020.

“In order to achieve these targets, the electricity sector, especially the large power companies, must play their crucial role. The challenges China is facing in the lead up to the UN Climate Meeting in Copenhagen this December will be even larger without serious actions to cut emissions by these companies,” Yang concluded.

Turbulent 2008 sees failing confidence

Christmas lights on London's Regent Street

The number “eight” usually means good fortune and luck in Chinese culture. But reflecting on the events of 2008, many people are doubting the good omen the number brings.

China has experienced a turbulent year, from snow storms, floods, earthquakes, milk powder contamination to recent business collapses due to global economic downturn.

The success of the 2008 Olympics and the election of Barack Obama have stood out to be the few inspiring and encouraging events of the year.

Globally speaking, 2008 has turned out to be a year of gloom and doom. It was exemplified by the global impact brought around by the Wall Street financial crisis, and the latest Middle East bloodshed which has left nearly 400 Palestinians dead.

Failing businesses and confidence have spoiled the year-end festival mood in the West, especially in the UK.

Economic recession in Britain is biting its retailers so hard that they are collapsing at a speed nearly as fast as the falling of a decommissioned building after the explosive is detonated.

Latest big British retail brands which have been affected by the downturn include children’s wear retailer Adams and music, DVD and games seller Zavvi.

Zavvi became the 3rd victim within 48 hours following the fall of menswear retailer The Officers Club and tea and coffee specialist Whittard last week.

Some 350 British retail companies have reportedly folded during the 3rd quarter of 2008, according to a UK insolvency service. The figure is 39% higher than a year ago. And 15 more big British relaters are predicted to meet the same fate by mid January.

Zavvi's demise is a domino effect of the closedown of the general store Woolworths, a subsidiary of which was supplying Zavvi.

Woolworths was due to celebrate its 100th birthday next year, but the ill-fated company has failed to survive the downturn and will be consigned to history by January 5.

Woolworths is clearing out all its high street stores across the UK. Its store window notice announcing "last five days" reflects well the declining British economy and creates a psychological blow to anyone passing by.

Losing in competition to online retailers and supermarkets is one reason why many high street sales are plunging. The loss of sales is why some of them have been forced into administration.

Offering Christmas sales had become the only option left for UK high street retailers to make the last-ditch profits of the year. If retailers fail to make money during the Christmas, there is a slim chance they will make it through the upcoming year.

For those who are in secure employment such as teachers and doctors, this Christmas offers a unique chance for them to enjoy a shopping spree. However, it has turned out to be the most depressing Christmas for those who have lost their jobs or are feeling uncertain about their future.

This misery was touched upon by Queen Elizabeth II as she started her annual Christmas speech. "Christmas is a time for celebration, but this year it is a more sombre occasion for many," she said.

Many people are enjoying shopping in the West End of London. For some, it is also a nice day out to feel the festival atmosphere. "I made a trip a few days ago to London, I have to say the Christmas lights on Regent Street this year are not as good as before, also only high-end stores were well decorated," said a resident from the outskirts of London.

The media in the UK does not help the gloomy situation at all. Job cuts and failing businesses are breaking the news and making the headlines nearly every day, painting a bleaker picture and sinking consumer's confidence to an all-time low.

British people have been warned of an economic slump deeper than expected. As a result, thousands of people have lost their jobs; an average 1,600 people will become jobless every day in 2009; house prices are predicted to fall 10 percent in 2009; more people are expected to claim social benefits. Even animal sanctuaries in the country have been inundated with dogs and cats as their owners discard them due to financial difficulties.

Church leaders in the UK have attempted to lift people's spirit during these dark times. Some have urged people not to base their happiness upon materialistic gains and try to see the light of hope at the end of the tunnel.

But their religious epithets will do little to comfort those with bills to pay.


Copyright Dongying Wang,

Low-carbon economy calls for greater scientific input

Facing global economic downturn and the urgency to deal with the climate crisis, many countries have realised that to become stronger in science and technology remains of key importance.

The UK took a remarkable step recently to earmark £250 million ($US367 million) for training more scientists and engineers.

The country's funding body for science and engineering, the Engineering and Physical Sciences Research Council (EPSRC), announced that the huge spending will be used to set up 44 new training centres across the country to train over 2,000 PhD students over the next five years.

The efforts are sought to find solutions to public concerns such as climate change and energy issues. Each research centre will concentrate on a specific area, such as security, biomedical engineering and sustainable environment, and 17 of the centres will be working closely with businesses to train industrial doctorates.

British Minister of State for Science and Innovation Paul Drayson said that Britain “needs scientists and engineers with the right skills to find answers to challenges of an ageing population, economic recession and the effects of global warming, build a strong economy and keep us globally competitive.”

China is another country which has also embarked on recently new initiatives to promote sustainable development.

Based on its 22-year-old experiment with sustainability practices, the country designated last week 13 areas in 10 municipalities and provinces to pioneer and trial innovative notions and mechanisms leading to a low-carbon economy.

Chinese Science and Technology Minister Wan Gang said these demonstration zones will explore how to integrate efforts to cut emissions and increase energy efficiency into the strategies outlined for local development. Doing so, the National Climate Change Programme could be put into practice locally, he said.

By 2006, there were more than 21.7 million Chinese scientists and technical professionals, the largest number for any individual country.

Read the Chinese version of this article on Global News Watch

Copyright Dongying Wang

China counts on rural markets to boost economy

China kicked off Monday a four-year scheme to subsidize the selling of household appliances to its massive rural market, as part of its effort to shore up domestic demand and ease the impact of global economic depression.

The stimulus plan, called "electronic products go down to villagers", is targeting more than 200 million rural households, and expected to generate 920 billion yuan in sales (US$131 billion) over four years.

This initiative has been on trial since late 2007 in the populous Shandong, Henan and Sichuan Provinces as well as Qingdao city. The 20% subsidies offered by the government have prompted a rise of 40% in sales in these areas. China plans to roll out the successful scheme in every rural area by February 2009, bringing with it a lower subsidised rate of 13%.

China's three decades of reform and opening-up has dramatically improved the lives of villagers. As a result, an average of 8 million impoverished people in China shook off the poverty annually from 1978 to 2007.

Purchasing power in rural China has gradually risen. Nowadays it is commonplace to see villagers using mobile phones and computers, and even driving cars. These luxurious goods were not at the top of their priority during the 1990s. What available cash they had was used to purchase color TVs, fridges and washing machines. The symbols of wealth among rural families in the 1980s were bicycles, sewing machine and watches.

Televisions have played a far more important role than other consumer white goods as it helps rural China get to know the outside world. When the first televisions arrived in rural parts of China in the mid 1970s, they created great excitement. Often, they were communal television sets, bringing audiences of excited villagers together to share a completely new experience. At that time, there was only one television set available for every 1,600 people in rural China.

Today, 95% of rural families possess a television. This contrasts with urban families, a third of which own more than one television; Urban ownership of fridges is three times that of rural communities; and the proportion of washing machine users is double.

The four-year national plan aims to increase the use of household appliances in rural China to the 2000 level in urban areas.

China-brand manufacturers have actively engaged in the plan. Foreign brands like Siemens, Panasonic, Nokia and LG also set to join their Chinese counterparts and explore the vast business opportunities in China's rural areas.

The knock-down effect of the financial crisis has taken a toll on China's economy, which relies heavily on exports of a large amount of household appliances. In one example, growth of its colour TV exports alone during the 3rd quarter of this year were pulled back by 11% from a year earlier.

The national export prospects for the last quarter of 2008 are looking bleak, as demands in the West are not thought to be as strong this Christmas.

Some 60% China’s exports are destined for the United States, the EU and Japan, all of which are suffering from serious economic recession.

China forecasts that its 2008 foreign trade will rise by 20% from the 2007 level, reaching US$2.6 trillion. However, the country lowers down its foreign trade growth expectation for 2009 to 8.5%.

The UN World Economic Situation and Prospects 2009 report has warned of the biggest contraction of global economy in 2009 ever since the 1930s.

It also highlights that the globalization has left developing countries to face higher borrowing costs and lower export growth from a crisis started in the developed world.


The photo is from A partial history of television in China

Copyright Dongying Wang

For reproduction of this article, please email: wdy21century@gmail.com

Media to help China NGOs aim higher

China issued on Tuesday its first ever handbook to guide its NGOs on how to ally with the media in achieving their objectives.

The 200-page guide, entitled "Media Handbook for Grassroots NGOs" is expected to give an impetus to the country's NGOs, and even its fledgling civil society.

It is also a significant step indicating that media could play an increasing surveillance role in China's national development.

The guidance was jointly developed by the China Association for NGO Cooperation (CANGO ) and Germany's Heinrich Böll Foundation, which is affiliated with the German Green Party and works for similar goals as CANGO to promote international understanding, civil society and sustainable development.

The book uses 20 cases to demonstrate the failures and successes in NGOs' media work; lists nearly 80 media which have been actively reporting social welfare issues in China, and highlights nearly 500 NGO websites and blogs.

NGO staff across the country will get free copies of the handbook, whose online version is also free for Internet users to download.

CANGO Secretary General Haoming Huang said: "It is an important approach to enhance NGOs' capacity by building an interactive partnership with the media. The media could also act as a supervisor for NGOs' growth."

International NGOs hold media communications as a core component of their activities and have already developed mature systems to cooperate with the media, the Heinrich Böll Foundation says on its site.

"However, in China, both NGOs and the media are undergoing a process of maturing. Especially for local grassroots NGOs, there is a lack of knowhow and facilities for how to work together with the media," it adds.

A paper carried by China's official Xinhua News Agency points out that the Internet, as a communication platform, has helped China's civil society identify the issues of general concern, though at the same time it does not help build a strong civil society due to its users' anonymity and exchange of irrational content.

NGOs are mushrooming in China and engage in a wide range of areas. There are at least 3 million NGOs across China, and they are playing an increasingly important role between the government and markets, says CANGO.

However, NGOs in China still have a long way to go, to build themselves to be pressure groups and become more involved in national development. Inexperience in planning and management, and shortage of financial and expertise support are the key factors impeding their expansion.

Copyright Dongying Wang

Africa pivoted to setting its own agenda

Edward Bickham of Anglo American attributes China’s success to infrastructure and economic zones.

China's growing engagement in Africa has intensified the global rivalry for the continent's markets and resources. Investors from the West have perceived increased competition, and have been forced to adjust their African strategies, which in turn has increased tension between China and the West.

Following the EU and the US, China has become the 3rd largest trade partner with Africa. The China-Africa trade rose by 62% on a yearly basis to US$73.9 billion from January to August this year, according to China’s Ministry of Commerce.

It is often said that "when two sides contend, it's always the third party that benefits." Has Africa been aware of these possibilities and taken advantage of them to develop the continent further？

This issue was highlighted last Friday [21/11/2008] during a London conference entitled "Going for growth: can commodities transform development in Africa and China?"

The China phenomenon in Africa has continued to draw attention, especially as the globe experiences economic uncertainty; and China is foreseen to become the world's second-largest economy within two decades.

China can help increase Africa's leverage to get a better deal offered by different investors, said William M. Gumede, who authored the bestselling Thabo Mbeki and the battle for the Soul of the ANC. and was a deputy editor of The Sowetan in Johannesburg.

Gumede also saw China as a business partner for Africa, and help them negotiate for fairer global trade and financial systems. However, he pointed out that China should open wider its markets for the continent.

Africa should look at China's anti-poverty model instead of its political model, and give top priority to infrastructure construction and education to enable the continent to grow, especially in terms of jobs, he said.

China is celebrating its breathtaking achievements through three-decades reform and opening-up drive. As a result, China now shares 5% of the global GDP, up from 1% in 1978; and its destitute population has plummeted from 250 million to 15 million.

While China has alleviated poverty dramatically, the global trend has continued with the impoverished population rising by around 10 million per year since the turn of the century, according to the State Council Leading Group Office of Poverty Alleviation and Development.

The London meeting reached a consensus that foreign investors should not be expected to act as the agency for Africa's development and the continent needs to develop its own agenda.

“Africa does not need necessarily to follow the western development models,” said Graham Zebedee, Deputy Head of the African Department of the UK Foreign and Commonwealth Office. Meanwhile, he urged Chinese businesses in Africa to create a win-win rather than win-lose approach.

Edward Bickham, Group Head of Anglo American in External Relations, attributed China’s success in Africa to its model of opening up areas through infrastructure and building special economic zones. Anglo American is one of the world’s largest mining groups with a large foothold in countries such as South Africa, Zimbabwe, Botswana, Namibia and Tanzania.

By the end of 2007, China had directly invested US$4.46 billion in 48 nations across Africa. Over the next 10 years, Africa is estimated to need US$250 billion in investment for its infrastructure construction. This creates massive opportunities for overseas investors, especially Chinese companies.

However, Bickham underlined the downside of China’s involvement in Africa. He said that Western “conditionality” and leverage was much reduced, affecting the handling social and environmental challenges, in which China has less experience. In addition, Chinese companies are tied to the use of their own labour and facilities rather than local sources.

Bickham gave a detailed presentation on how China is leading to a growing demand in metal consumption, and the country’s expanded activities in seeking out natural resources in Africa. His speech painted China as a consumer devouring African resources and a powerful competitor for Western investors there.

However, Rouben Indjikian, Deputy Head of the Special Unit on Commodities with the United Nations Conference on Trade and Development (UNCTAD ), predicted that China’s efforts in improving energy and commodity efficiency will help slow down the global growth of consumption.

He also pointed out that the huge economic stimulus package China launched recently to speed up its infrastructure construction means increased business opportunities for Africa.

UNCTAD is working on an energy paper to help meet global energy needs, Indjikian said, adding that energy tapping and use, especially renewable sources, within Africa is of great significance for the continent to shake off its poverty. And China is expected to play a role in this regard.

The African continent makes up 13% of the world population but only 35% of the people have access to commercial energy produced from coal, gas, uranium and petroleum. Less than 10% have access to electricity, according to UNCTAD.

Tapping African resources exponentially to fuel its economic growth, China also foresees business difficulties, as the US and EU are adjusting their African policies to secure sufficient energy supply from the continent, according to a recent report by the China Customs.

The China-Africa trade is expected to top US$100 billion this year. The figure comes three years ahead of China’s own projection. However, its sustained growth is uncertain, due to Africa’s limited capacity to cope with regional and international crises, said the report.

The report also suggested that China learn from Germany and Japan to target individual African nations with different business focuses, meanwhile further promote its favourable policies across the continent.

This opinion was shared by James Keeley, senior researcher with the UK International Institute for Environment and Development (IIED ), when he spoke of China’s involvement in African agriculture. “China needs to understand users’ needs, and to link its African operations to other initiatives, such as the Comprehensive Africa Agriculture Development Programme and the Alliance for a Green Revolution in Africa.

Days are gone when Africa had to accept whatever deals were on the table. Today, the changing economic reality has offered the continent the golden chance to make its own choice among offers from different countries.

It is time for Africans to formulate their own economic policies and set up their own development agenda; to make a sustainable choice and enable the continent to prosper.

Read other China-Africa articles:

China in Zambia: from comrades to capitalists?

China in Africa: a catalyst for change

Copyright Dongying Wang

For reproduction of the articles, please email: wdy21century@gmail.com

China seesaws between economy & environment

The highly globalized world is witnessing a spillover of the US financial crisis into Europe, Asia and elsewhere. The UK has been warned against a more severe and deeper economic downturn than expected; and Japan has also entered its first depression since 2001.

Job-cutting news is making headlines across the media, and a rising number of businesses are at the risk of collapse, painting a bleak picture.

China fails to escape the donimo effect. Its year-on-year GDP growth for the first three quarters of 2008 displays a falling tendency from 10.7% through 10.1% to 9%. With an 11.9% GDP rise in 2007, China needs its economy to grow by 8%, in order to guarantee jobs and avoid sliding into the depths of a recession, said economy expert Ye Hang.

Official figures show that south China's Guangdong Province saw more than 7,100 enterprises shut down between January and September this year. The majority of them operated in the Pearl River Delta, a key manufacturing base in China's export market. Price rises in raw materials, appreciation in the Chinese currency (RMB) and fund-raising difficulties are the top reasons behind the closure of many companies, local authorities have said.

It is forecast that 1/3 of export-oriented factories in Guangdong will meet the same fate in the next three years. This will result in restructuring the industrial mix locally, and even reshaping the global supply chain.

In response, adoption of economic stimulus measures becomes unavoidably the only remedy, though it is not a panacea for all problems.

Following US' $700 billion banking bailout in October, China recently launched its own economic stimulus package, in which it intends to spend 4 trillion yuan (US$586 billion dollars) over the next two years. Rural infrastructure, water and rubbish treatment are among the 10 major industries which China will invest in heavily. Concerns are growing over whether sustainable conceptions and practices will be incorporated in this large-scale industrial expansion.

The environmental consideration is often the first to be given up when an economy faces difficulties, said Wang Jinnan, Vice President of the Chinese Academy for Environmental Planning of the Ministry of Environmental Protection (MEP).

His concerns are also expressed by environmental groups. Hannah Griffiths, corporates campaigner at Friends of the Earth, said that her organisation had always argued that regulation was needed because when the crunch came, profits would come first. "We always felt that companies do not take CSR as seriously as they claim to and voluntary action does not work."

Wang added that the closure of businesses in Guangdong is helpful, in short term, for regional pollution control. However, he strongly suggested the government implement green practices in the vast national investment, to make the country achieve green GDP growth.

Shen Xiaoyue, Director of the Regulation Office of the Policy Research Centre for Environment and Economy of the MEP, said that there will be an urgent and heavy workload in the assessment of the environmental impact of new projects which are to be launched under the incentive plan.

Opinions are also split when it comes to the impact of the economic crisis upon China's companies involved in green industries.

The global crisis will present more opportunities than challenges for China's green industries, said Shen, which she believes will become a key strength for economic growth in China. She also highlighted that the middle and small-sized green companies should learn from overseas counterparts, and the government should grant them more favourable policies, especially in fund raising, to enable them to fly higher.

Companies, such as those involved in clean energy, wind power and solar photovoltaic industries will slow down as a result of the economic crisis, said Wen Yibo , Chairman of the Board of Beijing-based Sound Group, one of China's largest private green companies specialising in water and waste treatment.

Economic stimulus can only serve as a supplementary solution under such special circumstances, and it won't solve the fundamental problems. On top of funding, support of policies and the public is critical for green industries' development, Wen pointed out.

Over the five years up to 2011, China's investment in environmental protection is expect to reach 1.53 trillion yuan (US$225 billion), accounting for 1.36% of its GDP, a proportion believed to be amongst the highest in the developing world.

Copyright Dongying Wang

China in Zambia: from comrades to capitalists?

Zambians seek work at the NFC African Mining PLC

It was a scorching day in March 2008. Job seeker Glorence Kandeke, 24, waited anxiously outside a Chinese copper mining company in Chambishi, northern Zambia, in a slim hope of obtaining employment at the NFC African Mining PLC (NFCA).

“I have been travelling about 45km everyday over the past three months for a possible job with the NFCA,” said Kandeke. He said his parents had funded his $5 daily fare to come here. The cost amounts to 15% of the minimum monthly wage for Zambians which stands at 268,800 Kwacha, or $77.

“I don’t know when I will get a job from the NFCA, nor how long my family can support me by paying my fare everyday,” sighed Kandeke.

Kandeke is joined by nearly 75 others everyday who vie for a position in the Chinese company.

“The Chinese said they offer 5 new jobs every day, but nothing lucky has happened to me in the past few months,” Kandeke said.

There are thousands of workers like Kandeke who seek employment in the special economic zone in the Copperbelt. But for those who obtain jobs within Chinese companies, there is an increasing concern that their safety is being compromised and they are being financially exploited.

Chinese investment in Zambia is dwarfed by those of US and European countries, and even some Asian countries. However, China is hailed as an increasingly important investor in this southern African country; a nation which has an unemployment rate as high as 70%.

“Chinese investment in the Zambian mining sector is showing very positive trends,” said Mr. Lennard Nkhata, permanent secretary of the Ministry of Mines and Minerals Development.

Instead of responding directly to criticism by the West over China’s negligence of labor laws, poor environmental record and lack of contribution to the communities of Africa, Mr. Nkhata spoke more positively of China’s role in his country.

“Chinese compliance to health and safety regulations has improved tremendously over the years and the environmental performance of the companies is acceptable so far,” he said. However, he mentioned no specific figures.

The Chambishi NFCA mine, which is running on Chinese technology, is the only large-scale underground mine which has not recorded a fatal accident since October 2006. Mr. Nkahat cited this as an example to show the safety record in Chinese facilities.

Zambia has placed the battle against poverty at the top of its agenda and expects to achieve an economic boom through the mining industry. A new tax regime, it believes, will help achieve this. This measure is due to take effect from April 1, with the Loyalty Tax rising to 3% and the company tax up to 30%.

“Thanks to the huge demand for copper in both China and India, Zambia is enjoying a booming mineral industry,” Mr. Nkahat said.

In 2007, Sino-Zambian bilateral trade stood at $595 million, up nearly 60% from 2006. The figure included $397 million of exports to China from Zambia, most of which were copper.

The permanent secretary said that the increased output resulting from Chinese investment had the potential to bring about an economic boom in Zambia.

It has been widely acknowledged that Chinese investment in Zambia is highly protected by the government.

Zambia’s Environmental Council Senior Communication officer Justin Mukosa said: “We do not want to separate Chinese investment from other investment, and we judge overseas investors by performance.”

And he criticized those who talked down China, saying: “singling out Chinese companies is a political issue more than an environmental one. ”

The Citizens for a Better Environment (CBE), Zambia’s largest environmental NGO based in Kitwe, confirmed that there are no more citizen complaints about Chinese mining companies than other investors.

In fact, there have been serious environmental incidents caused by other countries’ mining firms. Earlier this year, the Mopani Copper Mine, partly owned by a Swiss company, was blamed for polluting water supplies in Mufulira town.

The Zambian Development Agency will soon issue a list of industries into which overseas investment is sought, in a bid to boost national development, the agency’s Investment Promotion Manager Jessica Mwiinga Chombo said. Mining and hydro-electric industries are included on the list, but Ms Chombo failed to elaborate further.

“No discrimination exists between local and foreign investors,” she said, but added that “Zambia expects investors to create jobs and transfer technology and skills for the locals.”

The $220 million Chambishi Copper Smelter （CCS）Ltd, which is under construction in Kitwe, stands as a good example to show how China is fulfilling its commitment in assisting local development.

The smelter is scheduled to go into operation by the end of this year, with an output of 150,000 tonnes of crude copper per year.

Copper ore, as it is extracted from the ground, has a very small copper content. After the first industrial processes, concentration copper is produced with a copper content of around 40%. Smelters turn this into crude copper which is 99% pure.

Building smelters not only reduces outsourcing but also helps increase Zambia’s exports of added-value products, so says Deng Yun, vice director of the smelter’s Administration Department. New smelters will also help create new job opportunities.

“All the crude copper from the new Chambishi smelter will be shipped to China,” Deng Yun said. The smelter is expected to boost Zambia’s exports by $450 million.

“The company will also provide over 1,500 jobs for local people,” said Yun, “There are now about 400 working Chinese and 600 Zambians to build the smelter, and after it goes operational, the number of Chinese workers will decrease to 100,” he explained.

However, Chinese investors are expected to contribute more to Zambia’s society and meet ever higher expectations of Zambians.

John Lungu, economics professor at the Copperbelt University in Kitwe, has called for increased local partnership of Chinese businesses in Zambia to ensure a fairer deal. He also argued that the Sino-Zambian Economic Zone, where both the NFCA and CCS are located, should create not only jobs, but also well-paid jobs.

Professor Lungu’s view is echoed by that of union leaders and miners who often complain about unethical treatment and low wages in Chinese mining companies.

Chilufya Mukuka, head of the Safety Department of the India-funded Chambishi Metals Plc, said that miners working for Chinese companies receive about $70 per month. This is much less than an average of $400 paid by companies from other countries, said Mr Mukuka, who also represents a mine community in Chambishi.

However, Jingtao Liang, an engineer with the NFCA, dismissed the allegation, saying that pay for Zambians averages at $400, with the highest exceeding $3,000.

Though miners’ union leaders fail to give satisfactory explanation of this conflicting information, it is generally agreed that pay varies amongst different categories of jobs.

Standing outside the NFCA, job seeker Kandeke said: “Though the Chinese company pays less, it is better than nothing.”

Kandeke and his countrymen prefer to be employed by the NFCA rather than other foreign companies. They say they would rather work the 8 hours demanded of them by the NFCA than the 12 hours which is commonplace in other foreign companies.

Commenting on the low wages paid out by Chinese companies, Professor Lunga concludes that Chinese investors have transformed from “comrades” to “capitalists” in less than half a century.

His opinion forms a striking contrast to the position of his government which calls China a “genuine and all-weather friend” who is ready to help without preconditions.

Zambia established a diplomatic relationship with China within a week after its independence in 1964, becoming the first country in southern Africa to do so.

The Sino-Zambian friendship culminated in the building of the Tazara Railway which links landlocked Zambia with neighboring Tanzania in the 1970s. It had been the largest foreign-aid project ever undertaken by China. Since then, China has gradually increased its investment within the country. By 2007, China’s direct investment in Zambia had reached nearly $290 million.

However, China represents only a small portion of overseas investment, which Zambia relies on to transform its economy.

Zambia faces the challenge of balancing the interests of foreign investors with the welfare of its people. And solving the problems relating to Chinese companies are only the beginning, as Zambia tests its ability to achieve a balance.

Whilst trying to build up its economy, Zambia needs to introduce effective measures to help protect the well-being of its people and the environment.

Read other China-Africa articles:

Africa pivoted to setting its own agenda

China in Africa: a catalyst for change

Copyright World News Review 2008

For reproduction of the articles, please email: wdy21century@gmail.com

The Global impact on China’s environment

Is China being buried under the weight of environment concerns?


1. From economic threat to environmental threat

Today, when people talk about China, they often say, “this country will overtake the world” due to its fast economic growth. In fact, China has been described by much of the western media as an economic threat. Moreover, over the last few years, China has also been regarded as a threat to the global environment due to its swift industrial development.

China’s official figures indicate that the country is likely to overtake the United States by 2008 as the world's largest emitter of greenhouse gases.

In 2001, China's total greenhouse gas emissions were less than half (42 percent) of the U.S. level. But by 2006 the figure had risen to 97 percent.

It is clear that China faces a serious problem with pollution.

Here are just some statistics:

Of the 10 most polluted cities in the world, half are in China.

Seventy percent of rivers in China have been polluted at various levels.

At least 25% of the Chinese population have no access to clean drinking water.

One-third of the land in China is threatened by soil erosion

Less than 20% of rubbish in China is being treated with any consideration to the environment.

Every two days, a pollution accident happens in China.

China is perceived as ignoring environmental concerns in its effort to build its economy. Natural resources such as coal, oil, water and timber are being utilized at an alarmingly high rate to fuel China’s rapid development.

These raw materials are not only produced domestically. China also imports from many other countries.

Africa provides 30% of China’s oil imports and the continent as a whole accounted for more than $55 billion in bilateral trade last year. This has brought criticism and a sense of unease amongst many western nations. China is seen as over exploiting the natural resources of the African continent, while overlooking the environmental impact.

China is now under international and domestic pressure to transform its development model, to keep growing economically while reducing the impact on the environment.

Meanwhile, the country has started to recognize that continuing this unsustainable model of development is simply not viable.

2. China’s long march to go green.

So, what is the best solution to help China develop in the right direction? We first need to understand the country’s mindset, its history and culture. China has only recently entered the world stage, and so, for most westerners there is a lack of knowledge of both the country and its people.

It’s not all chopsticks, chow mein and Peking duck. The Chinese people are vastly different from province to province.

And there is not a common set of ideas that link them all. Ideas that the West takes for granted are as bizarre to the Chinese people as fish and chips.

Since 1978, China has been pursuing a policy with the focus set on economic growth. Similar to the Industrial Revolution 200 years ago in the West, China’s development gives priority to GDP growth rather than pollution control. The west took nearly 200 years to bring in laws to cut the pollution resulting from the Industrial Revolution.

In the UK, for example, the Clean Air Act was only introduced in 1956. In contrast, China has been quick to realize the need to tackle environmental issues.

Within thirty years of economic development China has implemented initiatives to protect the environment. One specific policy is the current Five Year Plan which aims to cut pollution by 10% by 2010.

It’s not so long ago that ‘pea-soupers’ covered London. Captured in films like Oliver Twist and A Tale of Two Cities, these images of dense fog are how Chinese people see London. But China is now beginning to suffer from the same problems faced by Britain less than half a century ago.

The West appears to have a short memory when it comes to criticizing others. There is also an element of hypocrisy when it comes to blaming China for polluting the world. Developed countries should also take responsibility for reducing their own emissions.

China must find solutions to the environmental problems it faces. But it cannot achieve this alone. Criticism of China’s environmental destruction MUST be countered by support and viable options to help China through this difficult period of development.

3. China faces many challenges as it makes its way along the green road.

a. Poor understanding of nature

In China there is a low public awareness with regards to environmental protection. For example, there is little concept of recycling within the minds of many Chinese. In China, when people dispose of their rubbish, few think about where it goes or about its environmental impact.

However, this is beginning to change, with cities like Shanghai rolling out massive recycling schemes. Segregated litterbins have been used increasingly in China to separate recyclable and non-recyclable rubbish.

There are differences in culture, education, and even the understanding of nature. Like all of us, people in China like to live in a clean environment, with clean air and water. But it will take time to motivate the people to become more green.

Poor environmental laws and inefficient administrative mechanisms fail to protect the environment and do not do enough to discourage polluters in the face of increases in GDP.

b. Restraints by limited resources

China accounts for more than one-fifth of the world’s population, but its GDP is 13% of the world total. The country’s further economic development is inevitable. But China’s shortage of resources is restraining its growth.

Here I’d like to focus on water and energy supply in China.

There is a shortage of both. But water supply and water pollution are of greatest concern.

a) Half of the water in China’s seven largest rivers is completely useless. About 400 out of 600 cities in China are short of water.

China is cooperating with bordering countries in developing joint hydro-electric projects. However disagreements persist between China and countries such as India and Kazakhstan over the exploitation of shared water resources.

b) Poor energy structure / Three Gorges Dam.

In 2006 China’s GDP rose by 10.7 percent, with energy consumption rising 9.3%.

China is the world’s largest coal producer and consumer. And coal accounts for 70% of the country’s energy consumption. The country is in dire need of improving its energy structure, but it may take a long time to achieve.

China has been encouraged to seek alternative energy sources to replace coal and to reduce coal’s share in the energy mix to 40% by 2030.

The country has set a target of increasing the use of renewable energy to 10% of energy consumption by 2010, and up to 15% by 2020, from 3 percent in 2003.

It is estimated that by 2050, solar energy will account for 10% of electricity generated in China.

Hydro-electricity will be a priority for a green China. So far, China has only developed one-third of its water resources for generating electricity, less than half the proportion of developed countries.

But these developments also draw strong criticism from the West. The Three Gorges Project, the world’s largest hydro-electric installation, has been heavily criticized by the western media for its ecological impact. Only recently, the Chinese press highlighted government concerns with the ecological impact the dam poses..

So the country is at the crossroads between balancing the demand for development and ecological protection.

4. Negative impacts of globalization.

Globalization is part of the reason for China’s worsening environment.

“Made-in-China” is now a commonplace. My British family members are always very excited whenever they come across an old product with the tag “Made-in-England”.

But whilst China is proud of being a world factory there is now increased concern that the “Made in China” label brings not only economic strength, but also damage to China’s ecology.

China has risen to the 3rd largest trading country in the world.

In 2006, China’s involvement in the processing of imported raw materials accounted for nearly half of China’s import and export total. This 2006 figure is more than 300 times the level in 1981.

Cheap labour and resources are often mentioned as factors in attracting overseas investment. But if China were to impose the same high standards of environmental protection, then many foreign companies might find that it was not cost effective to invest in China. In other words, Western countries are taking advantage of a lack of strict environmental laws.

Today, over 70% of overseas investment in China is involved in the manufacturing industry.

This year, about 100 overseas-funded companies have been blacklisted for their poor environment record. They include the big companies like Pepsi, Nestle, General Motors and Carlsberg.

Facts have shown that in areas where foreign companies are located -- cities like Shanghai, and especially Guangdong Province -- air and water pollution has significantly increased.

Former Chinese Foreign Minister Li Zhaoxing once said that pollution in China was partly due to international economic and trade divisions in the country. China remains one of the developing countries most affected by climate change.

Huguette Labelle, former president of the Canadian International Development Agency, once said that under the current international economic and trade system, China is not only the biggest user of resources but also the largest victim of self-inflicted pollution.

In order to reduce the number of companies using China as a dumping ground for pollution-creating industries, stricter policies are being considered, which would impose higher taxes and tariffs on exports of high-energy-consuming and pollution-causing items.

China imports a large amount of waste, including solid, electronic and medical waste. And the quantities increase annually. Processing these imports is creating a devastating effect on people’s health as well the environment as a whole.

China is only able to deal with 20% of its own waste, so for the country to take on the rest of the world’s garbage severely exacerbates the problem.

By 2020, China’s ‘fast-speed urbanization’ will increase its annual waste to more than 400 million tonnes.

China may soon be submerged by a mountain of its own rubbish.

Earlier this year, both British and Chinese media reported on UK rubbish exports to China. It shows a typical case of the environment-unfriendly side of world trade.

The UK produces more than 30 million tonnes of recyclable rubbish every year, 6% of which is shipped to China.

As such, China is rapidly becoming Britain's biggest rubbish dump.

Annually, China’s exports to the UK total £16 billion pounds.

In return, the UK ships 1.9 million tonnes of waste to China, up more than 160 times the figure of eight years ago.

The UK’s former Environment Minister Ben Bradshaw, has defended this “fair” trade, saying that it would be wasteful for ships bringing imports from China to return empty.

It is not good to our environment when we can only choose from imported products in our supermarkets. It is astonishing to see items shipped half way around the globe when they could be produced domestically.

UK-based New Economics Foundation Policy Director Andrew Simms told BBC last Friday (Oct. 5, 2007) that "Every time we hear a government minister talking about climate change, they seem to be drawn towards scapegoating China and its rising emissions."

He said: "But a big factor in that rise is that China has become the major factory for the western world, so their greenhouse gas emissions are largely driven by higher levels of consumption in the west."

Two years ago, US researchers calculated that 14% of China's CO2 emissions were accounted for by exports to the US.

So besides domestic will, a rational global economic and trade system should be formed to optimize the use of our natural resources and make it possible for global sustainable development.

5. Climate change is a global crisis, calling for a global solution.

Today, we should not doubt about global warming anymore. The evidence is clear that the global climate is changing. This year, we have seen millions of people in China, India and Bangladesh affected by floods. In Kenya we have seen major mudslides brought about by torrential rain.

We have also seen the worst summer for 30 years in France, devastating floods in the UK, a heat wave in the US (with temperatures soaring above 30 degrees Celsius), and typhoons sweeping Mexico and southeast Asia.

All these events have sent a signal that climate change is already at our doorstep. It is no longer something which may happen in the future, the effects of climate change are already being felt.

The tit-for-tat argument between developed and developing nations about who should take the lead to cut emissions has got to stop.

All countries, rich or poor, have to make their own changes towards a more sustainable society.

The West must lead by example to show the world how to tackle environmental issues.

UK Conservative leader David Cameron addressed the party's 2007 conference last week (Oct. 3) and said that those who say Britain should do nothing because of China’s shortcomings were wrong. He asked, “How will we be able to encourage China to act unless we act here at home?

The Chinese Government has maintained that all countries must take actions, with different but fair share of responsibilities to tackle global warming. Developing countries need to cut emissions and increase energy efficiency, while developed countries should try to decrease their per capita energy consumption and individual carbon footprint.

6. Conclusion:

The economic status among the population of China is changing rapidly. This has resulted in the increase of cars on China’s roads, rising consumption of consumer products and the surge of domestic flights. Meanwhile as China opens up to the world, it has led to a huge influx of tourists from all over the world.

We are not going to change people’s demand for cars, a wish to travel, and a desire to consume. And our living standards need not be lowered in order to be respectful to the earth.

However, it is the responsibility of governments, businesses and individuals to safeguard this planet.

Governments have the most important role to play in this regard, to change production methods and energy generation to more environmental-friendly solutions, and implement greener policies.

As individuals, we should be aware of our carbon footprints. We need to reduce our consumption, move towards a greener lifestyle and increase our responsibility towards our surroundings.


Copyright Dongying Wang 2007

For reproduction of this study, please email: wdy21century@gmail.com

China in Africa: a catalyst for change

Chinese working at Chambishi Copper Smelter in Northern Zambia

Rich natural resources and huge markets have turned Africa into a magnet for global investors. Which policies should the continent adopt in order to maintain its attractiveness as a lucrative investment spot whilst achieving sustainable development? Dongying Wang investigates.

As globalization deepens and the interaction among economies increases, Africa has become a focus for the world. Africa's natural resources and opening up of new markets are attracting interest from global companies.

China, a latecomer to Africa, has joined other countries in exploration of the continent to fuel its economy. China's involvement in Africa covers a wide range, including agriculture, manufacturing, construction, telecommunication, resource extraction, energy and social welfare. However, China's increased engagement in Africa has caused concerns and even fear from other competitors. It has also drawn criticism from the West over its lack of business and political ethics whilst investing in Africa.

China has become one of Africa´s important partners for trade and economic cooperation over the past few years, although Africa still accounts for only 3% of China´s outward foreign direct investment (FDI). During the first half of 2008, China's direct investment in Africa stood at 305 million dollars, less than 480 million dollars recorded during the first half of 2007.

China still remains a small investor in Africa compared to some Asian countries, not to mention those from the West like the UK, the US and France, according to a 2007 UN report (pdf).

The Sino-African bilateral trade amounted to 53.1 billion dollars during the first half of 2008, as against the 73.3 billion US dollars for the whole year of 2007, according to a seminar on investment in Africa, held recently in Xiamen southeast China. Bilateral trade has seen more than a 30% rise annually since 2000. China has become Africa's 3rd largest trade partner after the EU and the US.

Xinhua, China's state news agency, has reported that Sino-African trade has contributed 20% to economic growth of Africa. Chinese officials have also said that Sino-African businesses, based on mutual benefits, have become an impetus to economic development in Africa.

There is no doubt that China has a long list of achievements in Africa. These include the training of tens of thousands of Africans, relieving debts, offering of medical assistance, and the building of hydro-electric power plants in some 50 African states. In addition they have helped build thousands of kilometers of roads and railways throughout many parts of the continent.

All these achievements have been reported repeatedly by Chinese media. The mantra being promoted is one of mutual benefits and profitable gains. This differs from the past when the message was one of just developing bilateral ties.

Nowdays, Chinese investors have transformed from “comrades” to “capitalists” in less than half a century, says John Lungu, economics professor at the Copperbelt University in Kitwe, Zambia.

Professor Lungu’s view is echoed by Parkie Mbozi, regional director of Panos Southern African based in Lusaka, Zambia. Panos is an NGO promoting the participation of poor and marginalised people in national and international development debates.

"China, like all others, is now in Africa for business. It wants to present itself as a country that will give aid without strings attached, yet in essence it wants business. Unfortunately, state capitalism can be worse than individual capitalism," said Mr. Mbozi.

It is arguable that there is nothing wrong for Chinese people to make profits by investing in Africa. However, criticism is laid upon China's lack of consideration to environmental concerns and labour welfare. Chinese companies are reportedly developing oil fields, mines and dams in areas that are geographically remote, politically unstable and ecologically fragile, often ignoring the environmental and human rights impacts of their investments.

In a phone interview, Uwe Wissenbach, coordinator for relations with Asian countries in Directorate General Development of the European Commission, says that most negative reports on China's involvement in Africa were initially conveyed by media, which sometimes exaggerate these negatives. More recently reporting provides a much more nuanced picture. Rather than giving his opinion on China's presence in Africa, Mr. Wissenbach looks at the issues from a different perspective.

Mr. Wissenbach agrees with the argument that China should not be singled out for these problems. He says that some western companies maybe doing more harm to Africa than Chinese companies. However, he is dismissive of China's excuses that its status of being a developing country justifies its failures in protecting the environment and improving standards of business.

In the West, companies face pressure from media, civil society and other pressure groups to behave themselves abroad, but Chinese companies do not have similar organizations to keep their overseas operation in check, he says.

Mr. Wissenbach also points out that apparently China's private companies fare much better in Africa as opposed to state-owned companies in efforts to help improve the lives of Africans, as they are more efficient and fit well into African communities. On the contrary, state-owned companies, which enjoy favourable policies and government projects, often fail to fit into the reality of Africa and thus contribute less to local society.

According to the Export-Import Bank of China, of more than 800 Chinese companies investing in Africa, some 100 are state-owned.

Refering to Zambia, which sees China as a "genuine and all-weather" friend, Panos regional head Mr. Mbozi says that he can see the possible transformation of the Zambian economy by Chinese investment through jobs offered by Chinese investors, and permanent infrastructure.

However, Mr. Mbozi holds reservations about the quality of jobs offered by Chinese companies, saying that "Unfortunately, so far Chinese investment has been seen in a bad light due to poor working conditions for workers and low investment in essential services in areas their companies operate. China has fared badly in comparison to companies owned by western investors."

"We hope that the economic zone announced by Chinese President Hu Jintao, when he visited the country in 2007, will be modeled along the lines of Western investment, namely good jobs, investment in social services, including roads, hospitals and schools, that benefit the local people. So far this hasn't happened save for a few cases," he says. The Zambia-China Economic and Trade Cooperation Zone was the first of its kind ever launched by China in Africa.

This African quest for higher standards and quality is possibly part of the reasons why Mr. Wissenbach does not think that Europe faces competition from China in Africa except in aid and infrastructure projects.

However, he acknowledges that as Africa has more business options on the table than before, the EU development policy in the continent does not work as it did previously. Therefore the EU has had to change its African strategy and "its patronizing way of looking at Africa."

"China is the catalyst and one of the factors among others to urge the EU to change their policies in Africa," he says. "Most importantly, changes are needed from Africa itself to formulate a policy and set their own agenda in the face of globalization."

However, Africa cannot do so without help. This is why Africa, the EU and China should cooperate through better understanding and information exchange to help the continent develop sustainably. Mr. Wissenbach and his colleagues face the challenge of building trust and cooperation between the three parties.

"Ideally, our tasks are to cooperate between African governments, the EU and China to set up standards, socially and environmentally, for investment and development in Africa", Mr. Wissenbach adds.

Asked about how overseas investors should help Africa, Mr. Mbozi says that "genuine support and investment" is what Africa needs.

"They should teach Africa how to fish but not give it fish, transfer technology to Africa, help Africa build its capacity to do its own business, support manufacturing of goods in Africa as opposed to treating Africa as a net exporter of raw materials," he elaborates.

"Overall, they should respect Africa's priorities, and African solutions to African problems, " says Mr. Mbozi.

Flooding overseas investment offers a golden opportunity for Africa to fight its poverty and climb upon the economic ladder. However, African states must learn to set the ground rules so they can develop without over exploitation of both their resources and people.

Read other China-Africa articles:

Africa pivoted to setting its own agenda

China in Zambia: from comrades to capitalists?

Copyright World News Review 2008

For reproduction of the articles, please email: wdy21century@gmail.com