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

Financial crisis batters global markets despite bailout law

Last Friday's signing of the US historical economic rescue package into law has failed to prevent global stock markets from diving much deeper beyond expectation.

Those who have hoped to see a rise in stock markets this weak were shocked by the extent of the market plunge on Monday. The Dow Jones plummeted 569.8 to 9755.5, penetrating the psychologically important 10,000 mark for the first time since 2004, with the S&P 500 off 64.2 at 1035.0.

Confidence of global investors has been heavily pounded and is unlikely to be restored in the short term. A global economic recession is looming large.

Along with the US $700B bailout package, European nations have sought to close ranks to avert the financial epidemic from the Unites States. However, no tangible progress has been made.

Do you think it is too late for the governments to offer an effective remedy? If not, what do you think they should do?

Europe seeks to coordinate banking system clean-up

Four big European nations have pledged to coordinate efforts for a new regional financial system with improved regulation, supervision and morality, in a response to the credit crunch crisis spreading from the US.

The consensus came after a meeting of heads of state of France, the UK, Germany and Italy as well as senior officials from the European Commission, the European Central Bank and the Eurogroup. Britain, France, Germany and Italy are Europe's representatives on the G8.

French President Nicolas Sarkozy, who convenced the gathering on Saturday, stressed that entrepreneurial capitalism instead of speculation is needed. Italian Prime Minister Silvio Berlusconi said ethics should be brought back to banking systems.

British Premier Gorden Browns said his country will do whatever is necessary to stabilise the financial market, citing the bail out of Northern Rock and other actions. Liquidity will be ensured to preserve confidence, said Mr. Brown, adding that the participants have agreed to ask the European Investment Bank for 25-billion-pound loans for small businesses, clean up the financial system and set up a college of regulators.

Unpopular US bailout plan passed

The revised $700 billion bank bailout plan has been passed by the US House of Representatives by a vote of 263 against 171, in a hope to save the US economy from a collapse caused by the mortgage crisis.

President George Bush said that the legislation was completed in a timely manner and will help prevent the crisis on the Wall Street from becoming a national disaster. World stock markets plunged following the House's rejection of the bill on Monday.

The effect of the bill will take time, and the US still continues facing serious challenges, Bush warned.

Speaker of the US House of Representatives Nancy Pelosi, who signed the bill, said: "The revised bill will benefit American people, especially the middle-classes."

Accountability, regulatory reforms and a focus on the middle-class will top the agenda of the financial system to prevent the US from repeating the same crisis and mistakes, said Pelosi, adding that free markets have created jobs and capitals, but when they are left unregulated and undisciplined, chaos is created.

The passage of the bill has incited negative responses, which call for sending the money to ordinary Americans and mortgage borrowers.

UK, China react to US crisis

UK opposition Conservative Party Leader David Cameron made on Tuesday an emergency call on British parties to "stick together" and find ways to handle the economic crisis.

Cameron suggested placing the national priority at the moment to ensure a stable banking and financial system amid the deteriorating financial situation in the US following the overnight US rejection of a historical rescue plan.

The defeat of the $700B bail out proposal by the US House of Representatives on Monday has seen its effects on stock markets across the world.

The Dow Jones saw its largest one-day plunge in its 38-year history and the Nasdaq index dropped 9.1%, with markets in Asia and Europe also suffering heavy losses.

Though some revised plans could surface on Thursday for further discussion, it is feared that a domino effect might occur. As a result, banks around the world will see their assets fall, and more businesses will go bust. Individuals cannot escape this influence and some have cast doubt over capitalism.

In contrast, there is no immediate official response to the latest development of the US crisis in China, as the whole country is celebrating the National Day which falls on Oct. 1.

At the overnight National Day Reception to celebrate the 59th anniversary of the founding of New China, Premier Wen Jiabao said that 2008 has been an extraordinary year for China's development.

Premier Wen mentioned the snow and earthquake disasters, along with China's success of hosting the Olympics and completing its 3rd manned mission into space. However, he did not touch upon the recent milk scandal, which has heightened worldwide attention to made-in-China food safety.

Premier Wen emphasised last week in the US that "confidence is more important than gold and currencies" during a discussion with key figures from the US financial circle about the crisis in America.

Among the few reports on China's reaction to the economic problems in the West were comments by Qiao Xinsheng, director of the Social Development Research Institute at Zhongnan University of Economics and Law, based in Hubei, capital of central China's Hubei Province.

Facing the US crisis, the Chinese government feels unable to help, Qiao said. However, he strongly suggested that the Chinese government should readjust its financial policies, and solve problems facing Chinese banking companies.

"Efforts should be stepped up in China to restructure the assets of banking institutions," he warned, "Otherwise, China's financial markets will repeat what has happened in the US ."

The number of small and medium-sized banks is on the rise in China. However, they are financially fragile, and any bank run could lead to a chain reaction in China's financial markets, he said.

The Chinese government should be on high alert rather than ignore the situation and watch the burning fire as a bystander, Qiao warned.

After Lehman Bros filed for bankcruptcy protection, Bank of China, the leading Chinese bank engaged in overseas businesses, expressed confidence and ability to reduce any effects brought about by the Lehman Bros event. The bonds that Bank of China holds from Lehman Bros amount to 0.01% of the bank's total assets and 0.19% of net assets.

US urged to lead global climate change efforts

Two US former Secretaries of States have urged the United States to play a leading role in involving other big emitters in efforts to tackle global warming.

The comments were given during a recent television debate. "The Next President: A World of Challenges" came just few days prior to the first Presidential debate on September 26 between Republican Candidate John McCain and Democratic Candidate Barak Obama.

Joining the special programme were former Secretaries of State Madeleine Albright, James A. Baker III, Warren Christopher, Henry Kissinger and Colin L. Powell. They discussed the economy, national security, foreign affairs, global warming and other challenges facing the next US President.

Warren Christopher, who served as the 63rd Secretary of State during Bill Clinton's first term, said: "The new administration ought to take a forward-leaning position on climate change. We ought to be leaders there rather than hanging back.

We've had sort of a dog in the manger position in the past. We haven't been willing to move until China moves. We haven't been willing to move until India moves. And the United States needs to be in a position of leadership to do the next thing after Kyoto in a very meaningful, effective way."

Christopher's opinions were echoed by panellist James Baker, who was the Chief of Staff in Ronald Reagan's first administration and the 61st US Secretary of State during George W. Bush's term.

The United States needs to lead a global effort to round up all the countries that put carbon dioxide in the air, especially China, India and others, as they cannot be excluded, Baker insisted.

Baker emphasized that "you're not going to get it done if the President of the United States doesn't lead the charge."

However, Baker suggested that the new US president should do it in a way that doesn't destroy the US economy and is not detrimental to the United States in the way that the Kyoto treaty was, which excludes some of the biggest polluters. Baker still insisted that the Kyoto protocol is a bad treaty for the United States.

In another development, the US recently kicked off its first auction of emissions credits in New York, in an effort to fight global warming.

The programme, which was participated by 10 northeastern states, intends to stabilise the emissions level until 2014 and then reduce them gradually. Auction proceeds will be used for energy conservation and renewable energy development in the states.

Climate programme director of the Union of Concerned Scientists Lance Pierce has described the auction as "historic". He adds, "The carbon markets have arrived in the United States. And carbon markets, if designed correctly, hold the promise for development of cleaner energy ... and reductions in global warming pollution that benefit consumers, businesses and the environment, as well."

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

US, UK justify Iraq Invasion, admit mistakes

British Prime Minister Tony Blair and US President George W. Bush defended the invasion of Iraq and justified the existing coalition forces in Iraq as necessary to help enable Iraqis to govern their own country.

They also pledged firm support to Iraq's fight against terrorism and violence, in a joint conference at the White House Thursday.

Both leaders called on the international community to support the Iraqi government. They acclaimed the arrival of a new government in Baghdad as "a new beginning", but warned of“immense challenge."

The meeting of the President and his closest ally comes at a moment when their domestic popularity has hit all time lows, with­ 26 per cent in the case of Mr Blair, primarily because of the three-year-old war, the end of which is not in sight, with the origins shrouded in controversy, reported The Independent Online Edition.

It is Mr Blair's eighth visit to Washington since 9/11 ­ and possibly his last to a country where he is far more popular than at home. The Independent

"The war has affected mentality of the country," Mr Bush acknowledged, with polls showing his approval rating down to barely 30 per cent. "American people need to know we are making progress," he said.

Currently, some 132,000 US troops are in Iraq, and the Pentagon is hoping to reduce this figure to no more than 100,000 by the end of the year. British forces number 8,000. But in both countries demands are growing for a faster withdrawal. Even in the US, where support for the war has always been higher than in Britain, Americans now believe, by a 59-40 margin, that the 2003 invasion was a mistake. The Independent

Meanwhile, they also acknowledged mistakes in managing the occupation of Iraq that have made the conflict more difficult and more damaging to the U.S. image abroad.
Washingtonpost.com

Bush was quoted by The Washington Post as saying that the "biggest mistake" for the United States was the Abu Ghraib prison scandal, in which guards photographed themselves sexually tormenting Iraqi prisoners, spawning revulsion worldwide. "We've been paying for that for a long period of time."

In his own recital of errors, Blair cited the process of "de-Baathification" that immediately followed the overthrow of the old government. Many analysts say that decision to remove all of Hussein's loyalists fueled the insurgency because it threw tens of thousands of Iraqis out of work and left an administrative vacuum, and Blair agreed that it should have been done "in a more differentiated way." Washingtonpost.com

As to the Iran issue, Mr Bush offered rewards for Tehran if it ended uranium enrichment, saying that the US would continue to work with Iran's government despite its "intransigence" but urged it to suspend enrichment to avoid international isolation. BBC

Since the US-led invasion of Iraq in March 2003, 2,463 US soldiers, 111 British soldiers and 111 more from other coalition nations have been killed. The death toll of Iraqi military range from 4,895 to 6,370, with the number of civilians between 37,848 and 42,216. Reuters

China under worldwide spotlight for Three Gorges Project

China comes under the world's spotlight when its gigantic Three Gorges dam neared completion last week. The world's largest hydroelectric dam, which is more than five times the size of the Hoover Dam (Wikipedia), aims to tame the flood-prone Yangtze River, the nation's longest and the 3rd worldwide. It will be able to combat a super big flood occurring once in 100 years as of 2006 and will start to take effect in flood control two years ahead of schedule (Xinhua News).

Launched in 1993, the Three Gorges Project, including the 2,300-meter-long, 185-meter-high dam with 26 power generators, is being built in three phases on the middle reaches of the Yangtze river. In addition to flood control functions, the gigantic project is expected to generate 85 bn kwh of electricity annually when it is finally completed by 2008, a year ahead of schedule (Xinhua News) .

As a global leading energy consumer, China desperately needs electricity for its booming economy. The Three Gorges project is a critical part of China's energy strategy as the dam's hydropower turbines are expected to create as much electricity as 18 nuclear power plants (CNN). And it will greatly cut down the occurrence of disasters of coal mine incidents across the country.

But the project, at cost of $24bn in total, has been incurring criticism both from domestic and abroad in regard to its investment and environment impact.

Critics say that the human cost has been far too high. More than a million people have been resettled to make way for the dam. At least 1,200 towns and villages will be submerged under the rising waters of the dam's reservoir (BBC).

Activist Dai Qing was quoted by the BBC as saying that: "The dam is causing more problems than solutions, insisting the electricity produced by the dam is much more expensive than that produced in other ways, because it costs tons of money to relocate local people and to offset the disasters it has caused to build the dam."

Allegations of corruption among officials involved with the project have raised fears of shoddy construction. Of further concern are claims the dam might become an environmental disaster. There have been little to no attempts made toward removing accumulations of toxic materials and other potential pollutants from industrial sites that will be inundated. Experts say such materials could leach into the reservoir, creating a health hazard (CNN).

Zheng Shouren, member of the Academy of Engineering of China was quoted by China's state-run Xinhua News agency as saying that the Three Gorges Project plays a key role in the flood control system of the Yangtze River due to its location, size and landform, explicating that the Three Gorges Reservoir is capable of holding 22.15 bn cubic meters of water when it attains a normal water level of 175 meters.

Dr. John Byrne, director of the University of Delaware's Center for Energy and Environmental Policy, said on CNN that: "The project's conception was monumental. This was seen in the early years [of the project] as a way to show the advanced nature of Chinese society under socialism, to solve a problem that has existed in China for thousands of years... But when you're doing something on this scale, you should really make solving the problems your first priority. Unfortunately, China has decided to launch the project -- then solve the problems along the way."

No doubt China's huge Three Gorges Project is a controversial issue. In the UK there is strong debate over pollution-free energy sources such as windfarms, which are voted against due to its ugliness and blocking the views. In response, Mrs C A Young from Tiverton said on BBC that "wake up and look to the future". This discussion is taking place over the aesthetics of wind turbines in a country which has some of the highest electricity bills in Europe. It appears that people there would rather pay the high bills than exploit the country's rich and renewable energy resources.

Links: Three Gorges Location