Lusaka - Chinese President Hu Jintao on Sunday announced an
800-million-dollar investment package in Zambia on the second day of
a two-day visit to the southern African country where a Chinese rush
on resources is the source of growing unease.
The investment had already made public on Saturday evening by
Zambian President Levy Mwanawasa, who held hour-long talks with the
Chinese leader directly after his arrival in the capital Lusaka.
The two also agreed on the creation of a special economic zone, in
the town of Chambishi in the so-called Copper Belt north of Lusaka,
where Chinese firms would operate free of import duties and VAT.
Chambishi is home to Chinese-owned Chambishi Mines, one of the
world's largest copper producers. China last year announced the
construction of a 200-million-dollar smelter at the mine, which Hu
was scheduled to visit Sunday.
The Zambian and Chinese leaders on Saturday signed a total of
eight cooperation agreements on aid and investment.
These included agreements on Chinese technical training for
Zambian agriculture experts, an interest-free loan towards road-
making equipment, the building of two rural schools and a football
stadium, special treatment for Zambian exports to China and work
permits for Chinese workers.
China also agreed to write off 3 million dollars in Zambian debt
owing to Beijing.
While welcoming the cooperation with China Zambians are worried
that buried in the fine print of the deals could be conditions
detrimental to Zambian interests.
Zambia's textile industry for one is under threat from cheap
Chinese imports. An agreement signed Saturday allow Zambian goods
improved access to Chinese markets, increasing the number of tariff-
free items from 190 to 400.
Amid fears expressed in Europe and South Africa that China's
policies in Africa - where it has invested massively in oil and other
natural resources - could lead to 'colonization,' Hu said he was
committed to the development of African economies.
'China is looking for strategic and mutual friendship of a win-win
situation in Africa,' he said.
Mwanawasa described Hu's visit as a milestone that would
strengthen economic cooperation between the two countries and vowed
the planned Chinese economic zone would not jeopardize Zambian
business interests.
Hu is the first Chinese head of state to visit Zambia since it
achieved independence from Britain in 1964.
The Chinese-assisted construction of a stadium at Ndola is
designed to help Zambia attract business from teams practising for
the 2010 World Cup in South Africa.
© 2007 dpa - Deutsche Presse-Agentur 
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