China Africa News 3/11/2008
News on the Chinese hostage situation in Sudan seems to have further muddied the waters as the BBC reports that one of the two missing Chinese oil workers in Sudan has been found. Reports on the 30th of October suggested that there was now only one hostage held captive, after four had been killed, and four had escaped. Beijing will be pleased to avoid further embarrassment over its relations with Khartoum but this story may well roll on a little longer if there is indeed one more hostage being held. Kenyan news sources picked up on the indifference of Africans to the situation, suggesting that if Kenya and its neighbours expect continued support from China as a development partner, they might need to show greater concern for the welfare of its visitors.
Metals prices have rebounded slightly this month despite the downward trend in their value over the last few months. Reports blamed the global financial crisis for falling levels of manufacturing in China, which have resulted in the prices decreasing. However Chinese interest in metal producing African nations remains, even in DR Congo where troubles in the Rwandan border region abound. British and French foreign ministers have called for action to avert what could become the worst example of UN inaction since the Rwandan genocide in 1994. China having recently agreed a $9bn dollar resource agreement with DRC might be expected to support the stabilizing of its resource partner. The deal includes the building of roads, railways, hospitals and universities, which will presumably be impossible without a cessation of hostilities.
China is experiencing the pit falls of its infrastructure for resource agreements in Sub Saharan Africa especially acutely in Nigeria, where the Federal government has continued its recent confrontational style with China, by threatening to cancel deals for oil blocks agreed with China National Offshore Oil Corporation under the previous Obasanjo regime. The preferential agreements reached under his presidency have been revoked as Nigeria demands that the cost of the rail development project are reduced, and payments required by the Nigerian constitution be made in full by their Chinese and Korean partners.
In South Africa cheap Chinese imported cars are bucking the trend for falling vehicle purchases and have reported decent sales figures over recent months. FAW, China’s largest vehicle manufacturer had also announced plans to launch in the South African market, but its plans to import fully assembled cars might anger critics calling for Chinese companies to do more of their manufacturing in Africa. One company which has been conscious of this criticism is Huawei, the Chinese telecoms giant which was recently confirmed as the 5th largest in the world according to Fortune magazine. Company policy dictates that 58% of staff in overseas offices must be hired locally. The company has enjoyed great success in emerging markets with technological innovation its strong point.
Chinese oil worker found in Sudan- BBC (UK)
31/10/2008
Sudanese authorities say they have found one of two missing Chinese oil workers from a group of nine kidnapped in South Kordofan state 13 days ago. Full Story.
Metals prices start month higher- Fin 24 (RSA)
3/11/2008
Metals markets rose in London and Shanghai on Monday, with copper gaining more than 3% after its weakest monthly performance in at least 35 years in October, but dealers said the outlook remained pessimistic. Full Story.
Nigeria suspends Chinese deal- Fin 24 (RSA)
2/11/2008
Nigeria has suspended a railway deal with China and threatened to revoke two oil licences awarded to South Korea in the latest move by President Umaru Yar'Adua to review contracts signed by the last administration. Full Story.
China’s Chery pleased with SA sales- Engineering News (RSA)
31/10/2008
Sales of the Chinese Chery passenger vehicle range has averaged 356 units a month since the brand's introduction to the South African market in June, says Chery MD Brett Soso. Full Story.
China’s FAW to bring new light commercial vehicle to SA in ’09 - Engineering News (RSA)
31/10/2008
A new entrant in the light commercial vehicles market will arrive in South Africa in January, from China’s largest vehicle manufacturer, FAW. Full Story.
China’s Huawei leaps into the big league- Standard (KEN)
2/11/2008
The next generation of mobile and fixed wireless infrastructure will be intelligent and eco-friendly systems, able to "think" for themselves, and save energy. Full Story.
How Africa can attract foreign investors- Business Daily (KEN)
3/11/2008
When the world woke up last Tuesday to the news that five of the nine employees of the China National Petroleum Corporation (CNPC) kidnapped nine days earlier in an oil field in the Kordofan region of Sudan had been killed, Africa reacted with its usual indifference although this was the third time in a year that oil workers have been abducted in the region. Full Story.
China mines DR Congo's vast mineral riches- Al Jazeera (QTR)
3/11/2008
General Laurent Nkunda, rebel leader of the National Congress for People's Defence (CNDP), has said he wants to re-examine a $5bn dollar deal the Congolese government has struck with China. Full Story.
