People's Republic of China–Zambia relations

Sino-Zambian relations

China

Zambia

People's Republic of China – Zambia relations refers to the current and historical relationship between the People's Republic of China (PRC) and Zambia.

Economic Relations

The Chinese investors had complaints, as a Zambian newspaper reported: “the Zambian government’s rigid control over expatriate staff, high transportation costs due to its landlocked position and poor infrastructure, discriminatory incentives, complicated labour relations laws, frequent strikes by workers, and poor local industries were not helping investors.”[1]:5

In 1998 China Non-Ferrous Metals Corporation (CNMC) bought a controlling 85 percent stake in Zambia’s Chambishi copper mine for US$20 million (US$27 million in 2011 dollars[2]) and invested a further US$130 million in rehabilitating the mine. Less than ten years later by the end of 2005 roughly 160 Chinese companies had invested in Zambia.

Fifty-one employees at a Chinese-owned explosives plant were killed in an explosion in April 2005. The following year a riot broke out at the Chambishi mine. The next day a Zambian worker was shot and wounded leading to the storming of the Chinese residential compound and another five workers were shot and wounded by a panicked Chinese manager. The exposion at the explosives plant and the events at Chambishi mine became one of biggest issues in the 2006 Zambian presidential elections. With opposition candidate, Michael Sata, taking an anti-PRC stance, stating that were he to win the election, he would renounce Zambia's recognition of the PRC and recognize the Republic of China in Taiwan.[1]:5-6 Sata lost the election to incumbent Levy Mwanawasa.

In February 2007 the Chinese government sought to mitigate anti-PRC feeling in Chambishi by promising to invest US$800 million into the creation of a Sino-Zambian economic zone and help the country to industrialize.[1]:5

Trade between China and Zambia increase in 2010 to US$2.2 billion. Chinese investments in Zambia range from mining interests in Zambia's copper belt to investments in agriculture, manufacturing, and tourism. As of February 2011 a total of 25 farms in Zambia are being run by Chinese entities.[3]

References

  1. ^ a b c Brautigam, Deborah (2009). The Dragon's Gift:The Real Story of China in Africa. New York: Oxford University Press. pp. 397. ISBN 978-0-19-955022-7. 
  2. ^ Measuring Worth, Relative Value of a U.S. Dollar Amount - unskilled wage, retrieved on the 26/01/2011
  3. ^ "If you want to grow as Zambia, work with us, says China". Zambia Watch. 8 February 2011. http://www.zambianwatchdog.com/2011/02/08/if-you-want-to-grow-zambia-work-with-china-say-ambassador/. Retrieved 9 February 2011. 

External links