China props up regime

Beijing has given Mugabe civilian and military aircraft, diplomatic support, economic aid and its experts recently designed a new mansion for the dictator, in the style of a Chinese pagoda, in a leafy Harare surburb. Critics say China has conveniently ignored the regime’s brutality against the people and intolerance to opposition. According to economists, China is interested in Zimbabwe’s diamonds, platinum and chrome, more importantly the beneficiated product, ferrochrome.

This week, China offered to lend the countryUS$700million, in a move that is likely to strengthen its influence in the resource-rich nation. The loan includes US$342 million for agricultural equipment and machinery, US$99.5 million that will bankroll health equipment and supplies and US$144 million that will capitalise the Harare city council to rehabilitate the collapsing water and sewer system.

Sanction lie

Wang Qishan, the Chinese Vice Premier, said the Chinese credit support would help the southern African country to counter “Western sanctions, perpetuating the lie that the restrictive measures placed on individual members of Mugabes cabal has an affect on the Zimbabwean population.

However, Qishan has been spooked by Mugabe’s indigenisation policy, directing that 51 per cent shareholding in all foreign companies be held by locals. The Chinese Deputy Premier’s call for protection for Chinese investment was a serious indictment on a regime that claims expropriation is justified. Qishan called on Zimbabwean parties to use “dialogue” in preparations for elections, but did not explicitly slam the apparent Zanu (PF) intolerance of its opposition. China pledged additional funds if its properties are protected. Donors have largely withheld aid to Zimbabwe, holding out for signs that Mugabe is ready to genuinely share power.

Qishan did not elaborate on where the money would come from, but was accompanied by officials from the Export and Import Bank of China, which signed a package of loans. In the past Beijing, has lent to allies on favourable terms via its state banks and has used some of its US$2,000bn in foreign exchange reserves to support foreign policy objectives.

Mining interests

China is investing heavily in Zimbabwean mining to secure a source of minerals for its trebling population. Currently, China’s Anjin is one of the select firms mining the rich Marange diamond fields in conjunction with the army. China’s support of the Zimbabwe security forces is significant, and includes a major infrastructure project which has seen the Asian powerhouse build an intelligence academy named after the President in Mazowe.

China currently runs major chrome mines and platinum concessions which have been surrendered to the government by Zimbabwe Platinum Holdings. Butthe workers complain they are being exploited and all health and safety regulations ignored, with some citing appalingly low wages and poor working conditions. China is also into cement through Sino-Zimbabwe cement company, and is eyeing Zimbabwe’s untapped uranium. It is already a leading buyer of Zimbabwean tobacco.

All-weather friend

Zimbabwe’s deputy President Joice Mujuru, who sealed the US$700million deal with President Hu Jintao at a recent Afro-Sino summit, welcomed Chinas growing interest in Zimbabwe, but added that all credit extended to the country should be transparent. She described China as an “all-weather friend”. Like all empires, China’s economic domain in Zimbabwe is stirring deep resentment. And it has not escaped the notice of the Prime Minister.

“For a long time, our side of government has demanded transparency, especially on the issue of diamonds,” Tsvangirai said. “In the past few weeks, Zimbabweans have been shocked that there have been various concessions granted to companies other than Mbada and Canadile. These include (Chinese company) Anjin, which has been mining for more than 18 months in partnership with the police and the army and has not remitted any cent to Treasury, said Tsvangirai.