[ 2011-06-11 ]

US 'concerned' about China business practices in Africa
LUSAKA (AFP) - US Secretary of State Hillary
Clinton urged African countries to lift trade
barriers with the United States here Friday and
voiced concern about China's aid and investment
practices in Africa.

The first US chief diplomat to visit Zambia since
1976, Clinton attended annual talks over a US
preferential trade deal at a time when China has
overtaken the United States as Africa's top
trading partner.

"China's presence in Africa reflects the reality
that it has important and growing interests here
on the continent," Clinton said during a press
conference with Zambian President Rupiah Banda.

"The United States does not see these interests
inherently incompatible with our own interests. We
do not see China's rise as a zero-sum game. We
hope that it will become succesful in its economic
efforts," she said.

"We are, however concerned that China's foreign
assistance and investment practicies in Africa
have not always been consistent with generally
accepted international norms of transparency and
good governance," she added.

She said the United States has begun a dialogue
with China on its activities in Africa.

Some African nations have leaned toward China
because Beijing makes no demands on human rights
or democracy.

"Generally speaking, I think the Chinese have been
more aggressive in terms of trade into the
region," said Mupelwa Sichilima, of Trade and
Industrial Policy Strategies, a South African
think-tank.

But Sichilima said that in practice, other
restrictions hinder African trade with both the
United States and China -- mainly practical
considerations like safety standards for food
products.

"China is just an alternative market that has come
on board, but it doesn't mean it will swallow
everything from Africa."

China-African trade soared more than 40 percent
last year to $126.9 billion.

During his press conference with Clinton, Banda
said Zambia has been dealing with China since even
before independence in 1964 and was "fortunate"
that China continued to buy Zambian copper during
the global financial crisis.

But he said Zambia makes sure that foreign
countries doing business here treat Zambians well
and follow the nation's laws.

Clinton and Zambia spoke after attending the
ministerial forum of the African Growth and
Opportunity Act (AGOA), an 11-year-old deal that
gives African exports duty-free status on the US
market.

Despite a significant increase in trade, "we
cannot ignore the signs that not all countries
have made the most of AGOA," Clinton told the
forum, which drew 1,600 delegates from 31
countries.

"African countries export only a handful of the
6,500 products that are eligible for duty-free
shipping. The most common export is still a barrel
of oil," she said.

"So we have the potential to do more. The question
is: Will we?"

She said an answer to the question is important as
the AGOA comes up for renewal in Congress in
2015.

The secretary also sought to promote closer
US-African business links so each side knows what
the other wants, called for more African women
entrepreneurs and stressed US help for Africans
wanting to launch or build businesses.

Clinton also encouraged ministers to lift trade
barriers between their countries, cut red tape,
fight corruption as well as invest more in roads,
ports and electricity grids.

Source - AFP

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