Newswire: China and friends! From all around the world

"Chinese officials size up long-term potential in Sino-African
economic collaborations" --
[http://english.people.com.cn/90001/90778/90857/90861/6746690.html]

Although Sino-African trade had weakened during the global financial
crisis, Chinese and African enterprises could strengthen their
collaboration and emerge from the downturn together, Chinese trade
officials said at a trade fair Wednesday. Huang Xiwen, chief of Jilin
Province's Commerce bureau, said at the 2009 China Africa Economic and
Trade Cooperation Seminar that local enterprises had been vigorously
developing business with African companies. He said 19 local companies
had invested ..

China and France seeking to develop bilateral ties --
[http://english.people.com.cn/90001/90776/90883/6746718.html]

"China and France seeking to develop bilateral ties"Vice Premier Wang
Qishan said Wednesday China had always valued its relationship with
France, and said he hoped the two countries could work together to
promote bilateral ties. Wang met Jean-David Levitte, a diplomatic
adviser to French President Nicolas Sarkozy Wednesday. Relations had
developed smoothly on the whole since the two countries forged
diplomatic ties 45 years ago, he said. Wang said he hoped the two
countries could handle the relationship from a strategic and long-term
...

"China, Laos vow to reinforce friendly ties" --
[http://english.people.com.cn/90001/90776/90883/6746699.html]

China and Laos reaffirmed their determination to further advance their
traditional friendly relations as senior leaders of the ruling parties
of the two countries met in Beijing Wednesday. He Guoqiang, member of
the Standing Committee of the Political Bureau of the Central
Committee of the Communist Party of China (CPC), met Sisavath
Keobounphanh, chairman of the Central Committee of the Lao Front for
National Reconstruction. Sisavath Keobounphanh, 81, has visited China
many times over t ...

"Japan-China ties to be further promoted following DPJ takes reins:
senior DPJ official" --
[http://english.people.com.cn/90001/90776/90883/6746694.html]

The Democratic Party of Japan (DPJ) Secretary General Katsuya Okada
said Wednesday that the DPJ will continue to advance Japan-China
relations after taking the reins of government. Okada made the remarks
at a symposium to mark the 60th anniversary of the founding of the
People's Republic of China following the DPJ's landslide victory over
the ruling Liberal Democratic Party in the lower house election
Sunday. "The DPJ has, as always, attached great importance to
Japan-China relations and ...

--
Sent from my mobile device

Hong Kong's phone hub for Africa -- Reuters Video

Apr 30 (Reuters) - Africa's phone trade has found a hub in Hong Kong's Chungking Mansions, where an estimated 20 percent of sub-Saharn African handsets originate.

China scales back Africa investments, Africa becoming weary of Chinese loans backed by mineral wealth

Lydia Polgreen of the New York Times wrote a very informative piece yesterday about how the global economic crisis is affecting China's appetite for risk taking in Africa.

One year ago commodities where at record setting prices and China was growing in the double digits. It was desperate to secure resource wealth to fuel its growing economy and Africa seemed like a logical place to venture.

Unlike their western counterparts, Chinese companies did not think twice about entering some deals that would otherwise make their American, Canadian or European competitors cringe.

Lydia Polgreen writes that once upon a time, “French colonists once called Guinea a geological scandal, so rich are its deposits of valuable minerals. Despite years of mining and billions in profits, Guinea remains one of the poorest and least developed countries in Africa.”

This is of course, the exact reason China looked to places like Africa and South America to feed their commodity demand.

Guinean and Chinese workers at the construction site, working on
building a $50 million, 50,000-seat stadium in Conakry, Guinea

Despite the global slowdown, China still continues to explore potential investments but this time around China is being a bit more cautious. Philippe de Pontet, an analysis from Eurasia Group explains “We have seen in the recent past Chinese companies wade into countries nobody else would, that may be changing.”

For instance, in Guinea Chinese ambassador Huo Zhengde said in an interview that the “political situation is not very stable and the international markets are not favorable.” Referring to the fact a junta had recently seized power after the death of the country's longtime president in December.

In response, China backed away from a promised investment of $1 billion for the construction of a hydroelectric dam in Guinea.

Instead of investing in projects that will empower African countries with the infrastructure to put in place a more solid foundation for long-term growth, China is backing away and looking for bargains in the commodity sector in more stable places such as Zambia and Liberia.

Polgreen reports “trade between Africa and China grew to more than $100 billion by 2008, from less than $10 million in the 1980s. African leaders spoke openly about China’s offer of an alternative to the edicts of Western-dominated institutions like the International Monetary Fund and the World Bank.”

In the wake of the current global economic crisis change will come in many different shapes and sizes, I just wonder if the hope that China would emerge as a new epicenter of economic power and foreign direct investment for emerging markets is legitimate considering the current situation.

Click here to read the NYT piece

News line: commodities in focus

China looks to African metals and minerals for the long term -- Mineweb
Chinese investment is replacing that from the West in many key sectors, especially with regard to metals. Minerals and energy and Chinese businesses are prepared to take the long term view.

Sharp decrease in copper, moly prices result in 4Q08 loss for Southern Copper -- Mineweb
A sharp decline in metals prices and a tough economy has prompted Arizona's Southern Copper Corporation to put all capital expenditures on hold for this year

January gold jewellery sales off 70% in Abu Dhabi -- Mineweb
Sales of gold jewelery in Abu Dhabi have fallen some 70 percent in January compared with a year ago as high prices, coupled with the global economic situation, have combined to keep buyers away.

Copper falls to one-week low on signs global slump is deepening -- Bloomberg
Feb. 2 (Bloomberg) -- Copper fell to the lowest price in more than a week on signs the global economic slump is deepening, reviving concern that metal demand will decline further.

Corn, Soybeans decline as deepening recession cuts global use -- Bloomberg
Feb. 2 (Bloomberg) -- Corn and soybeans fell to the lowest prices in more than two weeks on speculation that the deepening global recession will reduce demand for U.S. crops used in making food, animal feed and alternative fuel.

Peru mining unions call for nationwide strike -- Mining Journal Online
Peru's largest federation of mining unions said over the weekend it has agreed to call a nationwide strike starting on March 15, to protest mounting job cuts and to pressure Congress to lift caps on profit sharing.

Brazil's 8th Oil auction suspended until petroleum laws change -- Dow Jones New Wires via Rigzone
No decision will be made on restarting Brazil's suspended eighth-round oil and natural gas concession auction until likely changes are made to the country's petroleum laws, Brazil's National Energy Policy Board said Monday.

Horizon Oil, partners to deliver China oil project Development Plan in May - Dow Jones New Wires via Rigzone
Australia's Horizon Oil Ltd. said Monday that partners in an oil project in the South China Sea will submit a revised development plan to China National Offshore Oil Corp. in May.

Oilex joins ranks of international oil producers with Cambay start-up -- Oilex Ltd via Rigzone
Australian-based oil & gas group Oilex has formally marked its transition to cash flow and production by delivering a strong December Quarter performance by starting up oil production from its Cambay Oil Field in October in India with 16,800 barrels of oil produced during the December 2008 quarter from two wells.

Japan discovers new source of mineral wealth -- Reuters via Mineweb
Resource-poor Japan just discovered a new source of mineral wealth -- sewage. The country's sewage yields more gold than top mines.