Skip to main content

Wen Jiabao tours Africa

Chinese Prime Minister Wen Jiabao is currently engaged in a seven-nation tour of Africa. His latest stop in Angola prompts the BBC to report on China's willingness to embrace the African nations as business partners. From the BBC News:

Recently China, scouring the globe for raw materials to feed its booming economy, has been drawn to Africa as an abundant source of minerals, and has started investing heavily in countries like Angola.

China has increased their involvement with Africa as part of its race to secure the needed resources to fuel its expansion. As energy and mineral supplies become increasingly scarce and developing nations compete with developed countries for supply, countries like China are going to places that the West has largely avoided.

Some say that China's move to secure needed resources from African nations will increase corruption, as money flowing in from China decreases the odds that a country like Angola will adopt the IMF's policies on transparency and accountability.

The Angolan example is far from unique across Africa, where trade with China has exploded in the last few years.

And in the rush for resources, China has no qualms about dealing with countries that the west has criticised or shunned, such as Zimbabwe and Sudan.

China says it has a strict policy of non-interference in other nations' affairs.

It won't tell the countries it deals with what to do and vigorously defends its policy in Africa.

"Sudan is a sovereign country and I'm sorry that we do not develop relations according to US or UK or any other country's instruction," said Zhou Yuxiao, chargé d'affaires at the Chinese embassy in South Africa.

One thing is certain; given the reciprocal nature of China-African relations, the Chinese will probably enjoy a warmer welcome than the one recently extended by the US. See "China's growing focus on Africa" for more background on the importance of Chinese-African trade and China's laissez-faire stance towards the traditionally shunned nations.

Popular posts from this blog

Nasdaq credit rating junked.

S&P cut Nasdaq's credit rating to junk status citing debt burdens and its questionable strategy to buy a controlling interest in the London Stock Exchange. Financial Times reported that the exchange's counterparty credit & bank loan rating were lowered fromm BBB- (lowest investment grade rating) to BB+. The change will increase Nasdaq's borrowing costs should it wish to pursue aquisition targets. For an earlier look at the exchange consolidation trend that brought about Nasdaq's push for a stake in the LSE, please see "Exchange fever" .

Clean Money - John Rubino: Book review

Clean Money by John Rubino 274 pages. Hoboken, New Jersey John Wiley & Sons. 2009. 1st Edition. The bouyant stock market environment of the past several years is gone, and the financial wreckage of 2008 is still sharp in our minds as a new year starts to unfold. Given the recent across-the-board-declines in global stock markets (and most asset classes) that have left many investors shell-shocked, you might wonder if there is any good reason to consider the merits of a hot new investment theme, such as clean energy. However, we shouldn't be too hasty to write off all future stock investments. After all, the market declines of 2008 may continue into 2009, but they may also leave interesting investment opportunities in their wake. Which brings us to the subject of this review. John Rubino, author and editor of GreenStockInvesting.com , recently released a new book on renewable energy and clean-tech investing entitled, Clean Money: Picking Winners in the Green Tech Boom . In Clean ...

Jesse Livermore: How to Trade in Stocks (1940 Ed. E-book)

If you've been around markets for any length of time, you've probably heard of 20th century supertrader, Jesse Livermore . Today we're highlighting his rare 1940 work, How to Trade in Stocks (ebook, pdf). But first, a brief overview of Livermore's life and trading career (bio from Jesse Livermore's Wikipedia entry). "During his lifetime, Livermore gained and lost several multi-million dollar fortunes. Most notably, he was worth $3 million and $100 million after the 1907 and 1929 market crashes, respectively. He subsequently lost both fortunes. Apart from his success as a securities speculator, Livermore left traders a working philosophy for trading securities that emphasizes increasing the size of one's position as it goes in the right direction and cutting losses quickly. Ironically, Livermore sometimes did not follow his rules strictly. He claimed that lack of adherence to his own rules was the main reason for his losses after making his 1907 and...