Chinese investors to remain in Africa despite kidnappings
Beijing, 24 Feb – (ANA) - China's oil and commodities firms will not pull back but will tread more carefully in Africa after being stung by kidnappings, seizures of cargo and, most recently, the expulsion of a chief executive.
China hopes to broaden its exposure to the region, home to some of the world's most resource-rich but unstable countries, as it scours the globe for resources needed by the factories and businesses of the world's fastest-growing economy.
Any major change is instead likely to be in tone rather than intent, with Chinese investors expected to take a less aggressive approach and to increasingly partner with other foreign firms in dangerous and unpredictable markets.
"When Chinese firms started in Africa, it was more driven by the political motivations of top executives of state energy giants," said a Beijing-based oil executive.
"So the investments were made in a rushed and aggressive manner ... But (now) I think they will be more cautious when it comes to due diligence and investment decisions." Recent problems in Sudan have shown China the risks of being a big and politicised investor in a continent that accounted for 24 percent of China's crude oil imports last year. Rebel forces operating in Sudan, near the border with South Sudan, kidnapped 29 Chinese workers last month, apparently using them as political pawns before releasing them 10 days later. It was the fourth case of abduction of Chinese in Sudan. Chinese oil firms have also become tangled in an oil row between Sudan and newly independent South Sudan, leading to production shutdowns and the expulsion from South Sudan of the head of Chinese-Malaysian oil consortium Petrodar, the main oil firm operating in the new African nation. (ANA)
FA/ANA/24 February 2012--------