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China’s Overseas Investments Receive Attention

VOA published an article on concerns over China’s overseas investments. The article said that as demand for raw materials increases in China, many Chinese companies have gone overseas and signed contracts with local companies. However, China’s foreign expansion has raised concerns over the direct impact on the world’s economic development, environmental issues, and compensation to workers in those countries.
In VOA’s interview with J. Peter Pham, Director of the Michael S. Ansari Africa Center, Pham said that since China’s loans are paid in the form of investment in the infrastructure or soft loans, the cash that those foreign countries were to receive would have been a lot less than expected. David Sean, a former official with the Department of State, told VOA that the trade relationship between China and African countries often lacks transparency and involves environmental concerns. Moreover, local hired workers often complain about their treatment and compensation. However Chinese government officials denied all of the above allegations and explained that, unlike other foreign investors, Chinese investors don’t get involved in local politics.

Source: VOA, July 1, 2011