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Geo-Strategic Trend - 212. page

Congo-China Mining Deal Questioned

A huge mining deal between the Democratic Republic of Congo and China is getting extra scrutiny as critics say it does not provide enough benefits for ordinary Congolese. But the government says it is crucial to the country’s development. The $9 billion deals call for China to loan $6 billion for infrastructure development and $3 billion for helping revamp the mining sector in exchange for access to mining interests, including cobalt and copper fields. Opposition leaders from the Movement for the Liberation of the Congo say the Congolese government’s contract with China is not a good deal. Congo’s Deputy Minister of Mines Victor Kasongo says "The Western world did not have all that level of money to do that, so now we got the assistance coming from the Asian country."

Source: Voice of America, May 16, 2008

China and Venezuela Join Hands in Oil Development and Refining

The State owned China National Petroleum Corporation (CNPC) has recently signed a framework agreement with Venezuela’s Petroleos de Venezuela, S.A. (PDVSA ) to form two joint ventures, one for heavy oil development in Venezuela and the other for oil refining in China. PDVSA will hold 60% and CNPC 40 % in the development of the joint venture project in Block Junin 4 of the Orinoco belt in Venezuela, with an estimated production capacity of 20 million tons per year. The refinery in China will refine the 20 million ton of crude oil from the Block Junin 4 joint venture. CNPC will hold 60% and PDVSA 40%.

Source: Xinhua, May 13, 2008

South Korean Media: Chinese State Agent Behind Violence during Olympic Torch Relay

The newspaper World Journal in South Korea reported on April 29, 2008 that a Chinese thug involved in the violence during the Olympic Torch Relay in Seoul had been identified as the head of the Chinese Students Association in Korea. The unnamed person is a PhD candidate in police administration at Dongguk University in South Korea. According to the report, he was an official from China Public Security prior to admission into Dongguk University and upon graduation, is scheduled to return for a professorship at the Public Security University in China.

South Korean MBC TV reported on April 28, 2008 that Chinese students studying in South Korea disclosed that several thousand Chinese students were brought from China to South Korea for the Olympics Torch Relay greeting teams.

Japanese Asahi Shimbun also reported that Chinese embassies organized, directed and financed “greeting teams” in the cities the Olympics Torch Relay passed.

Source: Epoch Times, May 2, 2008

Chinese Students Facing Charges and Deportation û Scuffles in the Olympics Torch Relay

Five Chinese students in Australia are facing charges and potential deportation due to scuffles at the April 24 Olympic Torch Relay event, according to Australian Chinese Website, Snowpear on April 29, 2008. Chinese students are hoping the matter would be resolved via diplomatic channels. Apparently the Chinese embassy and consulates in Australia have been unwilling to get involved stating they had nothing to do with the incident.

Source:, April 29, 2008
Renminbao, April 28, 2008

China and Iran to Reach Agreement on a US$16 Billion Natural Gas Project reports that negotiations between China National Offshore Oil Corp (CNOOC) and Iran’s national gas company are nearing the last stage of reaching an agreement on a US$16 billion natural gas project. This is the second big energy deal between the two countries in the last couple of months. According to the report, CNOOC will provide technical support and take care of factory construction, transportation, and sales for the exploration of the North Pars gas field of Iran. In return, China will be allowed to share half of the liquid gas produced. China will have the right to purchase one billion tons of liquid gas each year. The deal is effective for 25 years. Also reported by International Herald Leader (Xinhua), the United States has been applying pressure on China regarding the negotiations, but China is not afraid of the interference.

Source:, April 18, 2008, and Xinhua, April 22, 2008

China Becomes Sixth Largest Direct Investor of Mozambique

A research center in Mozambique claimed that China, with a direct investment of 60 million U.S. dollars in 2007, is becoming the country’s sixth largest investor. According to the statistics of the Center for Promotion of Investments of Mozambique, China has become Asia’s single largest investor to this country. Currently, China has 69 major investment projects in agriculture and forestry sector. China is also the only country that established a Center for Promotion of Investment. In 2003, China ranked the ninth with an investment of 10 million U.S. dollars. The Center also states that among the 36 countries investing in Mozambique, the top five countries are USA (more than 5 billion U.S. dollars), Swaziland (1710 million U.S. dollars), Mauritius (1510 million U.S. dollars), UK (9.1 million U.S. dollars), and South Africa (7.9 million U.S. dollars).

Source: Xinhua, April 21, 2008

China Denies Betraying Iran on Nuclear Secrets

On April 2, UK’s Daily Telegraph reported that China has provided the United Nations with intelligence on Iran’s efforts to acquire nuclear technology. In an interview with Global Times, Nie Feng, International Affairs Specialist with China Academy of Social Science said that China has been providing constructive effort in solving Iran’s nuclear issues. The reports by certain western media were out of biased opinion. The speculation is nothing but a unified consensus of the western media.

Source: Xinhua, April 5, 2008

Xinhua: China Meets Friends in Vientiane, Japan Unhappy Being Excluded

On March 31, 2008, Xinhua reports that China’s Premier Wen Jiabao met leaders of Burma, Lao, Thailand, Cambodia, and Vietnam and signed a series of cooperation agreements during the meeting of Greater Mekong Subregion Economic Cooperation (GMS) on March 30 and 31, 2008. The report attacked Japanese media article reporting the meeting, saying that the Daily Yomiuri’s article vilifies China’s aid to Lao and GMS areas. It says that Yomiuri’s article accuses China of intending to establish a “base” in East Union and to control the development in GMS area, and that is unhappy with the exclusion of Japanese government from the regional cooperation activity.

Source: Xinhua, March 31, 2008