China in Africa
Angola
- Three concrete oil agreements are signed. Sonagol, Angola's state oil company, agreed on a long term supply of oil to China's Sinopec oil company. Further, Sonangol and Sinopec are to jointly evaluate Angola's offshore Block 3. Finally, China and Angola will jointly study plans for a new oil refinery in Angola. ( 30.10.07 http://www.afrol.com/articles/15848 )
- China has provided Angola with significant aid and loan of $2bn packages in 2004 by the state owned Export-Import Bank. The loans are conditional on Chinese companies securing majority of lucrative contracts for national reconstruction. ‘China in Africa - the New imperialism’, Pambazuka News, 2 March 2006- http://www.pambazuka.org/en/category/features/32432)
- China continues to make substantial financial investments in Angola, including loans of around US$5 billion in 2006. Angola in turn is one of China largest oil suppliers. Chinese Prime Minister Wen Jiabao visited Luanda in June to push forward multifaceted cooperation between China and Angola. The presence of Chinese companies is very noticeable throughout the country, in particular construction companies working on the rehabilitation of major infrastructure such as railroads. http://hrw.org/englishwr2k7/docs/2007/01/11/angola14696.htm
- Official statements place the loan currently at $6-billion, but independent estimates put the total amount at $9-billion. Tied to this loan is the arrangement that 70 percent of all public enterprise contracts financed by Chinese money will be built by Chinese companies. 31 May 2007 http://business.iafrica.com/features/924014.htm
- Whether engaged in local recruitment or not, Chinese state-owned companies pay state-determined salaries that are sometimes not in line with the market determined price for labour in the Angolan construction industry. As wages are often a large expense in the construction industry, this provides Chinese companies with a decidedly competitive advantage. The latter underscores the competitive advantage that Chinese companies have over other companies who are obliged to pay between US$3-4 per day for Angolan labourers. Similarly, Chinese engineers are paid approximately US$130 per month, one sixth of what European construction firms pay Angolan engineers. (November 2006, China’s Interest and Activity in Africa’s Construction and Infrastructure Sectors, Centre for Chinese Studies Stellenbosch University)
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