Communist China & Communist Zimbabwe sign an Economic deal

Beijing - Zimbabwean President Robert Mugabe and Chinese leader Hu Jintao signed an agreement on economic co-operation on Tuesday, building on ties at a time the debt-laden, isolated African state is seeking new sources of aid.

Neither side gave details of the economic and technical co-operation agreement and other pacts on the provision of computer equipment and co-operation between the two countries' justice departments.

Mugabe's spokesperson has said the government was exploring lines of credit with countries such as China as it grapples with triple-digit inflation, an unemployment rate above 70 percent and about $4,5-billion (about R30-billion) in foreign debt.

"You have made major contributions to the friendly relations between our two countries ... I stand ready to have an in-depth exchange of views with your excellency on our bilateral relations," Hu said at the start of their meeting.

The Zimbabwean delegation includes the central bank governor, finance minister and Foreign Minister Simbarashe Mumbengegwi, who met his Chinese counterpart, Li Zhaoxing, on Tuesday.

Li called the visit "a symbol of the deepening of bilateral traditional friendship", the official Xinhua news agency said. Mumbengegwi expressed gratitude for the aid China has offered since Zimbabwe's independence in 1980.

Mugabe's visit to China comes at a time he is increasingly isolated from the West over policy differences including his government's forcible redistribution of white-owned commercial farms to blacks.

New Zealand, which is leading a drive to isolate Zimbabwe in sport because of concerns over human rights abuses, said last week it wants China to ensure any aid it gives to the troubled country does not directly benefit Mugabe.

The International Monetary Fund and the World Bank have withheld fresh support for Zimbabwe since 1999, aggravating the country's economic crisis.

Mugabe, who has held power since his country's independence from Britain, denies critics' accusations that his policies have destroyed Zimbabwe's economy.

Mugabe arrived in Beijing on Saturday and toured the northeastern province of Jilin, visiting the headquarters of First Automotive Works Group, China's top vehicle maker.

On Wednesday he is to meet Premier Wen Jiabao, and Wu Bangguo, the number two in the Communist Party hierarchy.

Source: Independent Online (IOL)

URL: http://www.iol.co.za/index.php?set_id=1&click...