• briefing asia infrastructure aug 15, 2006 • briefing asia energy aug 15, 2006

China has stakes in extraction in Nigeria, Angola and Algeria, among others. Its biggest deal so far came in January when CNOOC, the state-owned energy company, announced it would buy a 45 per cent stake in an offshore oilfield in Nigeria for $2.3 billion.
Other countries benefit from China's position as the world's leading importer of base metals. Africa now supplies one third of China's manganese; South Africa is the fourth-largest supplier of iron ore to China; and 85 per cent of Chinese imports of cobalt come from the Republic of Congo, the Democratic Republic of Congo and South Africa.
Projects range from diamond mining and timber logging to cotton and telecoms.
About 800 Chinese companies are now working in Africa, and one estimate puts the number of expatriate Chinese workers in Africa at 78,000. A key to their success is the willingness of Chinese state-run companies to undercut their Western rivals and take on the projects they dismiss as too risky. Zambia's neglected Chambishi copper mines are being overhauled by China, and around them has sprung up what visitors describe as the fastest-growing Chinatown in the world.
CNOOC recently agreed to pay $2.3 billion to rehabilitate the Kaduna oil refinery in Nigeria, a loss-making project which no privately owned Western company would touch.
And China is building not just mines and refineries in Africa but the very infrastructure itself: roads, bridges and power grids across the continent are being thrown up by Chinese firms. Flows of direct investment from China into Africa have risen from $1.5 million in 1991 to $107.4 million in 2003, according to the Ministry of Commerce. China has sent 1,100 doctors to Africa, taken African students to China on educational exchanges, and designated 16 African countries as official tourism venues.
If Western nations were to intervene so widely it would be decried as colonialism.
But China's success is partly because of its willingness to ignore politics and focus on what makes business sense. Its firm policy of non-interference in the domestic affairs of other countries, born out of its dislike of foreign interference in its own affairs, makes it a popular player in the eyes of many African governments, particularly those, such as Robert Mugabe's Zimbabwe, that can find few other international supporters. The scrapping of hundreds of tariffs on African imports and a $1.3 billion debt write-off in 2003 have also strengthened relations.
Chinese leaders have dubbed 2006 the "Year of Africa" and are aggressively courting the continent. Li Zhaoxing, the Foreign Minister, visited in January and President Hu Jintao followed in April. On a seven-country tour last week, Wen Jiabao, the Prime Minister, agreed to restrict textile and clothing exports to South Africa to dampen opposition from local garment producers.
The International Monetary Fund now estimates that Africa's growth is edging towards 6 per cent, its highest in 30 years, partly because of Chinese investment and its soaring demand for raw materials.
Gerard Lyons, chief economist at Standard Chartered Bank, said that Africa was only part of the picture. "Globally, we're seeing new corridors of trade opening out between regions in terms of flows of commodities, goods, people and investment. This is just one aspect of it."
In oil-rich, war-torn Angola, Chinese companies will build railway lines, schools, roads, hospitals, bridges, offices and a fibre-optic network, thanks to a $2 billion loan deal in which Beijing can secure a stake in the country's offshore oilfields. Last week it pledged a further $2 billion loan to the country.
But that approach has caused concern in Western countries, who mutter that China's loans are undermining attempts to link aid to reform and break the cycle of African countries' indebtedness. Equally critics add that although the West is moving away from "tied aid", Chinese generosity often comes with requirements to employ Chinese citizens or to buy in Chinese resources.
Another worry is weapons sales: according to the US Congressional Research Service, Chinese arms sales made up 10 per cent of all conventional arms transfers to Africa from 1996 to 2003. China has faced allegations of providing weapons used by the Islamic government in Khartoum to terrorise civilians in Darfur, and of selling fighter jets and radio-jamming devices to Zimbabwe.
Alarm is greatest in the US, where a recent Energy Department report argued that China's tolerance of despotic regimes could undermine Washington's strategic goal to spread democracy and free trade.
There are several motives behind China's African safari. First, it makes economic sense: China requires access to oil and natural resources on a vast scale and wants them delivered securely. But there are also political drivers. China can use its financial muscle to drive forward its acceptance as a market economy and to exert pressure on the two dozen or so countries that still recognise Taiwan.
Its ultimate strategic goal, however, is unclear, perhaps because it has only just begun to consider it. "Involvement in Africa crystallises China's dual identity between being a developing country and a major power," Andrew Small, China programme manager at the Foreign Policy Centre, a UK think-tank, said. "They have achieved a position of far greater importance in Africa than they probably planned to."
However, Ann Grant, of Standard Chartered Capital Markets, said: "China has a strategic approach to Africa, in which the markets, the energy security and the political relationships are all very much of a piece. They are looking not at the next two to three years but at the next 15 to 20 years."
Deutche Bank Research estimates that China will remain "hungry for commodities" for at least the next 15 years. In particular, it forecasts China's annual demand for oil to rise by 20 per cent a year, from 91 million tons in 2005 to a staggering 1.9 billion tons in 2020. By 2045 China is projected to rely on imported oil for 45 per cent of its energy needs.
In the old Belgian mining town of Likasi, a 75-mile drive from Lubumbashi, China has opened a new cobalt plant, the Feza Mining Company. Rundown suburban houses, once the homes of expatriate managers, are being repaired and taken over by the new arrivals.
"Production is still small but we should be able to expand it very quickly; the ground here is so rich," one of its managers, Willy Zhang, told The Times on a recent visit.
Nearby, Chinese labourers were working alongside Congolese, paving a new road to two mines bought from the bankrupt state giant Gecamines by a Chinese consortium.
Mr Kabongo sums up the situation laconically. "No one knows who they are, but they are Chinese," he says.
WHAT ARE THE BIG CHINESE MULTINATIONALS?
Chinese trans-national corporations ranked by foreign assets, 2003
SECTOR. FOREIGN ASSETS
China Ocean Shipping (Group) Company. Transport. $8.5bn.
China National Petroleum Corporation. Petroleum. $4.1bn.
China State Construction Engineering Corporation. Construction. $3.4bn.
China National Offshore Oil Corporation. Petroleum. $1.5bn.
China Minimetals Corporation. Mining. $1.2bn.
Source: UNCTAD
WHAT IS CHINA DOING?
ALGERIA. Oil exploration since 2003
ANGOLA. $2bn aid package in exchange for oil exploration and guarantee of 10,000 barrels of oil per day.
CHAD. Exploring for oil since 2003.
DJIBOUTI. new Foreign Affairs Ministry building.
EQUATORIAL GUINEA. oil supply contract signed in 2006.
ETHIOPIA. $29m mobile phone network contract.
GABON. Onshore oilfields deal; 60% of Gabon's timber bought.
GHANA. Finance for $600m hydroelectric dam pledged; $66m loan for telecoms and other projects.
KENYA. Institute to promote Chinese language and culture; road building.
LIBERIA. $25m for reconstruction in 2003 plus $5m interestfree loan after end of relations with Taiwan.
MALI. Sports stadium; oil exploring since 2004.
MAURITANIA. $1m investment in oil and gas exploration project in 2004.
NIGER. Oil exploration since 2003.
NIGERIA. $800m deal to provide 30,000 barrels of oil a day and $311m deal to launch Nigeria's first space satellite in 2005. Rights given to bid for four oildrilling licences in exchange for $4bn in infrastructure and health investments, plus $2.3bn paid for 45% stake in oil & gas field in 2006.
SENEGAL. $18.5m of debt cancelled and $3.7m pledged for infrastructure improvements after relations with Taiwan broken.
SOUTH AFRICA. (China's biggest trade partner in Africa) Last week, 13 agreements signed on co-operation in politics, economy, trade, defence, agriculture, technology and science and $2.5m pledged aid for skills and training.
SUDAN. More than $8bn invested in oil industry, including 1,500km pipeline; by 2005, China was purchasing 50% to 60% of Sudan's crude production. Arms, including tanks, planes and helicopters, supplied.
TUNISIA. Exploring for oil since 2004.
UGANDA. New Foreign Affairs Ministry building.
ZAMBIA. $170m invested in copper mining sector; $24m invested since 1997 in textiles; more than $300m into mines, manufacturing, construction and agriculture.
ZIMBABWE. "Accused of exchanging fighter jets for mineral rights".
(c) Times Newspapers Ltd, 2006
Document T000000020060701e2710002m

Daily Market Movers Digest Stock Alerts, Friday, June 30th, VXGN, XKEM, WDPT, PTSEF, SOEN
1,906 words

30 June 2006

M2 Presswire

MTPW

English

(c) 2006 M2 Communications, Ltd. All Rights Reserved.
Today our stock watch alerts today include stock alerts for VaxGen, Inc. (OTC: VXGN), Xechem International, Inc. (OTCBB: XKEM), WidePoint Corporation (OTCBB: WDPT), Points International Ltd. (OTCBB: PTSEF), and Solar Enertech Corp. (OTCBB: SOEN).
OTC STOCK ALERTS
VAXGEN, INC. (OTC: VXGN) "Up 30.99% at close on Thursday"
Detailed Quote: http://www.otcpicks.com/quotes/VXGN.php
VaxGen, Inc. (OTC: VXGN) engages in the development, manufacture, and commercialization of biologic products for the prevention and treatment of human infectious disease. The company focuses on the development and commercialization of biologic products to counter bioterrorism threats; vaccines for the long-term prevention of anthrax, plague, and smallpox; and a monoclonal antibody for the treatment and short-term prevention of anthrax disease. It has completed two Phase III clinical trials of two formulations for AIDSVAX, a vaccine used to prevent infection by HIV. The company completed the Phase I randomized, single-blind, placebo-controlled, dose-ranging clinical trial of rPA102, a recombinant Protective Antigen anthrax vaccine candidate. The company in collaboration with Chemo-Sero Therapeutic Research Institute is developing LC16m8, an attenuated live virus smallpox vaccine candidate for use in United States. VaxGen has a cross-license and cooperative research agreement with AVANIR Pharmaceuticals. VaxGen was founded in 1995 and is headquartered in Brisbane, California.
VXGN News:
June 29 - VaxGen, seeking cash, sells some Celltrion shares for $79M
Vaccine maker VaxGen Inc. sold some of its interest in South Korea's Celltrion Inc. for $79 million in a bid to raise enough cash to keep operating next year.
Brisbane-based VaxGen (Pink Sheets: VXGN) has struggled to change its business strategy since its original vaccine, for HIV, failed in November 2003.
Last month VaxGen's stock fell 37 percent in one day after it said it might not be able to meet new requirements from the U.S. government, which has hired the company to provide 75 million doses of anthrax vaccine for protection against terrorist attacks. VaxGen said it might not be able to meet all the requirements of the $877.5 million contract.
VaxGen also granted an option to the buyers -- Nexol Co., Nexol Biotech
Co. and Nexol Venture Capital Co. -- to purchase the rest of its shares
in Celltrion by the end of the year.
Although Lance Gordon, VaxGen's CEO, sees Celltrion as a promising company, he said VaxGen needs money enough to have to sell its stake.
XECHEM INTERNATIONAL, INC. (OTCBB: XKEM) "Up 21.36% at close on Thursday"
Detailed Quote: http://www.otcpicks.com/quotes/XKEM.php
Xechem International, Inc. (OTCBB: XKEM), a biopharmaceutical company, engages in the research, development, and production of generic and proprietary drugs from natural sources. Its principal product under development is NICOSAN/HEMOXIN, which would be used for the treatment of sickle cell disease. The company also applies its proprietary extraction, isolation, and purification technology to the production and manufacture of Paclitaxel, which is an anti-cancer compound used for the treatment of ovarian, breast, small cell lung cancers, and AIDS-related kaposi sarcomas. In addition, Xechem International engages in the research and development of other compounds using traditional medicinal plants, microbial fermentation, or semisynthesis to produce anti-cancer, anti-fungal, anti-viral, anti-inflammatory, anti-aging, and memory-enhancing compounds. It operates in the United States, India, the People's Republic of China, and Nigeria. The company was founded by Ramesh C. Pandey in 1994. Xechem International is headquartered in New Brunswick, New Jersey.
WIDEPOINT CORPORATION (OTCBB: WDPT) "Up 7.98% at close on Thursday"
Detailed Quote: http://www.otcpicks.com/quotes/WDPT.php
WidePoint Corporation (OTCBB: WDPT) provides technology-based product and services to government sector and commercial markets in the United States. The company, through its subsidiaries, offers iDentity Management and eAuthentication services that supports business-to-government, government-to-government, and citizen-to-government secure digital transaction requirements. In addition, it offers consulting services, including systems engineering and integration that primarily comprise consulting for application development, data archiving, information assurance and security technology update and refresh, and other support services; architecture and planning services consisting of analysis, evaluation, integration, administration, and maintenance, as well as project management services; and information technology outsource solutions, including infrastructure management, applications management, systems architecture and design, and software and authentication technology services. The company markets its solutions through direct sales force, and alliances with several strategic partnerships in specific industries. WidePoint Corporation was founded in 1996 and is based in Oakbrook Terrace, Illinois.
POINTS INTERNATIONAL LTD. (OTCBB: PTSEF) "Up 5.93% at close on Thursday"
Detailed Quote: http://www.otcpicks.com/quotes/PTSEF.php
Points International Ltd. (OTCBB: PTSEF) is owner and operator of Points.com, the world's leading reward-program management portal. At Points.com consumers can Swap, Earn, Buy, Gift, Share and Redeem miles and points from more than 25 of the world's leading reward programs. Participating programs include American Airlines AAdvantage program, Amazon.com, Starbucks, Aeroplan , AsiaMiles(TM), Cendant TripRewards , Delta SkyMiles , Gold Points Reward Network, InterContinental Hotels Group's Priority Club Rewards, and S&H greenpoints
SOLAR ENERTECH CORP (OTCBB: SOEN) "Up 5.71% at close on Thursday"
Detailed Quote: http://www.otcpicks.com/quotes/SOEN.php
Solar Enertech Corp. (OTCBB: SOEN), a development stage company, does not have significant operations. It intends concentrate on the development of a sales network and construction of a manufacturing facility for production of solar cells to capitalize opportunities in the photovoltaic energy industry. The company, formerly known as Safer Residence Corporation, was founded in 2004 and changed its name to Solar Enertech Corp. in April 2006. Solar Enertech is based in Coquitlam, Canada.
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Document MTPW000020060630e26u002pk

China And Africa - for Better Or for Worse?
1,370 words

27 June 2006

09:20 AM

All Africa

AFNWS

English

(c) 2006 AllAfrica, All Rights Reserved
Dakar, Jun 27, 2006 (UN Integrated Regional Information Networks/All Africa Global Media via COMTEX) --
Given China's growing hunger for natural resources and Africa's persistent need for economic aid, the world's most populous country and the globe's poorest continent appear to be nurturing a perfect symbiotic relationship.
Or is it?
China has dubbed 2006 the "Year of Africa." Chinese Premier Wen Jiabao just wrapped up an African tour of seven nations, including Egypt, Ghana, Congo, Angola, South Africa, Uganda and Tanzania. Chinese President Hu Jintao visited Nigeria, Kenya and Morocco earlier this year.
In addition, Senegalese President Abdoulaye Wade last week became the latest African head of state to make an official visit to China. Beijing will host a China-Africa summit in November.
"Our objective through this cooperation with Africa is to reinforce the capacity of Africa to have its own autonomous development," said Jiabao during his visit to the Congolese capital Brazzaville. "In cooperating with Africa, China is not looking for selfish gains. We are committed to two principles: equality, benefits both ways, and the non-interference in internal African affairs."
NO STRINGS ATTACHED
But human rights groups caution that China's quest for raw materials could undermine respect for human rights and efforts at political reform in Africa.
"We do recognise that China is having an adverse effect on human rights in other countries because by dealing with repressive regimes, such as in Sudan, and putting its economic and trading interests ahead of concern for human rights it's allowing these regimes to be provided with resources that they would not otherwise get so easily," said Sariah Rees-Roberts, a press officer for London-based Amnesty International.
Whereas Western donors often condition aid on political reform and respect for human rights, China essentially asks only one thing of African nations: that they adhere to its one-China policy. African countries that fail to recognise Taiwan as a part of China are unlikely to benefit from investment and debt relief from Beijing.
Likewise, African nations, including those with poor human rights records, can benefit diplomatically. China, as one of five permanent members on the UN Security Council, has already threatened to veto sanctions against Sudan for what some Western nations call genocide in Sudan's Darfur region. Sudan is a key oil supplier to China.
To help fuel its booming economy, China is investing in Africa like never before. The International Monetary Fund (IMF) estimates that Africa's growth is edging towards six percent, the highest in 30 years, due in part to Chinese investment. Total trade between Africa and China should exceed US $50 billion this year and could reach US $100 billion by 2010, according to the IMF.
"On one hand I think it can be very beneficial to Africa - the demand that China is creating for natural resources and products that Africa has," said Walter Kansteiner III, former US assistant secretary of state for African Affairs. "It lifts prices, brings volume up and increases opportunities for increased capital flow and employment opportunities for Africa."
"What is going to be a challenge going forward is to make sure that those increases in supply and demand are matched in an orderly, environmental, and from a human rights point of view, in a proper way," he said.
THIRST FOR FUEL
China's biggest appetite is for petroleum. Angola, sub-Saharan Africa's second largest oil producer behind Nigeria, now exports most of its oil to China. Beijing has invested billions in Angola, Nigeria and Sudan to secure drilling rights.
China also has high demand for other resources, including cotton. Chinese cotton imports from Benin, Togo, Mali, Cameroon and Burkina Faso, have boomed. Imports from Benin alone increased at least four-fold between 2002 and 2004, according to UN commodity trade statistics.
In return, African markets have been flooded with inexpensive Chinese goods such as kitchen utensils, shoes, electronic goods and clothes. Chinese exports to Nigeria, Africa's most populous nation, have doubled since 2002.
However, some African manufacturers, specifically textile manufacturers, have suffered as a result. The South African Textiles Union says some 60,000 jobs have been lost.
"On the one hand learning to stand up against competition is a good thing because that's the way forward, but on the other hand, because the manufacturing sector is quite weak in Africa, that could easily wipe out young industries," said Andrea Bohnstedt, Africa analyst with Global Insight, a London-based economic and political forecasting company. "And also it's obviously politically unpopular because most African countries have quite high unemployment rates already."