China says Zim is following wrong policies

CHINA believes that Zimbabwe is following wrong policies and despite the much-hyped about cordial relations between Beijing and Harare, tensions exist.

According to two separate United States classified cables written in 2009 and last year, China is also reaching out to Prime Minister Morgan Tsvangirai.

In a leaked cable about a conversation between US ambassador, Charles Ray and Chinese ambassador, Xin Shunkang, the latter is alleged to have said Chinese companies were currently experiencing problems doing business with the government because of lack of coordination among and between ministries.

The Chinese ambassador is alleged to have said in dealing with the country's inclusive government, his country's policy is to treat all parties equally.

"At a December 18 meeting at the PRC (People's Republic of China) embassy, ambassador Xin Shunkang outlined in limited detail, the policies and priorities of the PRC in Zimbabwe.

"Xin's English is limited, but he managed to do most of the meeting without referring to his interpreter. The main issue for China in Zimbabwe is economic stability and development. In order to develop, this country needs Foreign Direct Investment, but in order to attract investors, it must have the 'correct' policies. Currently, he said, it does not," reads part of the cables.

The Chinese envoy is alleged to have said ZANU-PF and the Movement for Democratic Change (MDC-T) must learn to get along and as the more experienced member of the partnership, ZANU-PF has the greater responsibility.

"Despite the outward signs of a close friendship, he said, there are some tensions in the ZimbabwePRC relationship.

"China has, for instance, proposed an agricultural demonstration project to teach improved farming, but it has been blocked because of the Zimbabwean hang up over land ownership.

"He said that China understands the importance of land to Zimbabweans, and that redistribution of the land since independence was necessary. But, ownership is meaningless if the land is not utilised properly," the cables further said.

Another cable touched on Chinese involvement in Zimbabwe's economy, which it said became more pronounced after the government adopted the 'Look East Policy' in 2003, through which it sought to emphasise new ties with China.

The cable said a construction project in which the Chinese where involved, the Harare- Bulawayo Road, once collapsed amid allegations of poor workmanship and corruption.
The cable noted that in 2009, Zimbabwe officials announced a multi-billion dollar Chinese investment in platinum mining, but there is no evidence of actual investment.
It added that the government's severe fiscal constraints have put limits on Chinese engagement.

"The Government of Zimbabwe (GOZ) is in arrears on its US$400 million in official debts to China, and this has blocked access to lines of credit reportedly worth as much as US$950 million. According to GOZ figures, as of March 2009, Zimbabwe owed US$37,2 million to China in unpaid principal and interest," the cable added.

"While China has remained silent on these subjects, it has moved from sole support of ZANU-PF to a more balanced approach and now has relationships with both ZANU-PF and MDC-T. The Chinese embassy recently sponsored a golf tournament in honour of Prime Minister Tsvangirai.

"While China may share an interest with the US in restoring Zimbabwe's investment climate, progress in this area ultimately depends on governance reforms."