World Economy

Africa to Focus on China Debt

Africa to Focus on China DebtAfrica to Focus on China Debt

Some African countries may seek to renegotiate repayment of existing debts to China as a way of helping their economies hit by lower crude and commodity prices, but will not turn down offers of new loans by the Asian giant at a summit this week, Reuters reported. African countries will also seek more Chinese investment in factories manufacturing goods for export in addition to roads and railways on a continent long seen as a major commodities and energy source for China. Chinese state-owned firms in Africa face criticism for using Chinese labor to build government-funded projects like roads and hospitals, while pumping out resources and leaving little for local economies, an image Beijing wants to change at the Forum on China-Africa Cooperation in Johannesburg on Dec. 3-4. China is Africa’s largest trading partner and the trade volume between them amounted to $220 billion in 2014, according to Xinhua. Its investments in Africa amounted to $32.4 billion at the end of 2014.