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VOL.4 May 2012
Taming King Cobra
Zambian President Sata softens his hard line stance on Chinese investment and influence
by Jessica Achberger

When Zambia's Patriotic Front opposition leader Michael Sata took power with a 41.98 percent poll victory in September last year, the country signaled it was ready for change.

While Zambians were anxious to see if Sata could eliminate corruption and close the gap between rich and poor, the rest of the world watched to see if he would stick to his hard line rhetorical stance against the Chinese.

 

China and Zambia

Although the focus is usually on the role China has played in Zambia in the 21st century, in reality Zambia's relations with China pre-date the modern period, going back to the time of Zambia's independence.

After Zambian independence in 1964, the Chinese quickly established diplomatic relations, being the first to begin building an embassy in the Zambian capital of Lusaka.

The biggest problem Zambia faced in the late 1960s was the Unilateral Declaration of Independence by Rhodesia (now Zimbabwe), which cut off Rhodesia Railways, Zambia's main transportation route. The rail line was necessary for Zambia to get out its main export, copper, as well as to transport the many imports crucial for the landlocked, underdeveloped nation.

The Chinese came to Zambia's aid, financing and assisting with the construction of the $500 million Tanzania-Zambia (TanZam or now TAZARA) Railway, which was built from 1970 to 1975.

While China limited its foreign interactions during the era of Deng Xiaoping, the 21st century has seen a renewal of close ties between Zambia and China. Due to the changes in the Chinese and Zambian economies toward increasing private ownership, many of these connections have taken the form of private sector investments in Zambia, often in the mining industry, but there are also both large and small Chinese aid initiatives.

In 2010, for instance, the Chinese Government gave the struggling Tanzania-Zambia Railway Authority a $39-million interest free loan to help rebuild the line and restructure the company.

 

Sata and China

Known as a radical politician, Sata has long been a critic of the Chinese in Zambia. However, compared with the anti-Chinese rhetoric of his 2006 campaign, in 2011, Sata had already begun to loosen his stance, and has only continued to do so since his election.

In his 2006 campaign, "King Cobra," as he is popularly known, spoke out strongly against Chinese investors, even threatening to deport them and any other foreigners (notably Indians and Lebanese) found to be violating Zambia's labor laws. In response, the Chinese Government threatened to cut diplomatic ties with Zambia if Sata was elected.

Yet in his 2008 and then his 2011 campaign, there was a considerably less hostile slant to his references to China, making it appear on the surface that his previous rhetoric was simply to create political and media interest.

Rather than threatening to kick the Chinese out, in his 2011 campaign, Sata was much more pragmatic, although many media outlets continued to focus on his anti-China stance. In fact, Sata focused his campaign on populist economic development, and noted that foreign investment would be allowed to continue, so long as it promoted Zambian development and followed Zambian laws and regulations. 

There have been many calls on President Sata, particularly from the international community, to take on Chinese investors. Specifically, reports focus on the violation of Zambian and international labor laws by Chinese companies, most notably mining companies. .

Yet, despite these issues, Chinese Ambassador Zhou Yuxiao was the first diplomat to be entertained by President Sata, on his first day of office. Recently, Sata has even met with Chinese investors. The 14-person delegation from Beijing was led by Luo Tao, General Manager of the China Nonferrous Metal Mining Co., the largest Chinese investor in Zambia and a Chinese state-owned enterprise.

 

Future relations

In his inauguration speech, Sata claimed, "Foreign investment is important to Zambia, as it does not only create jobs but equally contributes to the economic empowerment of Zambians…It's our hope that investors will abide by the labor laws of the country ensuring that Zambians are not disadvantaged."

Sata's new stance is the right one for Zambia. Foreign investment is necessary for the Zambian economy, not just in mining, but in agriculture, manufacturing, and tourism as well. However, it is crucial that Sata ensures Zambia enforces labor, tax, and environmental regulations on all companies, foreign and domestic.

It is also the Chinese companies' responsibility to learn the laws of Zambia and work under them. China and Zambia have had a long history of relations that seems set only to grow in the coming years. Sata in his short reign as president has seen the potential benefits of further relations. Now it is crucial that this relationship is based on mutual respect as well. 

(The author is a historian, writer, and editor who divides her time between Lusaka, Zambia and Suzhou, China.) 

 

 

 

 

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