China and Zimbabwe to Achieve Mutual Benefit

Hello and welcome to this edition of Africa Express here on China Radio International. I'm your host, Wei Tong.

Last time, Hu Ming, the economic and commercial counselor at the Chinese embassy in Harare, shared with us about the current economic and trade ties between China and Zimbabwe, as well as ongoing and potential cooperation between the two sides. However, behind the boosted economic ties, some problems still exist. What are they? How can they tackle them? How will China play a role to benefit both sides? Today, we present the second part of the dialogue between Hu Ming and our correspondent Cheng Qinghua.

Q4: What are the major problems facing bilateral trade right now? What are the possible solutions to these problems?

A: (Zimtrade 4) Presently, some Chinese companies in Zimbabwe has met some payment problems with local contracted projects. Because the owners often fail to make payments in due time, the construction process has to be temporarily stopped. Another issue is with the local currency, the Zimbabwean dollar, devaluing so quickly, once payment is in place, it loses its value sooner than anticipated, rendering Chinese construction companies unable to continue their operations.
With an average inflation rate of 2000% or more in Zimbabwe, large-scale projects like roads, hydropower dams and other heavily invested projects can never meet their budgets. It's not an easy job to work out a solution to such problems.

Q5: In what ways do you think that Chinese business communities benefit local Zimbabweans?

A: (Zimtrade 5) I must say that Zimbabwe is rich in natural resources. As for Chinese investors, growth and profits should be viewed with sound management and with local consideration. One must render an acceptable share in mining business ventures with local partners. Meanwhile, the Chinese business community must try to create more jobs for local people with better payment packages, taking local consumption levels into account.

As we all know, Zimbabwe has struggled with serious unemployment, as high as over 70% as reported, and most of them are young adults. It's crucial for Chinese investors and business operators to create more job opportunities, benefiting the long-term development of both Chinese-invested projects and local communities.

As we continued our talk on bilateral trade relations between China and Zimbabwe, an idea came to me. China has been in the process of economic reform for over 20 years. The unfolding economic miracle, with an average growth rate of over 10% each year, is discussed worldwide. I invited the Chinese commercial and economic councilor to elaborate on the experiences that China has accumulated to share with and benefit other developing countries including Zimbabwe.

Q6: What do you think Zimbabwe can learn from China's economic policies and practices?

A: (Zimtrade 6) China has experienced a rapidly growing economy. But it is very hard for Zimbabwe to copy that success, as the two countries have very different national conditions in terms of ideology, history, political and economic systems and property rights, among others. It is very unlikely to copy the Chinese model. Chinese economic reforms are no copy of any country. It is the Chinese people who have innovated and pioneered Chinese-featured economic solutions to the development of its country. Zimbabwe must try and create its own model on the basis of its unique conditions.

That was CRI correspondent Cheng Qinghua talking with Hu Ming, the economic and commercial counselor at the Chinese embassy in Harare.