After Pakistan, China plans to capture THIS African country in its debt-trap, Chinese companies to invest Rs 30521037715 for...

India.com

2 days ago

(File)
China debt-trap: China, which has the mastered the art of gaining a giant foothold in smaller, economically weaker countries by making large investments in its various sectors, has now set its sights on Angola as two Chinese companies have signed deals to acquire land to grow food grains in the African country at an investment of $350 million (about Rs 3,052 crore). Where is China investing?
According to a media report, the state-owned Chinese firms will invest Rs 3052 crore in Angola, to cultivate soybean, maize and other grains on thousands of hectares of land, a portion of which will be shared with the host country. The project is aimed at reduce China's dependence for food grains on the United States and Brazil.
Notably, in recent years, China has invested in similar projects in other African countries including Tanzania, Ethiopia and Benin, as it pushes to end dependence on food exports from the West. Which companies are investing in Angola?
As per a report by the South China Morning Post, two state-owned companies– SinoHydro Group and Citic Group — have signed agreements to invest in Angola. The SinoHydro Group has been leased 30,000 hectares of tax-free land for 25 years, up which it will cultivate food grains, with 60% of the produce going directly to China.
The Citic Group will invest $250 million in the next 5 years and cultivate soybean and corn on a massive 100, 000 hectares of land, the report said, adding that work has already begun on 8,000 hectares. How China is luring African countries?
According to experts, China is offering a major relief to African countries after US President Donald Trump imposed heavy tariffs on their export. Earlier, in June, Beijing announced to eliminate import duties on goods coming from nearly all of its African partners, providing these nations with a never-before opportunity to strengthen South-South trade, as per a CNN report. Why China is investing in Africa?
However, many geopolitical analysts are skeptical of China's growing investments in Africa, stating that Beijing's goals are strategic and go well beyond the noble aim of ensuring food security. Several experts claim that China is taking tax-free land on a long lease period to strengthen its hold in Africa and reduce imports from the West, particularly the US.
Before the farming deal, China and Angola had an 'infrastructure for oil' exchange deal, but now the African country has shifted focus to agriculture to ensure its economy does not remain dependent on a single resource.