Why China Backs Mugabe’s Zimbabwe: Money

CHINA supports the Mugabe regime in Zimabawe. Why? Why:

In a series of barely reported developments over the years, the Mugabe regime has progressively “nationalised” – i.e., expropriated – these assets, culminating in a deal with China in 2005 when he sold mining rights to China. The foreign exchange earnings made from this deal have kept the regime alive, allowing Mugabe to buy what he needs, and keeping his supporters financed.

China also keeps Mugabe supplied with weapons to underpin his power base – at enormous expense. In June 2004 alone, Zimbabwe purchased from China 12 FC-1 fighters and 100 military vehicles worth an estimated $240 million. The order actually went above and beyond the $136 million defence budget.
The huge wealth from mining revenues, directed straight into Mugabe’s coffers, the amount of financial leverage that the UK – with or without the EU – can exert is minuscule. In fact, EU aid between 2002 and 2007 was worth €107.5 million and in 2008, the “assistance” is expected to be around €25 million.

This compares with the recent increase in platinum production, from 90,000 ounces per year to 160,000 ounces annually. Additionally, through a parallel deal with the Chinese, nickel production has increased from 1,540 tons to 2,900 tons annually. As a result, reported in May of this year, mineral exports, with the exception of gold, for the first four months of the current year stood at $302 million.

And Gordon Brown condemns it all in the strongest possible terms. No chance…

Anorak

Posted: 14th, July 2008 | In: Money, Politicians Comment | TrackBack | Permalink