China has announced new investment into mining, manufacturing and farms worth 800 million US dollar in Zambia, the latest stop on President Hu Jintaos African tour, BBC Online reports Sunday.
After talks in Lusaka with President Levy Mwanawasa, the two leaders said a special economic zone would be created in the town of Chambishi in Zambias copper-mining area, north of Lusaka. Chinas expanding economy needs huge amounts of copper.
Chinese companies will be able to operate there without having to pay import or value added taxes. The government contends the deal will benefit Zambia, but the opposition says China is exploiting local workers.
China has already invested in mines and factories across Zambia. Beijing also agreed to write off part of Zambias bilateral debt to China.
Chinas economic power has been condemned by some Zambian workers and the opposition. A decision by Chinese owners to close Zambias largest textile firm prompted unrest last month.
President Hu is on a 12-day tour of Africa aimed at strengthening economic and political ties.
