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Chinese premier pledges funds, aid to Africa
By TAREK EL-TABLAWY (AP Business Writer)
From Associated Press
November 08, 2009 6:02 AM EST

SHARM EL-SHEIK, Egypt - China's premier on Sunday pledged $10 billion in concessional loans to African nations over the next three years and said Beijing would cancel the government debts of some of the poorest of those countries, as the Asian powerhouse looked to deflect criticism that its investments in the continent were motivated purely by greed.

At a two-day China-Africa summit that began on Sunday, Wen Jiabao also said China would build 100 new clean energy projects for Africa over the same period as part of an effort to help the continent deal with climate change issues.

The pledges are part of China's increasing push into Africa, a drive that has drawn criticism from some who argue that Beijing's quest for natural resources to fuel its growing economy is ignoring the troubling human rights record of many of Africa's governments.

"The Chinese people cherish sincere friendship toward the African people, and China's support to Africa's development is concrete and real," Wen said at the forum that attracted troubled leaders such as Sudan's Omar el-Bashir and Zimbabwe's Robert Mugabe."

"Whatever change that may take place in the world, our friendship with African people will not change," Wen said. "Our commitment to deepening mutually beneficial cooperation ... will not change, and our policy of supporting Africa's economic and social development will not change."

Wen said that as part of its support for Africa and growing trade ties with China, Beijing would take eight new measures over the next three years, including helping Africa build up its financing capacity.

He said China would provide $10 billion in concessional loans to African countries and support Chinese financial institutions in an effort to set up $1 billion in special loans to small and medium sized African businesses. He also said that for the most heavily indebted and least developed African nations, China would cancel their debts associated with interest free government loans set to mature at the end of this year.

The caveat was that the debt forgiveness was restricted to those nations that have diplomatic relations with China - a condition likely to rankle critics who argue that China has made its support conditional on countries backing it fully, including by renouncing ties with Taiwan.

Wen said that China would also build 100 clean energy projects for the continent, covering solar power, biogas and small hydro plants. Other initiatives under the plan include boosting training of African professional, new schools, and phasing in zero tariff treatment for 95 percent of the products from the least developed countries that have relations with Beijing.

Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.