Archive - Apr 23, 2008
Southern Africa Refuses Chinese Arms
A Chinese Foreign Ministry spokeswoman has declared that a recent shipment of arms from China to Zimbabwe is completely unrelated to the current post-election tension in the country and is part of “perfectly normal trade in military goods between China and Zimbabwe.” But this hasn’t stopped the 300,000 member South African Transport and Allied Workers Union from refusing to unload the shipment.
The South African workers refusal to accept the arms shipment has been publically echoed by the governments of Angola, Mozambique, Namibia and Tanzania with their refusal to accept the arms and ship them overland to Zimbabwe. The U.S. has voiced its support of these countries on the matter and urged the Chinese government to recall the shipment. Although the South African government itself has not endorsed the refusal of the weapons, South African citizen action coupled with the support of neighboring countries has essentially created an informal embargo of the Chinese weapons. These actions contrast sharply with President Thabo Mbeki’s policy of quiet diplomacy, and refusal to deem Zimbabwe's current political and economic woes a "crisis."
I think this story is an incredibly powerful demonstration of the power individuals and governments have when they work together to take a stand on an issue.
Fortune in the Tea Leaves

There's at least one commodity in the world whose rising price is benefiting rural families rather than bankrupting them.
Tea farmers in China's Yunnan Province are prospering thanks to rising popularity of Pu'er tea in Shanghai, Beijing and Hong Kong. A few decades ago, the ancient tea was widely unknown, but recently has become fashionable for its celebrated health benefits. Some Chinese believe the tea can help you lose weight and even cure cancer.
The price of Pu'er tea has risen dramatically in recent years. In 2004, a kilo of Pu'er sold for about $1. By last year the price of that same one kilo had risen to $800, although it still varies widely depending on where it's grown and how it's aged. (Last year, for example, 17.5 ounces of Pu'er tea from the 1940s sold for $125,000, according to the International Herald Tribune.) Chinese investors are saying aged Pu'er tea is a better investment than stocks or gold.
Thankfully, the wealth from Pu'er is trickling down to the tea farmers and pickers. The New York Times reports that in the hilltop village of Manmai, the unexpected fortune has permitted villagers to build their homes using concrete rather than sticks and reeds. In peak tea-picking season, young workers can earn up to $1000 a month, which is more than their peers are making in Beijing's factories — a rare rural wage advantage in today's industrialized China.
Will India be the One?
A scramble for Africa’s resources and major manufacturing outlets has begun. India and China are emerging as competitors as each country looks to make its mark on the continent. India attempted to entice African leaders last week at an India-Africa Summit. The aim was to persuade them to welcome Indian investment. They are pushing to keep up with China’s plans to meet with African leaders at an even bigger summit they plan to host in May.
What could make India the one to successfully invest in Africa? For one, India has a history of close relations in Africa dating back to colonial times. Recently, India has also been a major aid donor to Africa along with sending about 9,000 UN Peacekeepers to the continent. However, India has tried to separate its recent efforts from China’s presence in Africa by insisting its interests are mostly focused on development.
Could India find a place as a new economic powerhouse in Africa?


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