China's Hu seals economic ties in S Africa

PRETORIA, Feb 6 (Reuters) Chinese President Hu Jintao signed economic and agricultural deals in South Africa today as part of his tour of Africa, where there are concerns such agreements will only hurt the continent's poor countries.

After the agreements were signed Hu and South African President Thabo Mbeki said they would boost economic ties between the Asian giant and Africa's biggest economy.

''From our point of view China is indeed one of our most strategical, most important economic partners globally and that will increase,'' Mbeki said after talks with Hu.

Although many African governments welcome closer ties with Beijing, analysts say the continent's poor countries must examine deals with the Asian economic powerhouse and protect weak manufacturing sectors from cheaper Chinese imports.

Hu's most sensitive stop on his eight-nation tour has been in Sudan, where his country's ''no strings attached'' aid policy has infuriated many in the West who want China to use its economic muscle to persuade Khartoum to end atrocities in its Darfur region.

Asked if the subject was raised during his trip, Hu said he had discussed it with Sudanese President Omar Hassan al-Bashir but that he hoped for a peaceful solution.

''China does not interfere into other countries internal affairs and impose its own ideology, political system or mode of development to any other country,'' he said, adding that his country's ties with Africa were based on mutual trust.

Mbeki said he and Hu were working for a speedy end to the Darfur crisis based on a UN Security Council resolution to deploy a 22,500-strong UN peacekeeping force to Darfur, which Khartoum calls an attempt at Western colonisation.

David Monyae, an international relations lecturer at the University of the Witwatersrand in Johannesburg, said South Africa was better placed for a mutually beneficial relationship with China than some of its poorer continental neighbours.

''The figures reflect (trade with South Africa) is in China's favour. That is a gap that should really be closed in any relationship,'' Monyae told Reuters.

Monyae said China was a potential source of growth for several of South Africa's highly industrialised sectors but added: ''Most African countries are negotiating with China from a position of weakness in all respects.'' On Saturday, Zambian President Levy Mwanawasa and Hu declared the little mining town of Chambishi, 420 km north of Lusaka, a special economic zone where Chinese firms will be exempted from paying certain taxes.

ANTI-CHINESE SENTIMENT There has been a rise in anti-Chinese sentiment over fears it is exploiting local workers and that its growing economic muscle in Africa could undermine regional industries.

Trade links between China and Africa have jumped since 2004 when Hu announced a drive to boost ties with the energy- and mineral-rich continent.

At a Sino-African summit in Beijing last year, Hu offered 5 billion dollars in loans and credits to Africa along with a doubling of aid.

Over the past year Beijing has suffered its oil workers being kidnapped in Nigeria, its investment policies being attacked in Zambia's elections and its textile exports to South Africa being criticised for destroying jobs.

Reuters SRS VP0122