/ 5 January 2007

China signs deals worth $80m with new ally Chad

China has signed a series of loan, debt relief and economic cooperation agreements worth $80 million with Chad, less than six months after the oil-producing central African country restored diplomatic ties with Beijing.

”The total value of these deals is estimated at about $80-million,” Chad’s Foreign Ministry said in a statement following a visit by China’s Foreign Minister Li Zhaoxing.

Chad cut its ties with Taiwan in August, becoming the latest African country to switch allegiance to China as the Asian giant increases its economic and political influence on the world’s poorest continent.

China has made a major push to secure access to Africa’s vast reserves of minerals and oil as it seeks to supply its booming economy, offering low-interest loans and other incentives from cheap flip-flops to football stadiums.

Li was in Chad during a tour of Africa, which has so far included Benin, Equatorial Guinea and Guinea-Bissau. He is due to move on to Central African Republic, Eritrea and Botswana over the next few days. — Reuters