China offers aid for poor states rejecting Taiwan Options

[taiwan_honbura]

14 Sep 2005 18:38:19 GMT
Source: Reuters
UNITED NATIONS, Sept 14 (Reuters) - Chinese President Hu Jintao offered the world's poorest countries tariff-free trade, debt relief and cheap loans on Wednesday -- but excluded about a dozen states which recognize China's rival Taiwan.

Hu used his speech at a United Nations summit to underscore fast-growing China's support for the developing world, calling on rich countries to open markets, forgive debt and boost aid to the least developed countries -- 50 mostly African states.

But the Chinese leader, who on Tuesday prodded U.S. President George W. Bush to help curb independence sentiment in Taiwan, also used the U.N. summit to wage Beijing's diplomatic battle against the self-ruled island.

"China has decided to accord zero tariff treatment to certain products from all the 39 least developed countries having diplomatic relations with China, covering most of the China-bound exports from these countries," Hu said.

The offer excludes states that have diplomatic relations with Taiwan because Beijing does not allow countries to recognize both China and Taiwan.

Poor countries that recognize China would also enjoy debt forgiveness and interest-free loans, said Hu. He noted that China had already reduced or canceled debt to some African states.

Countries that have diplomatic ties with Taiwan and are among the world's 50 poorest states include Burkina Faso and Malawi in Africa, Haiti and several South Pacific states, including Tuvalu.

Taiwan, home of the Republic of China government which fled to the island after the Communists won China's civil war in 1949, is recognized by about two dozen countries. Taipei and Beijing have long used aid in their diplomatic competition.

China claims sovereignty over Taiwan and refuses to rule out the use of force in the event the island's democratically elected government seeks independence.

China's emergence as an export juggernaut has caused friction with rich countries grappling with huge trade deficits, but developing states have also faced withering export competition from China.

Indirectly addressing those concerns, Hu described China as a "medium- and low-income developing country" and vowed to keep opening its economy to share opportunities.

"China will engage in equal-footed cooperation with the rest of the world to promote a situation where countries can share their successes as winners," the 62-year-old leader told the United Nations.

http://www.alertnet.org/thenews/newsdesk/N14663461.htm

[taiwan_honbura]

Hey Honbura, those guys that invested money did so for cash, not for charity.  I'm sure they're riding the silk road also.

But don't you think China should use some money to invest in the infrustructure of China instead? Alot of poorer areas are still struggling in poverty.