CHINESE ECONOMIC OUTREACH IN THE KASAIS

C O N F I D E N T I A L KINSHASA 000447

SIPDIS

SIPDIS

E.O. 12958: DECL: 03/15/2016
TAGS: PGOV PREL ETRD EMIN ECON CG CH
SUBJECT: CHINESE ECONOMIC OUTREACH IN THE KASAIS

REF: A. 05 KINSHASA 1614

B. 05 KINSHASA 1067

Classified By: PolOff CBrown, reasons 1.4 b/d.


1. (C) During a February 21-24 visit to Western and Eastern
Kasai by EconOff and PolOff, the Chinese ambassador to the
DRC, Fan Zhenshui, also visited the region. According to
MONUC and other sources in the provinces, the Chinese
ambassador met with a variety of local business and political
leaders, and used the occasion to promote greater economic
cooperation between China and the DRC.


2. (C) Ambassador Fan began his visit in Mbuji-Mayi (Eastern
Kasai) February 21. The provincial capital currently has a
Chinese presence, mostly in the medical industry. Chinese
businessmen and the Chinese government run several
pharmacies, polyclinics and health centers throughout the
city. Often the medical clinics are the only form of health
care in Mbuji-Mayi. Also, a Chinese engineering contingent is
presently housed directly across from the governor's
residence. This group assists in rebuilding roads in
Mbuji-Mayi and throughout the province. By all accounts, the
Chinese have been warmly received in the city, as evidenced
by the banners hung at the airport and elsewhere welcoming
the ambassador's arrival.


3. (C) The official reason for the ambassador's visit to
Mbuji-Mayi was to launch Congo China Telecom (CCT),a local
subsidiary of a Chinese telecommunications firm. During his
visit to CCT, Ambassador Fan reportedly said increased
commercial exchanges with China will contribute to economic
growth in the DRC. The ambassador also demonstrated increased
Chinese interest in the diamond industry, which is the
dominant sector in the Kasais (septel). The ambassador toured
MIBA's concession, the "polygon," and, according to MONUC,
several diamond comptoirs (trading houses). The Chinese do
not currently have a large investment in this sector.


4. (C) Ambassador Fan next traveled March 24 to Kananga
(Western Kasai). Again, the ambassador met with local
officials, military officers as well as intelligence and
migration officials. According to MONUC sources, the Chinese
delegation highlighted the potential for trade and other
projects between China and the DRC, particularly
road-building and energy.


5. (C) The Chinese touted their famously strong textile
industry, which is taking over the Congolese fabric business.
According to a MONUC official, during a February 24 meeting
with MONUC officials and local authorities, the ambassador
said (reportedly in a joking manner) that the U.S. should
fear the Chinese textile industry more than China's atomic
bomb. The ambassador said Chinese fabrics are his country's
"weapons of mass economic destruction." Ambassador Fan added
that China's next secret weapon would be Chinese-manufactured
cars.


6. (C) Comment: A four-day visit by Ambassador Fan is itself
an unusual event, as he does not regularly travel outside
Kinshasa. Therefore, his trip should be noted as a sign of
China's growing economic interest in the DRC, particularly in
the diamond sector. Whatever the extent of any future
partnerships between the two countries, it is clear both
sides are amenable to building stronger ties. End Comment.
MEECE