NAMIBIA-CHINA RELATIONS

UNCLAS WINDHOEK 000122

SIPDIS

DEPT PASS TO USAID
DEPT FOR AF/S, EAP/CM
LONDON AND PARIS FOR AFRICA WATCHERS

E.O. 12958: N/A
TAGS: PREL PGOV EAGR ECPS EFIN MARR SENV TRGY WA
SUBJECT: NAMIBIA-CHINA RELATIONS

REF: STATE 41697

This cable is in response to reftel. Sub-headings reflect questions
1-3 in reftel.

Focus Areas of Chinese Engagement in Namibia
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1. China's focus in Namibia is mainly economic and commercial, with
an underlying political objective of maintaining Namibian support
for Chinese positions on certain issues (One China policy, Taiwan,
UN, etc.). Chinese firms dominate the Namibian construction
industry and have faced numerous allegations, including by some
government officials, that they have improperly won government
construction tenders. Local construction companies and human rights
groups have accused Chinese firms of disregarding labor laws and of
paying workers less than industry-mandated minimum wages. Small
Chinese retail operations have a growing presence across Namibia in
trade and the sale of household goods. There are indications that
local Namibians have growing resentment for the Chinese retail
enterprises that are reportedly adversely affecting Namibian small
and medium enterprises in rural Namibia. China's long-term interests
in Namibia are tied to Namibia's raw materials (uranium, zinc, and
liquid natural gas that could be produced in the future),as well as
interest in possible large-scale Namibian mineral exports to China
and increased Chinese participation in infrastructure development in
Namibia. China also has a space tracking station located on the
Namibian coast.


2. According to GRN statistics, Chinese exports to Namibia were
approximately US$88 million and Namibian exports to China totaled
approximately US$114 million in 2007.


3. Military cooperation with China is significant. China has an
extensive bi-lateral cooperation effort with Namibia that includes
Namibia-based pilot training, donations of Chinese military hardware
as well as China-based professional military training for NDF
personnel. In 2007 alone almost 30 military personnel attended
training courses in China. Senior Ministry of Defense personnel
make regular trips to China and often look east when making
decisions.

Engagement Between China and the U.S.
--------------


4. There are no current areas of cooperation in Namibia between the
U.S. and Chinese Missions other than routine discussions amongst
diplomats and military attaches.

Possible Areas of U.S.-China Cooperation in Namibia
-------------- --------------


5. Possible areas of cooperation could be arranged by bringing
China into closer coordination with other donors, particularly in
the health sector where China is relatively active. This could lead
to a decrease in overlap and possible synergies. Trade development
is another possible area.

MATHIEU