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China 'gifts' $55m to Sierra Leone for fishing harbour

Author
CNN,
Publish Date
Sat, 22 May 2021, 3:08pm
Tokeh Beach, close to the land earmarked for development, outside the Sierra Leone capital Freetown. (Photo / CNN)
Tokeh Beach, close to the land earmarked for development, outside the Sierra Leone capital Freetown. (Photo / CNN)

China 'gifts' $55m to Sierra Leone for fishing harbour

Author
CNN,
Publish Date
Sat, 22 May 2021, 3:08pm

China is once again causing controversy in Africa for doing something that, in theory, should win praise -- giving away money.

This week, it emerged Beijing had secretly gifted Sierra Leone $55 million to fund a controversial "fishing harbour" on an undeveloped stretch of coastline, which supports the local fishing industry, borders protected rainforest, and is home to endangered turtles and pangolins.

The deal only came to light after residents were told by officials in the Whale Bay area, where the harbour is planned, that there was a hold on any land exchanges because of a Chinese deal, says Jane Aspden Gbandewa, who runs an an eco-tourism business in the area.

The rumour mill got busy. The Chinese were allegedly funding the sort of fish meal factory that has proliferated along the West African coast recently -- businesses that are devastating to the local environment, gobbling up vast quantities of fish and spewing out toxic, odorous waste.

Beijing and Freetown were forced to deny the rumours but acknowledged a deal had been made -- even if no details were forthcoming.

On Tuesday, Sierra Leone President Julius Maada Bio said the project was part of Beijing's "international Belt and Road Initiative" and would support the local fisheries sector. All "environmental due diligence will be done," he added.

Nevertheless, such moves don't align well with President Xi Jinping's calls to build an "ecological civilization" at home in China, and his determination to be a global leader on the climate crisis.

In a statement to CNN, a spokesperson for China's Foreign Ministry said "a modern fishing pier" had been a "long-cherished wish" of the people of Sierra Leone since the 1970s.

The Foreign Ministry declined to clarify which Chinese bank or body was involved, when the funds had been exchanged -- or if they were still in China -- and the terms of the grant: such as whether a Chinese company will carry out the construction work. It simply said: "The ownership of the land and the port belongs to Sierra Leone."

Expansion of Sierra Leone's fishing industry, vital for its food security and export industry, could be a boon for the country, if done responsibly. Yet caginess around money only breeds suspicion -- even if it is a common factor in many deals brokered by China. A study of Chinese loan contracts earlier this year revealed secrecy clauses are a staple of Belt and Road deals.

As Cobus van Staden, senior China-Africa researcher at South African Institute of International Affairs, wrote this week: "The result is that any Chinese deal, no matter how above-board, comes in for suspicion, already pre-tainted by the massive trust gap between national governments and local communities."

"It's no surprise that the 'debt trap' narrative has proven so durable in Africa," Van Staden added. "Even as its specifics have been debunked many times, the story fits so neatly into the continent's lived experience that it'll likely never die."

The business of China: Uniqlo's border dust-up

Uniqlo's recent brush with United States border authorities is the latest example of the growing risks multinational companies face while operating in China.

US authorities blocked a shipment from the Japanese clothing retailer in January, citing concerns the shirts may have been produced through forced labour in the Chinese region of Xinjiang. Uniqlo denied the claim in a statement to CNN Business and said it was "disappointed" by the decision. (China has repeatedly denied human rights abuses in the region.)

Uniqlo was one of more than 80 companies the Australian Strategic Policy Institute has said was "directly or indirectly benefiting from the use of Uyghur workers outside Xinjiang through abusive labour transfer programs."

But in its statement, Uniqlo said it sent documents to US customs officials "to demonstrate that our products meet US import requirements," adding that all of its products "use only cotton that originates from sustainable sources."

The clothing brand, which is owned by Japan's Fast Retailing, faces a tricky balance in its messaging. In China, a key market for Uniqlo, brands like H&M have faced boycotts for expressing concerns over forced labour in Xinjiang. But if Uniqlo doesn't take a forceful stance, it risks alienating consumers in other markets.

The reality for Japanese companies poses a unique challenge: Though the government is a key American ally, China is a neighbour and the biggest market for Japanese corporates.

Another Japanese clothing brand, Muji, has taken a different approach, saying it continues to use cotton from Xinjiang, and even advertising products made with "Xinjiang cotton."

- words by By Selina Wang, Jenni Marsh and Nectar Gan, CNN

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