Tens of billions of dollars in projects from railways to telecommunications and 36 thousand Chinese workers present in Libya. The revolt underway in the country causes great damage to Chinese firms, accustomed to doing business with dictatorships without thinking about the possible risks.

 Beijing (AsiaNews / Agencies) - The riot in Libya has engulfed the many activities of Chinese firms striving to create billion-dollar businesses in the exploitation of oil fields and infrastructure projects. The Chinese Minister of Commerce announced on its website that on the 24 February 27 Chinese construction sites and plants were "attacked and devastated": the army and rebel groups have attacked buildings, destroyed vehicles and equipment, stolen money and everything else that they could.

With Libya, the 3rd largest African oil producer and 4th largest producer of natural gas, since 2009 China has been its number 1 trading partner with total trade of 6.6 billion dollars in 2010. It had direct investments worth over 9 billion dollars, and in 2010 imported about 7.4 tonnes of crude oil, approximately 150 thousand barrels per day.

An estimated 36 thousand Chinese workers are in the country engaged in dozens of projects worth a total of several billion dollars, the China National Petroleum produces oil and seeks deposits, the China Communication Construction and China Railway Construction Corporation design and build rail lines, the China Civil Engineering Construction is involved in an irrigation project in the Eastern Sahara, China Gezhouba Group builds homes in five southern cities, Huawei Technologies creates infrastructure for mobile telephon communications, and the list can goes on and on.

Chinese workers are now on the run, many fleeing on foot from their destroyed settlements. Yesterday, Beijing had already transported 12 thousand people, even sending a frigate, stationed with the fleet in the Gulf of Aden,  to help protect ships engaged in the evacuation.

China for decades pursued a reckless policy in Africa, concluding business with dictatorial governments, often under embargo by the majority of states. Beijing limited itself to buying up energy and raw material resources, regardless of whether the price paid will be used for the good of the population, rather than to enrich the click in power. Typically it also granted funding for buildings and facilities, providing that the labour force and execution is then assigned to their companies.

The same was done with Libya, Which has now cost its companies, largely state-owned, heavy economic losses.

Zheng Wei, a professor in the Department of Risk Management and Insurance at the School of Economics of Beijing University, notes that "it is an important lesson for the Chinese government. China must learn to consider the global political risks”.

Experts point out that many Chinese businesses in Africa are based on personal knowledge and cooperation with authoritarian regimes. As a result they are highly vulnerable to possible reversals or changes of government.

"The government - concludes Zheng - should not encourage companies to invest, it should seek a greater care and attention to risk factors." Chinese firms have a strong presence in other countries with dictatorial regimes and found to be criticized, such as Zimbabwe, Angola and Sudan. 

• China
• Africa
• Libya
• investment
• risk
• losses
• dictatorship
• regime
• human
• rights