Opposition leader asks to retain china ties: Zambia

LUSAKA: Zambian opposition leader Michael Sata, who stands a fair chance of an upset in next week's presidential election, said on Friday he would maintain strong economic ties with China despite his previous criticism of Asian investment.

The Patriotic Front (PF) leader has accused Chinese mining firms of creating slave labour conditions in Africa's top copper producer with scant regard for safety or the local culture, but has tempered the rhetoric as the Sept. 20 election has neared.

"Why should they not continue?" he told Reuters in an interview when asked whether he would keep the strong economic and commercial ties with China if he won Tuesday's elections.

"We have a bilateral relationship with the People's Republic of China and we are grateful that now China and Taiwan are getting on well," added Sata, who supports autonomy for Taiwan.

Chinese investors have become major players in Zambia's economy, with total investments by the end of 2010 topping $2 billion, according to data from the Chinese embassy.

Sata, a gruff 73-year-old nicknamed "King Cobra" for his venomous tongue, said all foreign investors would be allowed in Zambia as long as they respected local laws.

He also gave assurances that the PF, if it were elected, would not bring back mining windfall taxes, but said it would restrict the removal of foreign exchange from the country in order to support the local economy.

Exporters would be compelled to keep their foreign exchange earnings in Zambia and would only be allowed to send out their profit, he said.

"Our currency is weak because it has no foreign exchange support," Sata said.

Copyright Reuters, 2011