Chinese investors retreat from US$3 billion deal in Afghanistan

Chinese investors retreat from US$3 billion deal in Afghanistan

David Nealis President of Ceres Ltd
www.ceres888.com

Jiangxi Copper and China Metallurgical Group are seeking to review a US$3 billion copper production contract in Afghanistan, China’s Ministry of Mines reported. 

According to reports, Jiangxi Copper and China Metallurgical Group are demanding new terms that would slash the royalties they have to give the Afghan government, also freeing them of their agreed obligation to build a copper smelter and a power plant, as well as pushing back the schedule for the laying of a railway in Afghanistan. The Afghan President is expected to travel to China to discuss this development and try to save the deal. 

China, the world’s 2nd largest economy, continues to be the most important market for companies looking for growth and Chinese companies continue to globalize by investing and selling their products in new markets; what is your company’s strategy for engaging China?

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