By MAIMBOLWA MULIKELELA  –
CHINESE direct investments into Zambia have increased to US$130 million due to existing  strong trade relations between the two countries.
This has been complimented by  an increase in  trade volumes which last year soared to $3.8 million from $3.4 million recorded in 2012.
Chinese Ambassador Zhou Yuxiao said that country’s  investment into Zambia did not include loans and humanitarian Aid.
In an interview in Lusaka yesterday, Mr  Zhou said  trade volumes between Zambia and China stood at US$ 3.8 billion last year compared to US$3.4 billion posted in 2012.
“I am happy to see our investments increasing gradually and our Aid  and loans are  also increasing but as far as loans are concerned, we cannot increase further because we don’t want the country to go back into a debt trap,” he Zhou said.
China remains an active partner in the economic development of Zambia and that,  Chinese firms have invested in all sectors of the economy, including agriculture, manufacturing, retail and construction
The ambassador also projected that  trade volumes would increase this year due to continued trade ties between the two countries.
“We  hit an all time high in trade figures which reached US$3.8 million in 2013  from the US$3.4 million in 2012,” he said.
Mr Zhou said China last year,  exported between US$600 million and US$ 700 million worth of goods to Zambia.
On the other hand, Zambia exported about US$3.2 million into China with copper accounting as a major export product into that country.
“Zambia is enjoying a big trade surplus with China  which is more than US$3 million and that is a huge increase. We have created a win-win situation because the copper we buy helps China develop its industries while it helps  Zambia to maintain a high  level of development in the mining industry,”Mr Zhou said.
“As Ambassador,  I will continue working very hard to promote  bilateral cooperation in every field between the two countries as we celebrate Zambia’s 50th anniversary this year,” he said.
Mr Zhou said  Foreign Direct Investments (FDIs) from China are expected to increase and  this depends on Government policies and how well they can attract investments from China.
China stands ready to invest US$500 billion overseas in the next five years and intends to send 400 million tourists abroad.