China’s commercial designs on the Democratic Republic of Congo have encountered an unexpected obstacle – an appellate court on Chinese soil ruling in favour of a US firm that invested in distressed debt.
Beijing’s strategy of seeking natural resources in return for infrastructure investments in poor African nations has aroused concern, especially among western rivals and non-governmental organisations. A Hong Kong appeal court, however, was perhaps one of the last places where it expected a serious challenge to its ambitions.
In a 97-page decision issued on February 10, two justices, Frank Stock and Maria Yuen, upheld claims by FG Hemisphere Associates, a New York-based firm, on “entry fees” that the state-owned China Railway Group had agreed to pay the government and state companies in Congo.