Chinese investment under pressure 21st July 2005

China's potential investment in pgm producer Zimplats could be in jeopardy as international pressure is put on the Chinese over its support of Robert Mugabe's regime.

New Zealand is heading up the opposition to China's interest in the Zimbabwean mining company, and is set to make a diplomatic protest over the matter.

As the international community intensifies its opposition to the Zimbabwean government's increasingly violent actions against its own people, China is facing more pressure to end its investment in the country.

That might mean the possibility of Chinese investors taking a stake in Zimplats could come to an end, while other outside investment in the company may also dry up.

Finding investors looks set to become increasingly difficult for Zimplats, particularly in the wake of recent comments by Robert Mugabe, who believes that platinum can be the key to boosting the country's ailing economy.
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