Malawi wants only `serious' investors, no Chinese traders

Malawi, which broke diplomatic ties with Taiwan last month in favor of Beijing, won't allow Chinese traders into the country, said James Kaphwereza Banda, general manager of the Malawi Investment Promotions Agency.

"It's our duty to promote serious investors, not traders," Banda said yesterday in a telephone interview from Malawi's capital, Lilongwe. "What we're telling Malawian traders is that they shouldn't fear more Chinese selling their wares, because we won't allow them in."

Malawian traders have expressed concern about the influx of cheap goods from China, Banda said. They believe Chinese traders would deprive them of their livelihood if allowed to trade freely.

The government might revise its US$50,000 minimum investment law to ensure that "only serious investors" apply for business licenses, he said.

China's investments in Africa have soared, with bilateral trade rising to US$39.7 billion in 2005.