Eritrea: Eritrea inks two economic deals with China

(SomaliNet) Eritrean government in Asmara said on Tuesday that it signed two economic agreements with China on expanding the Red Sea state\'s universities and unspecified technical co-operation.

Meanwhile, Chinese trade with Eritrea leapt 369 percent in 2006 based mainly on machinery imports and telecommunications, and in January during a visit, then Chinese Foreign Minister Li Zhaoxing partially cancelled Eritrea\'s foreign debt.

Eritrea\'s new foreign minister, Osman Saleh, signed a deal in the Eritrean capital \"strengthening cooperation in economic and technical domains\" with China.

\"The agreements also include programmes to expand the College of Arts and Social Science currently under construction in Adi-Keyih town,\" said a statement on the ministry of information website, www.shabait.com.

But it did not give further details.

Despite rapid growth following official independence in 1993, Eritrea\'s economy has stagnated after a 1998-2000 border war with Ethiopia that killed 70 000 people.

Frustrated by the world\'s failure to force Ethiopian compliance with a subsequent 2002 border ruling, Eritrea has been turning its back on many in the international community.

Analysts say Asmara is relying on mine operations for gold and other minerals - expected to begin in 2008 - to reverse the country\'s economic problems.

China has been giving low interest loans, debt relief and other economic incentives to some of the world\'s poorest but resource-rich economies without the normal hitches attached to Western assistance. -Reuters