The Chinese Embassy in Zimbabwe has warned its nationals and companies operating in the country to exercise caution and strengthen compliance measures following government policy shifts that include a ban on the export of raw minerals and lithium concentrates.
Zimbabwe is tightening control over its vast mineral resources, particularly lithium, which has attracted significant Chinese investment in recent years.
The abrupt policy shifts have unsettled some investors, particularly Chinese firms that dominate Zimbabwe's lithium sector, including operations in Goromonzi, Bikita and other mineral-rich areas.
In a notice issued Thursday, the Chinese embassy said Harare's recent suspension of raw mineral exports and introduction of new regulations in reserved sectors require investors to further strengthen risk prevention and compliance awareness.
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The advisory urged prospective investors to carry out in-depth assessments of Zimbabwe's business environment, including its industrial policies and legal framework, before committing capital.
"Prior to making investments in Zimbabwe, investors shall conduct a comprehensive and in-depth assessment of the local business environment, industrial policies and relevant laws and regulations, fully consider various investment and operational risks, and make informed decisions so as to avoid losses resulting from government policy changes.
"Investors shall fully consider various investment and operational risks, and make informed decisions so as to avoid losses resulting from government policy changes," the embassy said.
The embassy also called on Chinese nationals and firms already operating in Zimbabwe to strictly comply with local laws and safeguard their interests through legal channels.
Chinese companies have become some of the biggest investors in Zimbabwe's extractive sector, particularly in gold, chrome and lithium mining, as well as in construction, energy and retail.
However, their business practices have often come under scrutiny.
Meanwhile critics, including labour unions and civil society groups, have accused most Chinese firms of poor labour standards, low wages, unsafe working conditions and disregard for environmental regulations. There have also been reports of limited technology transfer and weak linkages with local industries.
Chinese businesses have also been accused of operating in sectors reserved for locals, particularly in small-scale mining and retail, raising tensions with Zimbabwean entrepreneurs.
