China Gains in Mid-East & Africa
THE ISSUE:
Recently, while the United States, Great Britain and Israel have stepped up military campaigns across the Middle East and intervention in Africa, China has stepped up political, economic and military relations in these unstable regions. Beijing’s goal is to secure a monopoly on acquiring scarce and vital natural resources which are governed by some of the world’s most repressive regimes.
China Expands Oil from Saudi Arabia:
China has become the world’s third-largest oil consumer. Since 2004, has stepped up its volume of long-term oil contracts throughout the Middle East, which now provides 45 percent of its oil imports. According to Chinese official documents, it largest oil providers include Iran, Syria, and Saudi Arabia [which provides around 17 percent of the total]. In April Chinese President Hu Jintao made a state visit to Saudi for talks with Aramco, the world’s largest oil producer. The International Energy Agency [IEA] predicts that by 2010, 70 percent of China’s oil will come from the Middle East. The IEA reports that Chinese oil imports will rise from some 1.7 million barrels per day in 2002, to 11 million barrels per day. This is an amount nearly equal to Saudi Arabia’s total current output capacity.
“A lot of Arab states in the region are looking to China, not just as a potential economic partner, but as a political counterweight to the United States,” stated former CIA analyst Kenneth Pollack in the July 15, 2006 issue of aljazeera.com. “The more they bring the Chinese into the region, the less they will have to listen to what the US tells them to do.” This counter-force is an incentive for violent behavior by radical regimes.
Strategic Value of Energy from Iran:
In the Spring of 2006, China and Iran hastened to complete an energy deal worth $100 billion, for China to gain 51% control of massive oil field in Iran near the Iraq border, reports the Beijing Caijing financial magazine, according to the February 17, 2006 Washington Post. The deal complicates the Bush Administration’s efforts to isolate Iran and deter its nuclear weapons building campaign. The deal also was a firm statement that China would continue to back Iran at the United Nations, and would potentially stand in the way of a US-led invasion of Iran. In 2004, China and Iran signed a $100 billion contract for the export of up to 10 million tons of Iranian liquefied gas to China over a 25 year period. In addition, on January 18, 2006, the Jamestown Foundation reported that Iran and China signed a $33 million contract in the Caspian Sea border area near facilities of Western oil supplier Azerbaijan, which has an exploration agreement with the British Petroleum Company. The two countries nearly went to war over the border issue in 2001.
China’s Influence in Africa:
According to international trade statistics, between 2000 to 2005 China’s total trade with Africa more than tripled from $10.8 billion to $37 billion. This makes China the continent’s third largest trading partner after the United States and France. According to the May 11, 2006 Washington Times, China obtains 28 percent of its oil from Africa, largely from Angola, Sudan and Congo. All of these are countries where Western investment is limited because of rampant human rights abuses. In 2005, in Angola, China rescued the despotic regime after the International Monetary Fund told the regime to improve the transparency of its oil revenues. An immediate $2 billion loan from China solved the Angolan regime’s quandary.
China has also begun signing contracts in Western Africa, long dominated by Europe and the US. In a 2006 report from the Council on Foreign Relations, co- authored by Professor Princeton Lyman of Georgetown University, Beijing obtained an offshore oil deal with Nigeria worth $2.3 billion. There are another $7 billion of investments planned. “African countries still have high solidarity with China,” says Prof. George Ayittey of American University. “They see it as part of the developing world.”
Zimbabwe and South Africa:
Beijing is the largest weapons supplier to the internationally-scorned regime of Robert Mugabe in Zimbabwe. Zimbabwe, rich in scarce chrome, also has the world’s second largest platinum reserves. These resources are dominated by Chinese companies. As in other African countries, Beijing is sending thousands of Chinese workers as laborers in both mining and agricultural enterprises. On June 22, 2006, China’s official Xinhua news agency reported that in Cape Town, the visiting Chinese Prime Minister signed China signed agreements with South African President Thabo Mbeki to strengthen their “strategic partnership.” South Africa is China’s largest trading partner in Africa, with 8 billion of bilateral trade expected in 2006.
Conclusion:
The chain- reactions of Middle Eastern and Eurasian conflicts are spiraling at rapid pace. “Big Power” competition for scarce natural resources in a declining international economy, plagued by wars, pervasive corruption and instability will pose a severe multi-faceted threat to international peace and social equity during the coming years. Learning lessons from history and the need to clearly define strategic priorities – economic, political, human rights and security -- are essential. A multi-disciplined and comprehensive strategy that would enable triumph over tyranny without waging a devastating world war must be constructed and implemented without further procrastination. In the short-term, demoralizing and ill-conceived wars must be avoided and those that are in progress ended, with full respect for human dignity and international law, as quickly as possible.