China: Passing The Buck in Afghanistan?

Via Foreign Policy, an interesting article on China’s economic interests in Afghanistan which, so far, have not been mirrored by any security investments.  As the report notes:

“…As we pass the 10-year anniversary of the US-led war in Afghanistan, most attention has been focused on how much longer the United States intends to stay in the region. But a question that has not been addressed is who is going to be putting the pieces together afterwards. The European Union (EU) and the United States are clearly at the end of their tether, while Russia, India and other nearby powers continue to lack the capacity or means to dominate the region. Other rising regional power China may continue to be wary of becoming involved in any foreign entanglements, but as a friend put it in a meeting in Beijing the other day, China may not have broken the teapot of Afghanistan, but it is one that sits firmly on their borders.

And there is some evidence that this reality is sinking in at Zhongnanhai in Beijing. Chinese firms have made substantial investments in Afghanistan. The Aynak copper mine has been joined by an investment in oil fields in northern Afghanistan. And while Chinese firms in the end did not invest in the Bamiyan iron mines they have still cast their lot in terms of developing Afghan infrastructure – pouring money into telecoms, road-building and train lines linking Afghanistan to the rest of the region.

But this has not been supported by any large-scale investment in Afghan security. For that, China continues to look to NATO on the ground and more implicit protection from her close ally in Islamabad. As one senior Afghan put it to me, a reason that was often given for why the Chinese had gotten some of these deals was that it was known how close they were to Pakistan. The assumption was that if the deal went to China then the site would be protected in some way and the development would proceed.

While unclear to what degree this was the determining factor, the story plays into what seems to be China’s main foreign policy factor when considering Afghanistan, and that is Pakistan. The Sino-Pak relationship is one of the closest in the world, spanning trade, nuclear weapons, counter-terrorism and regional hedging against India. As both sides characterize it publicly, it is “higher than mountains, deeper than oceans, stronger than steel, sweeter than honey, and dearer than eyesight.” And into this fits Afghanistan, a troublesome country that borders both and is the source of regional instability. China, still a hesitant foreign policy actor, is unwilling to do too much to assert her authority in the region and is more than happy to let eager Pakistan take the lead.

And this approach is something that has worked for China for many years now. Unwilling to become involved in a conflict that could force it to take sides in a conflict in which it could be painted as part of some alliance against Islam and potentially support actors who would encourage separatists in the restive Xinjiang province, China has hesitated to do much in Afghanistan in support of NATO efforts in the country. For some in China, there was a sense that NATO’s loss in Afghanistan was China’s gain and that the potential encirclement that might result from NATO success on their borders would be to China’s detriment, while for others there was a sense that this was a lost cause anyway and that Afghanistan was the “graveyard of empires.”

Instead, China focused on investing in things that seemed like a good idea. A large copper mine at Aynak sits close to China’s borders and consequently seemed a wise investment to first bid for it and then offer a whole package of deals including a local power station and train line to provide the backdrop to make the deal work for the Chinese firm. All of this would help supply China’s need for copper, as well as develop a part of the country that was close to China and would therefore potentially have a knock-on effect in improving prosperity in neighboring underdeveloped Chinese province Xinjiang. Similarly with the deal to secure the oil fields in Amu Darya – China’s unslakable thirst for hydrocarbons means it will reach out anywhere to get them, and when they are so close to home, all the better.

But while none of this disagrees with western policy in Afghanistan, there is no sense that China is willing to buy into any active policy supporting western goals in the region. China continues to be the ultimate hedging power in Afghanistan – while it seems clear that they are willing to support western aims in the country, there continues to be a lack of any clear evidence that they are as willing to expend political capital or effort to advance their goals actively in the country. This is not to say they are indolent in advancing their interests, but that they are wary of becoming entangled in a country that has repeatedly shown a capacity to reject foreign influence.

From a Chinese perspective, the answer to Afghanistan is clear. The tribes need to fight it out amongst each other – to paraphrase what one expert told me in Beijing, this is a country with “lots of big powerful men who need to be kept happy” and outsiders do not really stand much of chance moderating this. Ultimately, the country is poor, will clearly need investment going forward, and China will be there to support it. With deep pockets and no conditions, this support can be funneled to whomever is in charge and to whomever has the power of the provinces where China has direct interests. When it comes to border threats, China seems to have managed to secure strong intelligence links and is able to keep a quite firm lid on any potential threats from extremist groups with links to networks in Pakistan or Afghanistan.

China’s play in Afghanistan has been very hesitant so far. The reason for this is a lack of certainty in Beijing about what Washington’s game plan is. In the meantime, they have continued to make careful strategic investments with a view to the long game. And while from a western analysis this should mean a greater Chinese interest in stabilizing the current government, from Beijing’s perspective it is far better to let things play themselves out while focusing on specific interests. This will not necessarily help western aims to re-shape Afghanistan, but it will strengthen China’s hand when the west finally leaves.



This entry was posted on Sunday, October 30th, 2011 at 4:31 am and is filed under Afghanistan, China.  You can follow any responses to this entry through the RSS 2.0 feed.  Both comments and pings are currently closed. 

Comments are closed.


ABOUT
WILDCATS AND BLACK SHEEP
Wildcats & Black Sheep is a personal interest blog dedicated to the identification and evaluation of maverick investment opportunities arising in frontier - and, what some may consider to be, “rogue” or “black sheep” - markets around the world.

Focusing primarily on The New Seven Sisters - the largely state owned petroleum companies from the emerging world that have become key players in the oil & gas industry as identified by Carola Hoyos, Chief Energy Correspondent for The Financial Times - but spanning other nascent opportunities around the globe that may hold potential in the years ahead, Wildcats & Black Sheep is a place for the adventurous to contemplate & evaluate the emerging markets of tomorrow.