CHINA-SUDAN TIES; Diplomatic and Economic
Chapter 1: Introduction
1.1Problem Statement and Research Questions
Sudan and China have had diplomatic and economic relations since independence. However, this relationship has varied over the period. China started courting the African countries immediately after her own independence and was instrumental in helping many African independent movements. Sudan as a country is of great importance to China and vice versa. Before the discovery of oil, Sudan was of great importance to China as a supplier of cotton. Cotton was Sudan’s main export and the textile industries in China required a lot of it.
With the commercial production of oil commencement, Sudan’ importance to China grew even more as one of the main source market for oil. China booming economy needed a steady supply of energy and Sudan had it. Sudan, as all other African countries provide China with a ready market for Chinese manufactured goods. It is also a corroborator on the global scene backing China’s position in the United Nations and affiliated global bodies.
Sudan on the other had view China as a great friend due to the protection it accords it in the international arena. Since independence, much of Sudan’s successive governments lack legitimacy. They have also faced alienation from the West due to poor human rights record, lack of transparency and corruption. China, therefore, accords them the legitimacy they desperately need and as a permanent member of the United Nations Security Council China is Sudan’s godfather to protect her from sanctions because of abuse of human rights and sponsoring terrorism.
China’s involvement in Sudan is, therefore, twofold; economic and diplomatic. Economically, Sudan provides a market for China’s manufactured goods; secondly, it is a major source of oil supplying 7% of China’s total demand; and thirdly it is a resource pool for raw materials for China’s booming economy.
There are contrasting arguments regarding the impact of China’s presence in Sudan. Some argue that China’s involvement has helped Sudan weather the sanctions imposed by the western countries and even managed to grow her economy despite the alienation and the sanctions. China has also helped Sudan to develop a thriving manufacturing industry through technology transfer. Sudan has a more developed manufacturing industry than many countries in Africa. Social amenities in Northern Sudan and physical infrastructure are more developed than in many African countries due to Chinese Investments and technology transfer.
However, there are those who argue that China’s involvement in Sudan is detrimental. The reason for this is that China is only concerned with meeting her energy needs but little about Sudan’s welfare. The influx of cheap China-made goods has led to a crippling of Sudan’s manufacturing industries. Chinese companies investing in Sudan import employees from China denying Sudanese employment opportunities. China faces criticism for supporting Sudanese regimes that show little respect for governance and human rights under its policy of non-interference and respect for sovereignty. China supplies weapons and ammunitions to Sudanese governments to fight rebels in the South and Western Sudan fuelling conflicts in those regions.
There is an argument that China does not regard democracy, good governance, and human rights as of major importance. This explains while China has continued to do business with Al-Bashir’s regime despite the fact that he is charged at the International Criminal Court (ICC) for crimes against humanity.
Given the varying viewpoints on the business relations between Sudan and China, this study will explore the nature and the implications of China’s engagement with Sudan since 1960 and the extent to which this engagement is either beneficial or detrimental. To achieve this, the study will focus on the conduct of Chinese companies working in Sudan, their engagement with the Sudanese government officials and the population. The study will also focus on the engagement between Sudanese and Chinese politicians because politics affect business and for the simple fact that most of the Chinese major companies working in Sudan are government-owned and therefore answerable to the Chinese Communist Party bureaucrats.
The research questions this study will attempt to answer include:
- What is the nature of China’s investment in Sudan?
- What are the economic effects of Chinese investments in Sudan?
- How important is Sudan to China as a trading partner and vice versa?
- What does Sudan export and import from China?
- Is the trade between the two countries balanced?
- What would the economy of Sudan as if the country was more aligned to the West as compared to China?
- How does trading with China affect Sudan’s relations with other countries in the global arena?
- What does trading in China mean to Sudan’s democracy, governance, and human rights record?
- What is the feeling of Sudan’s general population towards China?
- Do Chinese companies adhere to labor and environmental laws?
- How successful is the transfer of skills and technology from China to Sudan?
1.2: Theoretical Framework
This study borrows heavily from the field of International Relations (IR) and the Global Political Economy (GPE). The theoretical framework thus will borrow from theories in the two fields. Theories in International Relations include Realism, Marxism, and Liberalism while in GPE the most dominant theories are Economic Nationalism, Critical Theory and Liberalism. It is these theories that the study will use to explain the relations between Sudan and China. In both IR and GPE, Critical Theorist argues that the structure of the international system particularly in respect to production is by nature exploitative.
Market relations are exploitive by nature and the structure of global capitalism is contradictory since it breeds global inequality as opposed to equality. Based on Critical Theories it can be argued that the Business relation between Sudan and China is exploitive; China as the dominant and more powerful country exploit Sudan. However, the relationship is too complex to be explained in such a simplistic manner since Sudan Exports more to China than it imports and in view of China rhetoric that the two countries are equal partners.
In both IR and GPE, liberalism argues that the international system is essentially cooperative due to interdependence among nations. In IR, liberalism emphasis is on morality as a way of ensuring cooperation while in GPE liberals view firms as more important economic actors than States in the creation of wealth and influencing policies. Liberalism, however, cannot explain the business relationship between Sudan and China because most of the Chinese firms operating in Sudan are State Corporations owned by the Chinese governments. What this means is that there is no difference between the firm and the State; state officers make decisions while the firm is an agent of the State to implement such decisions. Business dealings between Sudan and China are not subject to market forces but are made at the State level by government bureaucrats.
This study will, therefore, show that business relations between Sudan and China can be explained using Realist perspective in IR and Economic Nationalism in respect to GPE. According to the Realism Theory, the main aim of states in their dealings with other states is to pursue their national interests. It, therefore, follows that states are self-interested entities whose main aim is to accumulate power and maintain an upper hand in terms of the balance of power. According to proponents of the theory, national interests take into consideration the political and cultural context in the formulation of foreign policy. Therefore, China’s engagement with Sudan takes into consideration the current political and cultural reality. In this case, China is in pursuit of ‘energy security’ for her burgeoning economy now and in the future and Sudan happens to have plenty of oil.
Realism further proposes that in order to succeed, states should not concern themselves with morality questions and therefore they should not base decisions on moralistic principles. This fits very well with China’s dealings with Sudan. China’s interest is to secure a steady supply of oil needed to power its booming economy; Sudan has the Oil. Sudan, on the other hand, needs China to offer its government regime security since it is under constant threats from Western governments and its legitimacy is ever in question. China with its increasing influence in the international arena and with a permanent seat in the UN Security Council offers that regime security. Furthermore, unlike the Western powers that keep prodding about human rights, good governance and transparency that are a tall order for the Sudanese government, China’s policy of non-interference is good music in the ears of Sudan’s regime.
According to realism, states are the most important actors in the international system as opposed to firms. This again fits very well with Sudan’s relationship with China. Most of the business dealings between the two countries are signed between States as opposed to firms. It is therefore not a surprise that there are numerous state visits between senior government officials from both sides.
Realism will, therefore, be a useful tool in this study for explaining the business relations between China and Sudan. The realist notions of self-interest and moral skepticism are very evident in this relationship. However, realism alone cannot explain wholly China’s engagement with Sudan. This is because China’s dealings with Sudan put into question Realism’s major assumptions such as military security is more important than economic security. It is for this reason that this study chose to use Economic Nationalism in combination with Realism to explain China’s engagement with Sudan.
Economic nationalism is based on the state needs to take care of its economic interests in its dealings with other states. This is in the realization that the State’s power increases when economic growth is strong. China foreign policy is based on a policy of nationalism. Nationalism and independence was part of China foreign policy from the early 19th Century when parts of China was occupied by foreign powers. Thus in its dealings with other States, China puts her interest first by following a policy that will lead to economic might, independence and prestige. Sudan is not an exception.
Sudan is important to China because it is a source of raw materials that sustain China’s manufacturing industries. Prior to 1999, Sudan’s economic relationship with China was based on cotton. Sudan was a major exporter of cotton to China. Post-1999, oil overtook agricultural exports to become Sudan’s major export earner. China needs Sudan’s oil to meet her energy needs and for future energy security. In this arrangement, the motivating factor for China is the benefit she draws. It is within this theoretical framework that China’s relationship with Sudan will be evaluated and understood.
1.3 Research Methodology
1.3.1 Nature of the Research
This study is descriptive in nature because it provides a detailed account of China-Sudan business relationship since 1970. The study will also be exploratory because it will attempt to explore the outcome of this relationship on Sudan. The study is also explanatory because it attempts to answer the why question as to why Sudan’s economy has not made the same strides the Chinese have made despite the closeness in business. Therefore, while this research is primarily descriptive, it will contain some element of exploration and explanation.
1.3.2 Data Collection
The study will be predominantly qualitative concerning data collection. The study will utilize academic books, journals, and internet sources.
Chapter two: Background and Contextualization
This chapter provides the background information against which the relationship between China and Sudan can be contextualized. It begins by providing a critical overview of China’s contemporary foreign policy orientation. The general principles upon which China formulates its policies towards other states will also be examined here.
A brief historical overview of China and Sudan is also provided thereafter. This includes the rhetoric of China’s policy when dealing generally with the African states. The nature of China’s relations with Sudan is a very fundamental component of this chapter.
The chapter then concludes with a brief section in which the context of the contemporary relations with Sudan which appears to be majorly based on economics and diplomacy.
2.2 China’s Contemporary Foreign Policy Orientation and its Implication on Sudan
2.2.1 The Opening of China’s Doors
Beijing’s foreign policy underwent a fundamental shift especially after the death of Mao Zedong. The new leader, Deng Xiaoping is credited with these major shifts in the Chinese foreign policy. He introduced a program of modernization which he called ‘The Four Modernizations’. This program was essentially meant to enhance China’s economic development. Just as the term suggests, the program targeted four key areas: agriculture, science, and technology, national defense and industry. With these four key elements as the key areas of focus, the economic development of China was deemed to rise and get enhanced a great deal.
Deng acknowledged, recognized, understood and appreciated the fact that for the country to realize a substantial economic development, it had to significantly open up its economy to external trade and investment. This gave rise to the “Open Door Policy”. The policy contained not only the participation in the international economy but also actively getting involved in the international economic institutions including the World Bank and the International Monetary Fund (IMF) which China joined in 1980.
In part, Deng’s policy included the creation of special economic zones. These were designated areas where joint ventures with foreign companies were allowed to take an active part. Initially, the former leader, Mao’s policy was a kind that encouraged isolation. This is what Deng desired to change. As a result, he pursued a policy which involved very actively with international economic regimes. His logic behind this policy was the vehement craving to achieve a basic national goal of economic development. The former national goal of fighting imperialism was effectively pushed aside. It is clear that Deng’s policy was primarily driven by the need to see China develop economically. This is actually the sole reason for effectively doing away with the former policies that allowed little or no breathing space for as much efficient, effective and sufficient economic development as he desired.
This idea of the national reprioritization created a growing necessity for a gradual shift in the foreign policy strategy of the country. The shift was seen from confrontation to co-operation, from revolution to economic development and from isolation to international engagement. As a result, China began to establish friendly, sustainable and amicable economic ties with industrialized countries. Among these countries, China developed amicable relations with the United States, Europe, and Japan. It was driven by the desire to increase international trade and investment. Its relations with the foreign states were not based on ideology anymore. Instead, they were now heavily driven by a need to sustain successful economic cooperation with the other states.
The Chinese policy of reprioritization is in consistence with the assumptions of the economic nationalism. It has continuously become evident that China articulated its national goal as economic development. It then set to work with a view of mobilizing all the aspects of its economy, policy, and society to realize its ultimate goal of developing its economy.
2.3 Independence and Peace
The new foreign policy of China “Independence and Peace” was articulated in a report that was submitted to the twelfth National Congress of the Communist Party of China in 1982, September. At this point, the declaration was that China should maintain a foreign policy of independence. As such, the country was not expected to align itself with any other power or group of powers. In addition, the country was not supposed to succumb to any pressure from any great power. Other aspects of its foreign policy included a much-strengthened opposition to hegemony, defense of sovereignty and support to the third world. This is where Sudan comes in.
The current foreign policy in China’s referred to as “China’s Independence Foreign Policy of Peace.” The policy is seen to be propagating the similar goals and objectives as the one that was articulated in 1982. Most prominently, these goals feature the policy of preserving Chinese independence, sovereignty and territorial integrity, and autonomy in domestic affairs. It also included a careful observation of the five principles of peaceful coexistence, the development of friendly relations with all states. This establishment and development of a friendly relationship were to be based on equality and mutual benefit. It was also based on very active participation in multilateral institutions.
The Chinese attribute of adherence to the five principles of peaceful coexistence has a lot of positive, fundamental and very significant implications on the creation and maintenance of peace among states. In the same vein, they are the principles upon which the country China believes that the relations between states could be governed. These five principles are listed below:
- Mutual respect for sovereignty and territorial integrity
- Noninterference in the domestic affairs of another state
- Equality and mutual benefit
- Peaceful coexistence
Another very important aspect of China’s aspect of international relations is what is called “The One China Policy”. This is a policy whose main objective is to foster unity and cohesion of China. As a result, it will never tolerate any groups, individuals or countries trying to create two Chinas, in other words, the policy cannot stand any effort from anywhere whose intention is to divide China. Any scheme to divide the country is condemned and cannot be allowed to succeed with the application of the One China policy. The only explicit condition that China places on its relations with other states refers to this policy.
The Chinese government has declared that any country that seeks to build and establish relations with China has to express readiness to sever all diplomatic relations with Taiwan authorities and recognize the government of PRC as the only legal government of China. The vehement desire to unify with Taiwan is an indication of China’s desire to promote national unity. This is consistent with the economic nationalist contention that one of the fundamental aims of states is to foster and establish a productive and sustainable national unity and cohesion.
Moreover, it has been constantly argued that Chinese foreign policy includes a fundamental strategic component. This component is based majorly on geopolitical factors. China has a growing desire to become an important world power. This notion plays a very fundamental role in the strategic formulation of the foreign policy of China. This is very true and reflected on China’s general foreign policy and also of its policy towards Africa. Beijing looks at the African continent from a very strategic perspective. It particularly expresses key interest and focuses on the regions that are seen to have the potentiality to be very strategically important to the country China.
These African countries are therefore important to China in the economic sense because they provide very valuable resource pools for the country. The oil-rich Sudan is therefore very important for China and this explains the growing Beijing’s interest in the country. Sudan is strategically important to China as a source of energy security. This is a very important aspect of the economic development of China. Other African countries such as South Africa can be of importance to China in the political sense since China views it as a developing world with which it can establish and sustain effective relations and an effective ally within the multilateral institutions.
2.4 The Historical Perspective of China-African Relationship
2.4.1 The policy Rhetoric: Common Identity
The PRC has expressed vivid support and advocated strongly for the developing world. It has expressed its solidarity by embracing its developing country status. Particularly with regards to the continent of Africa, China has attempted to establish relationships that are mainly based on historical experience and common identity. Many scholars have argued that China is justified in its initial involvement in Africa since the 1960s based on this similarity (Snow, 1995). The very first and fundamental aspect of commonality according to China is that the country and African continent are members of the same club whether it is the third world or the sound. In addition, China and Africa are united against common opponents usually encompassed by the West or the North.
The official policy of China towards Africa is developed on the basis of sincerity, mutual benefit, equality, solidarity, and common development. It also strongly emphasizes sovereignty and noninterference. This policy rhetoric coupled with Beijing’s practical assistance to Africa continues to apply to African leaders.
It is however notable that not all the African leaders have adopted the stance of China on the similarity between their countries and China. China has in the past shown interest in establishing friendly relations with African countries with the aim of standing strong against what is considered as common opponents. However, Africa has not been willing to accept this proposal. This was very particularly evident during the cold war period when China attempted to obtain backing from Africa on its ideological rivalry with the Soviet Union. However, the communist ideology has never played any significant role in Chinese relations with Africa.
Apart from Africa’s strategic importance, the continent has been politically important to China too. China, for example, owes its seat at the UN Security Council due to a large number of votes gained from the African countries. Besides, after the Tiananmen Square incident of 1989, China was shunned and condemned by the West. Africa, however, maintained a less vocal tone on the issue. The response of the African leaders to this issue can be attributed to three critical issues.
Firstly, the self-interested African elites felt threatened by democratization and had no choice but to support China. As a result, they were keen to give support to Chinese anti-democratic behaviors. Moreover, the third world solidarity propelled these countries to support China. Again, the support was based upon the realization that outright criticism would result in a halt in developmental aid and the assistance that they used to obtain from China. It is against this background of Chinese policy orientation towards Africa that the historical relations between the two regions can be understood.
2.4.2 The Binding Ties
The first encounter between China and Africa was at the Bandung conference in Indonesia. The conference was aimed at promoting Afro-Asian solidarity based on the notion that the political and economic challenges of Africans and the Asians were similar. This was seen as having the ability to establish effective cooperation between the two regions. The Chinese Premier Zhou Enlai used the platform to promote the Five Principles of Peaceful Coexistence. This was the framework within which the relations between China and African nations were to be established.
During the period of the cold war, China’s role in the international system was largely determined by its relationships with the nations that sought nonalignment. China, therefore, started to position itself as the leader of this group. In 1964, Premier Zhou Enlai toured ten African countries after which he strongly articulated the five principles for China’s Africa policy. These principles espoused support for anti-imperialist struggles, African nonalignment, African unity, peaceful settlement of disputes in Africa, and the sovereign independence of all African countries.
The process of decolonization of Africa provided China with an opportunity of playing a significant role in supporting the liberation and independence of the African countries. China began to provide technical, economic and military support to the African countries to aid in their quest for independence and liberation. The aim of China’s support to the decolonization process of Africa was to deprive the capitalist colonial powers of their colonies. These created and strengthened very strong and binding ties between China and the African countries.
The 1970 saw an intensified development of friendly and evidently mutual relations between China and Africa. Africa was the center for expression of China’s struggle superpower hegemony. The situation in Africa provided China with a platform to increase its power and leverage within the third world. However, by late 1970, Beijing drastically cut off its aid for the African countries indicating a stern warning.
2.5 The Context of Contemporary China-African Relations
Contemporary relations between China and African states ought to be looked at against three fundamental backgrounds. The first is the effect of the Tiananmen Square incident of China’s international relations. The second is the growth of Chinese trade in the 1990s. Finally, the support of China by the African states in the United Nation’s Security Council is a fundamental background against which these relations should be viewed.
Africa provides new markets for China’s produced goods, natural resources, and energy. Moreover, the continent serves as a strategically positioned ally to China and support base in the international arena. The country has managed to establish and sustain this support base by its continued solidarity with the African states.
Doing business with China has been easy for African countries. It is less demanding compared to a business with the United States and Europe since it does not involve strict political conditionality like good governance, transparency, and accountability. The only condition is that the trading partners should not maintain official diplomatic ties with Taiwan.
There are several basic characteristics that drive the contemporary relations between China and the African states. Such features include the visits by government representatives aimed at nurturing personal ties and establishing continued cooperation. They also garner support from the African state against domination from the West. This is very particular to the United States that advocate for trade instead of aid, and creating trade centers in certain African countries aimed at aiding Chinese firms in Africa and identifying potential opportunities for business
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