30/05/2020
- Chinese groups calling for more ‘fighting spirit’ are getting the upper hand on those who favour calm and cooperation, government adviser says
- From Hong Kong to Covid-19, trade to the South China Sea, Beijing and Washington are clashing on a growing number of fronts and in an increasingly aggressive way
Efforts to promote dialogue and cooperation between the US and China are failing, observers say. Photo: AFP
Moderates who favour dialogue and cooperation as a way to resolve China’s disputes with the
United States are losing ground to hardline groups bent on taking the fight to Washington, according to political insiders and observers.
“There are two camps in China,” said a former state official who now serves as a government adviser and asked not to be named.
“One is stressing the combat spirit, the other is trying to relieve tensions. And the former has the upper hand.”
Relations between China and the US are under intense pressure. After Beijing moved to introduce a national security law for Hong Kong, US President Donald Trump said on Friday that Washington would begin eliminating the special policy exemptions it grants the city, as it no longer considers it autonomous from mainland China.
Beijing’s decision to enact a national security law for Hong Kong was met with anger from the US and other Western countries. Photo: Sam Tsang
The two nations have also clashed over trade, Xinjiang, Taiwan and the South China Sea, with the US passing several acts denouncing Beijing and sanctioning Chinese officials.
China has also experienced turbulence in its relations with other countries, including Australia and members of the European Union, mostly related to the Covid-19 pandemic
and Beijing’s efforts to position itself as a leader in the fight against the disease with its policy of “mask diplomacy”.
After Canberra appealed for an independent investigation to be carried out to determine the origins of the coronavirus, Beijing responded by imposing tariffs on imports of Australian barley, showing it is prepared to do more than just trade insults and accusations with its adversaries.
Pang Zhongying, a professor of international relations at Ocean University of China in Qingdao, said there was a worrying trend in China’s relations with other nations.
“We need political and diplomatic means to resolve the challenges we are facing, but … diplomatic methods have become undiplomatic,” he said.
“There are some who believe that problems can be solved through tough gestures, but this will never work. Without diplomacy, problems become confrontations.”
said during his annual press conference on the sidelines of the National People’s Congress last weekend that China and the United States must work together to prevent a new Cold War.
His words were echoed by
Chinese Premier Li Keqiang, who said during a press conference after the closure of the legislative session on Thursday that the many challenges facing the China-US relations could only be resolved through cooperation.
However, the government adviser said there was often quite a chasm between what China’s leaders said and what happened in reality.
“Even though we say we do not want a Cold War, what is happening at the working level seems to be different.” he said. “The implementation of policies is not properly coordinated and often chaotic.”
Tensions between China and the US have been in a poor state since the start of a trade war almost two years ago. After multiple rounds of negotiations, the sides in January signed a phase one deal, but the positivity that created was short-lived.
In February, Beijing expelled three reporters from The Wall Street Journal over an article it deemed racist, while Washington has ramped up its military activity in the South China Sea and Taiwan Strait, and threatened to revoke the visas of Chinese students studying science and technology in the US over concerns they might be engaged in espionage.
Beijing has also used its state media and army of “
Wolf Warrior” diplomats to promote its narrative, though many Chinese scholars and foreign policy advisers have said the latter’s nationalistic fervour has done more harm than good and appealed to Beijing to adopt a more conciliatory tone.
However, Hu Xijin, editor-in-chief of Chinese tabloid Global Times, said China had no option but to stare down the US, which regarded the world’s most populous nation as its main rival.
“Being contained by the US is too high a price for China to pay,” he said. “I think the best thing people can do is forget the old days of China-US ties”.
Jin Canrong, a professor of international relations at Renmin University in Beijing, wrote in a recent newspaper article that Beijing’s actions – notably enacting a national security law for Hong Kong – showed it was uncompromising and ready to stand its ground against the US.
Wu Xinbo, dean of international studies at Fudan University in Shanghai, agreed, saying relations between the two countries were likely to worsen in the run-up to the US presidential election in November and that Beijing should be prepared for a fight.
But Adam Ni, director of China Policy Centre, a think tank in Canberra, said the issue was not that the moderate camp had been sidelined, but rather Beijing’s perception of the US had changed.
“Beijing has woken up to the idea that America’s tough policy on China will continue and it is expecting an escalation of the tensions,” he said.
“The centre of gravity in terms of Beijing’s perception of the US has shifted, in the same way the US perception of China has shifted towards a more negative image”.
Beijing was simply responding in kind to the hardline, assertive manner of the US, he said.
Source: SCMP
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07/09/2019
- He is expected to join a trilateral dialogue with his counterparts from Pakistan and Afghanistan, and observers say he may try to mediate in Kashmir dispute
- Trip also includes a stop in Nepal that could pave way for a visit by Xi Jinping
Chinese Foreign Minister Wang Yi may try to act as a negotiator in the Kashmir dispute. Photo: EPA-EFE
Chinese Foreign Minister Wang Yi began a four-day trip to Pakistan and Nepal on Saturday, amid escalating tensions between Islamabad and New Delhi over
.
Wang was expected to join a trilateral dialogue with the foreign ministers of Pakistan and Afghanistan in Islamabad, foreign ministry spokesman Geng Shuang said on Friday. He will also travel to Nepal.
Beijing has criticised India’s decision last month to strip the Jammu and Kashmir autonomous state of its special status and break it into two federally controlled territories, calling it “unacceptable”.
China also formally backed Pakistan’s request for the United Nations Security Council to hold “closed consultations” on the revocation of the state’s autonomy.
Meanwhile, observers say the Chinese foreign minister could attempt to act as a negotiator in the complex border dispute.
“Wang might try to play a role to mediate between the two sides to resolve the crisis,” said Wang Dehua, head of the Institute for South and Central Asia Studies at the Shanghai Municipal Centre for International Studies. “This has been China’s long-held position on the issue.”
Pang Zhongying, an international relations researcher at Ocean University of China in Qingdao, agreed.
“[Indian Prime Minister] Narendra Modi has visited China a couple of times and it is likely [Chinese President] Xi Jinping will visit India soon,” he said. “If Xi is to visit India later this year, China may try to contain its differing views with India on Kashmir.”
Modi has proposed an informal summit with Xi later this year that may be held in the religious hub of Varanasi, Modi’s parliamentary constituency. New Delhi said in May that Indian officials were working with the Chinese side to finalise the details, but Beijing has yet to confirm Xi’s visit.
India dismisses Beijing’s concerns over Kashmir because ‘it won’t have any impact on China’
Wang Yi was also due to visit India later this month for border talks, but the trip had to be postponed at the request of New Delhi because of scheduling problems, Hindustan Times reported, citing China’s foreign ministry.
The row over Kashmir has escalated in the past month. Pakistani Prime Minister Imran Khan said on Friday that Islamabad would make the fullest possible response to New Delhi’s actions in disputed Kashmir and that the global community would be responsible for any “catastrophic” aftermath.
Since Modi withdrew special rights for Indian-administered Kashmir on August 5, India has flooded the Kashmir valley with troops, restricted the movements of residents and cut off communication.
Both India and Pakistan claim the whole of Kashmir, which was partitioned between the two following the end of British rule in 1948, and they have subsequently fought wars over the territory.
China has its own territorial dispute with India over the part of Kashmir it controls. In early August, Chinese foreign ministry spokeswoman Hua Chunying
and said it was not binding. Beijing later appeared to soften its rhetoric, with Hua calling for a solution through dialogue and negotiation, without criticising either side.
The Chinese foreign minister will also visit Nepal, where he is expected to meet his counterpart, the president and prime minister. The trip could pave the way for an expected visit by Xi to Nepal.
Source: SCMP
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17/08/2019
- Beijing has lent billions of dollars to countries on the continent to build railways, highways and airports but critics say the borrowings are unsustainable
- Chinese officials say the projects will pay off in the long run and host nations are well aware of their limits and needs
Illustration: Lau Kakuen
When Clement Mouamba went to Beijing last year, he had two main tasks.
The prime minister of the Republic of Congo needed to find out exactly how much his country owed to China, a number the struggling, oil-rich central African nation had until then not been able to provide the International Monetary Fund (IMF) to qualify for a bailout. He also needed to convince Beijing to restructure its debt to ensure sustainability.
The IMF had put talks for further loans on hold until Mouamba’s administration could say exactly how much it had to repay to the country’s external creditors, including China – the republic’s single largest bilateral lender – and oil multinationals such as Glencore and Trafigura.
The country, which heavily depends on oil revenue, turned to China and private oil majors for funding to run the government when in 2014 oil prices fell from a high of US$100 per barrel to as low as US$30.
The Republic of Congo has since restructured its borrowings from China, which holds about a third, or US$2.5 billion, of the Congolese debt, by extending the repayment period by an additional 15 years.
A number of other African countries struggling to service their loans from Beijing have also pursued concessions. Ethiopia has had part of its Chinese debt written off and terms relaxed for the US$3.3 billion loan it took to build its railway, while Zambia is seeking similar adjustments for its borrowings used to build airports and highways.
Critics say countries on the continent are being burdened with unrealistic levels of debt for inviable infrastructure backed and built by China without adequate transparency and scrutiny.
The biggest concern is that several African countries will be left with huge debts and grandiose infrastructure that they cannot maintain and run profitably. I liken it to borrowing money to buy a Tesla when you don’t have adequate access to electricity: Obert Hodzi of the University of Helsinki in Finland
But Chinese observers say the West must take some of the blame for the countries’ debt problems and that the support China offers will benefit the host countries in the long run.
In the early 1990s, when China began to embrace Africa again after years of isolation from the outside world, the aspiring manufacturer was at a serious disadvantage in the race for raw materials and markets for its industrial goods.
The former colonial powers of the West had already sewn up deals for many of the continent’s most lucrative and readily exploitable reserves, from fossil fuels to minerals.
China needed new strategies to convince African governments to allow it access raw materials for its industries and markets for its products to a largely unfamiliar partner.
China also wanted to challenge the dominance of the US in global trade and politics so it courted allies in Africa to help it push for political legitimacy in international institutions.
A Kenya Railways freight train leaves the port station on the Mombasa-Nairobi railway in Mombasa, Kenya, a huge project backed by China. Photo: Bloomberg
At the time, many African leaders were under fire to liberalise their economies. China’s approach was to promise not to meddle in individual country’s internal affairs and assure African countries that they could get billions in exchange for future delivery of minerals through resource-backed deals.
Beijing sold its policies that it had no conditions attached to its development finance. In the drive to drum up business, China promised affordable loans for African countries to build roads, bridges, highways, airports and power dams.
Is Kenya’s Chinese-built railway a massive white elephant?
But Beijing also pursued tied finance, ensuring that countries borrowing from China used Chinese contractors to implement the projects rather than open them up to outside bids.
In addition, many of the deals were built on weak financial, technical and environmental conditions, with Chinese state firms conducting the technical feasibility, environmental impact assessment and financial viability studies for free for projects that they also build.
For example, in Kenya, the China Road and Bridge Corporation conducted a free feasibility study that was used in the construction of the railway.
The same company was handed the contract to implement the project and is operating both the passenger and cargo train service for a fee.
Chinese companies were responsible for the construction of a rail line between Addis Ababa and Djibouti. Photo: AFP
In contrast, the World Bank and its partner institution, the IMF, demand that such studies be done by an independent consultant and not by the company that implements the project.
According to data compiled by the China-Africa Research Initiative, at the Johns Hopkins University School of Advanced International Studies, Beijing has advanced loans worth US$143 billion to African countries since 2000, levels that some critics say are unsustainable for the borrowers.
China meets resistance over Kenya coal plant, in test of its African ambitions
For many of China’s new African partners, these arrangements – from easy lending terms, to non-competitive bidding and opaque contract details – have led to new problems – problems that corrupt or poorly managed governments now share substantial responsibility.
Some critics, both in the West and in host countries, suggest there is a “debt-trap strategy” at the heart of Beijing’s push for international business and influence, but there is no evidence that China deliberately pushes other countries into debt to seize their assets or gain sway.
However, the drive for overseas contracts and big business has led some countries into difficulties with new debts, and there are question marks over the viability of many of the projects the money is funding.
Obert Hodzi, an international relations expert at the University of Helsinki in Finland, said the Addis Ababa-Djibouti railway and the Mombasa-Nairobi railway were good examples of huge projects that were financed by easy borrowing terms from China but were not sustainable and that had in turn forced the African partners to seek further Chinese help.
“The biggest concern is that several African countries will be left with huge debts and grandiose infrastructure that they cannot maintain and run profitably,” Hodzi said. “I liken it to borrowing money to buy a Tesla when you don’t have adequate access to electricity.”
Ken Opalo, a Kenyan scholar at Georgetown University in Washington, said the key issue was the inability of African countries to design projects that were actually needed for the local economies.
A road is not just a means of transport but an economic belt or corridor that will catalyse the development of the whole region: Huang Xueqing, spokeswoman for the Chinese embassy in Nairobi
“Most African countries have been willing to accept projects designed, financed, and implemented by Chinese firms,” Opalo said.
“It would be better to decouple the feasibility studies and design phases of projects from the financing. That way African governments can ensure that they are truly getting value for money.”
But Chinese officials said Beijing had invested in infrastructure largely at the request of the host countries, adding that it could take time to yield returns on the projects.
Huang Xueqing, spokeswoman for the Chinese embassy in Nairobi, said the projects were valid assets with value that would grow in time.
“So, in the long run, it is beneficial to the host countries. Just like when young people buy a house with a mortgage, they may take some debts, but they have a place to live in and have their own assets,” Huang said.
“Underdeveloped infrastructure is the bottleneck that has been holding back Africa’s development. Up to today, many African countries, although in the same continent, are not connected with direct flights, railways or even roads. You have to fly to Paris or Zurich in order to get to some African countries.
“A road is not just a means of transport but an economic belt or corridor that will catalyse the development of the whole region.”
Huang said Beijing had advised the countries to act within their means and not to overstretch themselves when they considered projects that might not be in line with local conditions.
“When making investment decisions, the Chinese side, along with the recipient countries, carry out rigorous feasibility studies and evaluations. We do things according to our ability,” she said.
China’s leadership has also said it is paying close attention to the fiscal and financial difficulties faced by some African countries.
“As a good friend and good brother … the Chinese side is willing to lend a helping hand when needed by the African people to help them overcome temporary difficulties,” State Councillor and Foreign Minister Wang Yi said in January while on a trip to Ethiopia, adding that the debt situation in Africa is also a legacy issue.
China must allay any debt-trap fears in its dealings with Africa
“The African debt issue does not come up today, still less is it caused by the Chinese side. The African people know who are the initiators of African debt.”
The West should take a lot of the blame for worsening debt problems in some African countries, according to Li Anshan, from Peking University’s Centre for African Studies.
He cited the cases of Liberia and the Democratic Republic of Congo, two countries that have had close relations with the West for many years but remain ravaged by war and poverty despite immense natural resources.
“China-Africa relations have been going on for quite some time. Is there any African country which has got poorer because of its deal with China?” Li said.
Gyude Moore, a former Liberian minister of public works whose department oversaw construction and maintenance of various public infrastructure funded and built by China, said it would be difficult to imagine that China would knowingly ensnare its partners in debt.
“China attempts to differentiate itself from Western donors by limiting non loan-related conditionality. China also practices non-interference, so how a country manages its resources, treats its people or deploy its finances were considered ‘internal’,” he said.
“So, Chinese loans are negotiated faster and place less emphasis on public financial management.”
Moore, now a visiting fellow at the Centre for Global Development, said there were trade-offs in such situations.
China focuses on sustainable projects to dismiss fears of African debt trap
“If the loans are going to be fast – the due diligence will not be as rigorous. Chinese project selection mixes political with economic considerations. So, while a project may not make as much economic sense, it may pay political dividends,” he said.
He said non-transparent processes would invite abuse, be they Chinese, Western or African.
Other observers say the question of opacity is more directly related to China’s own economic system.
Howard French, author of China’s Second Continent: How a Million Migrants are Building a New Empire in Africa, said China has very limited transparency and public accountability in its own domestic processes.
The Mombasa railway station is seen in Mombasa, Kenya, in 2018. Photo: Xinhua
“So it would be unusual to expect that China would introduce greater transparency and accountability in its dealings with African countries than it is used to at home – that is, unless African governments insist on it,” French said.
“And this is where African governance comes in. African states should insist on contract transparency but often don’t do so because that offers leaders plentiful opportunities for graft.”
David Shinn, professor of international relations at George Washington University in Washington, agreed that China’s lack of loan transparency was a huge problem and increased the risk of corruption on both the African and Chinese sides. But he also said that in some cases, African governments might have negotiated poorly.
“This is, however, the responsibility of the African government. I don’t think China is purposely trying to encourage African debts in order to gain leverage,” Shinn said.
“In fact, China is becoming more careful about its lending because it is concerned it has made too much credit available to some African countries.”
China ‘ready to talk’ about trade deal with East Africa bloc
Huang Hongxiang, director of China House, a Nairobi-based consultancy that helps Chinese in Africa integrate better, agreed, saying the Chinese government needs to communicate more about projects in Africa but African countries also have a bigger part to play in ensuring better deals.
“On commercial viability, accountability, transparency and governance, I believe the responsibility does not lie with China, the US or the West but in the hands of African countries,” he said.
Wherever the fault lies, one thing is clear when money is wasted on ill-designed projects that have little to no economic return, according to Opalo.
“The lack of planning and transparency creates default risks … [and] African taxpayers will be left holding the bag.”
This article is the third in a series examining the local impact of Chinese investment and infrastructure projects in Africa. Read part one here and part two
The next report will examine whether African countries can speak with one voice in relations with China.
Source: SCMP
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31/07/2019
- China’s Wang Yi and US’ Mike Pompeo at summit in Thailand to sell their visions of future for Southeast Asia
- Analysts expect pragmatism from Asean as world’s two biggest economic powers play diplomatic game
Chinese Foreign Minister Wang Yi (right) greets his Philippine counterpart Teodoro Locsin at the Asean meeting in Bangkok, Thailand. Photo: Xinhua
China and the United States are on a mission to strengthen ties with allies and expand their influence in Southeast Asia this week as their trade war enters a second year.
US Secretary of State Mike Pompeo arrived for a meeting of the Association of Southeast Asian Nations (Asean) in Bangkok on Wednesday to promote the US-led Indo-Pacific strategy, while Chinese Foreign Minister Wang Yi touched down a day earlier to advance Beijing’s Belt and Road Initiative.
The US Department of State said Pompeo’s trip was aimed at deepening Washington’s “long-standing alliances and vibrant bilateral relations with these countries, and [to] reaffirm our commitment to Asean, which is central to our vision for the Indo-Pacific region”.
In Beijing on Wednesday, Chinese foreign ministry spokeswoman Hua Chunying said that while their meeting was yet to be set, Wang and Pompeo were expected to meet and talk “frankly” about bilateral relations.
“I think that it is indeed necessary for China and the United States to maintain communication, as the two countries face many situations,” Hua said. “The issues would be communicated frankly”.
The Indo-Pacific strategy is a military and economic framework to contain China’s expansion into the Pacific and Indian oceans, and give an alternative to Beijing’s flagship belt and road development programme.
En route to Thailand, Pompeo said that after a stalled start to US Indo-Pacific policy during the Barack Obama administration, Washington’s strategy was well on its way to bearing fruit for the US and its allies.
South China Sea tensions, US-China trade war loom over Asean summit
“We have watched these coalitions build out,” he said.
Pompeo dismissed claims that China’s sphere of influence among Asean members was growing, saying such speculation was “not factually accurate”.
“[Asean countries] are looking for partners that are going to help them build out their economies and to take good care of their people,” he said, pledging greater engagement from President Donald Trump’s administration.
Pompeo was expected to sit down on Friday with his South Korean and Japanese counterparts to consolidate their trilateral alliance in the region.
He was also expected to hold talks with Thai Foreign Minister Don Pramudwinai that day.
US Secretary of State Mike Pompeo is expected to meet Chinese Foreign Minister Wang Yi at Asean in Thailand. Photo: EPA-EFE
Meanwhile, Wang launched his belt and road pitch to his Cambodian, Philippine and Indonesian counterparts after he arrived in Thailand for the gathering, which ends on Saturday.
The belt and road projects are largely commercial and aimed at strengthening land and sea infrastructure linking Asia, Europe and Africa. But they raised suspicion in the West that they are aimed at eroding the US-led world order.
During his meeting with Philippine Foreign Affairs Secretary Teodoro Locsin, Wang said: “China is willing to have high-level exchanges with the Philippines, to deepen the mutual trust, and promote the Belt and Road Initiative [in the Philippines] … to accelerate the development of regional infrastructure.”
Can China’s trade boost with Asean help get the Regional Comprehensive Economic Partnership over the line?
This year’s Asean forum was taking place as countries were more receptive to Chinese initiatives, in part due to the unpredictability of the US administration, according to Rajeev Ranjan Charturvedy, a visiting fellow at the S. Rajaratnam School of International Studies at Nanyang Technological University in Singapore.
“Policy uncertainties under the Trump administration have already pushed some Asean countries towards China in ways that would have seemed unlikely a few years ago,” Charturvedy said.
Analysts said Trump’s “America first” approach shaped his Asean policy. The president had vowed to apply “punishments” to countries – including Asean member states – for contributing to the US trade deficit.
Chinese Foreign Minister Wang Yi is talking to Asean counterparts at a time when they are receptive to China’s proposals, an analyst says. Photo: AFP
Trump was absent at the Asean summit in Singapore last year, leading to concerns that Washington’s commitment to Asia was declining.
Charturvedy said the Asean forum’s focus was about building constructive regionalism, but China’s attitudes to security could pose a challenge.
“[However] Asean countries clearly hope not to be forced to choose between the US and Chinese offers. Rather, they would like more freedom of choice while accommodating for a larger role for China in the region,” he said.
Clarita Carlos, a professor of political science at the University of the Philippines, suggested that Asean members would be pragmatic during the forum.
Robert Lighthizer warns Vietnam over trade deficit with US
They would try to find their own balance between the two major powers – as countries rather than a bloc – to try to maximise each state’s interests and advantages, Carlos said.
“Vietnam has a love-hate relationship with China, especially as a winner in the ongoing US-China trade war,” she said. “Singapore has close relations with China. There are also ups and downs in the relationship with China for Brunei, Malaysia and Indonesia.”
Source: SCMP
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28/07/2019
- Chinese Foreign Minister Wang Yi wraps up tour of Brazil and Chile, as Colombian president heads for Beijing
- Ecuador president tells US Secretary of State Mike Pompeo ‘smaller countries pay when the big ones fight’
Chinese Foreign Minister Wang Yi is greeted by an honour guard as he arrives at the Itamaraty Palace for a meeting with his Brazilian counterpart Ernesto Araujo on Thursday. Photo: AP
Latin American countries are caught in the middle of a geopolitical tug of war between Beijing and Washington as China boosts its ties in the region in a bid to counterbalance the effects of its trade war with the US.
China’s Foreign Minister Wang Yi wraps up a tour of Latin America on Sunday which began last week in Brazil and ended with an official visit to Chile. He returns to Beijing on the same day Colombia’s President Ivan Duque Marquez arrives for a three-day state visit to China which will include a meeting with Chinese President Xi Jinping.
Wang was in Brazil for the latest summit of foreign ministers from the BRICS countries – an association of emerging countries made up of Brazil, Russia, India, China and South Africa – as well as the third China-Brazil foreign ministers’ comprehensive strategic dialogue with Brazilian Foreign Minister Ernesto Araujo.
China has overtaken the US as Brazil’s largest trading partner, with Brazilian soybeans – one of the country’s biggest exports – and other agricultural products replacing American imports since the start of the US-China trade war a year ago.
Brazilian soybeans – one of the country’s biggest exports – and other farm products are being sold to China as a result of the trade war. Photo: Reuters
The growing importance of China to Brazil’s economy has created a difficult position for President Jair Bolsonaro, who accused Beijing of trying to buy Brazil during his election campaign, but changed tack on assuming office in January.
In March, Bolsonaro called China his country’s “main partner, politically as well as economically and commercially” and announced plans to travel to Beijing this year, a visit which was confirmed on Tuesday for late October.
China is now Latin America’s second largest trading partner with bilateral trade at US$307.4 billion, growing 18.9 per cent over the previous year, according to China’s ministry of commerce, in a relationship focused on commodity imports, including mining products like copper and energy, as well as soybeans and other agricultural goods.
While the US and China have tentatively agreed to resume talks in Shanghai next week, China and Latin American countries are likely to continue deepening their trade relations as production chains realign as a result of the trade war, according to Gustavo Oliveira, assistant professor of global and international studies at the University of California, Irvine.
“This means Chinese imports of Latin American agricultural and mineral commodities, and Latin American imports of Chinese manufactured products and hi-tech, might contribute to China’s ability to stand its ground against US pressure,” he said.
China in Latin America: partner or predator?
Oliveira said domestic contradictions in most Latin American countries complicated relations with China, as few leaders had the capacity to press or leverage China for much. “Unfortunately, therefore, most in this crop of Latin American leaders are basically placing themselves as junior partners or pawns in the geopolitical tug of war between the US and China.”
US Secretary of State Mike Pompeo put the pressure on Latin American countries over their relationship with China during his four-day tour of the region last weekend, when he visited Argentina, Ecuador, Mexico, and El Salvador.
In a joint interview with Pompeo during the visit, Ecuador’s new President Lenin Moreno defended the country’s China ties, and urged Washington and Beijing to resolve their conflicts for the benefit of other nations in the region.
“We hope that the US and China, the greatest powers in the world now, will find agreement easily because, unfortunately, when the big ones are discussing or fighting and have conflicts, the ones that are paying for all of that are the smaller countries,” he said.
“Now, when two elephants fight, the ones who lose are the insects who are of course being crushed by the elephants in the attempt to evade them.”
US Secretary of State Mike Pompeo (left) and Ecuadorian President Lenin Moreno hold a joint press conference during Pompeo’s tour of Latin America on July 20. Photo: EPA-EFE
Pompeo blasted China’s role in the region during a previous tour of South America in April, when he singled out Beijing’s support for President Nicolas Maduro of Venezuela. Maduro is backed by Beijing, Russia and other allies, while the US and many European countries have supported opposition leader Juan Guaido as legitimate president since elections in January.
Speaking from Chile on that tour, Pompeo said Beijing’s calls for non-intervention in Venezuela were “hypocritical” and aimed at protecting Beijing’s investments in the country, as well as debts owed to China by Venezuela.
Pompeo also accused Beijing of “sowing discord” in the region through debt traps. “When China does business in places like Latin America, it often injects corrosive capital into the economic bloodstream, giving life to corruption and eroding good governance,” he said.
Professor Cui Shoujun of Renmin University in Beijing said Washington’s concerns about “debt trap diplomacy” in Latin America reflected concerns that China’s growing involvement in financing infrastructure and development projects would make the region more pro-China.
“China’s interests in Latin America go beyond raw materials extraction,” he said. “The biggest point of tension between the US and China in the region is perhaps that China presents an alternative model for development that is very different from the Western model.”
‘Mr Pompeo, you can stop’: China hits back over Latin America criticism
While the US was drumming up tensions about China across the world, Beijing was not openly retaliating but responding with investment and trade for global partners, said Kevin Gallagher, researcher on China-Latin America ties, and professor at Boston University.
“The US points fingers and makes angry speeches in the region as China cuts investment deals and helps address infrastructure needs,” he said.
“Latin American countries’ governments are rightly keeping their heads down on the broader geopolitical winds, and are getting down to business with their largest trading partner.”
Source: SCMP
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