China Becomes More Involved In Afghanistan As It Eyes That Country’s Natural Resources

Denis Gray of the Associated Press has this article:

KABUL- China, long a bystander to the conflict in Afghanistan, is stepping up its involvement as U.S.-led forces prepare to withdraw, attracted by the country’s vast mineral resources but concerned that any post-2014 chaos could embolden Islamist insurgents in its own territory.

Cheered on by the U.S. and other Western governments, which see Asia’s giant as a potentially stabilizing force, China could prove the ultimate winner in Afghanistan — having shed no blood and not much aid.

Security — or the lack of it — remains the key challenge: Chinese enterprises have already bagged three multibillion dollar investment projects, but they won’t be able to go forward unless conditions get safer. While the Chinese do not appear ready to rush into any vacuum left by the withdrawal of foreign troops, a definite shift toward a more hands-on approach to Afghanistan is under way.

Beijing signed a strategic partnership last summer with the war-torn country. This was followed in September with a trip to Kabul by its top security official, the first by a leading Chinese government figure in 46 years, and the announcement that China would train 300 Afghan police officers. China is also showing signs of willingness to help negotiate a peace agreement as NATO prepares to pull out in two years.

It’s a new role for China, as its growing economic might gives it a bigger stake in global affairs. Success, though far from guaranteed, could mean a big payoff for a country hungry for resources to sustain its economic growth and eager to maintain stability in Xinjiang.

“If you are able to see a more or less stable situation in Afghanistan, if it becomes another relatively normal Central Asian state, China will be the natural beneficiary,” says Andrew Small, a China expert at The German Marshall Fund of the United States, an American research institute. “If you look across Central Asia, that is what has already happened. … China is the only actor who can foot the level of investment needed in Afghanistan to make it succeed and stick it out.”

Over the past decade, China’s trade has boomed with Afghanistan’s resource-rich neighbors in Central Asia. For Turkmenistan, China trade reached 21 percent of GDP in 2011, up from 1 percent five years earlier, according to an Associated Press analysis of International Monetary Fund data. The equivalent figure for Tajikistan is 32 percent of GDP, versus 12 percent in 2006. China’s trade with Afghanistan stood at a modest 1.3 percent of GDP in 2011.

Eyeing Afghanistan’s estimated $1 trillion worth of unexploited minerals, Chinese companies have acquired rights to extract vast quantities of copper and coal and snapped up the first oil exploration concessions granted to foreigners in decades. China is also eyeing extensive deposits of lithium, uses of which range from batteries to nuclear components.

The Chinese are also showing interest in investing in hydropower, agriculture and construction. Preliminary talks have been held about a direct road link to China across the remote 76-kilometer (47-mile) border between the two countries, according to Afghanistan’s Foreign Ministry.