China’s Influence Growing In South Pacific

As it scrambles worldwide for raw materials to fuel its rapidly growing economy, China is increasingly finding itself in the same hunting grounds with Taiwan, its breakaway province, with both economies resorting to offering generous grants as inducements for allegiance. Both have experienced varied success.

China’s recent successful courting of the Latin American nation of Costa Rica, and its subsequent switch of diplomatic allegiance from Taiwan to China, comes just weeks after Taiwan’s similar success with the Caribbean island of St Lucia, a move that irked China so much that it promptly withdrew its embassy and cut aid to the island.

A Chinese envoy based in Senegal, Africa told a Reuters reporter in Africa early June that “the economic benefits to its African allies will help convince the African countries who recognize breakaway Taiwan to switch to Beijing”. There are five African countries with diplomatic ties with Taiwan. The economic benefits are in reference to the millions of aid and development dollars that China has invested in the African economy in the last few years and also in November 2006 at the Beijing Summit of The Forum on China-Africa Partnership where multi-billion dollar trade deals with Africa were signed.

In Latin America, Africa and in the South Pacific, China’s influence is growing and it is by no coincidence that its targeted trade partners are in the same areas as Taiwan’s trade partners too. For China, winning investment and trade allies is important but getting countries to switch allegiance from Taiwan to China is even more important.

Beijing considers Taiwan its territory under the One China Policy and has repeatedly threatened to invade the territory should it declare formal independence. In 2005 China ratified the Anti Secession Law Of The People’s Republic Of China, which threatens non-peaceful means against any independence movement. Taiwan was part of mainland China and broke away in 1949.

Through constant pressure and heavy international lobbying, mainland China has prevented Taiwan , population 23 million from establishing official diplomatic ties with most countries in the he world. Any country that wants to do business with China must first disassociate itself from Taiwan & stop diplomatic ties.

Dr Jian Yang is an expert on China’s Foreign Relations and Foreign Policy, and, is a lecturer in Political Science at Auckland University. Dr Yang says: “If you recognize mainland China, you can’t recognize Taiwan. In Other words, if you have diplomatic relations with Taipei (Taiwan) China says you must stop relations with it. You can’t have both.”

China, which has more than 100 diplomatic missions worldwide, has been putting the squeeze on Taiwan over the years and the latest switch by Costa Rica back to China brings down to 25 the mostly poor African , Latin American and South Pacific nations that recognize Taiwan..

“Out of these 25, six of them are in the South Pacific, so you can see South Pacific is extremely important for Taiwan in terms of diplomatic recognition...”

These states are Solomon Islands, Tuvalu, Nauru, and Palau Island, and the Marshall Islands.

According to Dr Yang, China’s economy is growing fast and an increasing number of Chinese businesses are going overseas to do business with other countries.

“So it’s natural economic expansion to the South Pacific. South Pacific has resources. There are a number of economic factors. China goes to Africa. China goes to Latin America and China goes to the South Pacific. You have to consider China’s increasing influence in the South Pacific in the broader context of China’s global diplomatic policies. The Taiwan issue and economic expansion like markets and resources-all these are the main factors for China’s growing influence or interest in South Pacific.

Dr Yang says from his analysis China’s movement in the Pacific is purely economic. If you say China’s move in South Pacific is strategic in terms of military, then I’ll say it’s questionable. I personally have not seen China’s movement in South Pacific as a security. or military move. China’s involvement in the South Pacific has not been driven by military or security considerations, interests or strategies.

As China’s economic might and its trading partners increase, so have questions about its human rights abuses and its alignments with Governments that have bad human rights records. I asked Dr Yang if its pragmatic to attach or lend moral issues to trade.

“To trade with China is one way to influence China. China has changed a lot in the last three decades because of its opening up. You either lose China, that’s one way , or you engage with China, that is the other way. China’s market is very big. There are many countries that would like to trade with China. If you isolate China, you’ll have a very resentful China. Personally I think its best to engage with China, trade with China and sometime you try to change things”

Michael Barnett, President of the Auckland Chamber of Commerce which represents businesses had this to say in response to the same question: “ Each individual firm that’s doing business with a firm in China needs to look at the values for that organization. The individual firm will need to make that decision. Make a decision based on ethics and values of firms they do business with in China.”

Trade volumes between China and the rest of the world are increasing, including here in New Zealand . Recently reports in the Auckland based New Zealand Herald expressed fears of the potential loss of jobs and shrinking of manufacturing bases due to translocation of some companies to China due to among many other reasons, the high New Zealand dollar and low-labour costs in China. The high dollar is making the Kiwi dollar uncompetitive on the market while low labour costs in China meant overall low production costs

“It will have some effect obviously(loss of jobs etc). But they won’t be bad as its been happening gradually,” says Michael Barnett.

China continues to trade with regimes and governments that have been isolated, through sanctions, by most of the world's nations – China's continuing trade with Zimbabwe is a case in point. Dr Yang said that for China, economic development is primary, and moral issues are secondary.

“China’s relationship with Mugabe for instance does not mean that China supports Mugabe’s regime, it’s simply because China is realistic, and China believes it’s important for its own national interests to have good relations with these countries. But that does not mean that China supports repression in Zimbabwe."

China puts national interests before moral concerns. This does not mean that China is right. China’s policy attaches little moral concerns. This does not mean that China supports those regimes. China may have to address moral issues to be a more equal or responsible international citizen. This is based on Western definition. .

As China’s market grows, many small nations are now worried that aligning themselves with Taiwan may cut them of important trade within China.

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