GP Short Notes

GP Short Notes # 564, 22 August 2021

China: Beijing's economic interests in Afghanistan outweighs likely threats from the Taliban
Dincy Adlakha

What happened?
On 16 August 2021, a Chinese foreign ministry spokesperson Hua Chunying held a regular press conference and stated: "China has maintained contact and communication with the Afghan Taliban and played a constructive role in promoting the political settlement of the Afghan issue."  She demonstrated tacit support for the Taliban by adding: "We hope the Afghan Taliban can form solidarity with all factions and ethnic groups in Afghanistan, and build a broad-based and inclusive political structure suited to the national realities, to lay the foundation for achieving enduring peace in the country." The statement also read: "China respects the Afghan people's right to decide on their own future independently. We are ready to continue to develop good-neighbourliness and friendly cooperation with Afghanistan and play a constructive role in Afghanistan's peace and reconstruction." With this, she confirmed that the Chinese embassy in Afghanistan is operating smoothly with its staff despite many Chinese nationals being brought back to China.

What is the background?
First, China's recent engagements over Afghanistan. Over the years, China has gradually shifted its Afghanistan approach from non-interference to strategic engagement. Stable Afghanistan is crucial for China. Consequently, China has been active in international dialogue, stimulating the dialogue process in Afghanistan. It has maintained an essential position in the extended troika and troika plus in facilitating intra-Afghan talks. Additionally, China has repeatedly attempted to bring the Taliban to the table with the US, Pakistan, Afghanistan, and itself through the Quadrilateral Cooperation Group. On 15 July, China also put forth a three-part roadmap at Shanghai Cooperation Organization to begin the peace talks in Afghanistan. Regionally, China has held multiple high-level ministerial talks with the Central Asian countries and Pakistan and China, monitoring the Afghanistan situation for a long time.

Second, China's recent engagements with the Taliban. China has not disguised its intentions. On 28 July, Chinese Foreign Minister Wang Yi met with the Taliban co-founder and deputy leader Mullah Abdul Ghani Baradar in a nine-member delegation that visited the Tianjin port. Previously, a similar trip was organized in 2019. In 2015, secret talks with Taliban representatives were held in Urumqi, Xinjiang. These meetings hold great meaning for China. 

Third, China's economic interests in Afghanistan, especially the minerals. Earlier, Afghanistan was not a part of China's Belt and Road Initiative. Yet, it has become a crucial connecting route for China for BRI and also the China-Pakistan Economic Corridor (CPEC). China also has significant interests in Afghanistan's minerals; Mes Aynak is the world's second-largest copper mine. Apart from copper, Afghanistan also has huge amounts of iron ore, gold, and even rare-earth metals, lithium, worth approximately 4.4 billion US dollars. The provinces of Herat, Ghazni, and Nimroz offer substantial economic benefits for China.

Fourth, China's security concerns. China fears a spillover of instability in its territory through Afghanistan. There exist multiple militant groups in the region that lies in geographical proximity with Xinjiang. According to reports, the Taliban has promised not to allow Afghan soil to be used against Chinese interests.

What does it mean?
First, China was apprehensive of the American presence in Afghanistan. However, now the withdrawal, too, causes another apprehension. The US will not have any liabilities in South Asia and would direct its resources towards China. Second, recognition from China would give legitimacy to the Taliban and open doors for integrated cooperation. There may be some distrust with the Taliban's promises, but Chinese economic interests in Afghanistan speak louder.

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