Some bitter ironies in Afghanistan these days: U.S. and French soldiers gunned down by the very Afghan troops they work with. America and its NATO allies, facing huge budget problems themselves, persist in squandering billions in Afghanistan, to defeat Islamic radicals and create a propitious climate for growth and investment. Right now, the largest investments so safe guarded are Chinese.
Another paradox, it was American engineers who, in the
summer of 2010, completed a survey concluding that Afghanistan sits atop one
trillion dollars of untapped copper, iron and lithium deposits. If it could
just get its act together, the country had a promising future. Skeptics
immediately claimed that rosy estimate didn’t take account Afghanistan’s woeful
infrastructure: it could cost more to mine those resources than they were
worth.
But that’s not how the Chinese see it. A few weeks ago, China’s
National Petroleum Corporation became the first foreign company to be
allowed to explore Afghanistan’s oil and gas reserves in the Amu Darya Basin. The
deal is estimated to be worth more than $700 million. Some speculate it could
ultimately be worth ten times that amount to China.
Even before that deal, however, China was already the
largest foreign investor in Afghanistan. In 2007 Beijing signed a $3 billion agreement
to explore huge copper deposits in Mes Aynak, south of Kabul.
India is the only other country to go after Afghan minerals.
Last November a deal was signed giving Indian firms the rights to 1.8 billion
tons on iron-ore, one of the largest untapped deposits in Asia.
It’s very unlikely that the
Chinese [and Indians] would be making such risky bets without the security
provided by the U.S. and its allies. After the copper deal was inked, 2,000
U.S. troops were deployed to provide general security in Logar Province
where the Mes Aynak mine is located. They also protected the projected routes
of the road and railway which will service the huge development. Another 1,500
Afghan National Police, presumably paid and trained by the U.S. and its allies,
were sent to guard the mine itself.
In addition, facing restless
Muslim groups in their own country, the Chinese are not at all unhappy about
the U.S. and Nato taking on Islamic militants in Afghanistan.
Yet, all the while, China
has consistently refused to contribute to the joint Western military force.
They even turned down a request to permit NATO to ship non-lethal supplies via
China to Afghanistan.
So why aren’t the U.S. and its allies screaming about the
situation? Because, if they are to
have a face-saving way out of Afghanistan that doesn’t disintegrate into chaos,
they desperately need China’s huge new investments to continue and prosper.
As things now stand, once the income from opium production
is deducted, 97% of Afghanistan’s GNP comes from foreign aid. A whole new economy is needed.
After China’s National Petroleum Council signed its recent
oil agreement with Kabul, experts
warned that success was far from a sure thing: it could take five to ten
years of expensive exploration to see if the oil fields are really worth
developing.
But the Chinese are after
more than oil and copper. They see each deal as another foot in the door. The are
also determined to reap huge potential profits to come from rebuilding Afghanistan’s
shattered infrastructure and economy, among such projects, a high-speed rail
system. In this way, without
massive military deployments, China has already become a major player throughout
the region. [I’ve written about China’s activities in Pakistan, Iran, Iraq and
the Gulf in
other recent blogs]
A particularly insightful
comment on China’s tactics in Afghanistan followed an article in The
Diplomat:
“Achieving
a peace agreement is always the number one preference for Chinese government.
By nature Chinese are not interested in “beating” other group of people, but
are interested in “gaining” concrete benefits. This is due to the Chinese
culture and history. In Chinese culture, people believe in “harmony brings
wealth”. Therefore, when dealing with a dispute, a Chinese normally do not set
his goal as completely beating the others, but rather sequence his goals
according to priority, and try to achieve the goal with the highest priority
first, and so on. Each disputant may achieve some goal upon settlement of the
dispute.”
Case in point: thanks to the Chinese, the Afghans may benefit
from a real high-speed rail system before the United States.