Tagged: Chinese hydrocarbons

Afghanistan has what China wants

By Alexandros Petersen

First published by Foreign Policy’s AfPak Channel on April 18, 2013

As we near the date of withdrawal for U.S. combat forces in Afghanistan, the debate about the country’s largest neighbor has shifted. No longer are American analysts worried about Chinese investments free-riding on U.S. and NATO stability efforts. Now, the hope is that China’s massive state-owned enterprises (SOEs) will pour more funds into Afghanistan in the hope that foreign direct investment will shore up a centralized government and provide opportunities for all to make money instead of war. But, Chinese companies face many of the same uncertainties that U.S. forces and contractors have contended with for a decade.

Much has been written about the controversies and delays at the site of China’s largest investment in the country: the gargantuan copper mine at Mes Aynak. Both company officials and local observers indicate that the SOE leading the project, China Metallurgical Group Corporation, is biding its time, waiting to assess the post-withdrawal security situation.

What could be far more significant in the long run, however, are Chinese plans for oil and gas investment in the north of the country. These have the potential to link Afghanistan into China’s growing pipeline network in Central Asia, providing the infrastructure-led regional integrationthat U.S. officials have been touting for years. Nearby Turkmenistan and Kazakhstan have grown wealthy and centralized partly due to Chinese energy investment. Could the same be true for Afghanistan in the future? Continue reading

China in Afghanistan, a tale of two mines

By Raffaello Pantucci

First published in the Financial Times Beyond Brics December 4, 2012

Picture from here

Facing a heavy domestic agenda and growing foreign policy tensions in the seas to the east, it is unlikely that Afghanistan is going to be a major priority for incoming Chinese leader Xi Jinping.

Unfortunately, this does not mean the problems are going away. The contrasting fates of China’s large extractive projects in Afghanistan highlight a number of growing issues for the new administration in Beijing as the 2014 deadline for American withdrawal imposed by President Obama looms ever closer.

Up in the north, CNPC has started to extract oil from the ground in its project in the Amu Darya basin, while southeast of Kabul at Mes Aynak, the giant copper mine run by Metallurgical Corporation of China (MCC) and Jiangxi Copper has been put on hold while the Chinese firms reassess their ambitious plans for a project described by President Karzai as ‘one of the most important economic projects in Afghan history’.

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China Passes the buck in Afghanistan

By Raffaello Pantucci.

First published in Foreign Policy’s AfPak Channel on October 28, 2011.

Feng Li/Getty Images

As we pass the 10-year anniversary of the US-led war in Afghanistan, most attention has been focused on how much longer the United States intends to stay in the region. But a question that has not been addressed is who is going to be putting the pieces together afterwards. The European Union (EU) and the United States are clearly at the end of their tether, while Russia, India and other nearby powers continue to lack the capacity or means to dominate the region. Other rising regional power China may continue to be wary of becoming involved in any foreign entanglements, but as a friend put it in a meeting in Beijing the other day, China may not have broken the teapot of Afghanistan, but it is one that sits firmly on their borders.

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