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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (27777)	1/13/2008 11:39:11 PM
From: elmatador	Respond to of 217619

The dragon's newest friend SINCE the political crisis in Timor Leste in May last year, China's presence and influence in the fledgling South-east Asian nation have been on the rise. Why has China increased its level of interest in Timor Leste at a time when many prefer to stay away? What has allowed Beijing to improve its position in the territory and why is it willing to take the risk of committing itself to such a troubled nation? China has granted US$34 million (S$52 million) in financial aid to Timor Leste since 2000. But this sum is modest compared with Timor Leste's major donors such as Portugal and Australia. It is smart diplomacy and public relations savvy that have allowed the Chinese to obtain significant benefits. Japan has given six times the amount of aid provided by China, but Tokyo's discretion and a certain passivity have made its influence and prestige much less noticeable. The world's media has noted China's role in the building of the presidential palace and the foreign ministry in Timor Leste, but more expensive infrastructure projects funded by Japan, such as the modernisation of Dili's harbour and the planned construction of the country's first highway at a cost of US$10 million, have gone unnoticed. The credit for China's high profile goes to the three Chinese ambassadors who have so far served in Dili, all of them fluent in Portuguese and with previous experience in other Portuguese-speaking countries. Chinese diplomats tend to be more active than their Western counterparts, wasting no opportunity to score diplomatic points. China's long-term strategy towards Timor Leste became clear after the massive unrest that erupted early last year, which led many investors and foreign governments to downgrade their interests in the country. Major investments from the Middle East, South Korea and Asean states were postponed or abandoned. In contrast, China seems not to have wavered in its commitment towards Timor Leste. When China decided, on May 26, to evacuate its citizens, the Chinese ambassador urged them to return to the country once the Beijing government considered the situation to be stable. Beijing understands that its private citizens, in particular those engaged in business, are becoming an important asset to its foreign policy. During the crisis, high-ranking Chinese officials continued to express optimism and solidarity towards the troubled nation. When food scarcity became a serious problem, China donated 3,000 tonnes of rice and 500 tonnes of cooking oil. This rather simple but highly symbolic gesture secured for Beijing valuable political points. Despite the turmoil and the slow pace of recovery, Chinese business interests seem not to have lost their enthusiasm. Indeed, Chinese businesses see the large United Nations presence as a boost to the economy. To Chinese businessmen, life evolves in cycles: Thus the instability in Timor Leste will pass and a new cycle will begin. Indeed, Chinese businesses, both state and private, are active in other unstable parts of the world, such as Africa. Chinese economic moves being planned include a free trade area along the border between Indonesia and Timor Leste, and the creation of a growth area modelled on the growth triangle concept for Singapore, Malaysia and Indonesia. The special area, to be located on the Timorese island of Atauro, aims to stimulate trade between Timor Leste and the nearby Indonesian islands of Larantuca, Flores, Moluccas and Bali, which share many cultural affinities with Timor Leste. The risks taken by the Chinese in Timor Leste have paid off in some ways. Last month, Chinese companies received their first contract to build a hospital in the district of Suai. This will be the first of six hospitals to be built as part of the expansion of the country's health service. China Metallurgical Construction is well-poised to win some contracts due to its competitive prices and the fact that it has been in Timor Leste since its independence. But it may be in the energy sector - Timor Leste has huge oil and gas reserves - where the biggest potential for investment lies. One of China's largest state-owned oil companies, PetroChina, has been involved in seismic studies to gauge the extent of hydrocarbon deposits in the country. Beijing is expected to bid to develop these. There has also been speculation that China will finance the construction of a pipeline to transfer oil and gas from the interior of the country to the coast for onward transportation aboard Chinese vessels. Fisheries is another area where Chinese companies have been making inroads. Early last year, Dili awarded China fishing rights in its Exclusive Economic Zone. That could lead to as many as 100 Chinese vessels operating in Timorese waters. Regardless of China's long-term aim, the Timorese government seems to appreciate Beijing's commitment to it. China has made substantial diplomatic gains in Timor Leste at a very modest material cost. Patience and sophisticated diplomacy have allowed Beijing to emerge in the eyes of the Timorese as a committed and much-needed friend. The writer is an associate research fellow and PhD candidate at the S. Rajaratnam School of International Studies, NTU. Latest comments Posts that contain racist, sexist, offensive or threatening language, personal attacks on the writer or other posters, and posts that are off topic will be removed. Any poster who repeatedly contravenes these guidelines will be banned from posting. » Post comments here