Thursday, February 9, 2012
China's Resource Dependency
With little in the way of force projection, China’s dependence on natural resources in unstable parts of the world could undercut its economic ambitions. There are limits to freeriding.
The seizure of 29 Chinese workers by Sudanese rebels in the southern part of Sudan last week exposed one of the most vulnerable links in China’s ambitious plan for extending its economic influence abroad. To be sure, this isn’t the first time workers sent by China to dangerous regions were kidnapped or harmed. Five years ago, three Chinese engineers were murdered by a militant group in Pakistan. When civil war broke out in Libya nearly a year ago, Beijing had to dispatch a fleet of ships and airplanes to evacuate more than 30,000 Chinese workers from the country.
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My Comment: Like Japan (and most Asian countries) .... China is dependent on the resources of others. Will this change in the foreseeable future ... no. But at least China is trying to break this cycle by making agreements with more stable resource exporting countries.
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