http://www.atimes.com/atimes/China/MA05Ad01.html

 Jan 5, 2011 

China challenged over Sudan referendum 
By Tom Rafferty 



As South Sudan's referendum on independence on January 9 draws nearer, the 
international community is preparing for the possible division of Sudan into 
two independent states. 

With signs of growing tensions and several issues still to be resolved by 
negotiations - notably agreements on the demarcation of a north-south border 
and the distribution of oil revenue - there is a risk of a return to the 
decades-long civil war fought between the ruling National Congress Party (NCP) 
and the southern-based Sudan People's Liberation Movement (SPLM) that was ended 
by the 2005 Comprehensive Peace Agreement (CPA). 

United States Secretary of State Hillary Clinton has called Sudan a "ticking 
time bomb" and launched a fresh diplomatic drive aimed at applying pressure on 
both sides to avoid conflict. 

Amid the uptick in high-level diplomacy, however, the role to be played by 
China remains a crucial but unexplored factor in discussions about the 
referendum and beyond. 

China is the key external power in Sudan as a result of the substantial assets 
that one key state-owned enterprise - China National Petroleum Company (CNPC) - 
has developed in the country. Yet despite its apparently compelling interest in 
ensuring stability in Sudan, China has so far adopted a policy of "wait and 
see" with regards to the referendum. At the root of this hesitancy is a lack of 
consensus in Beijing about how to balance growing overseas economic interests 
and international "responsibilities" with China's traditional foreign policy 
doctrine of "non-interference" in another state's internal affairs. Any renewal 
of north-south violence in Sudan will likely put that principle under further 
strain. 

The dilemmas of non-Interference 
Non-interference has been fundamental to Chinese foreign policy since Zhou 
Enlai articulated the Five Principles of Peaceful Coexistence. It was designed 
to reflect solidarity with newly independent post-colonial states and to 
indicate respect for territorial sovereignty. 

Although the principle was regularly violated by the support China lent to 
revolutionary movements across Africa and Asia in the 1960s and 1970s, it 
reassumed a central position under the "independent foreign policy" of the 
post-1978 period. China's own sensitivities about perceived external 
interference, particularly in the context of Taiwan and Tibet, have led it to 
conceive of sovereignty in traditional Westphalian terms. Today the principle 
of non-interference remains oft-repeated in official foreign policy rhetoric. 

The policy of non-interference, however, is being complicated by China's 
expanding global interests. The globalization of its economy has given China a 
stake in the stability of a number of countries with which it previously only 
had limited contact. Encouraged over the past decade by the central government 
to "go out", state-owned and private enterprises have pursued overseas markets 
and new sources of natural materials, investing an estimated US$178 billion in 
the process. 

China's rapid economic growth has also led to increasing clamor in Western 
capitals for it to assume the "responsibilities" requisite with global power 
status. Rather than "free-riding" on the security arrangements established by 
the United States and its allies, this argument proceeds, China should take a 
more proactive stance toward regional and international security issues. These 
dynamics are stimulating a debate within China about the continuing value of 
non-interference. 

On one side there is concern about how China's "overseas interests" can be 
protected in the event of political and economic instability. Concerns are 
increasingly expressed about the security of the growing number of Chinese 
citizens working abroad following repeated incidences of Chinese workers being 
kidnapped - and occasionally killed - as they find themselves caught up in 
internal conflicts between state forces and rebel groups. 

An estimated 24,000 Chinese citizens are said to work and live in Sudan alone, 
with comparable numbers in other African states. Solutions proffered to this 
problem typically focus on providing better consular protection services, 
engaging more deeply with international legal mechanisms, and building better 
intelligence about local investment environments. Yet there are calls for the 
government to play a more direct role, either by using its influence to shape 
the domestic politics of states in which China has strategic interests or even 
through the use of military force. The anti-piracy mission of the Chinese navy 
off the Somali coast is widely perceived as a first step towards developing a 
more assertive approach to protecting China's overseas economic interests. 

Others urge a re-evaluation of non-interference because it is not a policy 
befitting a global power with growing international "responsibilities". Some 
worry that a willingness to partner with regimes that commit flagrant 
human-rights abuses comes with significant image costs. 

International criticism during the run-up to the Beijing Summer Olympic Games 
of China's ties with a Sudanese regime complicit in committing atrocities in 
Darfur was fundamental in this sense. China's subsequent behind-the-scenes 
diplomacy, which was instrumental in getting Khartoum to accept a joint African 
Union-United Nations peacekeeping force in Darfur, has since been held up as an 
example of what a more proactive - and responsible - Chinese foreign policy 
might consist. 

In that vein, Chinese scholars have since developed new paradigms, such as 
"creative interference" and "conditional interference", to describe how China 
could further expand its role in peacekeeping operations or support 
interventions under the rubric of "responsibility to protect". In this case, 
the desire to craft a policy "beyond" non-interference is shaped through 
engagement with international norms rather than by narrow economic 
self-interest. 

Although the debate about non-interference is now a hot topic in China's 
foreign policy community, several factors work against there being any dramatic 
re-evaluation of the official stance. The first is a lack of capabilities and 
resources. China remains under-experienced in the field of conflict prevention 
and there exist no domestic academic or policy institutions that conduct 
in-depth research into these issues. 

The second is a belief that non-interference has been a valuable policy tool in 
building burgeoning relations with African and other developing world states 
exhausted by the prescriptions and conditionalities of the West. Beijing is 
concerned that any step toward playing a more consequential role in domestic 
politics might be perceived as evidence of China adopting the imperialist 
dispositions of another "northern" power. 

Responding to the referendum 
Developments in Sudan over the past five years have demonstrated that debates 
about non-interference have had a mixed impact on policy. China's perceived 
interests in Sudan stem from the investments that CNPC (and, to a much lesser 
extent, Sinopec) have been making in its oil industry since Western companies 
began to retreat in the mid-1990s. 

CNPC now has controlling stakes in the two biggest energy consortiums operating 
in Sudan, giving it an estimated 60% share of the 480,000 barrels of crude 
produced daily. It also constructed the 1,500 kilometer pipeline that connects 
the oilfields of the south, where 85% of reserves are found, to the export 
point of Port Sudan in the north. CNPC views Sudan as having been a successful 
testing ground for its overseas investment strategy, with those involved in 
managing its operations in Sudan since assuming senior positions elsewhere 
around the world. 

The secession of the south will likely complicate the management of CNPC 
assets. A number of key leases on oil concessions originally signed with 
Khartoum, will soon need to be renegotiated. This will depend on the favor of 
the SPLM - reconstituted as the Government of South Sudan (GSS) under the terms 
of the CPA - who have traditionally perceived China as having underwritten the 
rule of the rival NCP. In any renewal of north-south conflict, CNPC-controlled 
oil fields may feasibly be seized by rival groups and the security of Chinese 
workers threatened. Since 98% of the south's revenue comes from oil, Khartoum 
could choose to close the pipeline knowing that the north could function - at 
least in the medium-term - on alternative sources of income. 

Although China has not embraced the prospect of the south's independence, it 
has recognized the importance of reaching out to the GSS to safeguard against 
any damaging implications that may ensue from secession. This has required 
taking a somewhat pragmatic approach to "non-interference" because the GSS are 
not yet a formally sovereign entity. 

Relations have therefore largely been cultivated at the party-party level, 
between the Chinese Communist Party's International Liaison Department and the 
SPLM. The leader of the SPLM, Salva Kiir, has twice visited Beijing and a 
Chinese consulate-general was established in the southern capital of Juba in 
September 2008. The CNPC is in the process of setting up a branch office in the 
city. Rumors continue to link Chinese investors to the building of a new 
pipeline that would link South Sudan to the Kenyan port of Luma, potentially 
offering an alternative export route to the north-south pipeline. 

These efforts to engage the south seem to have had the desired impact. The once 
antagonistic GSS now urge the importance of building a "very strong 
relationship" with Beijing. Considering their dependence on oil, the GSS 
recognizes the necessity of working with China and do not see Western aid as a 
sufficient substitute for the mixture of loans, infrastructure investment and 
low-cost construction services that China can offer. 

Despite its close ties with the United States, the huge developmental 
challenges likely to be faced by the GSS means it cannot afford to exclude 
potential external partners. Today, Juba remains a "NGO town", where a single 
Chinese-run hotel stands as the only testament to China's influence, in 
contrast to the very visible presence in Khartoum. But China is hoping that the 
ties it is has built with the south will be enough to ensure the security of 
its assets after the referendum. 

Yet this does not amount to a conflict prevention strategy that might be 
expected of the external power that stands to lose the most from renewed civil 
war. Beijing has offered a few "carrots" of varying sizes to both north and 
south to dissuade them from violence. Some gestures in the direction of public 
diplomacy are discernible. Yet, the overall impression is underwhelming; China 
appears content to leave itself hostage to fortune, presuming that Khartoum and 
Juba will opt for cooperation because of their mutual interest in continued oil 
profits. 

Most analysts of Sudan, however - including those, one suspects, at CNPC - are 
less optimistic about the signs in the run-up to the referendum. Both sides 
continue to disagree over the terms of the referendum and the south has been 
vigorously rearming, with the closet support of neighboring East African 
states, in apparent anticipation of trouble. 

The recent history of China's role in Sudan suggests the long-standing policy 
of non-interference is in a state of flux. Pressuring Khartoum into accepting a 
peacekeeping force in Darfur and building relations with the quasi-sovereign 
GSS suggests Beijing can be pragmatic in its understanding of the principle. 

This corresponds with the discussions and debates about the nature of 
sovereignty, overseas interests and international intervention that can be 
heard within the academic and policy community in China. Yet the limited 
gestures China has made in the direction of preventing post-referendum conflict 
in Sudan point to the limits of this evolution. Even in a country where it 
stands as the dominant external actor, China remains reluctant to involve 
itself too deeply in local politics. 

Toward international coordination 
China may come to rue its hesitancy if the referendum leads to a new crisis in 
North-South relations. Beijing will come under pressure to act if the situation 
in Sudan deteriorates, not only from the international community, but also from 
its own corporate groups. 

The relationship between the Chinese political leadership and management of 
state-owned enterprises is complex. Some claim that state-owned enterprises do 
not warrant extensive support from the government because they are driven only 
by profit and, in instances such as Sudan, actually damage the "national 
interest". 
Most of the oil CNPC produces in Sudan, for example, is not exported to China 
but sold on the world market. Yet an organization as large as CNPC clearly 
wields considerable influence in Beijing; its chief executive officer holds 
ministerial rank within the government and will have been appointed at the 
highest levels. Any damage to CNPC assets in Sudan will likely increase the 
pressure on the government to revisit its non-interference policy. 

Should Beijing decide to become more engaged in Sudan, Western governments 
presumably want China to coordinate its efforts with their own. Barring a few 
sessions at the United Nations Security Council, however, international 
diplomacy toward Sudan appears dominated by the United States and United 
Kingdom. 

Both China and Western governments share a fundamental interest in the 
maintenance of regional stability. If that point can be grasped, managing the 
Sudan referendum could become an area of cooperation between the United States 
and China at a time of otherwise growing tension in the bilateral relationship. 

As China continues to evaluate the value of non-interference in light of its 
growing global interests, events in Sudan could come to shape the form and 
content of a new foreign policy doctrine. Others will want to help ensure that 
if China comes to consider a greater degree of "interference" as legitimate, it 
conceives of it in multilateral rather than unilateral terms. 

Tom Rafferty is Visiting Fellow at Peking University's School of International 
Studies. 

(This article first appeared in The Jamestown Foundation. Used with 
permission.) 

(Copyright 2011 The Jamestown Foundation

[Non-text portions of this message have been removed]



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