China plays peacemaker to protect investments in South Sudan

China plays peacemaker to protect investments in South Sudan
China is seemingly unaccustomed to its new role, as it pushes a negotiated end to the civil war in South Sudan to protect its significant stake in oil production in the country.
6 min read
16 January, 2015
China's foreign minister is playing the unusual role of peacemaker [AFP]

It seems as though time is running out for China in South Sudan.

The civil war there is threatening oil interests in the region, but China has little to show for its efforts to facilitate a ceasefire.

Weeks after China committed 700 troops to South Sudan on the first ever "peacekeeping" deployment of Chinese troops, Foreign Minister Wang Yi arrived in Khartoum for talks with his Sudanese, South Sudanese and Ethiopian counterparts - as well as representatives of the East African trade bloc IGAD and from the South Sudanese opposition, led by Riek Machar.

Before the meetings officially began, Yi held talks between the delegations from the South Sudanese government and the opposition. Sources have told al-Araby al-Jadeed that China warned the southerners of the consequences of stubbornness and failing to reach an IGAD-mediated peace deal.

China also informed both sides of the internal debates at the UN Security Council concerning putting the young state into the International Trusteeship System, which would take over management of the country's oil and resource revenues, set up a no-fly zone and impose a series of sanctions that would not benefit either side.

China also expressed its fears regarding the country's oil. The civil war has thus far reduced oil production in the country by about one third.

Protecting investments

     The civil war has thus far reduced oil production in South Sudan by about one third.

"China has many investments in South Sudan and wants reassurances from the government and the opposition that they will not be compromised," Manawa Peter, spokesman for the armed opposition's delegation, told al-Araby.

China wants to be sure the oil wells are not shut down and exports stopped, he said, which would cause losses.

Peter said China had a significant role in supporting both the violence and the peace process - the government spends oil revenues on weapons.

"We have suggested it put the oil revenues in a closed account under its auspices, so they can be used for the benefit of the people affected by war to keep the flow of oil going in most of the areas where it is produced, in the Unity, Northern Upper Nile and Heglig states," he said.

Beijing promised to look into this proposal, he added.

With so much at stake, hopes at the conference were high, with delegates loudly applauding each speaker.

The South Sudanese delegation, represented by Foreign Minister Barnaba Benjamin, tried to start the press conference with a friendly gesture, holding hands with the head of the armed opposition's delegation, Taban Deng.

The two men sat next each other but did not show any other signs of agreement.

The conference resolved to unconditionally stop the violence, set up a transitional government and provide access to humanitarian aid for people affected by the war.

These points are a repetition of three previous IGAD-mediated agreements signed by both sides in Addis Ababa, which have yet to be implemented.

"The conference has brought back hope of IGAD mediation, and it is a new starting point for peace and ending the war in the south," said Sudanese Foreign Minister Ali Karti.

What is new about the agreement is China's strong presence in the south, with investments reportedly worth up to $12 billion in the new state.

It is the biggest investor in the oil sector in South Sudan, which is understood to produce eight percent of China's imported oil. China is trying to appear as a good alternative to the West for Africans and a strong ally of the continent - while Washington and Europe are preoccupied with war in Syria and Iraq, and with the Ukraine crisis.

Beijing is currently trying to block international intervention in South Sudan, which could threaten its interests and impede its investments. 

But the Chinese foreign minister has been at pains to distance Chinese peace-making actions in the south with its economic interests. Yi said that China desires to solve the issues and the crises Africa is going through, and backed IGAD's mediation of the civil war.

     China wants to protect its investments in South Sudan, worth up to $12 billion.

IGAD, meanwhile, announced it has postponed its next summit - initially scheduled to take place on 18 January - until the end of the month, so it can be held on the sidelines of the upcoming Africa Union Summit.

IGAD mediators reportedly need more time to hold "special consultations". The summit was supposed to discuss the ongoing conflict in South Sudan and reinvigorate the stalled peace process. The announcement of the delay came a day after the Chinese-mediated conference in Khartoum.

Avoiding escalation

It is clear that Beijing does not want the South Sudanese to take the situation to the UN Security Council, or for the summit to result in rushed decisions because of the fear of international political escalation.

"We support IGAD in resolving the issues in the south," said Yi. "We also support and encourage both sides to conduct serious talks to resolve the modest differences that are blocking the way to peace.

"Peace in the south will not come easily and we will not allow it to be delayed, because if peace is hindered the Southern Sudanese will be the most affected, and it will also affect the region. This is what the international community does not want. As friends of Africa, we do not want to see this, so we have sat under one roof to give both sides a good opportunity to speed up the process of finding a solution to the contentious issues through negotiations."

The Chinese foreign minister said his country had decided to send 700 troops to South Sudan at the request of the government. Sudan's top diplomat, Ali Karti, said China's entrance into the southern arena was "natural". 

"[It's] accepted by everyone because it is to bring about peace and benefits for everyone," he said.

China does not intend to impose specific solutions or conditions and was interested in finding African solutions to African problems, Karti said.

Luka Biong is an associate fellow at Harvard's Kennedy School. "It's clear there has been a significant change in Chinese foreign policy, and that has started to be put to the test in South Sudan," he told al-Araby.

"For the first time in its history, China is sending peacekeeping troops to a country and has an initiative to solve problems and play an active role instead of observing from the sidelines.

"Economic issues are probably not the only factors pushing China to intervene in South Sudan, despite the fact that 77.5 percent of South Sudan's exports go to China and 30 percent of Juba's imports come from China. It is clear that there has been a change in Chinese foreign policy, and South Sudan has been the first manifestation of that change, especially as Juba's relations with the west and America have been faltering."

China could create a breakthrough - especially if it puts pressure both on Khartoum and the armed opposition, he said.

"China's hopes lie in the stability of the two countries, and its special relations with Khartoum could have an affect on the opposition," concluded Biong.

This is an edited translation from our Arabic edition.