China's South Sudan Dilemma

amoy

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China's South Sudan Dilemma

Beijing already has a lot invested in South Sudan. Since the country's founding, China has offered the South Sudan government loans and assistance for various development projects, including a September 2013 deal to provide aid to South Sudan's mining industry. China's oil companies are also active in the oil-rich state. According to Reuters, CNPC is a major shareholder in two large oil groups operating in South Sudan, Petrodar and the Greater Nile Petroleum Operating Company. Chinadialogue reports that China consumes over 80 percent of South Sudan's oil exports. Now, once again, China finds its investments in jeopardy.


On Monday, Hua noted that "China is greatly concerned with the development of South Sudan's situation, and is promoting negotiation with its own way." "We will work with all relevant parties to promote the conflicting sides in solving their disputes through dialogue and negotiation, and promote the situation of South Sudan to resume stability as soon as possible," Hua said. However, Beijing's options are limited by its long-standing insistence on non-interference in other countries' internal affairs.


China has made non-interference a keystone of its foreign policy, in part because China would like other nations to accord Beijing the same courtesy. However, as Chinese companies are increasingly global players, China's non-interference policy may come to clash with other fundamental national interests. Beijing is greatly concerned with ensuring food and energy security — two needs that are tied to foreign supply chains. When the internal unrest of another country, such as the South Sudan, threatens one of these interests, Beijing has tough calculations to make. Does a strict adherence to non-interference outweigh the potential threat to oil supplies? And what about the lives of Chinese citizens in affected areas?


Already, China has been pushed to mediate between South Sudan and Sudan to ensure oil production continues. When South Sudan shut down oil production, accusing Sudan of stealing oil, China was forced to help resolve the dispute. This time, the conflict is between internal factions within South Sudan. If China were to mediate, it would risk violating the sacrosanct principles of non-interference. This explains Hua's caveat that China "is promoting negotiation with its own way." Beijing can't afford to do nothing, but its hands are tied by its foreign policy principles.


As China becomes more globalized, Beijing may be forced to take a more active role to safeguard the lives of its citizens and Chinese business interests. In the coming years, Beijing might have to rethink its foreign policy calculus, especially how it interprets "non-interference."
 

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