What were some of the "hard" outcomes of the Forum? They would include, among others, the establishment of the China-Fiji Islands Trade and Economic Cooperation Commission, Y121V aircraft lease-purchase contract between China and Fiji, the understanding on CDMA System Cooperation between IPBC of Papua New Guinea and Huawei of China, and the Agreement on Setting up a Floating Fishing Wharf between China and Vanuatu.
Importance to South Asia
At the time China had also extended roughly US$ 371 million in preferential loans to the Pacific Island countries and provided zero-tariff treatment to the majority of exports to China from these countries. All told, an astonishing 25 cooperation documents were signed by the related parties, laying in the process some concrete groundwork for a conducive implementation of the United Nations Millennium Development Goals and serving as a fresh example of South-South cooperation.
Following successful forums held in the Pacific Islands and then in Beijing with African countries, China made its way to New Delhi to participate in the 14th SAARC Summit as an official observer. The great importance that China appeared to attach to the SAARC forum was demonstrated clearly by the dispatch of China's Foreign Minister, Mr. Li Zhaoxing, to the Indian capital (the only other full-fledged foreign minister among the other observer participants was Taro Aso of Japan).
In speaking of China-SAARC relations and dynamics, it must be mentioned that the total length of the South Asian land mass abutting China is something in the order of 5,700 km, substantially greater, for example, than the length of the borders separating the United States from Mexico (3,141 km), or of Russia from China (3,605 km). The combined population of South Asia and China approaches a staggering 2.8 billion. It is, therefore, a matter of substantial consequence that China has established institutional linkages with South Asia as an official observer at SAARC.
China's steady integration with the South Asian region can be readily appreciated by even a cursory assessment of the level of trade exchange and other noteworthy developments. In 1990, for instance, trade between China and South Asia stood at approximately US$1.2 billion, which witnessed a massive increase to US$12.1 billion by 2003 and registered around US$20 billion in 2005. India, the largest economy of South Asia, has initiated a large number of investment projects across China in pharmaceuticals, software, automobile components and IT through some of its leading firms, in much the same way that China is actively investing around India.
China's investment in Pakistan, a country with which it shares a so-called "all-weather friendship", is demonstrated most vividly by its assistance to develop the deep-water port at Gwadar, the Chinese Meteorological Construction Corporation's investment of US$ 73 million in zinc and lead exploration, and US$ 300 million investment in the Pakistani cellular company Total Telecom.
An important highlight of China-Bangladesh relations is the granting by Dhaka to China of exploration rights for developing its natural gas fields at Barakpuria which holds an estimated reserve of 390 million tons (pipelines via Myanmar make it feasible to export Bangladeshi gas to parts of southern China). In addition, the second unit of the Barakpuria coal-fired power plant, set up by the China National Machinery Import and Export Corporation, is going to be a very important catalyst for the economic development of northwestern Bangladesh.
In the Maldives, the premier contracting company for harbour development (critical for any island state), MTCC, recently expressed interest in establishing partnerships with Chinese companies to build some 60 new harbours on an expeditious timetable. Suffice to say at this juncture that China's interactions with the entire South Asian region are already varied and deep-seated, and by any account the trajectory is expected to climb only upwards.
At the 14th SAARC Summit meeting in New Delhi, China enunciated a comprehensive five-point plan for enhanced engagement with South Asia that includes proposals to establish a cooperation mechanism for poverty alleviation and exploring with SAARC the possibility of establishing a China-SAARC regular meeting mechanism on disaster relief and mitigation, and intensifying cooperation in the infrastructure and energy sectors.
Why is Nepal important in the context of China-SAARC relations? There are many different reasons (some already alluded to) but an important one, historically speaking, is that Nepal - particularly Kathmandu (as entrepot) - had been at the forefront of trans-Himalayan commerce for hundreds of years. The sole formidable barrier of the Himalaya that served to segregate China from the South Asian landmass, was in some sense 'tamed' long ago by Nepalese and Tibetan traders who used mules and horses to traverse the terrain that is now very easily passable by macadamised highways and high speed trains.
Contrary to certain assertions that China is attempting nefarious incursions into South Asian space, it must be said that the two regions have always organically been a part of one another and are very natural allies. And that brings us to the present times. Nepal and China must work together to bring not only continuity to history but to utilise advances in technology to attain new milestones. And most important of all, to promote cooperation and peace in the tradition of the Buddha, whose legacy also served (indeed, continues to serve) to stitch together greater South Asia with China and the larger Central and East Asia.
Regional concerns
Bilateral relations between Nepal and China, within the framework of China's engagement with SAARC, must necessarily address many different concerns and activities: the environment, social and economic development, infrastructure, culture and religion, natural resources and energy and so on and so forth. China's great interest to coalesce with the regional arrangements is simplified vastly in the South Asian context by its very long organic history with Nepal, which should be continuously nurtured and expanded.
(Concluded)
(Koirala is a member of the China Study Centre Nepal. He can be reached at bhaskar_koirala@hotmail.com)
Source: The Raising Nepal
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