China's Hunt for Oil in Africa in Perspective | |
September 2006 | |
Abstract:
China is concerned about the security of its sea-lanes for imports and desires to diversify its oil supplies from the Middle East in order to sustain economic growth. These concerns have sparked China's interest in trying to ensure oil supplies from as many sources as possible and in reducing its overwhelming reliance on seaborne imports of oil, which, in China's view, is considered less vulnerable to disruption than oil arriving by tankers. In this context, China has turned the eyes on the emerging oil and gas fields in Africa. Through its high-profile oil diplomacy, China has been successful in developing its access to African oil and gas resources. However, China's oil diplomacy in Africa has been roundly criticized in Western capitals. Washington increasingly perceives that Beijing's ties to the so-called rogue states undermine the U.S. goals of isolating or punishing these states that fail to prompt democracy, limit nuclear proliferation or respect human rights.
This paper argues that China's hunt for oil in Africa has been exaggerated by partly-informed commentators, sometimes based on erroneous information, not to mention those that deliberately paint the distorted picture. That said, the paper suggests that, in pursuing its oil diplomacy, Beijing should take into account many factors including Washington concerns, in particular when U.S. concerns also reflect those of a large section of the international community. The paper points out that devoting more resources to build a better future for all and help to eliminate the fear of another Rwanda or Darfur is a positive form that Beijing should take in its engagement with Africa. This way of engagement would be considered more positive by the broad community of states, and helps to enhance China's security of energy supply and at the same time would significantly reduce one source of tension with Washington. Overall, it will greatly benefit Africa as well as China.
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China’s Hunt for Oil in Africa in Perspective
ZhongXiang Zhang, Ph.D in Economics
Senior Fellow
East-West Center
1601 East-West Road
Honolulu, HI 96848-1601,
USA
Tel: +1-808-944 7265 Fax: +1-808-944 7298
Email: ZhangZ@EastWestCenter.org
In the last couple years, the Chinese government has been making serious overtures to African countries in order to obtain contracts for fuel supply. There have been numerous media reports on this issue. But in my view, China’s hunt for oil in Africa has been exaggerated by partly-informed commentators, sometimes based on erroneous information, not to mention those that deliberately paint the distorted picture. To put this issue into perspective, let me first put China’s overall energy demand and supply in context because these factors are often overlooked in discussing the issue.
China is indeed a large energy consumer. In the mean time, China has also become a large producer. Currently, domestic supply provides about 94% of the total energy consumption in China, meaning that the overall energy dependence (namely, the ratio of the energy that a country imports to the total it consumes) is about 6%. In the future, China will continue to rely mainly on domestic supply to meet its growing energy demand. With a variety of policies and investments that have been made and continue to be made to further expand domestic supply capacity, domestic, conventional energy is estimated to supply 2400 million tons of coal equivalent (tce) by 2020 (Zhang, 2005).
During the current five-year period running from 2006 to 2010, the Chinese government has set a goal of cutting energy use per unit of its gross domestic product by 20%. The government has also established medium to long term energy conservation plan to keep the country’s total energy demand below 3000 million tce in 2020 (NDRC, 2004). This suggests that domestic supply will meet 80% of the total energy consumption. Even if energy demand goes up to 3600 million tce in the worst case scenario as some analysts suggest, China’s domestic supply is still able to provide two-thirds of the total energy demand in 2020. This makes China different from other larger energy-using countries like Japan that imports over 80% of its total energy consumption.
That said, this by no means questions the increased importance of China’s growing oil imports. China was traditionally self-sufficient in oil, but since 1993 has been a net oil importer. China’s economic boom and stagnated supply of domestic oil have produced
the growing hunger for foreign oil. As of 2003, China emerged second only behind the U.S. in terms of oil imports. At present, China imports over 40% of its oil consumption and this is expected to rise to 60% or more by 2020 (Zhang, 2005). Energy security has risen to the height of importance in its foreign policy, and is becoming what has been called a “transforming” factor in the relations between China and the Middle East, Russia, and energy-rich Central Asian, African and Latin American countries (Yi, 2005).
China is concerned about the security of its sea-lanes for imports and desires to diversify its oil supplies from the Middle East in order to sustain economic growth. These concerns have sparked China’s interest in trying to ensure oil supplies from as many sources as possible and in reducing its overwhelming reliance on seaborne imports of oil, which, in China’s view, is considered less vulnerable to disruption than oil arriving by tankers. Given their closeness and accessibility through pipelines, China has been keen to invest in Central Asian and Russian oil field development projects and in the construction of pipelines in order to bring oil from these regions. In the meantime, China has turned the eyes on the emerging oil and gas fields in Africa. Through its high-profile oil diplomacy, China has been successful in developing its access to African oil and gas resources. In the meantime, China’s oil diplomacy in Africa has been roundly criticized in Western capitals (Eisenman and Stewart, 2005). Critics accused China of fueling conflicts and human-rights violations in Africa by selling arms to some repressive regimes in exchange for oil and minerals (Bezlova, 2006).
Beijing has been building goodwill by strengthening bilateral trade agreements, awarding aid and forgiving national debt. For example, China voluntarily waived US$ 1.2 billion in sovereign African debt in 2000 when the China-Africa Cooperation Forum was formed to promote trade and investment with 44 African countries (Kitissou, 2005). To date, Beijing has given more than US$ 5.5 billion in assistance and canceled the debt of 31 African countries (Masaki, 2006). Beijing has helped to build the railroad network in Nigeria, main roads in Rwanda, as well as bridges, stadiums and harbours. In accompanying this, China has forged closer economic relations with Africa. Bilateral trade between China and Africa hit a record of US$ 40 billion in 2005, up 35% from 2004. Given that African-Japanese trade totaled US$ 18 billion in 2005, China is outdoing Japan, the world’s second largest economy (Masaki, 2006).
In recent years, the top Chinese leaders frequently paid the visits to oil-producing countries. This goodwill-based energy diplomacy has helped China to make remarkable inroads in striking energy deals with oil-rich African countries in the Gulf of Guinea, Central African Republic, Chad, Congo, Libya, Niger, and Sudan. The Chinese oil companies’ overseas investments not only mitigate China’s own concern about oil security by obtaining equity oil overseas. For example, Sudan is China’s largest overseas oil production base, and more than half of the country’s oil exports go to China, which accounts for about 5% of China’s total oil imports. Now, Angola has become China’s second largest oil supplier behind Saudi Arabia, and Africa as a whole provides over a quarter of the Chinese oil imports (British Petroleum, 2006; Xinhua News Agency, 2006). The Chinese oil companies’ investments also help these African developing countries to raise their standards of living.
For example, China’s assistance has helped to turn Sudan into an oil-exporting country. Moreover, Chinese investments in oil fields in African countries help to pump more oil out of the fields and enlarge the overall availability of oil on the world market. The new addition to the markets may help to prevent oil prices rising even higher.
Certainly, other Asian countries could follow suit. In my view, this will not affect the relationship between Chinese companies and their African counterparts, given China’s long-established friendship with African countries and the championing of their interests, not to mention mutually, commercially benefits. But this will affect the price of China’s oil acquisitions. China has already competed with Japan for oil and gas fields in Russia and Central Asia. At present, there is no direct competition between China and Japan for African oil resources, largely because Japan has almost ignored Africa as a source of its badly needed oil. This may change in the future, because Japan has stepped up its Africa diplomacy in recent years. While China aggressively pursuing oil and gas interests in Africa plays a part, this has been mainly promoted by a strong desire for Japan to gain support from the continent’s 53 countries for its bid for a permanent United Nations Security Council seat (Masaki, 2006). While cooperating with each other occasionally (In the first instance of Sino-Indian cooperation, China National Petroleum Corp (CNPC) and India’s state-owned Oil and Natural Gas Corp (ONGC) won a joint bid in December 2004 to buy PetroCanada’s 37% stake in Syrian oilfields for US$ 573 million. India and China also work together in Sudan, where CNPC operates the Greater Nile oilfield, in which ONGC has a 25% stake (Aiyar, 2006).), China and India already compete for energy resources in Africa as well as in other regions.
The Chinese oil companies have a history of overpaying for equity positions (Balfour, 2002). Because China has viewed paying a higher price than competitors to secure energy resources to be more of a national security issue than the absolute price itself (Bradsher, 2005), such bidding wars between Chinese companies and Indian rivalries have further intensified the tendency of Chinese oil companies paying far above what other competitors offer. To date, India has been losing out in every deal that both China and India have been shooting for. But China has grabbed these deals by overbidding at least 10% more than its competitor India has bided. In January 2006, the China National Offshore Oil Corp (CNOOC) bought a 45% stake in the Akpo offshore oil and gas field in Nigeria for US$ 2.27 billion by outbidding the competitor, ONGC that submitted a bid of US$ 2 billion but withdrew after India’s cabinet raised concerns about the risks involved (Aiyar, 2006; Masaki, 2006). In August 2005, CNPC paid US$4.18 billion to acquire Canadian oil company PetroKazakhstan, making it China’s largest foreign acquisition ever (Bradsher, 2005). Originally, CNPC offered US$ 3.6 billion. With the Indian consortium’s (ONGC-Mittal) bid of US$ 3.8 billion, CNPC hiked its offer to US$4.18 billion to grab this deal (Basu, 2005). However, it is important to note that the higher bid does not always win in a politically charged industry like energy. CNOOC failed to acquire Unocal for US$ 18.5 billion, although it topped Chevron’s bid of US$ 16.4 billion. But, in the end, Chevron grabbed the deal.
It should be pointed out that China’s oil diplomacy has its own price. Critics have increasingly labeled China’s relations with oil-producing countries as the oil ties. In their
views, China’s growing ties with Africa are purely for oil, and as long as it helps the country to secure oil deals, China is willing to exchange political, financial and military favors without regard to transparency, development and stability in Africa. To put it simply, critics accused China of mixing business with politics in pursuit of its economic gains in Africa. However, it is important to note that while China appears quite willing to get oil from wherever it can, this does not mean that China would not invest elsewhere, say, in less “roguish” nations, if it had the option. Under economic rationale, no country would prefer to invest in an unstable regime over investment in a more stable one. However, China’s options are limited.
Partly because the Western powers have gained control over best oil fields available, as a late entrant to the international oil game, China has little choice but to strike deals with the so-called rogue states, which are identified by the U.S., to secure oil supplies. Washington increasingly perceives that Beijing’s ties to these countries undermine the U.S. goals of isolating or punishing rogue states that fail to prompt democracy, limit nuclear proliferation or respect human rights (Zweig and Bi, 2005; Wu and Shen, 2006). Although it is unlikely to bring the two countries in direct confrontation, China’s practice of oil diplomacy is widely perceived in Washington as attempts to threaten U.S. security interests because Beijing strikes deals either with rogue states that Washington has tried to marginalize or in America’s backyard which Washington perceives as its turf and within its traditional sphere of influence (The U.S. has long regarded Central and South America as part of its backyard, and Canada as an extension of its front porch. Washington perceives that recent forays by Beijing into the Western Hemisphere, which are part of Beijing’s global search for large supplies of oil-based energy, are challenging its influence. Beijing’s search has recently taken to Venezuela and Canada, which together provide about 25% of U.S. oil imports. The anti-American President of Venezuela has spoken of a desire to reduce its dependence on the U.S. market (Richardson, 2005). Beijing and Ottawa have concluded a series of energy and resources agreements, providing for greater Chinese involvement in developing Canada’s natural gas sector, its vast oil sands deposits and its uranium sector. This could create tensions between Beijing and Washington as well as between Washington and Ottawa, because U.S. Vice President Dick Cheney’s 2001 national energy policy report emphasizes the importance of Canada’s tar sands to U.S. energy security (Zweig and Bi, 2005).). Thus, China should be very cautious in pursuing this type of oil diplomacy. Let me make this point clear. I am not suggesting that Beijing stance should be swayed by Washington. What I am suggesting is that Beijing should take into account many factors including Washington concerns, in particular when U.S. concerns also reflect those of a large section of the international community.
Beijing aggressively pursuing this type of oil diplomacy without proper consideration of the international community’s concern may benefit China in the short-term, but may hurt it in the longer term, reducing its future benefits. China has achieved its own rise and close to being integrated into the global economy and norms. Given that China will not possess large scale oceangoing naval capabilities in the near future, it must depend on the global economy and norms. Thus, it is in China’s own long-term interest to support the stability of the international regimes. For the time being, Beijing should think deeply
about how to be more nuanced in responding to the concerns and perceptions of Washington and Brussels instead of just repeating nonintervention in the domestic affairs of other states as its guiding principle of foreign policy. Perhaps devoting more resources to build a better future for all and help to eliminate the fear of another Rwanda or Darfur is a positive form that Beijing should take in its engagement with Africa. In my view, this way of engagement would be considered more positive by the broad community of states, and would significantly reduce one source of tension with Washington. In the meantime, it will greatly benefit Africa as well as China.
ACKNOWLEDGMENTS
This viewpoint has been motivated by an interview with Harvard Project for Asian and International Relations, Harvard University. It has benefited from useful comments from Sonja Boehmer-Christiansen. That said, the views expressed here are those of the author. The author bears sole responsibility for any errors and omissions that may remain.
REFERENCES
| Keywords: China, Oil hunt in Africa, Energy polcy |
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Euvin Naidoo: Africa as an investment
About this Talk
In the talk that opened TEDGlobal 2007 ("Africa: The Next Chapter"), South African investment banker Euvin Naidoo sets the scene, framing the conversation that would unfold over the four-day event. "What's the worst thing you've heard about Africa?" he asks. After fielding call-outs of "famine," "war," "corruption," he urges the audience to move past these preconceptions -- and offers a compelling picture of a continent on the cusp of enormous change.
Speaker Euvin Naidoo: Investment banker
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As president of the South African Chamber of Commerce - America, Euvin Naidoo works with leading corporations and governments to strengthen trans-Atlantic economic ties.
Why you should listen to him:
Euvin Naidoo wants to change your mind about Africa. Armed with facts, figures and a forward-looking outlook, he conveys a nuanced picture of a continent that's large, diverse and full of potential, with stabilizing economies and business growth. Speaking at TED in a personal capacity, he offers persuasive reasons why the continent's challenges should be reframed as opportunities, and why investing in Africa can make great business sense.
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China in Africa , friend or foe for the European Union? Why Africa Matters ?

Mr. Xing enjoys the government's "distinguished contributor" specialist allowance. | |
Curricula vitae of the expert: | |
After graduating from the French Department of Beijing Foreign Languages Institute, Mr. Xing joined the Ministry of Foreign Affairs. He served as interpreter, second and first secretary and political counsellor in the Department of Translation and Interpretation, and Chinese embassies in Guinea, Mauritania, Switzerland and Mali. In 1973, he joined CIIS where he took position of Deputy Director and Director of Division of European Studies and Vice President. He was a visiting scholar in the United Nations Institute For Disarmament Research (Geneva) in 1986 and Denmark Institute of international Studies in 1998. His research areas cover European situation analysis,NATO and European security, EU integration process, China-EU relations. http://www.ciis.org.cn/en/aboutus41.asp?id=50
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( Vale a pena recuarmos até ao ano 2000 e lermos atentamente a entrevista do Sr. XING , abaixo, a fim de compreendermos melhor como se desenvolvem sistematicamente os três pilares da cooperação externa Chinesa) INTERVIEW WITH XING HUA Research Fellow & Vice-President - China Institute of International Affairs (CIIS) ASEM: A STEP BY STEP PROCESS Laurent Malvezin (LM).- During the Asian Financial Crisis, there has been a lot of arguments among Europeans about the capability of Asia to recover fully from the melt-down of their economies. Today, even if the recovery has been spectacular, doubts remain as to its sustainability, and the interests of the Europeans in the area seem on the wane. Some say that the EU pay less and less attention to the opinion of Asian countries. As an expert on China and European relations, do you agree with such a view? Xing Hua (XH).- We have first to keep in mind that during the 2nd summit of ASEM, which was held in London in 1998 precisely during the crisis, European countries proved to be helpful and concerned. Not only that, they, in effect, turned their concern into concrete action, setting up the Asia-Europe Trust Fund (1), providing technical assistance to Asian countries' effort in terms of reform of other financial systems Such an attitude was very much appreciated. Of course, Asian countries realised that the world economy being more and more integrated, the Asian crisis was bound to have some impact on the European economies as well, and therefore the European Union could not ignore it. Nevertheless, European countries took a friendly posture towards the Asian countries in difficulty. This positive response somehow deepened and boosted the relationship between Asia and Europe. The Asian countries draw two lessons from the crisis: first, the necessity to improve their own industrial restructuring and to reorganise their financial system, second, the necessity to reform the international financial and monetary system. European countries can bring expertise and technical assistance, including to China, to reform our economies and financial systems. Actually, some actions have already been taken in that direction. As regards the international monetary system, the European countries and the Asian countries can cooperate together and make some proposition. But having said that, we have to take stock of the fact that some European scholars and even politicians do not necessarily share the same analysis on Asian Financial crisis with their Asian counterparts. In Europe and Asia, there is such a proverb: “ build friendship through hard times “. During painful periods of economic crisis or difficulties, the European countries should look carefully at the objective causes of such a crisis in order to take positive actions. If this is done thoroughly, it will enhance a mutual understanding of what happened. It would obviously enhance the relationship between Europe and Asia on trust basis. LM.- You mentioned the second ASEM summit as a key event in the middle of the crisis. What is the place and importance of the ASEM process in China Foreign policies ? Is it in harmony with the concept of “multi-polarization” that is at the core of the Chinese Foreign policies ? XH.- First, I would like to emphasise that the involvement of China in ASEM is not accidental nor is it motivated by tactical considerations but the logical consequence of China approach to the new international order. China is the largest developing country in the world. In the past 50 years, old China has been rejuvenated, achieving unprecedented developments since it implemented the open-door policy, especially in the last two decades. Its global national strength and its international standing have been notably enhanced and raised. The objectives of its fundamental policy are the economic construction of the country and the improvement of people's livelihood. It means, to achieve such a goal, on the foreign front, to carry out an independent foreign policy of peace, and to strive to create a sustained peaceful international environment. For that, we need to promote friendship and cooperation between the peoples of various countries in the world. Thus China is playing an ever-increasing positive role in the international cooperation. For China, to participate in international cooperation means to take part actively in the UN, the IMF, the World Bank and other International Organisations, but also to get involved in regional cooperational institutions. Why then does China take seriously the Asia-Europe relationship? Because, amongst the world’s three largest economies, namely the US, Europe and Asia, which actually means East-Asia, there was already cooperation between US-Europe and US-Asia on a bilateral basis taking place for many years through effective mechanism. And so the third pillar, Europe-Asia would be reinforced and institutionalised) Europe in the 1990’s went from being an European community to a European Union,. It has increased its economic standing in the world while the same evolution also occurred in Asia at the same time with the remarkable development of the East-Asian economies (2). Such trends have created a kind of mutual attractiveness between them and led to a common desire of deeper cooperation and relations. Moreover, the Asia-Europe rapprochement may bring additional voices in the arena of international affairs and a more impartial, balanced and stable way to manage the future of a globalized world rather than to rely on one superpower. So the whole process is in line with the concept of multi-polarization. LM.- You mentioned three economic zones, the US one, the European one and the Asian one. Do you foresee a fourth pillar such as the South American one, which stands to be different from the US one, if only because it is a Latin speaking bloc rather than an Americanised one? XH.- Indeed, and Latin America and Asia are preparing now to reach a common understanding about institutionalised economic cooperation. Later this year, one scholar of my Institute will attend an International conference on Asia-South America relations in Chile. China is deeply interested and will participate actively in the process. LM.-While everyone focuses its attention on China-Us relations, has ASEM a special meaning for China? XH.- We consider that the ASEM process aims at promoting the concept of multi-polarization, but does not constitute any kind of intention to isolate the US. As you are no doubt aware, in addition to the ASEM process, China, and the United States too, are also a member of APEC. Next year, the informal head of states summit of APEC (3) will actually take place in Shanghai. LM.- Just looking at East-Asia, along with APEC, there are other groupings such as ASEAN, ASEAN+3, ASEM, ARF, some with what is known as their track II related organisations (4). How can all these institutions can work together or simultaneously in the fields of economic cooperation or even political dialogue? XH.- From now, those who take part in ASEM are the members of ASEAN+3 (5). If East Asia represents Asia nowadays in the ASEM process, it is first because ASEAN has reached an unprecedented level of integration as a regional institution. Furthermore, the initiative of ASEM came from one of the ASEAN members: Singapore. Besides ASEAN members, three other countries of East Asia, China, Korea and Japan have, each of them, a close relationship with ASEAN members. LM.- But East Asia is not Asia, and so the Asia-Europe summit is not really true to its name. Would China welcome an enlargement of the ASEM to new members of the South Asia Subcontinent, for example, India ? XH.- Absolutely, China is ready to discuss with the members of both sides of ASEM about the possibility for new members to join the dialogue. If I’m not mistaken, India and Pakistan have already expressed their strong interest in ASEM. China is even not opposed to the entry of countries like Australia, and New Zealand as full members of ASEM, but other countries seem not ready to accept it so far. LM.- We know that in the foreseeable future, the EU members will increase, and maybe reach 25 or even more. Can an ASEM with 30 members on the one side and 10 members on the other still work in a balanced way? XH.- We have to negotiate together whether it is possible to reach a consensus on it. Of course, we have to bear in mind that, even now, there are 15 European members, for 10 Asian members, and somehow, a kind of balanced must be maintained in the future. LM.- A question that a lot of people have often in mind when they talk about EU and Asia relationship, is the vision of an European integration model for Asia. Do you think that Asian Countries in their own Institution-building process can use the so-called European experience as a benchmark ? XH.- All Asian countries agree that the EU experiment is a unique experience. As a major regional bloc, It has the highest level of integration, the strongest economic power, and has won the respect of Asian countries. But, here we have maybe to distinguish two different aspects of the question. The first aspect deals with each side sharing views from their own experience - the Integration process for the EU, and the regional economic cooperation for Asia. And the second aspect or vision consists in asking if the European model is applicable for Asian countries in their economic cooperation and integration process. I think that the former is possible and feasible, but the latter rather unrealistic. Actually, Europe and Asia have a different history and their present situation each have their own specifics. Perhaps the most relevant point is that the two regions, Asia and Europe, through the EU and ASEAN, are not at the same stage of development, and therefore, for instance, ASEAN integration is built on bilateral and multilateral state-to-state cooperation, rather than purely integration. Moreover, the so-called “European model” is not conceptually or practically as clear as it appears at first glance. Amongst EU members, there are many different views that do not necessarily reflect a unique model or projection of this model. Some countries want to promote the idea of a federal system, while others stand for enhancing cooperation between the sovereign states. In that extent, what is the reality of the “European model” ? And secondly, I would have to say that in order to effectively get mutual confidence in cooperation, for both sides, maybe European countries should refrain from acting as a teacher vis-à-vis their Asian partners. The climate would be healthier and the cooperation become more efficient and sustainable if they would discard such a naive attitude. LM.- Do you have the feeling that sometimes European countries behave like some sort of a paternalistic superpower? XH.- I would rather express this idea in a more simple way. Yes, it is true, sometimes, among some European scholars as well as politicians, there is the syndrome of the medicine man, which consists in decreeing why and where Asia is suffering from and how to deal with it. Perhaps, before delivering the prescription, European people should be better informed of the realities of Asian countries, their idiosyncrasies and constraints. LM.- Let us come back to ASEM process. There are three “pillars”, as fundamental areas of cooperation and dialogue: the economic and financial pillars, the political pillar and the intellectual and cultural pillar. In these three domains, what can be done and should be done to give ASEM some new impetus? XH.- First, let me say that China is an active member at every level of the dialogue, from state leader summits to the second track activities, and their associated working groups dealing with specific research fields. For example, a Sciences and Technologies Ministers meeting was held in China. Regarding the three pillars of the dialogue, the stand of China is very clear and highlights the importance of each of them. The economic cooperation must lead to create a better economic environment, a sustainable development and the basis for cooperation in other field of activities. Here I would say two words about the political pillar or dialogue. It is a fact that in some areas, such as the notion of security, moral values, development policies, Europe and Asia do have different ways of thinking, or even disagree on such notions. China on this crucial question advocate a step-by-step approach based on mutual respect. China’s understanding of the political dialogue broadly covers many area of research and cooperation: illegal migrations, drugs enforcement, international organised crime etc.. Notes: 1.- Responding to the economic and financial crisis in Asia, the London Summit in 1998 held a discussion on the crisis and its implication for Asia-Europe relations. Heads of government pledged to keep markets open in the face of any protectionist pressures which might arise from the crisis (the ASEM Trade and Investment Pledge), and agreed to launch an ASEM Trust Fund to provide technical expertise to address the financial and social issues arising from the crisis. They also agreed to establish a European Financial Expertise Network (EFEX) to identify high-level expertise in both the public and private sectors to provide assistance to Asia. 2.- Asian ASEM partners represent 31.5% of the world population, produce 18,9% of world GDP, account for 24% of world wide exports of goods (15.9% of services) and for 17.5% of world imports of goods (22.5% of services). They generate 7.5% of FDI outflows while absorbing 14.5% of FDI inflows (Data 1998). 3.- see Asian Affairs on Asean, avaiable on the website. 4. See organization chart in this issue. 5. In 1996, when ASEM was established, as it was an ASEAN-Europe initiative, the membership seemed a straight forward one. It was bound to be the ASEAN members plus China, Japan and Korea on one side (as the Asia part on it) and the European countries which were EU members. However, ASEAN expended faster than EU did. Since ASEM II, ASEAN has become a ten countries organization among which Myanmar which is unacceptable to some EU countries as a member of the Asian community (see S. Jayakumar about ASEM). Published in Autum 2000 |
quarta-feira, 18 de abril de 2007
Spring Meetings 2007: Joint Call for More Resources for Africa



