Tuesday, November 3, 2009

China Digs into a Lucrative Afghan Copper Mine

China was awarded a contract over the Aynak copper mine, and, predictably, the selection contributes to the chorus of graft complaints in China. The Chinese state owned company, China Metallurgical (MCC), beat American and Canadian companies in the 2007 bidding process. The story is back in the news as the mine is preparing to open and conduct extraction. The United States' war enabled this process, and I wouldn't ever contend that we are "owed" first rights to strip a country's national resources. I wanted to post this to illustrate how China's rising is tied with resources and the US's sacrifices, as I pointed out in Trading Sanctions for a Missile Shield.

The Chinese are adept capitalists and most likely its resource diplomacy will run aground and increase disenchantment with China's growing power, as it already has for Iraqi oil workers. The Chinese favor importing their own workers instead of relying on indigenous workers, as the Newsday and NYT articles claim, which can only add to doubts over China's extractive efforts. US's companies record on exploiting local workers is hardly sterling, and the level of US companies' benefits to foreign workers and their environment is debatable. However, the Chinese strategy of avoiding labor strife and discontent by employing Chinese workers in foreign ventures could possibly backfire and foster nationalist resentment toward China and its businesses that seem intent on mining, drilling, or otherwise removing natural resources.

No comments: