Sudan: China’s Original Foothold in Africa
June 22, 2017
Thanks in part to U.S. neglect, China’s footprint in Sudan has grown exponentially over the past 20 years.
By Joseph Hammond*
China’s legacy in Sudan is immediately visible in downtown Khartoum. Near where the Blue and White Nile join to form the world’s longest river sits the People’s Friendship Cooperation Hall, a gift from China to the People’s Republic to Sudan that dates to 1976.
The complex, which includes a conference hall, meeting rooms, a theater, and banquet hall, stretches for nearly a kilometer along the Nile. The building has aged well and remains one of Africa’s modernist architectural gems; a Chinese extension in 2003 expanded and refurbished the building without impacting its charm In 2014, the People’s Friendship Cooperation Hall hosted the third China-Africa People’s Forum while Chinese sources hailed Sudan as an important country in Africa.
The building is not far from where the British Empire suffered one of its greatest defeats in 1885. That year General Charles George “Chinese” Gordon was killed when the besieged Imperial garrison at Khartoum was overrun by Mahdist forces. A British-led force sent to relieve him arrived just hours too late to lift the months long siege. Before his death in Sudan, Gordon was heavily decorated by the British Empire for his role in suppressing the Taiping Rebellion in China, which the Communist Party of China in recent years has come to see as an anti-imperialist uprising. As such “Chinese” Gordon provides a compelling historical link in Sudanese-Chinese relations, as both countries can claim to have suffered under the same colonial oppressor.
Chinese-Sudanese relations date to 1959, when Sudan became the first country in sub-Saharan Africa to recognize China. Today, China is the largest investor in Sudan, as it is in the continent as a whole. But China’s relation with Sudan is exceptional because of the absence of competition from the United States. Other than Coca-Cola, very few American products are readily available to Sudanese consumers.
Sudan has been under U.S. sanctions since 1995 in part due to the country’s past ties to terrorists like Osama bin Laden. That same year President Omar al-Bashir signed Sudan’s first oil deal with China.
“It is surprising, the coincidence that U.S. sanctions began around the same time China invested in our oil industry,” a Sudanese government official offers sarcastically.
Yet China’s oil empire in Sudan began rather reluctantly. When first approached by Bashir’s government to invest in oil concessions, the Chinese officials suggested Sudan look to Chevron instead.
In June 1997, the Greater Nile Petroleum Operating Company was established with the China National Petroleum Corporation (CNPC) taking 40 percent ownership and Malaysia’s Petronas taking 30 percent. India’s ONGC Videsh acquired 25 percent when a forerunner of Canada’s Talisman Energy had to leave due to sanctions.
China has invested in other aspects of the industry until it controls as much as 75 percent of the Sudanese oil industry. Sudan currently produces 133,000 barrels of oil per day — a fraction of what it produced before the south of the country seceded in 2011, taking most of the country’s proven oil reserves with it. Today, Chinese companies are looking for new oil deposits in Sudan as increasing oil production is one of the government’s priorities.
“China’s first experience in investing in Africa was in Sudan,” says Ibrahim Ghandour, Sudan’s foreign minister. “They started in oil but, now have other interests in trade, mining, and construction.”
However, in one area Chinese involvement in Sudan is exaggerated: China has been falsely accused of being an major source of armaments for Sudan. According to the Stockholm International Peace Research Institute’s arms transfer database, arms from Russia, Belarus, and Ukraine made up the majority — 77 percent — of imports into the Sudanese arsenal from 2007-2016. China was responsible for a modest 19 percent of all military exports to Sudan over the same period.
China’s presence in Sudan is not without controversy. For example, Sudanese labor law requires that international companies consist of staff which is 80 percent Sudanese, but the foreign minister admits that Chinese companies have failed to comply with this. However, he insists that the Sudanese benefit more than locals in many other African countries from Chinese companies.
“Yes, Chinese companies are in violation of this but, it is the smallest possible violation. Within the oil industry today most of the engineers and technical experts in Sudan and South Sudan are Sudanese. They were trained in China, and we see more and more of them… Sudan is the only country in Africa where over time more locals have gotten jobs from Chinese companies,” says Ghandour.
Though not typically seen as a part of the Belt and Road Initiative, Sudan sees itself as playing a critical role in the development of China’s plan to link East Asia with western Europe. The Sudanese government believes Port Sudan on the Red Sea will be an important loop on that belt.
“We are in discussions with China to work with them on developing a new free-trade area near Port Sudan, which will focus on attracting Chinese companies and of course support the One Belt, One Road Initiative,” says Sudan’s state minister for investment, Osama Faysal. “However in the long term American companies may have a competitive advantage in Sudan due to their spending on R&D.”
If the United States was reluctant to engage in transaction diplomacy back in 1996, when Sudan offered to turn over Osama bin Ladenfor sanctions relief, China has proved a willing partner. Now the Trump administration is poised to lift economic sanctions on Sudan later this year, but it will be a while before the knockoff “Starbox” coffee shops and Khartoum fried chicken eateries disappear.
Khartoum is talking about new business opportunities with American companies and the wider world. That said, despite some resentment among the local Sudanese toward the Chinese, China’s influence will likely continue unabated.
Elsewhere in Africa, China has thrived by under-cutting the competition and accepting higher risks than American companies. However, China’s influence will survive for political reasons as well.
Bashir, who has ruled Sudan since 1989, has pledged to step down in 2020. However, Bashir’s ruling National Congress Party has no intention of yielding power, and in this regard is consciously emulating China. China was the only non-Muslim country outside Africa invited to the fourth national congress of the NCP held this year. Communist Party of China officials — fluent in Arabic — furiously scribbled notes during Bashir’s speech. A few rows away an NCP party member wore a lapel pin from the China Executive Leadership Academy in Pudong, known in Sudan as CELAP, where some NCP leaders have undergone leadership training. As the party has reformed itself as part of a national dialogue initiated in 2014, China has presented an explicit model where competition takes place within parties, not between them.
“China offered a completely different model of human development a model very different than Europe and Britain,” says Ibrahim Mahmoud, the vice president of the NCP who led the reform. “That is an example we are closely following.”
*Culled from The DiplomatJoseph Hammond is a fellow with the American Media Institute and former Cairo Correspondent for Radio Free Europe. He has been contributing as a freelancer to The Diplomat since 2010.
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