Oil underpins Sudan and China's relationship

Feb 14 2008 Agenda

Following Steven Spielberg's withdrawal as an artistic adviser in this summer's Olympic Games in Beijing, Damon Wake, of the Press Association, looks at the relationship between China and Sudan.

Since Western companies began withdrawing from Sudan in the late 1990s, the troubled west African state has come to lean heavily on China.

The communist state's support for Sudan has come in the form of trade, arms and strong backing at the United Nations - one human rights group said China effectively acted as the African nation's special representative on the Security Council.

One key resource underpins the relationship: oil.

Oil is the Sudanese government's primary source of income, and the Coalition for Darfur estimates that about 60 per cent of the country's oil is sold to China.

More importantly, China has helped build the infrastructure that has allowed the Sudanese oil industry to mushroom over the last decade.

Figures from the International Monetary Fund (IMF) show Sudanese oil revenues rocketed from $61 million (£30.5 million) in 1999 to $4.5 billion (£2.25 billion) in 2006.

Nick Donovan, of the Aegis Trust, a group that campaigns against genocide around the world, said that without China, Sudan could not operate an effective oil industry.

"China is crucial to Sudan, because they could not have oil exports at all without Chinese investment," he said. "The pipeline, which takes oil from producing regions to the coast for export, would not have been built, the refineries would not have been built and the drilling rigs would not have been built.

"Without Chinese investment, they wouldn't have been able to get the stuff out of the ground."

Oil revenues, Mr Donovan said, had allowed Sudan to increase its military spending enormously.

Figures from the International Institute for Strategic Studies (IISS) and CIA showed expenditure more than quadrupled from $132 million (£66 million) in 1997 to $587 million (£293.5 million) in 2004.

China has also given more direct military support to Sudan, selling the government ammunition, tanks, helicopters and small arms.

Weapons supplied to the Sudanese government quickly found their way into the hands of Arab militias - known as Janjiwid - carrying out atrocities in the Darfur region, Mr Donovan said.

The porous, ill-defined structure of semi-official militia groups in Sudan meant it was impossible to keep track of where arms ended up, he said.

According to UN statistics, in 2005 Sudan imported $24 million (£12 million) worth of arms and ammunition from China, along with nearly $57 million (£28.5 million) worth of parts and aircraft equipment. Amnesty International said aircraft and helicopters were used both for direct attacks on villages in Darfur and for reconnaissance ahead of ground assaults.

In the diplomatic sphere, Mr Donovan said, China routinely backed Sudan in controversial motions at the UN, recently blocking a statement criticising the government there. "China effectively acts as Sudan's special representative on the Security Council," he said.

But there are signs that the communist state is becoming uncomfortable with Sudan's continued failure to stop the killing in Darfur. On a visit to an African Union meeting in Addis Ababa in Ethiopia last month, the Chinese assistant foreign minister Zhai Jun said: "The world is running out of patience with what is going on in Darfur."

It remains to be seen whether pressure created by actions like Spielberg's pushes Chinese patience to breaking point.