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China Buys into Afghanistan

This article examines three elements of the popular narrative of China’s involvement in the development of Afghanistan’s vast natural resource wealth. It argues that Chinese companies invested in Afghanistan’s minerals and energy in the pursuit of their own corporate interests rather than at the direction of a Chinese government concerned about resource security. To be sure, the Chinese firms did have a leg up on their Western competitors by virtue of their state ownership. However, the infrastructure packages they offered as part of their bids are consistent with a shift in the global mining industry away from enclave private sector developments and towards leveraging mineral development to benefit the broader economy, which is being driven largely by Chinese companies. Finally, while it is fair to say that China is free-riding on the U.S.-led stabilization efforts in Afghanistan because Chinese companies are benefitting from a public good to which China has not contributed, the mining and energy investments made by Chinese companies could well end up advancing U.S. goals.