The Evenstar Institute's Weekly Chinese Influence Bulletin
India-China investment, Nigerian ports, Bolivian lithium, lots on space
Hello and welcome back to What China Wants.
Below we publish the weekly newsletter of the Evenstar Institute, the parent of What China Wants and a think tank dedicated to measuring and understanding national influence in the 21st century.
About The Evenstar Institute Bulletin
The Evenstar Institute's weekly bulletin comprises updates on changing global influence, macro supply chain events, and other China-related news. We will also highlight books, articles, events, and episodes of our podcast, What China Wants.
If you have any questions about the contents of the bulletin or the Institute's research, get in touch via our website.
Influence Updates
Washington imposes sanctions on Chinese space firm over Ukraine involvement
Defence and Security Digital Infrastructure
The US imposed sanctions on China’s Changsha Tianyi Space Science and Technology Research Institute for providing satellite imagery to the Russian private military group Wagner, operating in Ukraine. A US statement noted that the company enabled Wagner combat operations in Ukraine. The sanctions also included a Luxembourg-based subsidiary of the firm, also known by the name Spacety China, the South China Morning Post reported.
The US Treasury Department and State Department also announced sanctions on 15 other companies and eight individuals.
Bolivia choses Chinese firm for major lithium partnership
Finance, Trade, and Investment Energy and Mineral Resources
Bolivian president Luis Arce and the head of the Bolivian state-owned mining firm Yacimientos de Litio Bolivianos (YLB) signed a contract with the Chinese consortium, CBC, for two major lithium extraction projects in Oruro and Potosi. The projects include the construction of roads and processing plants to extract and export the lithium, with an estimated annual production rate of 25,000 tonnes of lithium carbonate each.
CBC includes the world’s largest electric vehicle battery producer CATL and mining firm CMOC, as well as another battery producing firm Brunp. The energy ministry said CBC won over Russian and US bidders due to technology and water-efficiency techniques. Bolivia’s salt flats hold an estimated 21 million tonnes of lithium, according to the US Geological Survey.
Beijing, New Delhi plan investment in Mongla port
Finance, Trade, and Investment Transport and Logistics
China and India are both planning investment in Bangladesh’s Mongla port as part of efforts to develop and modernise the port, which is the second largest in the country. There was no immediate confirmation of the exact amount agreed with China, though Bangladesh will provide USD 146.6 million and India will provide USD 420.7 million.
In December, the chairman of the Mongla Port Authority said that Beijing has given approval to finance the development of the port after years of uncertainty over funding. In 2016, Beijing and Dhaka signed an agreement for 27 development projects, including the port expansion, during a visit by President Xi Jinping.
Nigeria marks opening of China-funded deep-sea port in Lagos
Finance, Trade, and Investment Transport and Logistics
Nigeria’s president, Muhammadu Buhari, opened the Lekki Deep Sea port in Lagos, the Associated Press reported. The port is a Chinese-funded USD 1.5 billion project which can handle more than 2.5 million 20-foot equivalent unit containers annually. The project is intended to reduce congestion in Lagos, where two ports handle 80 percent of the country’s imports.
Although officials have estimated that the port may contribute to more than USD 300 billion of economic growth, some experts noted that investment was needed to connect the port to other areas of the country to achieve that growth.
Congo’s president criticises China mineral-for-infrastructure contract amid review
Finance, Trade, and Investment Energy and Mineral Resources
Congo’s president, Felix Tshisekedi, criticised a USD 6.2 billion mineral-for-infrastructure contract with China. President Tshisekedi said that the contract had made China “a lot of profit” and that Congo had “derived no benefit.”
The comment, made during an interview at the World Economic Forum in Davos, referred to a 2007 agreement for USD 3.2 billion of investment in the Tenke Fungurume copper-cobalt mine and USD 3 billion in associated investments in roads and healthcare infrastructure.
The government is in ongoing talks with the mine joint venture, Sicomines, over the contract, which has been under review for more than a year amid an examination of mining contracts.
Other News
Financial Times interviews the Philippines’ President Ferdinand Marcos Jr
The Financial Times chief foreign affairs commentator Gideon Rachman interviewed the Philippines’ President Ferdinand Marcos Jr, discussing the challenges facing the county. President Marcos highlighted that he was attempting to attract investment, particularly in energy and agriculture. He also indicated an interest in developing domestic mining and refining capability, alongside manufacturing.
President Marcos and Gideon also discussed relations between the Philippines and US, and tensions with China over the South China Sea and Taiwan. President Marcos highlights the potential for a major economic fallout should a conflict over Taiwan impact shipping.
Listen to the interview here.
CSIS produces report on Chinese investments in Argentine space sector
The Centre for Strategic and International Studies (CSIS) produced a report on China’s state capitalism in the Argentine space sector, examining the implications for companies partnering with Chinese firms.
There has been a rapid growth of the space sector in recent years, with a large demand for affordable satellite coverage. A 2022 Space Foundation report estimated that the global space economy was worth USD 469 billion in 2021, a 9% increase from a year earlier. China has been a key part of this growth, seeking to become a major space player and expand the use of its Beidou positioning system.
The report highlighted that Chinese firms benefit when their commercial objectives align with Beijing’s state and military goals. This is due to preferential access to funding and diplomatic support, alongside other factors. It also noted that the state capitalist system enhances party-state influence over commercial decision making, and creates ambiguity over corporate decisions.
It cited the example of the construction of the Espacio Lejano Station by Chinese state owned firms and managed by the potentially military-linked China Satellite Launch and Tracking Control General (CLTC) organisation.
The report also examines Argentina space start-up Satellogic’s interaction with Chinese firms, including the receipt of investments and technology support. Since 2021, Satellogic has avoided further partnerships with Chinese firms, amid concern that ties would undermine their ability to compete for commercial contracts overseas.
The Podcast
A reminder that in this week’s What China Wants podcast (published every Thursday), Sam and Stewart spoke with Dr Sarah Kirchberger to discuss the state of Russia-China relations.
Sarah is the co-author of the recently published “Russia-China relations: emerging Alliance or eternal rivals?” and the head of Asia-Pacific Strategy and Security at the Institute for Security Policy at Kiel University.
You can also listen to the podcast on Apple, Amazon, or Spotify.
About The Evenstar Institute
The Evenstar Institute is a non-partisan, not-for-profit think tank focused on measuring and understanding the evolving nature of national influence in the twenty first century.
If you would like to support us, please visit the donate page on our website.