China’s Road and Bridge Corporation (CRBC) has expressed interest in investing in Afghanistan to construct water storage dams and energy production projects.
Taking to Twitter on Sunday, the Taliban’s Ministry of Energy and Water said that CRBC officials met with energy minister Abdul Latif Mansoor in Tashkent, where they discussed the investments.
In response, Mansoor vowed to work to create opportunities for Chinese companies in several fields, including energy, construction, information technology, and mining. He reassured the Chinese delegation that the Taliban is committed to securing foreign investors and companies and vowed to cooperate with administrative and technical officials.
1-CRBC officials of China are willing to invest in the construction of water dams and energy production section in Afghanistan.
— Ministry of Energy & Water - Afghanistan (@MEW_GOV_AF) January 1, 2023
The Acting Minister of the Ministry of Energy and Water, Mr. Mullah Abdul Latif Mansoor, met with the Chairman of CRBC Company of China and a number of pic.twitter.com/n8VDdjU8rq
Just last week, Da Afghanistan Breshna Sherkat (DABS), Afghanistan’s national power utility, said in a series of tweets that the company’s chief, Mohammad Hanif Hamza, met with representatives of China’s Chamber of Commerce to discuss energy investments to produce 500 megawatts of electricity from coal-powered plants.
The Chinese delegation highlighted their experience in energy investments to set up coal-powered plants in 11 countries, showing that Beijing had the equipment and expertise to do the same in Afghanistan.
Hamza said that the two sides would present a plan to the Taliban after discussions and exchanging opinions on the issue.
POWER SHORTAGE IN AFGHANISTAN
The meeting occurred after representatives of several businesses, including industrial parks, private corporations, and factories, raised concerns about power shortages in Afghanistan.
For instance, the chair of the iron smelting union, Abdul Nasir Rishtia, said that the “significant reduction” in Afghanistan’s energy production has caused shortages of power and frequent power cuts in residential areas.
Mr. Hamza also pledged to assist them with any possible investment opportunity in energy sector in Afghanistan.
— DABS - د افغانستان برښنا شرکت (@DABS_Official) December 29, 2022
1/4 pic.twitter.com/GWBjT3DMsk
Other locals have complained that they get electricity for only four hours daily.
According to DABS, Afghanistan must produce an additional 1,600 megawatts of electricity, of which at least 30% should be domestically produced. Kabul can secure the remaining 70% from Uzbekistan, Turkmenistan, Tajikistan, and Iran.
CHINA'S ECONOMIC MOTIVES IN AFGHANISTAN
China has been eyeing Afghanistan for economic investments for several years now. Until 2016, China merely provided a total of $2.2 million in aid to the country. However, after including Afghanistan in the Belt and Road Initiative (BRI), its investments saw a significant uptick.
In 2016, China and Afghanistan signed a memorandum of understanding, and consequently, China promised Afghanistan around $100 million in funds. By 2019, China emerged as Afghanistan’s biggest business investor.
Even after the United States departed from Afghanistan, resulting in the Taliban’s takeover in August 2021, China was one of the first countries to hold a meeting with a Taliban delegation to discuss economic ties.
د خوښۍ نه ډک خبر
— Abdul Latif Mansoor | عبداللطیف منصور (@AbdullatifMNSOR) January 1, 2023
۱/۵ د اوبو او نرژۍ وزارت سرپرست وزیر ښاغلي الحاج ملا عبداللطیف منصور سره په لیدنه کي د چین هېواد د CRBC شرکت مسؤلینو په افغانستان کې د اوبو بندونو د جوړولو او د انرژۍ د تولید په برخه کې پانګونې ته لېواله دي. pic.twitter.com/AnF4ShAior
In fact, in the run-up to the takeover, a People’s Liberation Army official wrote in the New York Times that Beijing was “ready to step into the void left by the hasty US retreat to seize a golden opportunity.” In particular, he highlighted Afghanistan’s mineral wealth as a key aspect of prospective ties.
In addition, a September 2020 report by the Financial Times said that China has offered to build a road network in Afghanistan in exchange for the Taliban ensuring peace in Afghanistan following the takeover. Senior Pakistan-based tribal leaders with close ties to the group said that Beijing had offered “sizeable investments in energy and infrastructure projects” throughout the nation, which would help boost local commerce and trade.
Further, Chinese Foreign Minister Wang Yi convened a meeting with former Pakistani Foreign Minister Shah Mahmood Qureshi and the Taliban’s Foreign Minister Amir Khan Muttaqi in March. During the meeting, the three leaders vowed to jointly build the BRI and expand the China-Pakistan Economic Corridor to Afghanistan.
DETERIORATING SECURITY SITUATION IN AFGHANISTAN
Foreign investors remain concerned about the deteriorating security situation in Afghanistan, which has seen regular suicide attacks and bombings across the country. The violence is orchestrated mainly by ISIS, which has grown stronger since the Taliban’s takeover.
In fact, just this Sunday, an attack outside the Military Airport in Kabul caused ten deaths and eight injuries.
Concerningly for China, ISIS conducted an attack in December in Kabul, specifically targeting a hotel frequented by Chinese diplomats and businessmen.
China is really sticking to its position on Afghanistan: if Taliban doesn't crack down on East Turkistan Islamic Movement, which Beijing believes threatens Xinjiang's stability, then no Chinese investment. But Taliban say ETIM doesn't exist in its borders.https://t.co/L6VMqQbF91
— Derek J. Grossman (@DerekJGrossman) October 2, 2022
Beijing has previously raised concerns about the use of Afghan soil for promoting separatist activities in its Xinjiang region. It has expressed discontent with the Taliban’s failure to take action to contain the East Turkistan Islamic Movement (ETIM) despite vowing to ensure that the Taliban would not allow Afghan soil to be used for activities against other countries.
In this regard, Foreign Minister Wang Yi also convened a meeting with the Taliban’s Foreign Minister, Amir Khan Muttaqi, in March 2022. According to a statement by foreign ministry spokesperson Wang Wenbin, the Chinese minister urged the Taliban to “fulfil its commitment and take effective measures to resolutely crack down on all terrorist forces, including the ETIM.”
These security concerns have led to China abandoning its projects in Afghanistan, including a 2007 deal to mine copper deposits in Mes Aynak for 30 years. Afghanistan was expecting $3 billion in yearly payments, which has remained stalled over security concerns. Similarly, another project by the China National Petroleum Corporation has partially halted oil extraction and abandoned the plan to build a refinery.