China’s Resource Exploitation in Afghanistan: A Raw Deal for the Afghans

By A. Shafaq 

After three years since Taliban’s takeover, Afghanistan continues to remain economically unstable and internationally unrecognized. While many countries maintain diplomatic ties with Kabul, none has extended formal recognition to the Taliban regime. Desperate for legitimacy, the Taliban’s overtures to China underscore a mutual interest in Afghanistan’s untapped natural resources. Yet, this burgeoning relationship appears to favor Beijing significantly more than it does the Afghan people.

Afghanistan is rich in valuable minerals, with an estimated trillion-dollar reserve of rare earth metals, including lanthanum, cerium, and neodymium. These resources are essential for various high-tech industries, from electronics to electric vehicles. The country’s potential mineral wealth has ignited a geopolitical scramble, with China emerging as a key player eager to capitalize on these resources.

Since 2022, Chinese firms have intensified their presence in Afghanistan, exploring business opportunities and securing mining agreements. Notably, in January 2023, Xinjiang Central Asia Petroleum and Gas Co struck a deal with the Taliban for oil extraction in the Amu Darya basin. By mid-2023, the Fan China Afghan Mining Processing and Trading Company announced a $350 million investment in Afghanistan, targeting sectors like electricity, cement production, and healthcare. While these promises have not yet materialized, they create an illusion of active Sino-Afghan economic engagement.

China’s involvement in Afghanistan transcends mere economic gains. By positioning itself as a benefactor to the Taliban, Beijing aims to solidify its influence in the region, countering Western presence and ensuring access to Afghanistan’s natural wealth. This strategy mirrors China’s broader regional ambitions, as seen in its growing dominance over Pakistan. Integrating Afghanistan into this sphere would enhance China’s control over Central Asia’s critical resources.

However, China’s track record in international investments raises red flags. Accusations of debt-trap diplomacy—where countries are lured into unsustainable debts, granting China significant leverage—cast a shadow over its intentions in Afghanistan. The situation in Zambia, where Chinese loans have led to severe economic and political consequences, serves as a cautionary tale. Afghanistan risks a similar fate if it becomes ensnared in unsustainable debts to China.

China’s authoritarian regime has a notable disregard for human rights, particularly concerning ethnic minorities. However, China would use the international isolation of Taliban to propel their strategic and economic interests in the region. Taliban is not left with much options in this regard. This complicity could further undermine the well-being of ordinary Afghans, exacerbating their exploitation.

Mes-e Aynak: A Case in Point

Mes-e Aynak, home to the world’s second-largest copper deposit, exemplifies China’s exploitative ambitions in Afghanistan. With an estimated 11.5 million tons of copper ore, Mes-e Aynak is crucial for industries tied to renewable energy and electronics. Despite a $3 billion deal signed in 2008, Chinese state-owned China Metallurgical Group Corporation (MCC) only recently began work on the project due to security concerns and lack of prior interest.

The project’s delayed implementation and the decision to employ predominantly Chinese workers reflect a disregard for local Afghan employment. This approach not only deprives Afghans of economic opportunities but also fuels resentment. Security incidents targeting Chinese nationals, such as attacks in Pakistan and Afghanistan, underscore the risks associated with this exploitative model. Chinese workers have increasingly become a target of attacks in the region, including a suicide attack that killed five Chinese engineers in Pakistan in March and a 2021 bombing that killed 13 people, including nine Chinese workers, at a dam project in the South Asian country. In Afghanistan, at least five Chinese nationals were wounded when gunmen stormed a Kabul hotel popular with Beijing businessmen in 2022.

Afghanistan’s vast resources should serve its people, fostering sustainable development and long-term prosperity. The international community must ensure that any Sino-Afghan alliances adhere to standards that prioritize the rights and welfare of local Afghans. China’s interest in Afghanistan’s resources, if unchecked, could result in another instance of exploitation under the guise of economic partnership.

The promise of development and prosperity for Afghanistan’s future hinges on leveraging its resources for the benefit of its own people, rather than allowing authoritarian regimes to plunder its wealth. The experiences of other nations under China’s influence highlight the need for vigilance and strategic planning to avoid falling into the same trap.

A. Shafaq (pseudonym) is a researcher and lecturer at one of the private universities in Kabul.

Note: The contents of the article are of sole responsibility of the author. Afghan Diaspora Network will not be responsible for any inaccurate or incorrect statement in the articles.