Keep Us Strong WikiLeaks logo

Currently released so far... 97115 / 251,287

Articles

Browse latest releases

Browse by creation date

Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z

Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
ETRD EAGR ETTC EAID ECON EFIN ECIN EINV ELAB EAIR ENRG EPET EWWT ECPS EIND EMIN ELTN EC ETMIN EUC EZ ET ELECTIONS ENVR EU EUN EG EINT ER ECONOMICS ES EMS ENIV EEB EN ECE ECOSOC EK ENVIRONMENT EFIS EI EWT ENGRD ECPSN EXIM EIAD ERIN ECPC EDEV ENGY ECTRD EPA ESTH ECCT EINVECON ENGR ERTD EUR EAP EWWC ELTD EL EXIMOPIC EXTERNAL ETRDEC ESCAP ECO EGAD ELNT ECONOMIC ENV ETRN EIAR EUMEM ENRGPARMOTRASENVKGHGPGOVECONTSPLEAID EREL ECOM ECONETRDEAGRJA ETCC ETRG ECONOMY EMED ETR ENERG EITC EFINOECD EURM EENG ERA EXPORT ENRD ECONEINVETRDEFINELABETRDKTDBPGOVOPIC EGEN EBRD EVIN ETRAD ECOWAS EFTA ECONETRDBESPAR EGOVSY EPIN EID ECONENRG EDRC ESENV ETT EB ENER ELTNSNAR ECHEVARRIA ETRC EPIT EDUC ESA EFI ENRGY ESCI EE EAIDXMXAXBXFFR EETC ECIP EIAID EIVN EBEXP ESTN EING EGOV ETRA EPETEIND ELAN ETRDGK EAIDRW ETRDEINVECINPGOVCS EPEC ENVI ELN EAG EPCS EPRT EPTED ETRB EUM EAIDS EFIC EFINECONEAIDUNGAGM EAIDAR ESF EIDN ELAM EDU EV EAIDAF ECN EDA EXBS EINTECPS ENRGTRGYETRDBEXPBTIOSZ EPREL EAC EINVEFIN ETA EAGER EINDIR ECA ECLAC ELAP EITI EUCOM ECONEFINETRDPGOVEAGRPTERKTFNKCRMEAID EARG ELDIN EINVKSCA ENNP EFINECONCS EFINTS ECCP ETC EAIRASECCASCID EINN ETRP EAIDNI EFQ ECOQKPKO EGPHUM EBUD ECONEINVEFINPGOVIZ ENERGY ELB EINDETRD EMI ECONEFIN EIB EURN ETRDEINVTINTCS EIN EFIM ETIO ELAINE EMN EATO EWTR EIPR EINVETC ETTD ETDR EIQ ECONCS EPPD ENRGIZ EISL ESPINOSA ELEC EAIG ESLCO EUREM ENTG ERD EINVECONSENVCSJA EEPET EUNCH ECINECONCS ETRO ETRDECONWTOCS ECUN EFND EPECO EAIRECONRP ERGR ETRDPGOV ECPN ENRGMO EPWR EET EAIS EAGRE EDUARDO EAGRRP EAIDPHUMPRELUG EICN ECONQH EVN EGHG ELBR EINF EAIDHO EENV ETEX ERNG ED
KMDR KPAO KPKO KJUS KCRM KGHG KFRD KWMN KDEM KTFN KHIV KGIC KIDE KSCA KNNP KHUM KIPR KSUM KISL KIRF KCOR KRCM KPAL KWBG KN KS KOMC KSEP KFLU KPWR KTIA KSEO KMPI KHLS KICC KSTH KMCA KVPR KPRM KE KU KZ KFLO KSAF KTIP KTEX KBCT KOCI KOLY KOR KAWC KACT KUNR KTDB KSTC KLIG KSKN KNN KCFE KCIP KGHA KHDP KPOW KUNC KDRL KV KPREL KCRS KPOL KRVC KRIM KGIT KWIR KT KIRC KOMO KRFD KUWAIT KG KFIN KSCI KTFIN KFTN KGOV KPRV KSAC KGIV KCRIM KPIR KSOC KBIO KW KGLB KMWN KPO KFSC KSEAO KSTCPL KSI KPRP KREC KFPC KUNH KCSA KMRS KNDP KR KICCPUR KPPAO KCSY KTBT KCIS KNEP KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KNNB KGCC KINR KPOP KMFO KENV KNAR KVIR KDRG KDMR KFCE KNAO KDEN KGCN KICA KIMMITT KMCC KLFU KMSG KSEC KUM KCUL KMNP KSMT KCOM KOMCSG KSPR KPMI KRAD KIND KCRP KAUST KWAWC KTER KCHG KRDP KPAS KITA KTSC KPAOPREL KWGB KIRP KJUST KMIG KLAB KTFR KSEI KSTT KAPO KSTS KLSO KWNN KPOA KHSA KNPP KPAONZ KBTS KWWW KY KJRE KPAOKMDRKE KCRCM KSCS KWMNCI KESO KWUN KPLS KIIP KEDEM KPAOY KRIF KGICKS KREF KTRD KFRDSOCIRO KTAO KJU KWMNPHUMPRELKPAOZW KEN KO KNEI KEMR KKIV KEAI KWAC KRCIM KWCI KFIU KWIC KCORR KOMS KNNO KPAI KBWG KTTB KTBD KTIALG KILS KFEM KTDM KESS KNUC KPA KOMCCO KCEM KRCS KWBGSY KNPPIS KNNPMNUC KWN KERG KLTN KALM KCCP KSUMPHUM KREL KGH KLIP KTLA KAWK KWMM KVRP KVRC KAID KSLG KDEMK KX KIF KNPR KCFC KFTFN KTFM KPDD KCERS KMOC KDEMAF KMEPI KEMS KDRM KEPREL KBTR KEDU KNP KIRL KNNR KMPT KISLPINR KTPN KA KJUSTH KPIN KDEV KTDD KAKA KFRP KWNM KTSD KINL KJUSKUNR KWWMN KECF KWBC KPRO KVBL KOM KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KEDM KFLD KLPM KRGY KNNF KICR KIFR KM KWMNCS KAWS KLAP KPAK KDDG KCGC KID KNSD KMPF KPFO KDP KCMR KRMS KNPT KNNNP KTIAPARM KDTB KNUP KPGOV KNAP KNNC KUK KSRE KREISLER KIVP KQ KTIAEUN KPALAOIS KRM KISLAO KWM KFLOA
PHUM PINR PTER PGOV PREL PREF PL PM PHSA PE PARM PINS PK PUNE PO PALESTINIAN PU PBTS PROP PTBS POL POLI PA PGOVZI POLMIL POLITICAL PARTIES POLM PD POLITICS POLICY PAS PMIL PINT PNAT PV PKO PPOL PERSONS PING PBIO PH PETR PARMS PRES PCON PETERS PRELBR PT PLAB PP PAK PDEM PKPA PSOCI PF PLO PTERM PJUS PSOE PELOSI PROPERTY PGOVPREL PARP PRL PNIR PHUMKPAL PG PREZ PGIC PBOV PAO PKK PROV PHSAK PHUMPREL PROTECTION PGOVBL PSI PRELPK PGOVENRG PUM PRELKPKO PATTY PSOC PRIVATIZATION PRELSP PGOVEAIDUKNOSWGMHUCANLLHFRSPITNZ PMIG PREC PAIGH PROG PSHA PARK PETER POG PHUS PPREL PS PTERPREL PRELPGOV POV PKPO PGOVECON POUS PGOVPRELPHUMPREFSMIGELABEAIDKCRMKWMN PWBG PMAR PREM PAR PNR PRELPGOVEAIDECONEINVBEXPSCULOIIPBTIO PARMIR PGOVGM PHUH PARTM PN PRE PTE PY POLUN PPEL PDOV PGOVSOCI PIRF PGOVPM PBST PRELEVU PGOR PBTSRU PRM PRELKPAOIZ PGVO PERL PGOC PAGR PMIN PHUMR PVIP PPD PGV PRAM PINL PKPAL PTERE PGOF PINO PHAS PODC PRHUM PHUMA PREO PPA PEPFAR PGO PRGOV PAC PRESL PORG PKFK PEPR PRELP PREFA PNG PGOVPHUMKPAO PRELECON PINOCHET PFOR PGOVLO PHUMBA PRELC PREK PHUME PHJM POLINT PGOVPZ PGOVKCRM PGOVE PHALANAGE PARTY PECON PEACE PROCESS PLN PRELSW PAHO PEDRO PRELA PASS PPAO PGPV PNUM PCUL PGGV PSA PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PGIV PRFE POGOV PEL PBT PAMQ PINF PSEPC POSTS PHUMPGOV PVOV PHSAPREL PROLIFERATION PENA PRELTBIOBA PIN PRELL PGOVPTER PHAM PHYTRP PTEL PTERPGOV PHARM PROTESTS PRELAF PKBL PRELKPAO PKNP PARMP PHUML PFOV PERM PUOS PRELGOV PHUMPTER PARAGRAPH PERURENA PBTSEWWT PCI PETROL PINSO PINSCE PQL PEREZ PBS

Browse by classification

Community resources

courage is contagious

Viewing cable 08PRETORIA504, CHINA'S ENGAGEMENT: A SOUTH AFRICA VIEW

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs

Understanding cables
Every cable message consists of three parts:
  • The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
  • The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
  • The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
To understand the justification used for the classification of each cable, please use this WikiSource article as reference.

Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #08PRETORIA504.
Reference ID Created Released Classification Origin
08PRETORIA504 2008-03-11 14:04 2011-08-24 01:00 UNCLASSIFIED Embassy Pretoria
VZCZCXRO1497
RR RUEHBZ RUEHDU RUEHGI RUEHJO RUEHMA RUEHMR RUEHPA RUEHRN RUEHTRO
DE RUEHSA #0504/01 0711404
ZNR UUUUU ZZH
R 111404Z MAR 08
FM AMEMBASSY PRETORIA
TO RUEHC/SECSTATE WASHDC 3768
INFO RUEHZO/AFRICAN UNION COLLECTIVE
RUCNSAD/SOUTHERN AF DEVELOPMENT COMMUNITY COLLECTIVE
RUEHBJ/AMEMBASSY BEIJING 0762
RUEHKO/AMEMBASSY TOKYO 0519
UNCLAS SECTION 01 OF 02 PRETORIA 000504 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON ETRD EINV ENRG EMIN CH SF
SUBJECT: CHINA'S ENGAGEMENT: A SOUTH AFRICA VIEW 
 
REF: 07 PRETORIA 00569 
 
1.  Summary.  According to Stellenbosch University's Centre 
for Chinese Studies Executive Director Martyn Davies, while 
the Western world views Africa as a "development burden", 
China sees Africa as a "commercial opportunity", which has 
focused China's strategy in developing a parallel market for 
energy security and commodities.  China's design is to 
monopolize the entire commodity chain, from mining, 
financing, processing, and shipping to developing new 
exchanges that will eliminate the middle man of the 
Western-dominated metal and mineral exchanges.  In addition 
to this new parallel trading model, China is pursuing a 
coalition investment strategy manifested by targeted special 
economic zones (SEZ).  Davies warns that the SAG needs to 
better engage with China and provide incentives to become a 
SEZ, or risk losing its leading role as the trade gateway to 
Africa.  End Summary. 
 
--------------------------------- 
DRIVERS BEHIND CHINESE ENGAGEMENT 
--------------------------------- 
 
2.  In a February 29 briefing organized by the American 
Chamber of Commerce for its members on the reorientation of 
Africa economic strategic relations, Stellenbosch 
University's Centre for Chinese Studies Executive Director 
Martyn Davies highlighted the drivers behind China's surge of 
interest in Africa's emerging markets.  He noted that while 
the Western world views Africa as a "development burden", 
China sees Africa as a "commercial opportunity", which has 
focused China's strategy in developing a parallel market for 
energy security and commodities.  According to Davies, China 
is excluded from Middle East oil reserves (apart from Iran) 
and is often blocked from open market purchases (like CNOOC's 
bid for Unocal, "vetoed" by the U.S. Congress), leaving 
Africa as the only option.  Strong relations with Africa will 
also enable China to gain a toehold in the global economy and 
counter rising competition from Japan. 
 
----------- 
CHINA, INC. 
----------- 
 
3.  Davies outlined China's strategy as the new "commercial 
player" on the block.  China intends to create a parallel 
market controlled wholly by the Chinese (or "manipulated" as 
Davies cynically commented.)  China's design is to monopolize 
the entire commodity chain, from mining, financing, 
processing, and shipping to developing new exchanges that 
will eliminate the middle man of the Western-dominated metal 
and mineral exchanges.  Davies warned that the impact of the 
new "China, Inc." will be "trade and commodity market 
disruption" with rising concern from the traditional powers. 
In this regard, Davies disagreed with the recent Brenthurst 
Foundations trilateral Africa-China-US meeting's finding that 
there is no strategic conflict between the U.S. and China in 
Africa. 
 
----------------------------- 
SEZS AND COALITION INVESTMENT 
----------------------------- 
 
4.  In addition to this new parallel trading model, China is 
pursuing a coalition investment strategy manifested by 
targeted special economic zones (SEZ).  Utilizing the success 
of economic zones in China, coupled with the European model 
of incentive packages, Davies stated that China is 
establishing mining, trading, manufacturing, assembly, and 
logistics hubs throughout Africa.  At the same time, China is 
facilitating cooperation between several industries, such as 
banking, mining and oil, in each economic zone to form a 
coalition investment that can better dominate the market. 
 
5.  With an introduction of "if this doesn't scare you," 
Q5.  With an introduction of "if this doesn't scare you," 
Davies unveiled an African map with a transportation corridor 
connecting the Atlantic and Indians Oceans via Tanzania and 
Angola.  Davies explained that current shipping patterns were 
limited to the old North-South corridors established by the 
British and other colony holders.  China is building the 
first East-West corridor that will be a new growth mode for 
Chinese development between the SEZs, and a major competitor 
to South Africa's trade routes. 
 
---------------------- 
IMPACT ON SOUTH AFRICA 
---------------------- 
 
6.  South Africa has not been designated as an SEZ despite 
its role as the economic powerhouse and transportation hub 
 
PRETORIA 00000504  002 OF 002 
 
 
for sub-Saharan Africa.  According to Davies, the SAG needs 
to better position itself to attract Chinese interest. 
Davies noted that Finance Minister Trevor Manuel will not 
offer incentives to obtain SEZ status and those incentives 
are necessary from China's perspective.  In addition, South 
African manufacturers have faced stiff competition from 
Chinese imports, resulting in South-South "competition" 
rather than "cooperation."  South Africa also risks 
squandering its position as the gateway to Africa with the 
opening of the East-West corridor. 
 
7.  Not only has South Africa failed to embrace China's 
interest in the region, it is wary of China's competitive 
edge and strategic tactics.  As a result, the SAG tends to be 
reactive, not welcoming, to China's presence, resulting in an 
ad hoc approach, such as implementation of the January 
2007-December 2008 textile quota (reftel).  Center for 
Chinese Studies Research Manager Hannah Edinger told Trade 
and Investment Officer South Africa's reticence most likely 
arises from China's insistence on controlling the entire 
supply chain via Chinese-owned companies and its failure to 
localize, i.e., employ South Africans and tap into 
locally-owned suppliers. 
 
8.  On a broader scale, Davies stated that China's emergence 
on the African continent has called into question the 
relevance of the Anglo-Saxon capitalist model.  China was 
able to lift 300 million people from poverty to middle class 
in 30 years.  Africa is taking a closer look at whether China 
is a better role model than the traditional IMF-World 
Bank-Brettonwoods system. 
 
-------------------------------- 
SOUTH AFRICA AS CHINA'S GATEWAY? 
-------------------------------- 
 
9.  Davies moderated a separate lecture one month earlier on 
January 29, entitled: China's Game: The Emerging Super 
Dragon" by Anglo American Advisor Clem Sunter.  Placing 
China's formidable economy and growth in perspective, Sunter 
noted that China brings on line 100 Gigawatts of new 
electricity capacity per year (2.5 times South Africa's total 
capacity), eliciting inevitable jokes about state electricity 
supplier Eskom's supply woes.  Davies and Sunter 
characterized South Africa as China's gateway to Africa and 
its rich resources, noting the acquisition of a 20 percent 
share in South African Standard Bank by the Industrial and 
Commercial Bank of China earlier this year.  However, they 
noted that South Africa could lose this special relationship 
with China if it cannot assure infrastructure, power, 
services, etc.  They questioned how good China's investment 
ultimately was for Africa given the likelihood that 
undeveloped countries would lack capacity and skill to 
negotiate good deals with China. 
 
10.  These observers stress that China is changing the rules 
and considers Africa its continent of choice.  China does not 
ask about human rights and democracy; it just asks are if 
there are resources and locks up an advantageous deal. 
 
------- 
COMMENT 
------- 
 
11.  China's relations with South Africa differ from China's 
relations with the rest of Africa.  China is not attempting 
to invest in the mining and resource sector here.  Instead, 
China is pairing up with large South African companies, such 
as Standard Bank, to gain better access to the rest of 
Africa.  Otherwise, it is just a source of cheap imports that 
threaten local manufacturers. 
BOST