Global Powers and Africa Programme POLICY BRIEFING 48 June 2012 Romain Dittgen and Daniel Large 1 AFRICAN PERSPECTIVES. GLOBAL INSIGHTS. EXECUTIVE SUMMARY C had’s relations with China have developed importantly in a relatively short space of time, which has elevated China’s importance in the Chadian economy and domestic politics. The core of the Chinese engagement is driven by the China National Petroleum Corporation’s Rônier project, a domestic oil-production unit. Departing from Chad’s previous experience of foreign oil investment, this appears to enable new economic opportunities for Chad, even to the point of widening the country’s industrial potential. In spite of Chad’s challenging business environment, relations look set to deepen as efforts are made to pursue an ambitious set of infrastructure and other ventures. INTRODUCTION The resumption of oficial ties between N’Djamena and Beijing in August 2006 set the stage for an expansion of the Chinese engagement in Chad. Coming as it did in the midst of a military insurgency aimed at overthrowing the longstanding leader, Idriss Déby, and his government’s decision to abandon World Bank conditionalities designed to allocate oil revenues for social development, it seemed an inauspicious foundation for a new relationship. However, despite this controversial beginning, Chad and China have begun to develop strong economic ties. The impact of Chinese investment in the oil sector in particular looks set to become an even more important part of Chad’s domestic politics and foreign relations. BACKGROUND Chad abruptly dropped Taiwan and recognised Beijing on 6 August 2006. This move came as a result of various internal pressures facing President Déby. Regime survival compelled a tactical shift: recognising Beijing would bring myriad short- and longer-term advantages. President Déby stood to be empowered by aid, investment and military assistance from Refining Relations: Chad’s Growing Links with China RECOMMENDATIONS • As a relatively new actor within a more established system of international response hitherto led by France, further consideration should be paid by African policymakers to China’s potential role in enhancing regional security. • With regards to the current oil investment, both parties (the Chadian government and the CNPC) should address their shortcomings more effectively and adopt a proactive attitude. Emphasis needs to be placed on comprehensive communication and involving Chadian civil society further in the decision- making process. • Even though the Chinese oil project appears to be the first piece of a wider investment pattern, Chad needs to improve its business environment to be able to maximise the wider potential of Rônier and attract additional as well as different sources of investment. • Although Chad is often portrayed as a margin of China– Africa relations by the media and scholars, more attention should be paid to this specific context, as it highlights a set of current challenges facing the increasing Chinese involvement on the continent.