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Patience is power, suggests a Chinese proverb, and that describes how China pursues diplomacy. The Community of Portuguese Language Countries (CPLP)
consists of eight states around the world, encompassing 230 million people but is rarely regarded as a priority in global politics. Bucking conventional thinking,
China diligently pursues diplomacy with the CPLP, foreseeing benefits such as new energy supplies and markets for Chinese goods. Indeed, Brazil rich in
resources and ranking fifth in the world for population is a major trading partner for China. China has increased direct investment and trade with most CPLP
states, offering aid packages and sending impressive numbers of Portuguese-speaking diplomats to the capitals. Chinas reaching out to the Portuguese-speaking
community as a whole strengthens ties among members as well as separate ties with China. The Chinese government has strategically built an alliance that could
offer immense value in the years to come. YaleGlobal

Chinas Portuguese Connection

China grooms a strategic relationship with the Community of Portuguese Language Countries
Loro Horta
YaleGlobal, 22 June 2006

HONOLULU and SINGAPORE: Unnoticed by many observers has been Chinas growing relationship with the
Portuguese speaking world, a grouping composed of eight nations with a combined population of 230 million and
trade with China totaling $19 billion. The eight countries are brought together under the Comunidade dos Pases de
Lngua Portuguesa (CPLP), or Community of Portuguese Language Countries, and consists of the following nations:
Angola, Brazil, Cape Verde, Guinea Bissau, Mozambique, Portugal, the Democratic Republic of So Tom and
Prncipe, and the Democratic Republic of Timor-Leste.
China has several reasons for pursuing a relationship with CPLP: First and foremost is energy security. Over the past
few years, energy security, particularly oil supply security, has become a priority for the Chinese leadership. China is
now the worlds second largest consumer of energy resources after the US. More than 60 percent of Chinas crude oil
imports come from the Middle East, and Beijing views this dependency as a strategic vulnerability because of
ongoing political instability and US military preponderance in and around the region. China is therefore trying to
diversify its energy imports away from traditional sources in the Persian Gulf. These include CPLP countries such as
Angola, Brazil, Mozambique and Timor-Leste. Second, Beijing is keen to exploit CPLP countries rich natural
resources to fuel the countrys own breakneck economic growth. Third, 230 million people represent a major market
for Chinese manufactured goods. And finally, the Portuguese-speaking organization represents a diplomatic
community, one that China can utilize to restrict Taiwans international space.
Without question, Angola is Chinas most important partner on the African
continent. The country is the second largest oil producer in Africa and
possesses one of the worlds largest diamonds fields. In February 2006 Angola
Resourceful friends: Chinese Premier Wen Jiabao (left) visits
became the largest supplier of crude oil to China, beating Saudi Arabia and Iran
Angolan President Jos Eduardo dos Santos (right), one of the
into second and third place. Recognizing how Angolan oil can contribute to its
resource-rich countries of Africa, on Wen's itinerary.
continuing growth, China has embarked on a massive offensive to secure its
vital position in the country. During Vice Premier Zeng Peiyangs visit in 2005, China granted the Angolan government a $6.3 million
interest-free loan and additional $2.2 billion in soft loans in early 2006. Agreements have also been signed in the telecommunications
sector, with China pledging to invest $400 million in Angolas Telecom and a further $100 million to upgrade Angolas military
communications. Chinese companies have also participated in the construction of railroads, shopping centers and housing projects, and
construction of a major oil refinery is planned. In 2005 Angola was Chinas second largest trading partner in Africa, with a trade volume of $5 billion.
China is also increasing activity in Mozambique. While Chinese foreign direct investment in Mozambique remains small at $9 million in 2005, one should take into account
that it has grown from a mere $436,000 in 2004. Trade between the two nations totaled $160 million in 2005. The small amounts belie the importance of Mozambique to
China, as the country is believed to have large reserves of untapped natural gas and oil. China is also becoming a major source of credit with a $2.3 billion soft loan granted
this year for the construction of a major dam on the Zambezi River.
Due to chronic instability in Guinea Bissau and Cape Verdes small size and lack of raw materials, these two CPLP members are the least
important for Beijing. However, Beijing retains a diplomatic presence to prevent these countries from turning to Taiwan, as tiny So Tom
and Prncipe did in 2002. As a result, So Tom and Prncipe are excluded from any CPLP-China cooperation.
While trade between China and Timor-Leste was a mere $1.7 million in 2005, recent agreements between Dili and Beijing are likely to
change that. In 2004 PetroChina concluded a multimillion dollar seismic study to assess the profitability of inshore oil and natural gas
reserves. Although information is limited, some sources speculate that China plans to construct a pipeline to bring oil and natural gas
from the islands interior to Chinese vessels on the northern coast. To further consolidate its influence in the fledgling country China has
financed highly visible construction projects, such as the presidential palace and the foreign ministry building. Beijing has also stepped up
defense and security cooperation with Dili.
In December 2005 China and Portugal established a strategic partnership. While a small power,
Portugal has been a useful friend, with Lisbon well disposed toward ending the EU arms embargo on
China. Portugals 500-year-old relationship with Africa and its strong presence on the continent that
goes beyond its former colonies are valuable assets for China. Beijing values its ties with Lisbon
enough to deem the country as one of five in Europe awarded status of strategic partner.
Chinas most important CPLP trading partner is Brazil. In 2006 the volume of bilateral trade reached
$10 billion. On the energy front, China is investing up to $5 billion in the construction of a gas
pipeline from Maca to Salvador. Beijing has also shown interest in Brazils large uranium reserves
and invited Brazilian companies to participate in the construction of nuclear power plants in China.
China and Brazil have launched several jointly developed satellites, and both countries are reported
to be cooperating in the development of an aircraft. With a population of 186 million, a fast-growing economy and a highly developed industrial sector, Brazil is by far South
Americas dominant power and increasingly becoming Chinas main partner on the continent.
Having relations with CPLP members is hardly unique, but Chinas methods are quite farsighted, attesting to the increasing sophistication of Chinese diplomacy. Unlike other
powers who have engaged in close relations with particular CPLP countries but had little or no interaction with other members China not only connects with the various
CPLP nations on a bilateral basis but also as a group. With the former Portuguese enclave of Macau, sovereignty of which returned to the PRC on December 20, 1999, serving
as a hub, China has organized a series of initiatives that not only bring the Portuguese-speaking nations closer together, but also closer to China. In 2003 China and the CPLP
signed a Trade and Cooperation Agreement, and agreed to hold triennial meetings with CPLP and PRC trade ministers. Similar arrangements are planned for other portfolios.
Over the past year or so, China reduced the debts of Africas CPLP members, tripled aid to Timor-Leste, awarded Portugal the status of strategic partner and made available
$8.2 million in interest-free credit for CPLP members. Negotiations are also under way to establish an investment bank to increase China-CPLP trade relations and fund joint

projects. China has also provided generous support to host the first ever CPLP games to take place in Macau in September 2006. Further
evidence that China seeks to foster ties with the Lusophone world as a group was its decision in May 2006 to grant Guinea Bissau a $1
million aid package to help the impoverished nation host the CPLP heads-of state-summit in late 2006. On the diplomatic front, China
has an impressive number of Portuguese-speaking diplomats, many of whom have served for long periods of time in CPLP countries.
Overall, Beijings CPLP strategy has been successful in enhancing Chinas vital interests in a world of 230 million people spread across
four continents.

Loro Horta is enrolled in Strategic Studies at the Institute of Defence and Strategic Studies, Nanyang Technological University in Singapore. He lived and worked in Mozambique for several
years. Ian Storey is an assistant professor at the Asia-Pacific Center for Security Studies in Honolulu. The views expressed in this article do not necessarily reflect the official policy or
position of the US Government or any of its agencies.

Rights: 2006 Yale Center for the Study of Globalization

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