Chinese Government has invested a large amount in African Countries.  These investments have been made  on commercial terms.  Sometimes it is a grant as promotional activity to make goodwill with the recipient country.  The hidden agenda of Chinese Government has been to get huge quantity of available natural resources specially minerals to Chinese manufacturing units.  This has been the strategy which has given dividend to Chinese companies as well as Chinese Government since the products manufactured have been used in China and have been exported.  There has been significant value addition. The regime of President Xi Jinping is now spreading its wings in South Asia. China seems out to literally change the geography of countries that are opening their doors to mega Chinese investments.  Known for making everything from micro-chips to fire-works, it is now creating entire cities. The following three investments of mega dimensions are recent:-

Sino-Oman Industrial City 

 

This city is being developed in Duqm in the desertified coast along the Arabian Sea, 550 km south of Oman’s capital Muscat, inside Duqm Special Economic Zone with the aim of turning a remote and underutilized Middle-East seaport into a vital trade and manufacturing hub.  It will feature a port, oil refinery, multi-billion dollar methanol plant, giant solar energy equipment manufacturing operation, automobile assembly factory, oil and gas equipment production site, $100+ million building material distribution enterprise, homes for 25,000 people, schools, medical facilities, offices, entertainment centres and a $200 million 5-star tourism zone.  With this mega investment, China is going to get better access to their energy and trade supply lines throughout West Asia and East Africa. 

Colombo Financial City  

 

It is being built on  reclaimed land off the coast of Lankan Capital Colombo with the idea to make the new city a game-changing financial centre rivaling Singapore to the east and Dubai to the west. This city will have skyscrapers, hotels, shopping malls etc. China will have strategic advantage with this mega project that it is situated right below India, in between Southeast Asia, West Asia, Africa and Europe and gives hope to be a major hub for energy supplies from West Asia and Africa. 

Forest City in Malaysia 

 

This mega project is coming in Iskandar economic region in Johor, Southernmost state of peninsular Malaysia just across the sea from Singapore and is aimed at making an “eco-smart city of the future”  modeled on Shenzen in China.  This city will accommodate office towers, parks, hotels, shopping malls, an international school and will  house around 700,000 residents by 2050.  China is poised to gain as the project is coming up next to one of world’s busiest shipping lanes.  The area is also marketed as a discounted south sea heaven for fresh-air-starved mainland Chinese. 

 

Oman, Sri Lanka reportedly didn’t go straight to China seeking funds.  They initially tried to secure additional funding for big development projects from other countries, but were unsuccessful.  China was the only one to come forward and commit capital and the political will for backing such long-term, expensive projects.   Also in the works are a massive port and SEZ project in Abu Dhabi and the $10 billion Kyauk Pyu SEZ in Myanmar.

A new mega city is also proposed across a massive 2,000 sq m nearly three times the size of New York City or Singapore in China.  It will be called Xiongan.   It is a part of Xi Jinping’s vision. 

 

These strategies of investment abroad by China specially in three important South Asian countries – Oman, Sri Lanka and Malaysia, would definitely provide a strong footprint to China in these countries.  

 

In addition to above, Chinese companies would be able to export marble, granite, sandstone, engineered stone slabs and tiles in large quantity for these mega projects.  This is another way of providing export market for Chinese products in construction industry - steel for reinforcement, portland cement and white cement, aluminum sections for doors and windows, glass, paints and other electrical, sanitary and plumbing items. Such mega projects would also help Chinese companies in deploying their trained manpower abroad.

With the present policy of Chinese Government, it would, possibly, be an economic threat to companies in Europe, USA and Canada.