Historical Migration, Geopolitical Relations, and Accumulation Regimes: Chinese Investments in Philippine and Zambian Mining

• In Event: 149. Chinese Outward Investments in Southeast Asia: Development for Whom? Transformations Where?

Abstract

The paper pursues an inter-regional comparison of Chinese overseas direct investment (ODI) in Philippine artisanal small-scale mining (ASM) and Zambian large-scale mining (ASM). It maps out three differences. First is in inter-state relations. Territorial issues have fostered economic uncertainty between the Chinese and the Philippines. In contrast, Mao’s ideological legacy in the developing world rooted in a strategy to build amiable political ties across Africa helped ease the continuous inflow of ODI in recent years. Second is the role and position of the overseas Chinese community in national politics. Territorial issues led to Chinese capitalists pursuing an alternative strategy that bypasses the Philippine state and coordinates with the Filipino-Chinese groups who have established networks with, or themselves become, provincial politicians. Chinese ASM emerged to become an accumulation regime between non-national Chinese and Filipino actors operating underneath the seething geopolitical tensions in the South China Sea. In contrast, the Zambian Chinese community, which began during the Cold War, facilitated the political and economic transactions between China’s State Owned Enterprises (SOEs) and the Zambian national state. Dealing in Zambia represents formal state-to-state relations between political leaders, resulting in SOE heavy investments across the Zambian economy. Last is the materiality of the mines. Chinese ASM in the Philippines uses flexible infrastructures to extract gold, while copper and nickel—commodity metals—mined in Zambia, need fixed and huge infrastructures to maintain extraction. These show the different extractive requirements and market needs of the Chinese actors in both states.

Authors

• Alvin A. Camba, Johns Hopkins University

• Marilyn Grell-Brisk, Université de Neuchâtel