Concerns Over Further Afghan Economic Decline Due to Sanctions... China Holds Competitive Edge in Infrastructure Development
President Xi Jinping Strengthens Cooperation with Putin on Afghan Issues

[Asia Economy Beijing=Special Correspondent Jo Young-shin] China has argued that economic sanctions imposed by the United States and other Western countries on Afghanistan could undermine regional stability and that support for Afghanistan’s reconstruction should be provided within a multilateral framework. Emphasizing China’s role in rebuilding Afghanistan, which has been devastated by 20 years of civil war, China stated that the most urgent tasks are restoring order and stabilizing the economy.


On the 26th, China’s state-run Global Times asserted, "Afghanistan is in ruins, and support from countries around the world is necessary for order and stability."

[Image source=Yonhap News]

[Image source=Yonhap News]

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The Global Times pointed out that as of last year, international aid accounted for 42.9% of Afghanistan’s Gross Domestic Product (GDP), and about 75% of the Afghan government’s expenditures came from international aid, warning that economic sanctions by the Western bloc would further impoverish Afghanistan.


This report is notable as it comes amid international organizations such as the International Monetary Fund (IMF) and the World Bank (WB) suspending expenditures for Afghanistan, including Special Drawing Rights (SDR). The United States has frozen nearly $9.5 billion in assets held in accounts owned by the Afghan central bank and has also halted financial support amounting to approximately $3 billion annually.


The economic sanctions imposed on Afghanistan by the IMF and other international organizations, as well as the Western bloc, appear to be an unexpected variable for China. China has previously expressed, both directly and indirectly, its intention to strengthen its influence in Afghanistan and the Middle East by engaging in reconstruction projects. Should Western economic sanctions intensify, China’s role in Afghanistan will inevitably be reduced.


Chinese President Xi Jinping has personally intervened in the Afghan issue. In a phone call with Russian President Vladimir Putin the day before, Xi stated, "We will cooperate with Russia to resolve the rapidly changing situation in Afghanistan."


President Xi said, "All parties in Afghanistan must negotiate to establish an open and inclusive political structure," adding, "We want to encourage Afghanistan to sever ties with various terrorist organizations and maintain friendly relations with countries worldwide, especially neighboring countries." He also remarked, "You only know if the shoe fits by trying it on," showcasing the relationship with Russia. President Putin responded, "We will cooperate with China to oppose external interference in Afghanistan, ensure a smooth transition of the Afghan situation, block terrorism and narcotics, and prevent the spread of security risks in Afghanistan."


[Image source=Reuters Yonhap News]

[Image source=Reuters Yonhap News]

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The Chinese Ministry of Foreign Affairs announced that Wang Wei, China’s ambassador to Afghanistan, met directly with high-ranking Taliban officials including Abdul Salam Hanafi in Kabul to discuss all bilateral issues. The Ministry added that China maintains its embassy in Kabul to facilitate communication between the two countries and hopes to play a constructive role in Afghanistan’s peace and reconstruction.


The prevailing analysis is that China’s deep involvement in the Afghan issue is driven by its interest in developing Afghanistan’s abundant resources such as rare earth elements and lithium.


Additionally, China is concerned about the Taliban’s ties with Uyghur Islamic terrorist groups in Xinjiang and the potential influx of narcotics such as opium into China.


According to the Global Times, Afghanistan’s opium production reached 6,300 tons last year, accounting for 85% of the world’s supply. The mention of opium by Chinese media can be interpreted as a form of warning that if economic sanctions on Afghanistan intensify, the Taliban might increase opium cultivation and supply to fund their governance.


Furthermore, the report subtly implied that the Taliban’s alliance with extremist terrorist groups could negatively impact countries worldwide. This is interpreted as a warning against cornering the Taliban into a dead end.


Ryu Jong-yi, Secretary-General of the Shanghai Institute for International Studies, said, "The situation in Afghanistan remains unstable, and issues between the former government forces and the Taliban have not been fully resolved," but added, "China’s expertise in large-scale infrastructure projects will be helpful for Afghanistan’s future reconstruction."



The Global Times emphasized that Afghanistan’s most urgent needs are food, water, and electricity, areas in which China possesses technological capabilities and has achieved remarkable growth. Citing experts, the outlet noted that some Western countries, including the United States, are showing moves to undermine Afghanistan’s peace and development, and stressed that China will cooperate with neighboring countries such as Russia to contribute to Afghanistan’s peace and development.


This content was produced with the assistance of AI translation services.

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