Macau, China and the Portuguese Speaking Countries

José Carlos Matias

HKPSA Conference, August 2

-Why did China decide to establish a Forum with the PSC? -Why did Beijing choose Macau as the host of the ministerial sessions and the headquarters of the Permanent Secretariat? -What has been the added value given by Macau in this process? -How does a sub-national entity – a SAR, formerly administrated by Portugal – develop its own paradiplomacy?- How is this articulated with the national foreign policy in the framework of “One Country, Two Systems”? -How is this Forum linked with the overall strategy of China towards Africa and Latin America?

Key Questions

Macau, China and the Portuguese Speaking Countries

1. The external relations of Macau1.1 On paradiplomacy 1.2 External Relations Framework 1.3 The Macau Forum

2.China’s linkages with the PSC2.1 China’s multi-layer diplomacy 2.2 Cooperation with the developing world: Africa and Latin

America2.3 Linkages with the Lusophone countries

3. The role of Macau in the Sino-Lusophone relations

The external relations of Macau

Macau enjoys a “high degree of autonomy except in foreign and defence affairs which are the responsibilities of the Central People's Government”Section 7 and chap. VIII of annex I of the Sino-Portuguese Joint Declaration Macau

“ (…) may, on its own, using the name "Macao, China", maintain and develop relations and conclude and implement agreements with foreign states and regions and relevant international organizations in the appropriate fields, including the economic, trade, financial and monetary, shipping, communications, tourism, cultural, science and technology, and sports fields”.

Basic Law of the MSAR, article 136

On the concept of paradiplomacy

•The external relations of subnational Non-Central Government (NCG) actors.

• Contrary to state diplomacy, which is focused on pursuing “a defined state interest in the international arena”, paradiplomacy “is more functionally specific and targeted, often opportunistic and experimental” (Aldecoa & Keating )

• “the outreach of non-sovereign jurisdictions to actors beyond their own borders and the frontiers of their metropolitan relationships or claimant states” (Bartmann)

External Relations Framework

Based on Neves (2002)

External Relations Priorities

Lusophone countries

Southeast Asia

European Union

China’s multi-layer diplomacy

[

•Peaceful Rise (heping jueqi)/ Peaceful Development (heping fazhan)

•China’s diplomatic “Charm Offensive” (Kurlantzick)

•Flexible multilateralism: SCO, FOCAC, China-ASEAN, ASEM, Macau Forum

1. Promote social and economic development at home

2. Undermine the China Threat theories and allow the “recognition of China as a responsible great power”

3. Restrain “potential hostile powers and gain initiative in shaping the international environment”(Yong Deng)

“Multilateral diplomacy

makes China´s power

less feared but also

more welcomed”

(Yong Deng)

China and the Developing World: Africa and Latin America

“Today Mao’s Red Book has been

replaced by a balance sheet”

Joshua Eisenman

“

Beijing’s strategy towards Africa-ensure access to energy and other critical natural resources,-open new markets for exporters, -- enhance China’s ability to safeguard its interests in international fora and institutions.

China and the Lusophone nations

Angola

BrazilPortugal

Others

China-PSC trade (billion USd) China-PSC trade (2008) in proportion

China and the Lusophone nations

The role of Macau in the Sino-Lusophone relations

The Macau Forum2003 – First Ministerial Conference in MacauJoint Action Plan to strengthen the Sino-Lusophone economic cooperation-Intergovernmental cooperation, trade, investment and entrepreneurial cooperation, fish and agriculture, engineering and infrastructures building, natural resources, human resources

2006 – Second Ministerial Conference in MacauNew areas for cooperation:Financial sector (multilateral level), Macau Forum financial cooperation mechanism, tourism, transports, direct air and sea routes, pharmaceutics and cooperation against infectious diseases, science and technology, media cooperation, promote China-s image in the PSC and Lusophone countries; cultures in China. Culture and people-to- people links  

The role of Macau in the Sino-Lusophone relations

Permanent SecretariatSG (China, MOFCOM)

Deputy SG (PSC)Resident Representatives

of the PSC

Supporting OfficeMacau Government

(Secretary for Economy and

Finance)Macau Trade and Investment

Promotion Institute

business support centre, yearly Meeting of Entrepreneurs, trade

and investment seminars, human resources training, sports

and cultural activities, Sino-Lusophone business database,

etc

The role of Macau in the Sino-Lusophone relations

Why the Macau Forum? Why in Macau?

•Adding a multilateral layer to China’s previous bilateral relations •The Macau Forum is part of China’s “Charm Offensive”•Persuading Sao Tome and Principe •Taking advantage of Macau’s long history in the relations with the PSC

•Reinforcing Macau‘s uniqueness vis-à-vis Guangdong and Hong Kong •Portuguese, official Language of Macau• Portuguese-based legal system•Macanese Community of Portuguese ancestry •Macau as part of the 9 Plus 2 process

The role of Macau in the Sino-Lusophone relations

The role of Macau in the Sino-Lusophone relations

Outcome

Not Much information on Macau’s direct contribution

•Geocapital Holding (Stanley Ho) is the best example of using Macau as a Platform •Macau SM Export/Import companies are profiting •Tourism investment projects (Cape Verde, Guinea Bissau)•Portuguese and Angolan Banks’ agreements with Banks in Macau (BOC-Macau Brach and Seng Heng Bank – now ICBC)•Professional, cultural and sports events and meeting involving China, Macau and PSC: Lusophonia Games, Airports, Music, Universities, Radio ad TV Broadcasters, etc.

The role of Macau in the Sino-Lusophone relations

•Macau has the potential to be a useful and complementary role in this process, but there are several shortcomings

•SMEs are disappointed with the government policies•Lack sufficient human recourses: specialized bilinguals, consultants, manpower with quality to make Macau an efficient services centre•Limitations on the Support given by the Permanent Secretariat and the Supporting Office •Post of Secretary general of the Permanent Secretariat vacant for over one year •Chinese government is carrying on a thorough assessment on the Macau Forum•Third Ministerial Session not to be held in 2009

Concluding Remarks

Thank You

Obrigado

謝謝jcmatias80@gmail.com