Reports suggest threats of informal export restrictions on Eswatini (Swaziland) by China in January 2020.
Context
In January 2020, local reports began to emerge in Eswatini (formerly Swaziland) that China was placing diplomatic and economic pressure on the country.
Reporting from The Times of Swaziland on January 26 stated that “the government of the People’s Republic of China (PRC) might have influenced Chinese businesses to stop trade with emaSwati or companies from Eswatini until further notice.” The same report claimed that E70 million (approx. US$3.8 mil in Sep. 2024)of Eswatini goods were stuck at the border upon entry into China – though the report did not clarify what products or industry had been impacted.
Additional context for this case study is contained in TRAVEL RESTRICTIONS (ESWATINI – CHINA)
Impact
One industry allegedly impacted by these measures is Eswatini pharmaceutical imports from China. Initial action taken was around passport application processes – with the more general threat that this would “cripple” Eswatini’s industry “and the country’s economy development (sic)”. China’s then ambassador to South Africa, Lin Songtian, claimed that China is Eswatini’s second largest trade partner (after South Africa), and that the economic relationship would suffer due to Eswatini’s policy. However, according to trade data released by the Chinese government, the total export value of goods from Eswatini between January and November 2020 was US $36,735 – indicating no significant difference compared to 2019.
Responses
i) Eswatini government and industry responses.
One Eswatini news report from January 2020 identified a “frustrated local businessman” whose pharmaceuticals imports from China were experiencing difficulties – allegedly being held at the Chinese border. This businessman was reportedly “almost in tears” due to the disruption to this trade, asking media “Can I be given a week to recover from what has befallen me?” before he commented further. A second Eswatini businessman was quoted in the same report as saying that he was relatively lucky, “because I lost E7 000 and I can buy the material in South Africa. My friends, one of them could lose E70 million of stock and we have to pray for him as he is confused, he doesn’t know what to do.”
Eswatini Prime Minister Mandvulo Dlamini was cited as reportedly saying that “there was no cause for alarm and there was irrefutable information that only applications for a visa to China had been altered”, and quoted as saying that “[t]he government remains committed to serve the citizens of Eswatini and maintains an active interest in the matter”. The head of Medical Services at Eswatini’s Ministry of Health further acknowledged that some suppliers imported drugs from China. Eswatini’s foreign ministry was cited in a press report as saying that “Eswatini remains a staunch ally of Taiwan despite China’s political and economic pressure”.
One Eswatini member of parliament, Marwick Khumalo, called on the government to take action, saying that “we have a problem at hand that is beyond government’s control. Our economy is at stake”. A second MP, Sibusiso Scorpion Nxumalo, told press that “[t]he uproar signals the amount of trade between Mainland China and our local businesses”.
Recent reports have suggested that Eswatini may have sought to diversify its trade with Asian states including South Korea, Singapore and Bhutan – nevertheless, in 2022 Eswatini imported over US$109 million from China.
Status
China does not appear to have taken action beyong initial informal export delays in 2020. One media report from 2023 stated that, since the threats on 2020, “China seems to have toned down the pressure (on Eswatini).” At time of writing (September 2024) – and despite continued challenges – Eswatini still maintains diplomatic relations with Taiwan, which suggests that this diplomatic and economic coercion has so far been unsuccessful. Eswatini’s major economic dependency is not on China but rather on South Africa – prompting suggestions that Beijing could lean on Pretoria to indirectly influence Eswatini in the future.
Reference list
Du Plessis, C. 2020. “China turns the screws on Eswatini.” Daily Maverick. February 3. Available at: https://www.dailymaverick.co.za/article/2020-02-03-china-turns-the-screws-on-eswatini/
General Administration of Customs of the People’s Republic of China. 2020. ‘The total value of import and export in November 2020 (by country)’ [2020年11月进出口商品国别(地区)总值表] December 23. Available at: http://www.customs.gov.cn/customs/302249/zfxxgk/2799825/302274/302277/302276/3479983/index.html.
Mamba, N. 2020. “People’s Republic of China(PRC) Press Statement on Eswatini VISAs issue.” Swaziland News. February 1. Available at: https://www.swazilandnews.co.za/ fundza.php?nguyiphi=168
Musi, N. 2024. “Eswatini seeks to expand Asia ties while navigating tricky China-Taiwan winds.” Voice of America. July 26. Available at: https://www.voanews.com/a/eswatini-seeks-to-expand-asia-ties-while-navigating-tricky-china-taiwan-winds-/7714634.html
Nkambule, M. 2020. “China Ban: Eswanti Company Loses E70M”. Times of Swaziland.
http://www.times.co.sz/news/126878-china-ban-eswatini-company-loses-e70m.html
Odota, J. 2024. “Taiwan’s Diplomatic Setback: How Much Longer Will Eswatini Maintain Diplomatic Ties with Taiwan?.” Australian Outlook. June 17. Available at:
Panda, A. 2020. “Report: Beijing Ups Pressure on Taipei’s Sole Remaining African Diplomatic Partner.” The Diplomat. February 11. Available at: https:// thediplomat.com/2020/02/report-beijing-ups-pressure-on-taipeis-sole-remaining-african-diplomatic-partner/
van der Made, J. 2023. “Taiwan leader visits last African ally as China boosts influence on continent.” rfi. September 4. Available at: https://www.rfi.fr/en/africa/20230904-taiwan-president-visits-only-african-ally-while-china-boosts-influence-on-continent