China imposes diplomatic and (allegedly) informal export restrictions on Eswatini (Swaziland) 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. A statement reportedly issued by China’s ambassador to South Africa noted that Eswatini people were unable to apply for visas to China unless they travelled to the Chinese embassy in Pretoria, South Africa;. The statement blamed the situation on “Eswatini defying the One-China Principle and maintaining so-called “diplomatic ties” with the Taiwan authorities, a province of the PRC”; and called for Eswatini to cut off relations with Taiwan. Subsequent 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.

This diplomatic and economic pressure happened shortly after the election victory of independence-leaning President of Taiwan, Tsai Ing-wen. Notably, Eswatini is one of only 15 countries to officially recognise Taiwan as an independent state, and the only state in Africa to do so.

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.

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 E7000 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 – but nevertheless in 2022 Eswatini imported over US$109 million from China.

(ii) Third Party Responses.

Taiwan issued a statement responding to the situation, with a spokesperson noting that “Eswatini has reiterated its firm intentions to deepen its diplomatic relations with Taiwan, even in the face of pressure 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/

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:

Taiwan’s Diplomatic Setback: How Much Longer Will Eswatini Maintain Diplomatic Ties with Taiwan?

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