Of Greeks, or rather Chinese bearing gifts

Of Greeks, or rather Chinese, bearing gifts.

In late November, the Government of Guyana received 1000 Internet boxes from the Huawei technology corporation China. As Guyana is light years behind in providing connectivity countrywide, this gift is viewed as a boost in this area and was welcomed with arms wide open.

Every piece of electronic equipment we own these days spies on us. From the smart TVs to Google Home, to Siri. Technical gurus have explained that these boxes come with a backdoor. Certainly, people would recall a well-publicised incident some years ago, where the United States accidentally discovered that China used a chip to infiltrate its companies. It was Amazon.com Inc. while evaluating Elemental Technologies with a view to expanding its video streaming service (Amazon Prime Video) the discovery was made during the testing phase by a third-party security company in Ontario, Canada.

The motherboards of the servers had a tiny microchip attached. According to reports, it was not a part of the boards' original design. Findings revealed that the chips allowed attackers to create stealth backdoors into any network that included the compromised machines. The theory is that the chips had been inserted during manufacture at sub-contractor factories in China. (Bloomberg Businessweek)

Out of curiosity, did the Prime Minister, Mark Philips, whose portfolio includes ICT, consider having the Internet boxes vetted for potentially harmful microchips? Surely there must be some system of checks and balances in place.

At this juncture, it is appropriate to segue and touch on Chinese hegemony and its steady inroads worldwide, the Caribbean being no exception. It is no secret that China is also active in Latin America, South America and Africa by way of various development initiatives. These initiatives basically involve financing new infrastructure and investment in various industries. Development is a necessary and key facet of all countries. However, as we have seen, some of those countries have run into difficulty since some of the contracts entered into, contain clauses that have proved disadvantageous to those countries.

It was back in 2013 Chinese President Xi Jinping announced the launch of his Belt and Road Initiative (BRI). This initiative, entails China investing hundreds of billions of dollars in infrastructure projects to increase the flow of goods, money and people across much of the world, including the Caribbean.

Guyana in July 2018, became a signatory to China’s BRI. As part of the ambitious global connectivity plan, China has promised US$250bn for Latin American infrastructure projects. Guyana is one of several South American countries to embrace China's BRI.

Chinese investors have their fingers in several Guyanese pies, including the extractive industries - oil and gas, bauxite, gold and diamond, manganese, and timber. The greatest portion of their dragon claws is in oil and gas. Offshore Guyana, the Chinese state-owned gas and oil company has a 25% stake in the Stabroek Block that will increase with the Guyanese government in September 2020 granting approval for the 220,000 bpd Payara Development Project.

This year, significant Chinese investment included the recent awarding of the contract to the China State Construction Engineering Corporation to build a new Demerara Harbour Bridge to the tune of US$256, 638, 289.

Another area of Chinese interest is the Amalia Falls Hydropower Project. Expected to commence in 2022, this project has been plagued by parliamentary opposition. Reasons proffered include lack of transparency and feasibility matters.

Altruistic? Not quite. The above initiatives come with heavy price tags. It begins with the fattening of government officials like Christmas turkeys. Both the Coalition and PPP governments, with their penchant for treasure, have been swooning when the Chinese, as is their wont, dangle individual financial incentives before grasping government officials thereby paving the way for potential use of undue influence in the signing of contracts.

Similarly, Jamaica to date, is the recipient of almost a billion dollars in construction loans for its North- South highway. China Merchants also acquired the Kingston Container Port and that country has also made inroads in the Jamaican bauxite industry. It is much the same for the Bahamas, Antigua, Barbados and Trinidad & Tobago.

Investment and infusion of capital is one thing, but the price and pitfalls are a bigger issue. Case in point is Uganda's Entebbe International Airport. The only international airport is believed surrendered to Chinese loans. I say believed because the Chinese have issued a denunciation of that. The Ugandan government signed off on a contract containing a clause that included waivers, which allow for the takeover of assets without international protection. According to the Daily Monitor, the Ugandan government waived international immunity in the agreement it signed to secure the loans, thereby paving the way for the Chinese to easily to take over the airport when that country defaulted on the loans.

Do any of the contracts between the government of Guyana and Chinese companies contain similar clauses that in effect mortgage the country? Surely, the PPP government cannot be oblivious to what is taking place internationally.

But can the Guyana government deal with China? China, with its economic, political and military strength, has been pursuing “wolf warrior” diplomacy – an aggressive form of diplomacy under President Xi Jinping, unlike that done under the Deng Xiaoping that counselled a strategy of “observe calmly, secure our position, cope with affairs calmly, hide our capacities and bide our time…”

Guyana had a taste of China’s wolf warrior diplomacy this year when in February the Taiwanese government announced the setting up of a Taiwan Office in Guyana. Within 24 hours the Guyana government did a volte-face when it sheepishly announced its adherence to the “one China policy” and terminated the agreement.

So, the question becomes. Does the PPP government have the diplomatic gumption to look every Chinese gift horse in its mouth? I leave that to you my dear readers to answer.