Last week Beijing pledged $1.39 billion in economic and technical aid to East Timor. The agreement was signed in Dili by visiting Chinese deputy foreign minister Wu Dawei and East Timorese prime minister Xanana Gusmao. China was the first country to establish diplomatic ties with East Timor after it declared independence on May 20, 2002. The fifth anniversary of the establishment of formal relations between the two countries was marked with much fanfare last year. Over the years, Chinese aid to the impoverished but resource-rich country has included agricultural machinery and foodstuff such as rice and cooking oil. In a July 2005 interview with Chinese media, Chen Duqing, then-Chinese ambassador to East Timor, stated that aid from China was to focus on five areas. One was construction, including funding for projects such as East Timor’s foreign ministry building, presidential palace, and housing for the country’s veterans. China has also sent medical teams to East Timor, with all non-housing-related expenses picked up by Beijing. In addition, it has trained East Timorese in agricultural technology and business management, and dispatched civilian police to serve in the UN peacekeeping mission to East Timor. In September 2005, the Chinese ministry of public security donated what was described as “police supplies and communications equipment” to the East Timor ministry of interior. In the same 2005 interview, Chen declared proudly that Beijing’s assistance to Dili was “honest and sincere,” even if it was less than what was donated by some other countries. In 2003-2004 annual Chinese aid to East Timor averaged around $6 million, and in November 2005 Beijing provided an additional $6.2 million in grant aid. These pale in comparison with the contributions from Portugal, Australia, and the United States during the same time period. Beijing has played up the fact that it had long supported East Timor’s fight for independence and that East Timorese leaders regard it as “an elder brother and a most reliable friend.” An April 2007 People’s Daily report quoted each of the country’s highest ranking officials–Xanana Gusmao, Ramos-Horta, and Guterres “Lu Olo”–as referring to China as “a good friend.” The report also quoted then-president-elect Ramos-Horta as saying that his son was to graduate from the PLA National Defense University with honors the following July. China has invested in both onshore and offshore energy exploration in East Timor. While returns from these investments are far from certain, last week’s pledge of $1.39 billion in aid signals that Beijing is stepping up its courtship of Dili, thereby expanding its sphere of influence in the region through the skillful use of “soft power.”
