China Sees Oil Profit in New South Sudan
Chinese President Hu Jintao congratulated South Sudan on its independence, promising strong ties between the two countries as China seeks to retain its access to Sudanese oil.
What's the Latest Development?
The new nation of South Sudan is largely dependent on its oil revenue to survive. That may prove good news to China who is seeking to retain access to its petroleum resources now that the country has officially divided in two. "China has long had close relations with the government in Khartoum, Sudan's capital, but has been moving to ensure it also remains friendly with South Sudan, where the majority of the old unified Sudan's oil reserves were." The world is watching to see if leaders in South Sudan make further claims to power in the north.
What's the Big Idea?
How stable will the transition to independence be for South Sudan? Recent reports suggest that some political leaders want an aggressive approach taken with regards to the northern capital of Khartoum. This essentially pits Chinese interests against each other as it has traditional political ties with the Khartoum government, which entails large weapons sales contracts, while also keenly interested in buying oil from South Sudan, where most of the countries oil resources are located.
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