Macau, China and the Portuguese Speaking Countries

1. Macau, China and the Portuguese Speaking Countries José Carlos Matias HKPSA Conference, August 2

2. Key Questions -Why did China decide to establish a Forum with the PSC? -Why did Beijing choose Macau as the host of the ministerial sessions and the headquarters of the Permanent Secretariat? -What has been the added value given by Macau in this process? -How does a sub-national entity – a SAR, formerly administrated by Portugal – develop its own paradiplomacy? - How is this articulated with the national foreign policy in the framework of “One Country, Two Systems”? -How is this Forum linked with the overall strategy of China towards Africa and Latin America?

3. Macau, China and the Portuguese Speaking Countries • The external relations of Macau • 1.1 On paradiplomacy • 1.2 External Relations Framework • 1.3 The Macau Forum • 2.China’s linkages with the PSC • 2.1 China’s multi-layer diplomacy • 2.2 Cooperation with the developing world: Africa and Latin America • 2.3 Linkages with the Lusophone countries • 3. The role of Macau in the Sino-Lusophone relations

4. The external relations of Macau Macau enjoys a “high degree of autonomy except in foreign and defence affairs which are the responsibilities of the Central People's Government” Section 7 and chap. VIII of annex I of the Sino-Portuguese Joint Declaration Macau “ (…) may, on its own, using the name "Macao, China", maintain and develop relations and conclude and implement agreements with foreign states and regions and relevant international organizations in the appropriate fields, including the economic, trade, financial and monetary, shipping, communications, tourism, cultural, science and technology, and sports fields”. Basic Law of the MSAR, article 136

5. On the concept of paradiplomacy • The external relations of subnational Non-Central Government (NCG) actors. • Contrary to state diplomacy, which is focused on pursuing “a defined state interest in the international arena”, paradiplomacy “is more functionally specific and targeted, often opportunistic and experimental” (Aldecoa & Keating ) • “the outreach of non-sovereign jurisdictions to actors beyond their own borders and the frontiers of their metropolitan relationships or claimant states” (Bartmann)

6. External Relations Framework External Relations Priorities Lusophone countries European Union Southeast Asia Based on Neves (2002)

7. [ China’s multi-layer diplomacy “Multilateral diplomacy makes China´s power less feared but also more welcomed” (Yong Deng)

8. China and the Developing World: Africa and Latin America “Today Mao’s Red Book has been replaced by a balance sheet” Joshua Eisenman • Beijing’s strategy towards Africa • ensure access to energy and other critical natural resources, • open new markets for exporters, • - enhance China’s ability to safeguard its interests in international fora and institutions. “

9. China and the Lusophone nations China-PSC trade (billion USd) China-PSC trade (2008) in proportion

10. China and the Lusophone nations

11. The role of Macau in the Sino-Lusophone relations The Macau Forum 2003 – First Ministerial Conference in Macau Joint Action Plan to strengthen the Sino-Lusophone economic cooperation -Intergovernmental cooperation, trade, investment and entrepreneurial cooperation, fish and agriculture, engineering and infrastructures building, natural resources, human resources 2006 – Second Ministerial Conference in Macau New areas for cooperation: Financial sector (multilateral level), Macau Forum financial cooperation mechanism, tourism, transports, direct air and sea routes, pharmaceutics and cooperation against infectious diseases, science and technology, media cooperation, promote China-s image in the PSC and Lusophone countries; cultures in China. Culture and people-to- people links

12. The role of Macau in the Sino-Lusophone relations business support centre, yearly Meeting of Entrepreneurs, trade and investment seminars, human resources training, sports and cultural activities, Sino-Lusophone business database, etc

13. The role of Macau in the Sino-Lusophone relations Why the Macau Forum? Why in Macau? • Adding a multilateral layer to China’s previous bilateral relations • The Macau Forum is part of China’s “Charm Offensive” • Persuading Sao Tome and Principe • Taking advantage of Macau’s long history in the relations with the PSC • Reinforcing Macau‘s uniqueness vis-à-vis Guangdong and Hong Kong • Portuguese, official Language of Macau • Portuguese-based legal system • Macanese Community of Portuguese ancestry • Macau as part of the 9 Plus 2 process

14. The role of Macau in the Sino-Lusophone relations

15. The role of Macau in the Sino-Lusophone relations Outcome • Not Much information on Macau’s direct contribution • Geocapital Holding (Stanley Ho) is the best example of using Macau as a Platform • Macau SM Export/Import companies are profiting • Tourism investment projects (Cape Verde, Guinea Bissau) • Portuguese and Angolan Banks’ agreements with Banks in Macau (BOC-Macau Brach and Seng Heng Bank – now ICBC) • Professional, cultural and sports events and meeting involving China, Macau and PSC: Lusophonia Games, Airports, Music, Universities, Radio ad TV Broadcasters, etc.

16. The role of Macau in the Sino-Lusophone relations • Macau has the potential to be a useful and complementary role in this process, but there are several shortcomings • SMEs are disappointed with the government policies • Lack sufficient human recourses: specialized bilinguals, consultants, manpower with quality to make Macau an efficient services centre • Limitations on the Support given by the Permanent Secretariat and the Supporting Office • Post of Secretary general of the Permanent Secretariat vacant for over one year • Chinese government is carrying on a thorough assessment on the Macau Forum • Third Ministerial Session not to be held in 2009

17. Concluding Remarks

18. Thank You Obrigado 謝謝 jcmatias80@gmail.com