1. China as a Neocolonialist State and its Influence on the Illegal Timber Trade in Developing Nations
Nia Crerar

2. The Current Global Illegal Timber Trade
10 billion USD lost from governments in the illegal timber trade
20 million hectares of forest is illegally converted for other uses

3. China’s Presence in the Global Illegal Timber Trade
China is the world’s top leader of illegal timber imports (Environment Investigation Agency)
Converted wood exports in China in 2010 was a $34 billion industry (EIA)
China’s growth of outward foreign direct investment, particularly in developing nations, allows them to have access to natural resources
China has little regulation on Chinese corporations overseas and their environmental impact
In 2013, China’s Ministry of Commerce and Ministry of Environmental Protection issues voluntary guidelines that they encourage companies to follow while investing overseas

4. Organization Questions Thesis Theory
Chapter 1: China’s Transition from a Colonized State to a Neocolonial Power.
Chapter 2: The Illegal Timber Trade in Developing Nations and China’s Presence.
Chapter 3: Case Studies- Democratic Republic of Congo, Mozambique, and Guyana.

5. Questions
How has the colonial history of some developing nations made them vulnerable to China’s exportation of their timber illegally?
How can China’s presence in the global illegal timber trade classify them as a neocolonialist state?

6. Thesis
The colonial history of many developing nations has allowed for China, acting as a neocolonialist power, to export their timber illegally.

7. Theory: Dependency Theory and the Definition of Neocolonialism
Analyzing the colonial history and the exploitation of resources in nations classified as developing is a dependency theory concept.
Neocolonialism: A concept coined by Kwame Nkrumeh, the first Prime Minister of Ghana and refers to the “last stage of imperialism” or the use of non-military influences on a developing nations to gain power, particularly for economic purposes.

8. Additional Paradigms Note
China’s presence in developing nations can be viewed through a realist lens because of its power-seeking nature and the pursuit of national interests.
It can also be viewed through a liberalist lens because of the economic gain China accomplishes through its presence in developing nations.
I am choosing dependency theory because I am looking at it from the perspective of the developing nations and analyzing what aspects of these nations’ history has led it to a point in which it is vulnerable to China and the illegal timber trade.

9. Chapter 1: China’s Transition from a Colonized State to a Neocolonial power
China strong economic presence prior to 19th century and their collapse
-British quest for Chinese goods, opium as a tool for trade
-The fall of China to Opium, increase in social inability
-The Opium Wars
-British acquisition of Hong Kong and large ports
China was only semi-colonized, regained full sovereignty in the 20th century with the Communist Revolution following WWII.
During the Nixon Administration, China left Soviet sphere of influence and opened up to the western market.
Still continues to economically expand, particularly through OFDI

10. Chapter 2: The Illegal Timber Trade in Developing Nations and China’s Presence
Transnational nature of the industry makes it difficult for government agencies to enforce laws reprimanding it
Illegal timber industry is $10 billion USD industry
In China, it is a $3.8 billion USD industry
15% of China’s imported wood goods come from illegal means
Chatham House, an independent policy institute, released the sources of China’s illegal goods as of out of 51 of the countries that appear on the list also appear on the International Statistical Institute’s list of developing countries based on GNI per capita.

11. Chapter 3: Case Studies- Democratic Republic of Congo
Largest forest area in the Congo Basin
Second largest tropical forest in the world
90% of logging is informal
Colonized by Belgium in 1876
Greatly utilized for its mineral resources, one of the main exports being gold
1960 DRC gained independence
1960 to present day, DRC is filled with unrest with multiple governmental changes, two civil wars and ongoing conflict; exemplary to the weak nature of the state.

12. DRC Current Timber Trade
No laws to monitor “artisanal logging” which are “operations carried out with or without permits by small scale millers to supply sawn wood to the domestic market” (Center for International Forestry Research)
Used as a disguise for industrial logging
With artisanal logging, few hands benefit from the logging industry
The forestry sector only contributes 0.7% to the country’s GDP despite timber being the country’s main resource

13. China in the DRC
China has a strong presence in the DRC and growing economic relations
Chinese have built relations in which the DRC will provide raw materials to China and in return China will invest in infrastructure.
Complex relationship because China has the upper hand and influence in the DRC.
Congolese Bloodwood has a high demand in China which has fueled illegal logging of the wood in the DRC

14. Chapter 3: Case Studies- Mozambique
Colonized by the Portuguese in 1498
Gained independence in 1975
Civil war following independence
A strong reliance on foreign investors followed the civil war

15. Current Timber Trade in Mozambique
Mozambique is on the path to having its forests depleted in its entirety
93% of all logging in the country is happening illegally (EIA)
The government estimates that illegal logging costs the country $150 million
120,000 cubic meters of illegal timber was seized in March 2017
Because of the extensive amount of illegal logging, the nation has established a ban on timber

16. China in Mozambique
China has an overwhelming presence in the Mozambique illegal timber trade; exporting machinery to Mozambique and importing raw materials.
Chinese traders accounted for 90% of all Mozambique timber exports in 2013 according to the Environmental Research Organization
The illegal nature of the industry means that Chinese corporations pay little attention to any laws established to prevent illegal timber exports
In one article, A Mozambican described how a Chinese corporation offered him a higher salary to cut down trees and provided him a chainsaw. Despite knowing the illegal nature, the man could not refuse the higher salary which betters his living condition

17. Chapter 3: Case Studies- Guyana
First colonized by the Dutch in the 17th century
In 18th- to early 19th century, the British slowly claimed Guyana causing tensions between Dutch and British rule
Guyana became dependent on sugar exportation as the British established numerous plantations
Gained independence in 1966
Following independence, Guyana has had little economic stability with corruption amongst the government and lack of industry

18. Current Timber Trade in Guyana
Foreign direct investment from Foreign-owned companies are receiving subsidies that are being abused to export unprocessed logs
Through the method of extending legal limitations, well over half of the forest is in control of Asian logging companies
Numerous agreements try to combat illegal timber trade, but the relationship between foreign corporations and Guyanese leaders is difficult to eradicate

19. China in Guyana Guyana is the recipient of foreign aid from China
A Chinese company, Bai Shan Lin, struck a deal with the Guyanese government to gain access to large timber reserves and in exchange it will provide jobs for local workers. Not only were unprocessed logs illegally exported, but workers were not compensated as promised
The Chinese corporation, Barama, also has had reports filed against them for abusing logging permits and poor treatment of local workers
Chinese corporations build one sided negotiations with Amerindian populations who own forested areas which are not monitored by governmental law

20. Conclusion
The colonial history of developing nations has led to little or unstable governmental structure. The qualities of being a weak state has allowed for China, acting as a neocolonialist power, to exploit the timber resources in some developing nations. We see this particularly through the presence of Chinese corporations in the exports of illegal timber.