China has long cast fear over its closest trading partners; from the early 20th century Western concerns of cheap Chinese labour, through to the country's current positioning as would-be peaceable economic hegemon. This dread has only grown among its neighbours as Beijing, now flush with cash and short of resources, seeks to snap up anything within its reach. Take Mongolia, a nation of 2.5 million nomads nestled above China. For decades it operated as a sort of Chinese vassal state, to the point where Beijing now accounts for more than 50% of bilateral trade. Chinese state corporates and traders are muscling in, extracting energy and metals, and shipping out tax-free cashmere.
September 07, 2006