China's economic stability and poverty alleviation efforts have been accompanied by the impact of Chinese capital on ethnic minorities in the Global South. Chinese capital, in the form of foreign direct investments and development finance, has reached significant levels. In 2018, Chinese foreign direct investments amounted to US$3.8 trillion in stocks, while Chinese development finance totaled $843 billion [1e967b58]. However, the impact of Chinese capital on ethnic relations in host countries has been largely overlooked.
Chinese capital exacerbates structural violence against ethnic minorities in host countries through various mechanisms. One of these mechanisms is the externalization of costs, where the negative consequences of Chinese projects are borne by local communities, particularly ethnic minorities. Another mechanism is the extraction of economic value, where Chinese capital benefits from the resources and labor of ethnic minority communities without adequately compensating them. The third mechanism is the reaffirmation of majoritarian coalitions, where Chinese capital tends to work with ethnic coalitions that align with the ruling regimes in host countries. This is facilitated by factors such as befriending ruling regimes, comprising networks of state-owned and private firms, and exhibiting flexibility in meeting the demands of host country elites [1e967b58].
Examples of the impact of Chinese capital on ethnic minorities can be seen in various projects. In the Philippines, the Kaliwa Dam project and the Chico River Pump Irrigation Project have raised concerns about their impact on indigenous communities. In Myanmar, the Myitsone hydropower project has faced criticism for its potential displacement of ethnic minority groups. In Pakistan, the China-Pakistan Economic Corridor (CPEC) in Balochistan province has raised concerns about the marginalization of local ethnic communities. In China's Xinjiang Uyghur Autonomous Region (XUAR), Chinese projects have been linked to human rights abuses against the Uyghur minority [1e967b58].
It is important to note that Chinese capital differs from Western forms of capital due to the involvement of state-owned and private firms that are intricately linked to the Chinese party-state. This involvement of state actors and the differing approaches to host country engagement can lead to distinct outcomes, particularly in terms of structural violence and geopolitical entanglements [1e967b58].
The impact of Chinese capital on ethnic minorities in the Global South highlights the need for greater scrutiny and accountability in Chinese investments and development projects. It is crucial to ensure that the rights and well-being of ethnic minority communities are protected and that they are not further marginalized or subjected to structural violence. This requires a comprehensive understanding of the dynamics and consequences of Chinese capital in host countries, as well as efforts to promote transparency, inclusivity, and sustainable development [1e967b58].