China’s Lusophone Connection

The report analyzes China's engagement with the Lusophone world through the Macau Forum, established in 2003. It argues that China uses the forum as a foreign policy instrument to secure energy and food security, expand its consumer markets, and increase soft power in Africa, Latin America, and Asia. While trade volumes grew from $11 billion in 2003 to $34 billion in 2006, the report notes that most significant economic agreements remain bilateral. Brazil and Angola are identified as the most critical partners due to their vast natural resources and economic scale. The document also highlights the role of Macau as a service platform and provides policy recommendations for China, the Lusophone states, and the Forum to improve transparency and mutual benefit.

• The Macau Forum, established in October 2003, served as a catalyst for rapid trade growth between China and Portuguese-speaking countries (PSCs), with trade volumes increasing from $11 billion in 2003 to $34 billion in 2006.
• China's interest in the Lusophone world is driven by pragmatic needs for energy and food security, the desire for new consumer markets for cheap Chinese goods, and the goal of internationalizing Chinese enterprises.
• Brazil and Angola are the dominant partners in this relationship, together accounting for 94% of total bilateral trade between China and the PSCs as of November 2007.
• For African PSCs and East Timor, China provides an attractive alternative to Western financial institutions (like the IMF and World Bank) by offering concessional loans through Eximbank that lack conditions regarding transparency, democracy, or human rights.
• The Macau Forum functions more as a symbolic foreign policy instrument than a traditional multilateral organization, as most substantive economic and financial agreements are negotiated and reached on a bilateral basis.
• China utilizes the Macau Forum to advance its 'one China policy,' specifically aiming to encourage São Tomé and Príncipe—the only PSC not in the forum—to re-recognize Beijing over Taiwan.
• Macau is positioned as a strategic service platform to link mainland China with the Lusophone world, leveraging its Portuguese language capabilities, free port status, and preferential economic arrangements like the Closer Economic Partnership Arrangement.

APA

Alves, A. (2008). China’s Lusophone Connection. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2008/04/chap_rep_02_alves_200803.pdf

Chicago

Alves, Anna. China’s Lusophone Connection. South African Institute of International Affairs, 2008. https://saiia.org.za/wp-content/uploads/2008/04/chap_rep_02_alves_200803.pdf.

Wikipedia

{{cite report |last1=Alves |first1=Anna |title=China’s Lusophone Connection |publisher=South African Institute of International Affairs |date=2008 |url=https://saiia.org.za/wp-content/uploads/2008/04/chap_rep_02_alves_200803.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{alves2008chinas, author = {Alves, Anna}, title = {{China’s Lusophone Connection}}, institution = {South African Institute of International Affairs}, year = {2008}, url = {https://saiia.org.za/wp-content/uploads/2008/04/chap_rep_02_alves_200803.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }