Beijing’s pressure on Taiwan ally appears limited as Chinese firm continues Eswatini dam project

Beijing has excluded Eswatini from a tariff concession for African countries that maintain diplomatic relations with China, but a Chinese company is continuing to build a major dam in the kingdom. The contrast exposes limits to China’s pressure campaign over Taiwan, according to the report.

Sakhalive JV, a Chinese construction consortium, announced in late August that work on the $136 million Mpakeni Dam would proceed under the approved plan. Days earlier, China’s Foreign Ministry had advised Chinese citizens not to travel to Eswatini and urged those already there to leave or move to safer areas, including neighboring South Africa.

A Sakhalive JV representative told the Times of Eswatini: “Sakhalive JV remains fully committed to successfully completing the Mpakeni Dam project. Construction activities will continue according to the approved plan, and there are currently no plans to suspend, scale down or abandon the project.” No engineering staff had been withdrawn or transferred to South Africa.

Eswatini is Africa’s only country that maintains formal diplomatic relations with Taiwan. Since May 1, China has applied zero tariffs to imports from its 53 African diplomatic partners, while excluding Eswatini. The immediate effect may be limited because Eswatini depends heavily on South Africa, which accounts for about 68% of its exports and 72% of its imports.

The dam project illustrates the boundary between diplomatic isolation and commercial interests. China can raise the cost of Eswatini’s relationship with Taiwan through warnings and trade measures, but stronger economic pressure could also damage Chinese companies operating there. Taiwan and Eswatini recorded only about $6.47 million in goods trade in 2025, yet around 20 Taiwanese companies operate in the kingdom with cumulative investment of about $110 million. Their businesses include clothing, textiles and packaging, and some employ thousands of local workers. Taiwan is also working with Eswatini on an industrial innovation park, strategic oil reserves and energy projects. King Mswati III’s long-standing high-level relationship with Taiwan is another factor in the kingdom’s decision-making.

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Sakhalive JV remains fully committed to successfully completing the Mpakeni Dam project. Construction activities will continue according to the approved plan, and there are currently no plans to suspend, scale down or abandon the project.