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Cape Town - Receiving the Dalai Lama compromises countries' trade and diplomatic ties with China, according to a newspaper report citing a recent German research paper.
"Meetings of a head of state or head of government with the Dalai Lama lead to a reduction of exports to China by 8.1% or 16.9% on average, depending on the estimation technique used," the researchers concluded.
The paper was written by economists Andrea Fuchs and Nils-Hendrik Klann, the Mail & Guardian reported on Friday.
They said the impact on trade manifested mainly as reduced exports of machinery and transport equipment. However, it disappeared in the second year after a meeting took place.
Fuchs and Klann cited several examples of how China had sought to punish countries that invited the Dalai Lama to visit.
This included France, Mexico and Germany which reportedly saw their ties with China suffer after receiving the Tibetan spiritual leader.
The economists also claimed that a meeting between the Dalai Lama and United States President Barack Obama in February last year soured relations with China and hampered US economic recovery.
China is South Africa's biggest trade partner as a country. Deputy President Kgalema Motlanthe raised more than R20bn of investment during a visit to Beijing last week.
The Dalai Lama cancelled his visit on Tuesday after waiting in vain since late August for a response from South African authorities to his application for a visa.
The government is weathering a storm of criticism for failing to issue him with a visa for the second time in two years.
"Meetings of a head of state or head of government with the Dalai Lama lead to a reduction of exports to China by 8.1% or 16.9% on average, depending on the estimation technique used," the researchers concluded.
The paper was written by economists Andrea Fuchs and Nils-Hendrik Klann, the Mail & Guardian reported on Friday.
They said the impact on trade manifested mainly as reduced exports of machinery and transport equipment. However, it disappeared in the second year after a meeting took place.
Fuchs and Klann cited several examples of how China had sought to punish countries that invited the Dalai Lama to visit.
This included France, Mexico and Germany which reportedly saw their ties with China suffer after receiving the Tibetan spiritual leader.
The economists also claimed that a meeting between the Dalai Lama and United States President Barack Obama in February last year soured relations with China and hampered US economic recovery.
China is South Africa's biggest trade partner as a country. Deputy President Kgalema Motlanthe raised more than R20bn of investment during a visit to Beijing last week.
The Dalai Lama cancelled his visit on Tuesday after waiting in vain since late August for a response from South African authorities to his application for a visa.
The government is weathering a storm of criticism for failing to issue him with a visa for the second time in two years.
