Xi’s Pledge on peaceful development, cooperation receives global applause

Chinese President Xi Jinping’s speech on Tuesday’s National Day celebrations has earned wide praise from overseas officials and scholars as he pledged that China will stay on the path of peaceful development, and pursue a mutually beneficial strategy of opening up.

“We will continue to work with people from all countries to push for jointly building a community with a shared future for humanity,” Xi said in his speech.

Echoing China’s commitment to world peace and development, Dmitry Novikov, first deputy chairman of the Russian State Duma Committee on Foreign Affairs, said he is confident that the vision of a community with a shared future for humanity helps China create favourable conditions to ensure the successful realisation of the Chinese Dream of national rejuvenation.

Jose Luis Robaina, a researcher at Cuba’s Center for International Policy, a think tank, said that Xi’s speech conveyed Beijing’s visions of peaceful coexistence, win-win cooperation, and a community with a shared future for humanity to the world.

“China’s foreign policy was oriented in building a peaceful world where cooperation is the driver of international relations,” said Francesco Maringio, an Italian China expert.

The Belt & Road Initiative and other multilateral platforms launched and hosted by China in the past years, said Maringio, “give us the possibility to measure our ideas and proposals into a new dynamic and cooperative framework.”

Anri Sharapov, Associate Professor of the Tashkent State Institute of Oriental Studies, said that China’s development experience in the past 70 years “can be very useful” for Central Asian countries, including Uzbekistan.

China’s vision of jointly building a community with a shared future for humanity is “of strategic importance in the further development of international and interstate relations,” he said.

B. R. Deepak, a sinologist and professor at India’s Jawaharlal Nehru University, said that Xi’s pledge that China will stay committed to peaceful development indicates that “China will continue to work with other nations adhering to the policy of win-win cooperation, common prosperity and common security.”

Source: Belt and Road News

Dated on:10/4/2019

 

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China’s Free Trade agreements along the Belt & Road Initiative

Rerouting Supply Chains to Reflect Growing Chinese Influence

The elimination of tariffs and taxes is always a boom for exporters, and is something that China has taken advantage of very effectively over the past two decades.

When China first began its journey towards becoming the massive manufacturing giant it is today, it attracted foreign manufacturers, from which the Chinese could learn, by eliminating or cutting profits tax rates for up to five years worth of profitable operations. This represented something of a boom time for foreign businesses in China, and arguably kick-started the entire Chinese economic growth.

China has also been very busy in agreeing Double Tax Treaties, which often contain clauses and reductions in taxes beneficial to the respective parties trade. China has also been active when it comes to participating in Free Trade Agreements; it has significant and wide ranging deals with the likes of ASEAN, Australia, Singapore, South Korea, and New Zealand among others and is actively engaged in negotiating several more.

These are important because they can and do direct and massively influence bilateral, and in some cases multilateral trade patterns. Taken overall, FTA impact upon and are the structural support for all global trade.

The current trade and tariff tensions between China and the United States has seen a resurgence of Chinese interest in developing free trade routes, and especially along the Belt & Road Initiative.

While not all products, and especially IT and hi-tech related components currently obtained from the US will be available from new suppliers, China will be investing in developing these, most notably with Russia. Meanwhile, staple items including energy resources, food and other consumables will increasingly be sourced from markets closer to home.

Consequently, the issue of Free Trade along the Belt & Road Initiative is a matter of keen interest. In fact, some agreements that impact this are already in position. Others are pending. This is an overview of how things stand at this moment in time.

The China-ASEAN Free Trade Agreement

This agreement has been in force since 2010 and was expanded in 2015 to incorporate an extension into the economies of Cambodia, Laos, Myanmar and Vietnam, who had asked for more time to adjust.

This agreement covers both goods and services provided by the above nations as well as China, Brunei, Indonesia, Malaysia, Philippines, Singapore and Thailand and essentially eliminates tariffs on some 95% of all traded goods and services. This covers much of the Belt & Road Maritime Routes.

China, Hong Kong Macau Closer Economic Partnership Agreements

Although Hong Kong and Macau are part of China, they have different customs and tax regimes. To cater for this, and also recognise the status of Hong Kong and Macau, these CEPA agreements have been entered into between them and China, which in certain cases provides investment incentives, especially in service areas, that only companies registered in Hong Kong and Macau can benefit from.

These include tax reductions as well as preferential market access to otherwise restricted investment areas in mainland China.

The China-Pakistan Free Trade Agreement

This came into effect in 2009, and has formed the backbone of Chinese investment into Pakistan. A direct result of this has been the Chinese development of Pakistan’s Gwadar Port, as well as the “China-Pakistan Economic Corridor” which ultimately aims to link China rail from Kashgar in its south western Xinjiang Province through to Pakistan’s rail networks at Islamabad. This route will allow Chinese goods to exit via the Arabian sea. To date much of the investment has been from the Chinese side.

The China-Gulf Co-Operation Council Free Trade Agreement

This deal, between China, and the GCC member states of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates, is still under negotiation. It includes details of goods and services, however given the nature of the GCC economies is largely focused on energy.

However, tourism and services are expected to be a large part of this, especially as the United Arab Emirates includes Dubai, a popular destination for Chinese tourists and businesses wishing to reach out into Arabia. The ninth round of discussions were concluded recently in Riyadh, and it is understood that most major points have been agreed.

The China-Sri Lanka Free Trade Agreement

This agreement is still under negotiation, although China has been investing in Sri Lankan Ports and road infrastructure for some time now. The country is also a preferred destination for increasing numbers of Chinese tourists.

There has been some resistance to this proposed FTA in Sri Lanka, notwithstanding recent scandals involving Chinese investment in the main Colombo Port. Sri Lanka is coveted by both China and India as a base for transshipment, as well as potential for Naval operations. In truth the Sri Lankans are probably content to play one off against the other. The fifth round of talks was held in Colombo in January 2017.

The China-Georgia Free Trade Agreement

This agreement, which gives China access to the Caucasus markets and through to the Black Sea, was “substantially concluded” as at the end of 2016. The agreement will mean that “Chinese enterprises and consumers will have greater access to high quality products like wine and fruits from Georgia, while Georgians will benefit from cheaper China-made industrial products” according to Chinese Commerce Minster Gao Hucheng.

Chinese buyers have already been to Tbilisi looking at purchasing products. However, a word of warning – the prices offered have been relayed to me as being so low that there is very little profitability in China trade for Georgian farmers and producers. It remains to be seen what impact this has on the Georgian economy, other countries such as Armenia, Azerbaijan and Turkey will be studying this closely.

The China-Eurasian Economic Union Free Trade Agreement

This agreement was signed off last year, although the real meat of the deal – which product categories will be included, is still under negotiation. When agreed, it will effectively bring the Free Trade of Chinese goods right up to the borders of the European Union.

The EAEU is a trade bloc, rather like ASEAN, but comprising of Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia. If the EAEU were a country, it would be the fourth largest global economy, with a GDP in excess of USD4 Trillion. China is keen to get a deal done as these countries, and especially Kazakhstan, Russia and Belarus, offer China uninterrupted transportation of goods from China right up to the borders of the European Union at Brest, in Belarus, where Poland, and rail and road infrastructure leads directly to Germany.

This would be a significant trade development and would change the course of EU supply chains. This article The Eurasian Economic Union. About To Bring China To The EU’s Borders explains this scenario in greater detail. In the meantime, Singapore is also about to sign up an FTA with the EAEU while Vietnam and Serbia have already done so. The momentum for trade development with this particular bloc is highly significant.

The China-Regional Comprehensive Economic Partnership Agreement

This agreement has been touted by some as China’s answer to the TPP. It is between the ten member states of ASEAN (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam) and the six countries with which ASEAN has existing free trade agreements (Australia, China, India, Japan, New Zealand, and South Korea).

As such, it is a purely Asian deal. The main prize here for China would be to draw India and Japan into an FTA through the RCEP, which would give Chinese manufacturers access to two huge, dynamic, and powerful markets. China does not have full-blown free trade status with either, though it does with all other RCEP states via other multilateral agreements.

But getting Japan and India on board will not be easy. Japan has ongoing political tensions with China, particularly related to territorial disputes. Many Japanese businesses are wary of China, and keen to keep innovative manufacturing technologies such as advanced robotics out of China’s reach.

India, meanwhile, may slowly be beginning the process of taking over China’s mantle as workshop of the world. India will be wary of large quantities of cheap Chinese products entering their huge domestic market while Indian manufacturers are still in the process of upgrading and improving their own capabilities (the iPhone has begun production in India). Cheap Chinese imports flooding the market would be politically disastrous and interfere with India’s transition to a global manufacturing hub.

China, to be fair, probably agrees. A short-term gain in India is not want the Chinese want. Indeed, China will need Indian manufacturing capacity just to keep its own domestic consumers supplied with inexpensive consumer goods.

The RCEP has also not been without its critics. It has gained some notoriety over what have been called “the worst provisions ever drafted on copyright protection”.

While the negotiations continue – the 15th round was recently held in Tianjin the RCEP and China will need to provide major concessions to India and Japan to get anywhere fast. At present, these discussions look like they will be an ongoing saga for some time to come.

In addition to actual Free Trade Agreements, China is also busy developing specific zones, which are duty exempt and used to encourage the joint development of Chinese and other foreign companies in making end products using expertise from both.

Examples are the newly announced Heilongjiang Free Trade Zone on the border with Russia, & the Khorgos Gate FTZ in Kazakhstan. n overview of Free Trade Zones along the Belt & Road leading all the way to Europe can be found here

Source: Belt and Road News Network

 

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China is creating a New Global Data Highway

China has a massive blueprint for boosting its economic growth, and part of the project is called the “Digital Silk Road.”

Not to be confused with the online darknet marketplace, China’s “Digital Silk Road” refers to a route that lies alongside the country’s big infrastructure push across continents termed the Belt & Road Initiative (BRI) or the New Silk Road deeply integrating it with the rest of the world.

Over the past few years, China has poured billions of dollars into developing its digital capabilities in various ways from fostering homegrown talents like Alibaba and Tencent, to deepening its digital reach with other continents like Europe, ultimately hoping to “generate fresh economic growth, foster effective governance and control, and project global power,” according to a report by Berlin based Mercator Institute for China Studies (MERICS).

To be clear, “Digital Silk Road” is only one part of China’s grand plan to achieve those three objectives. And it’s a crucial story of the modern wold that involves players like the Chinese Communist Party, Huawei, and the U.S. government.

Digitisation Helps the CCP Reestablish Legitimacy

With the original BRI, a colossal project in its own right  China has pushed billions of dollars into various economies in Asia and Europe through opaque loans to expand influence around the world.

The BRI is envisioned as a revival of an ancient trade route between China and Europe, as well as a vehicle to boost economic growth and re-establish legitimacy among its people.

“The CCP’s legitimacy rests heavily on economic performance; stagnating or even declining growth poses a serious risk to its grip on power,” the MERICS researchers wrote.

As a result, digitisation was considered one of the best ways forward to “upgrading China from the ‘workshop of the world’ into a high-tech leader with globally attractive innovative products and services, and modernised manufacturing processes,” they added.

Digital Silk Road as a National Security Threat

But China’s goals aren’t singularly focused and that economic growth isn’t the only objective, argue experts.

The MERICS researchers say that China’s digital ambitions “combine economic goals with broader normative and security aims.”

The U.S. Government also sees Digital Silk Road projects like the Chinese and Russian tag team that’s building up cable networks connecting Asia and Europe overland to bypass “U.S. controlled data routes,” according to MERICS, or undersea cables laid out or upgraded by Chinese company Huawei as a national security threat.

Source: Belt and Road News Network

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Belt and Road Initiative will continue to drive global economy: Malaysian official

KUALA LUMPUR, Sept. 30 (Xinhua) — The China-proposed Belt and Road Initiative (BRI) will continue to be key economic driver with the expected global economic slowdown, Malaysian International Trade and Industry Deputy Minister Ong Kian Ming said on Monday.

Speaking at the World Bank’s launch of a report on BRI in Malaysia, Ong explained the ongoing U.S.-China trade tensions would move China to seek new markets.

“This could have positive consequences from a global trade and investment standpoint, especially with the predicted slowdown in the global economy. China will want to seek new markets, new economic opportunities and new supply chains for its companies,” he said.

Ong also said there is a need for countries participating in the BRI to gain a greater understanding of the initiative and to identify and benefit from the opportunities presented by it as it goes beyond just the scope of infrastructure development.

“The common understanding of BRI projects have to do with the infrastructure sector – roads, rails, ports and energy. But these projects also pave the way for other investments from Chinese companies, for example state owned-enterprises in the manufacturing sector as well as privately owned-enterprises in the services and construction sector, just to give a few examples,” he said.

World Bank Group (WBG) representative to Malaysia and country manager Dr Firas Raad said the BRI and its associated economic corridors, have the potential to substantially boost trade, increase foreign investment, and improve living conditions for citizens in participating countries.

“Faster travel would also facilitate greater trade and investment. Countries along BRI corridors would see trade increase by up to 9.7 percent. The rest of the world would also benefit: global trade would increase between 1.7 percent and 6.2 percent. Countries that specialize in time-sensitive sectors, such as fresh fruits and vegetables, or that require time-sensitive inputs, like electronics, would be among the biggest winners,” he said.

“Greater connectivity could bring substantial benefits, particularly for countries that have long been at the periphery of the global economy. Expanded trade and investment could raise incomes by up to 3.4 percent for countries along the corridors, although these gains would differ significantly across countries. BRI transport projects could boost world income by 0.7 to 2.9 percent and help lift 32 million people out of moderate poverty,” he added.

The World Bank released the report in June, saying the “BRI offers opportunities for countries to improve their infrastructure, to increase trade and connectivity among themselves and the wider world, and thus to increase growth and reduce poverty.”

The report also said that the BRI projects could contribute substantially to poverty alleviation in participating countries.

Source: Xinhuanet 

Dated on: 01/10/2019

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Pakistan gives kudos to China for building top Infrastructure while US wages futile war in Afghanistan

A key partner in Beijing’s Belt & Road Initiative has applauded China for building world class infrastructure while accusing the United States of squandering billions on the war in Afghanistan.

In New York for the United Nations General Assembly, Pakistani Prime Minister Imran Khan made the assessment during an interview with US broadcaster.

“While the USA was pouring money in Afghanistan in this futile war, the Chinese were developing first-world infrastructure and you just have to go to China to see where the infrastructure is,” Khan said when asked what advice he would give US President Donald Trump about the conflict in Afghanistan.

Earlier this month, Trump cancelled planned secret talks with the Taliban and Afghan President Ashraf Ghani.

“You knew this was going to be a war that would not achieve any results,” he said. “If I was an American I would ask, US$1.5 trillion at least has been spent on Afghanistan, what have we achieved in this? That money was wasted.”

Pakistan is home to the flagship project under the Belt & Road banner, the US$62 billion China-Pakistan Economic Corridor.

The corridor consists of a number of ports, airports, and power plants, as well as road, railways and pipelines to connect China’s far western region of Xinjiang to Pakistan’s Gwadar port on the Arabian Sea, right outside the exit of the Persian Gulf and the world’s most important oil route.

The former Cricket Superstar is not as enthusiastic about the initiative as his predecessor Nawaz Sharif or Beijing, and has slightly backed away and scaled down some of the projects since he took office last year.

But work on the economic corridor has continued despite debt concerns, local resistance and some security incidents.

Khan visited China a few months after being sworn in and reaffirmed the “all-weather” friendship in Beijing. The ties were underlined again as tension escalated with India this year over disputes in Kashmir.

Source: Belt and Road News Network 

Dated on: 30/9/2019

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Chinese & Greek Diplomats pledge to strengthen mutual Cooperation

Chinese State Councillor & Foreign Minister Wang Yi and Greek Foreign Minister Nikos Dendias agreed on Wednesday here to strengthen all-round cooperation between the two Countries.

China and Greece enjoy a friendship that goes back a long way, Wang said during their talks on the sidelines of the 74th session of the United Nations General Assembly.

Noting that Greece has been actively developing relations with China since the establishment of its new government, he expressed the hope that the two sides could give full play to the leading role of head-of-state diplomacy in bilateral ties, consolidate their long friendship, build political mutual trust and strengthen mutually beneficial cooperation.

This would further promote all-round cooperation between the two ancient civilisations and make new contributions to regional and world peace and development, he said.

It’s hoped that both countries would achieve common development and prosperity through the joint building of the Belt & Road, and cooperation between China and Central and Eastern European Countries, said Wang.

China welcomes Greece to attend the second China International Import Expo (CIIE) as one of the “countries of honour” this year, he said.

Emphasising the significance of advancing China-Europe relations in safeguarding multilateralism and the international system with the United Nations at its core, Wang also voiced the hope that Greece would continue to play an active role in the healthy development of China-Europe ties.

Dendias, for his part, said that Greece is committed to further strengthening its comprehensive strategic partnership with China.

Praising the role of Belt & Road Initiative (BRI) in promoting economic development for countries involved as well as Europe-China cooperation, he said Greece will continue to actively participate in the BRI and promote pragmatic cooperation within the framework of “17+1” cooperation.

Greece will be delighted to participate in the second CIIE and would like to play a constructive role in the development of Europe-China relations, he said.

Valuing China’s help to Greece during the financial crisis, the foreign minister said his country will continue to offer understanding and support on issues of major concern to China.

Greece expects more Chinese enterprises to invest there, he added.

Source: Belt and Road News 

Dated on: 27/9/2019

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HSBC gets best Overall International Bank for Belt & Road Initiative

Financing hospitals, facilitating trade and enabling businesses to expand overseas these are some of the actions that helped HSBC win a top award for supporting China’s strengthening connections with the world.

HSBC was named Best Overall International Bank for the Belt & Road Initiative (BRI) in Asiamoney’s New Silk Road Finance Awards 2019. The bank also won three regional titles.

The BRI is a long-term plan to increase trade, financial and cultural connections between China and its international partners. No other international bank commits to the initiative as HSBC does, according to Asiamoney, with the bank’s international network making it a “natural fit” to help Chinese companies going abroad.

Mukhtar Hussain, Head of Belt & Road Initiative and Business Corridors, Asia-Pacific, HSBC, said: “This award demonstrates our strategic commitment to supporting our clients as they seek opportunities created by the BRI, as well as the advantages provided to our clients by HSBC’s leadership among international banks in mainland China, global network and universal banking model.”

“This award demonstrates our commitment to supporting clients”

About 1,800 individual BRI-related projects have been launched in more than 130 countries since 2013, according to HSBC Global Research. These include infrastructure projects such as bridges, solar plants and water treatment facilities in locations as diverse as Nigeria, Greece and Bangladesh.

China also aims to encourage closer financial, cultural and policy ties through the programme. This has the potential to boost trade, catalyse commercial and real-estate developments, while also opening up new long-term financing and investment opportunities.

HSBC set a goal of being recognised as the leading bank for BRI in its June 2018 Strategy Update. The bank’s extensive international network covers 65 countries and territories, accounting for around 90 per cent of global trade and capital flows, as well as GDP. It is also the leading international bank in mainland China and the biggest bank in Hong Kong, which is a key financial centre for Chinese enterprises’ international expansion.

The bank has arranged USD525 billion of cross-border financing involving China between the start of 2017 and September 23, 2019.

The BRI win is the latest recognition for HSBC’s expertise in Asia. In June, it was named best overall bank for renminbi (RMB) services in Asiamoney’s Global RMB Poll for the eighth year in a row.

Source: Belt and Road  News 

Dated on:27/9/2019

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China dominating India on disputed borders

In 1949 India became the second country to recognize China and in 1954 Nehru and Zhou Enlai signed the treaty of Panchsheel or the five principles of peaceful co-existence. According to the agreement both countries had to respect for each others traditional integrity and non interference. The relation between the two countries were at its peak during 1950 to 1959 and they had promoted slogan “Hindi Chinni Bhai Bhai”. When People’s Liberation Army(PLA) was busy in crushing a revolt in Tibet,the spiritual leader Dalai Lama fled to India and formed a Tibetan government in exile with the Indian support. The same year clashes took place between China and Indian forces and tension increased when Mao Zedong stated that the Lhasa rebellion in Tibet was caused by Indians. In 1959 a border conflict emerged in Himalaya and Ladakh (Indian Occupied Kashmir). The McMahon Line was drawn between Tibet (China) and British India in 1914 at Simla signed between British and Tibetan representatives. India recognize McMahon line which according to them defines their border with Tibet which was drawn in 1914 at Simla convention. However, China objects to validity of line and believes that it was not party to the convention. India demands return of the sacred Mount Kailash Manasarovar in Tibet, as it is sacred place for Hindus. China claimed these disputed areas as part of its territory and deployed its army on the borders. The pretext of the 1962 war besides Dalai Lama was dispute over the sovereignty of Arunachal Pradesh and Aksai Chin (Indian Occupied Kashmir). Skirmishes turned out to be a war in 1962 when India launched an attack from Ladakh and across McMahon line in Arunachal Pradesh(NEFA). The Indian army was too weak to fight Chinese as China counter attacked in Ladakh (western sector) Arunachal Pradesh (eastern sector) and crushed the Indian army. Indian army after heavy loses in the eastern sector escaped to Bhutan. Chinese army came down till Tezpur in Assam. During 1962 war the Chinese army occupied a large chunk of Arunachal Pradesh but returned after ceasefire. According India Today 3250 India soldiers were killed and India lost 43000 square kilometers of land to China in Aksai Chin. According to Chinese official the war achieved China’s policy objective of securing border in the western sector by acquiring control in the Aksai Chin. In the eastern sector their troops went back to the north of McMahon line after China unilaterally declared a ceasefire on 19 November 1962. China was successful in a month long war on both the front as India suffered heavy setbacks and badly defeated. Let us have a brief look at the India-China border disputes. The India China border is divided into three sectors. The western sectors in known as Askai Chin sector. It is a high altitude desert of 37000 square kilometers and second largest Indo China border area. The line drawn here is known as Johnson line by British in 1860 that extended upto Kunlun mountains. However, Chinese never recognized this line. China recognizes the Macartney -Macdonald line as the actual boundary which puts Aksai Chin in Xinjiang region of China. In 1893 boundary was revisited by British government and presented to China in 1899.Aksai Chin lies between India Occupied Kashmir (Ladakh) and China’s Xinjiang province. It is now under Chinese administration after 1962 war. China also claims over Daulat Beg Oldi, a tehsil in Leh, south of Aksai Chin as its area. China also claim that the Pangong lake in eastern Ladakh where Chinese and India troops had a standoff is entirely located in its territory. According to India that two third of the lake in the eastern Ladakh is controlled by China. The recent standoff between China and Indian troops is the first such incident after India revoked special status of Jammu and Kashmir. China has objected to the formation of Ladakh as Indian union territory saying that it undermined its territorial sovereignty. Second sector is central which include areas of Sikkim and Doklam. Doklam is a narrow plateau in the tri-junction of India, China and Bhutan. China claims that Doklam is a disputed territory between Bhutan and China. This region is close to India’s Chicken’s Neck a 20 kilometers wide stretch of land which connect the seven sister states in the north east India. Bhutan has not established diplomatic ties with China because of Indian pressure. According to Chinese daily Global Times India has severely Jeopardized Bhutan’s diplomatic sovereignty and control its national defence. India has signed a treaty with Bhutan to protect its border. China’s view point is that India has no right to make territorial demands on Bhutan’s behalf. According to them India not only violated China’s sovereignty but also challenged Bhutan’s independence. The recent standoff started after China’s plan to construct a road close to India’s strategic Chicken’s Neck. India is worried if this road is completed will put China at a strategic advantage and will give access to China to Siliguri Corridor (Chicken’s Neck) that links the seven north eastern states to the rest of India. Sikkim is another issue. India deposed the king of Sikkim in 1975 and manipulated the country’s parliament into a referendum to make Sikkim a state of India. The Nathu la and Cho la clashes were series of military clashes in 1967 between China and India along side of Sikkim. China has threatened India that they may support pro independence movement in Sikkim if India does not stop pursuing a regional hegemony through the border faceoff. China has conveyed that they may review their stance on Sikkim. Sikkim is important because of its strategic location and China’s refusal to recognize it as part of India. In Sikkim, Nepalis constitute two thirds of population and hold political power. The eastern sector comprises the state of Arunachal Pradesh, the largest disputed area covering around 90000 square kilometers. China claims it as its territory and refers to it as “South Tibet”. Arunachal Pradesh has 63 percent of its population belonging to faiths other than Hinduism. The state contains one of the highest proportions of Buddhist in India. It was also known as the North East Frontier Agency (NEFA). During 1962 war, entire Arunachal Pradesh was occupied by Chinese army but later they withdrew. However, China still claims it as its integral part. China objected to the visit of Dalai Lama to one of the monastery in Arunachal Pradesh. China has also recently condemned India prime minister Modi’s visit to the disputed state of Arunachal Pradesh. During the summit of Belt and Road Initiative (BRI) in Beijing, China removed a map from the website that depicted entire Jammu and Kashmir and Arunachal Pradesh as part of India. China recently also destroyed thousands of maps which showed Arunachal Pradesh as part of India. Another major issue of concern between China and India is water issue. There are four rivers which flow from China to India as they all flow from Tibet to India. There exist no agreement with India over the water resources. China is planning to build a number of water projects in Tibet including a dam on Brahmaputra. According many think tanks dispute relating to water will be major source of conflict between the two countries in the future. India is also opposing CPEC that passes through Gilgit Baltistan. The Pakistan interior ministry has already warned government of Gilgit Baltistan that India has made up plans to attack the CPEC installations to sabotage the mega project. Chairman Joint Chief Staff Committee General Zubair Mahmood Hayat confirmed in a speech that India has established a special cell at a cost of 500 million dollars to sabotage CPEC. There have been so many rounds of talks between India and China to resolve the differences over the borders. The last round was held between Ajit Doval and Chinese foreign minister Wang Yi after Doklam stand off. However, tension still persist along the western, central and eastern sectors of the disputed border. China’s position remains that Aksai Chin and Arunachal Pradesh (Southern Tibet) are Chinese territories and also Jammu and Kashmir which is disputed territory to be settled between Pakistan and India. Pakistan supports China’s stand on its border disputes with India. Friendship between Pakistan and China is very strong based on mutual trust and friendship. Pakistan’s close relation with China is very important to Islamabad. Thus it is rightfully sung that Pak Cheen Dosti Wang Woye (Long Live Pak-China Friendship).

Source: Daily Times 

Dated on: 27/9/2019

Author: Masud Ahmed Khan

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Kazakhstan’s Financial Center gearing up to become BRI Regional Hub

The Astana International Financial Center (AIFC), Kazakhstan’s regional financial hub, has geared itself up to become a key financial platform of the Belt & Road Initiative (BRI).

The AIFC was officially launched in January 2018 under the initiative of Nursultan Nazarbayev, first president of Kazakhstan. With independent management and judicial bodies, the centre has received 250 companies by September.

The AIFC regards the BRI as a clear and important priority for its development, said AIFC Governor Kairat Kelimbetov, noting that the BRI opens up a new prospect for financial cooperation between Kazakhstan and China.

In support of the BRI, the AIFC has set up a “Belt Economics Department,” which works with various financial institutions to develop investment models for the Belt and Road projects in Kazakhstan and beyond.

As one of the 55 China-Kazakhstan production capacity cooperation programs, the Astana International Exchange (AIX), with Shanghai Stock Exchange and the Silk Road Fund among the shareholders, is a major participant of the AIFC.

A key innovation of the AIX is the establishment of “Belt and Road market,” in which the RMB is the most important trading currency. Money raised on the market will be used to support projects under Kazakhstan’s Bright Path new economic policy and the BRI, China-Kazakhstan production capacity cooperation programs, and the Kazakh privatisation programs.

Related stocks and bonds are expected to be listed on the AIX in 2020, said Deputy CEO of the AIX Wan Jianqiang, adding that thanks to the close cooperation and the support of the two countries in expanding local currency settlement, “it is believed that the RMB has great potential of use in Kazakhstan.”

“China-Kazakhstan cooperation has greatly expanded and deepened in the past years, showing high complementarity of the two economies,” Wan said.

Since its founding, the AIFC has been in extensive cooperation with Chinese financial institutions.

The AIFC signed a regulatory memorandum with the China Securities Regulatory Commission and the China Banking Regulatory Commission. It also established strategic partnership with the Shanghai Stock Exchange, Silk Road Fund, China Development Bank, China Construction Bank, China CITIC Bank and CITIC Securities.

China Development Bank is the first Chinese institution which opened a representative office in the AIFC. Over the years, it has funded dozens of projects in such areas as oil and gas, minerals, electric power, chemical industry, finance and cross-border infrastructure.

Many other top Chinese banks are following suit. The Altyn Bank, a subsidiary of China CITIC Bank, registered in the AIFC in December 2018 and has become an indirect participant of the RMB Cross-Border Interbank Payment System (CIPS).

As the latest result of China-Kazakhstan Financial Cooperation, China Construction Bank has registered in the AIFC and officially opened its branch on Monday.

Earlier this month, China and Kazakhstan decided to develop a permanent comprehensive strategic partnership during Kazakh President Kassym-Jomart Tokayev’s state visit to China.

In a joint statement during the visit, the two countries agreed to deepen cooperation in the financial sector, notably support the development and operation of the AIFC and expand the use of local currency for settlement.

Over the past years, from regulatory bodies to commercial banks, from stock exchanges to securities dealers, all-round financial cooperation between the two countries has been developing on the fast track.

Dated on: 25/9/2019

Source: Bellt and Road News

 

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Trade between Azerbaijan & China more than Doubles: Ambassador

The bilateral trade volume reached $1.5 billion increasing by 104 per cent in January – August 2019 compared to the same period of 2018, Chinese Ambassador to Azerbaijan Guo Min said in an interview.

“The cooperation in the fields of trade, energy, transport, humanitarian and other fields has brought results,” she said, adding that the two countries have been constantly promoting cooperation in a number of spheres, including education, culture, healthcare, sports and tourism.

Guo Min said that China and Azerbaijan have promising prospects in the joint implementation of the One Belt, One Road initiative and stressed the support and participation of Azerbaijan in the implementation of the project amid the steady and sustainable development of bilateral relations.

“Azerbaijani President Ilham Aliyev participated in the second forum of international cooperation ‘One Belt, One Road’ which was held in Beijing in April,” Guo said, adding that the leaders of the two countries reached the important agreement regarding the further development of bilateral relations and practical cooperation in various spheres.

In her words, Azerbaijan sees the development of relations with China as a priority.

“China and Azerbaijan have often exchanged high-level visits since the beginning of this year and mutual political trust has further strengthened,” she said.

“Prominent figures of art and culture of the two countries exchanged visits, and several film festivals, art exhibitions and other events aimed at active promotion of mutual understanding and friendship between the people were held,” she said.

Source: Belt and Road News  

Dated on: 24/9/2019

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