China's overland Silk Road and Maritime Silk Road Thread

Discussion in 'Strategic Defense' started by SampanViking, Mar 29, 2015.

  1. Dolcevita

    Dolcevita Junior Member

    Sep 4, 2007
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    More on this story. Great potential for future trade relationship when fully developed.
    Freight links with Russia expanded further
    By Zhang Xiaomin | China Daily | Updated: 2018-05-19 11:26
    Four trucks each carrying 12 to 15 metric tons of fruits and two cross-border buses carrying dozens of passengers started their journey from Northeast China's Dalian, Liaoning province, on Friday toward Russia's Novosibirsk, marking the official launch of TIR, the global customs transit system, in China.

    "The Dalian-Novosibirsk route is currently China's longest international road transport route, connecting 19 cities of both countries," said Liu Xiaoming, vice-minister of the Ministry of Transport.

    It is the first international road transport route that has commenced trial operations after China joined the TIR Convention in 2016, an international system that significantly reduces the time and cost of crossing borders.

    The vehicles are expected to reach Novosibirsk on May 26, traveling 5,500 kilometers - 1,800 km in China and 3,700 km in Russia.

    Liu said the new route will promote the effective integration of China's Belt and Road Initiative with the Euroasian Economic Union as well as economic and trade exchanges between the two countries.

    Umberto de Pretto, secretary-general of the International Road Transport Union, said the new route for international trade between China and Russia will encourage participation by other economies along the Silk Road Economic Belt.

    Two Chinese transport companies and a Russian company participated in the first operations of the new route.

    On Thursday, they signed agreements at the Bangchuidao Hotel in Dalian for the trial operation of Dalian-Novosibirsk international road freight and passenger transport. Equipped with cold chain technology, they will mainly transport Dalian's fruits to Novosibirsk and bring back cold drinks.

    "It is door-to-door transportation. The trucks can drive to the gate of local supermarkets. It's more convenient than train transport," said Liu Shaobo, general manager of Heilongjiang Longyun Group. Due to different railway track standards in the two countries, train transport takes longer and costs more, he said.
    taxiya, Equation and PanAsian like this.
  2. Dolcevita

    Dolcevita Junior Member

    Sep 4, 2007
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    China, EAEU sign agreement on trade, economic cooperation
    2018-05-18 11:05Xinhua Editor: Gu Liping
    China and the Eurasia Economic Union (EAEU) on Thursday signed an agreement on trade and economic cooperation, the first major systematic arrangement ever reached between the two sides.

    The document was signed by Chinese Vice-Minister of Commerce Fu Ziying, Chairman of the Board of the Eurasian Economic Commission (EEC) Tigran Sargsyan and representatives of the EAEU members at the Astana Economic Forum that kicked off on the same day.

    The agreement covers 13 aspects such as customs cooperation, trade facilitation, intellectual property rights, sectoral cooperation and government procurement, including new topics like e-commerce and competition.

    China and the EAEU agreed to further simplify procedures of customs clearance and cut costs of trade in goods by strengthening cooperation and exchange of information between each other.

    The agreement is expected to take effect as early as the beginning of 2019.

    Marking a new stage where China's trade and economic cooperation with the EAEU has upgraded from being driven by projects to being guided by rules and regulations, the agreement is seen as a milestone in driving the integration of the Belt and Road Initiative and the EAEU framework.

    It is expected to help further reduce non-tariff trade barriers, create a better environment for industrial development and promote the in-depth development of economic and trade relations between China and the EAEU.

    Established in 2015, the EAEU groups Russia, Kazakhstan, Belarus, Armenia and Kyrgyzstan.

    In May 2015, top leaders of China and Russia signed joint declarations on integrating the construction of the Silk Road Economic Belt and the framework of the EAEU.

    In October 2016, China and the EAEU started one-year negotiations on trade and economic cooperation, during which five rounds of talks, three meetings of joint working groups and two ministerial consultations were held.
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  3. Hendrik_2000

    Hendrik_2000 Brigadier

    Dec 20, 2006
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    1. Ball in India’s court for trilateral corridor as China-Nepal railway agreed on: analysts
      By Zhao Yusha Source:Global Times Published: 2018/6/22 20:03:40

      Nepalese Prime Minister K.P. Sharma Oli during his speech Photo: Courtesy of the Nepalese Embassy in Beijing

      The joint construction by China and Nepal of a cross-border railway connecting the Tibet Autonomous Region with Kathmandu is vital to Tibet's development and stability.

      China and Nepal agreed to hasten the implementation of the Memorandum of Understanding on Cooperation under the Belt and Road initiative to enhance connectivity, covering vital components as ports, roads, railways, aviation and communications within the overarching framework of the trans-Himalayan Multi-Dimensional Connectivity Network, the Chinese Foreign Ministry said on Friday.

      A new line will connect the Gyirong trading port in Xigaze, Tibet with Kathmandu, Vice-Foreign Minister Kong Xuanyou said at a briefing on Thursday.

      "Such a project is of great significance to Tibet's development and stability," Hu Zhiyong, a research fellow at the Shanghai Academy of Social Sciences' Institute of International Relations, told the Global Times.

      Nepal attaches great importance to Tibet, because this region has frequent trade and energy cooperation with Nepal, said Zhao Gancheng, director of the Shanghai Institute for International Studies' Center for Asia-Pacific Studies.

      For Chinese companies doing business with Nepal, trains are the most convenient means of transportation for sending goods from cities in Tibet to Kathmandu. The railway's extension from Xigaze to Gyirong is highly anticipated.

      The Guangdong-Tibet-Central South Asia freight train was launched with linking China and Nepal in mind, a Lhasa official involved in the project, who preferred not to be named, told the Global Times in a previous report.

      However, Hu said that India may resist the railway's construction as the country believes Nepal is heavily dependent on it.

      Indian media Hindustan Times warned its country in December 2017 that "the possibility of Kathmandu moving closer to Beijing will have negative consequences for India, which should be anticipated and promptly dealt with."

      China has long proposed that India join in cooperating with China and Nepal and build a trilateral economic corridor, but India sees it as a threat and has been distancing itself, Hu said.

      Times of India also noted in June that Prime Minister Khadga Prasad Sharma Oli visited China during his brief tenure as prime minister in 2016, when he widened China-Nepal ties by signing a transit trade treaty with China, and sought the expansion of road links through Tibet in addition to the extension of China's railway network to Nepal through the Himalayas.

      Experts said the ball is in India's court when it comes to building such a corridor. "India should put aside its narrow mindset and participate in border cooperation," according to Hu.


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  4. Jura

    Jura Lieutenant General

    Top Poster Of Month

    Jun 23, 2013
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    now noticed the tweet
    East Pendulum‏ @HenriKenhmann 38m38 minutes ago

    4 navires spécifiques, 269 hectares de terre crées sur mer en 6 mois au Sri Lanka, on comprend mieux comment les Chinois ont bâti leurs fortifications en mer de Chine méridionale.

    Translated from French by Microsoft
    4 specific vessels, 269 hectares of land created on sea in 6 months in Sri Lanka, we understand better how the Chinese built their fortifications in the South China Sea.

    zealotaiur485, Equation and mr.bean like this.
  5. Dolcevita

    Dolcevita Junior Member

    Sep 4, 2007
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  6. vincent

    vincent Junior Member

    Jun 20, 2012
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    Sri Lanka’s BOP crisis is an eye-opene

    January 22, 2019 by M. K. BHADRAKUMAR

    In a curious twist to Sri Lanka’s famous “debt trap”, Colombo has approached New Delhi and Beijing in panic to help it somehow meet the unprecedented foreign debt obligations. Eyebrows will be raised. How come Beijing? Yes, it is about Beijing helping Colombo to tackle its real “debt trap” – namely, repayment of maturing loans in the region of $20.9 billion between 2019 and 2022, which Sri Lanka owes to international capital markets.

    The fact of the matter is that China accounts for only about 10% of Sri Lanka’s external debt of $64 billion as of end-2018. The biggest portion of Sri Lanka’s foreign loan portfolio is in dollar-dominated international sovereign bonds, accounting for almost 50% of Sri Lanka’s total external debt. The remaining debts are to Japan, India, the Asian Development Bank and the World Bank.

    Last Thursday, the governor of Sri Lanka’s Central Bank Indrajit Coomaraswamy told a public forum in Colombo that both Reserve Bank of India and the Bank of China, which initially offered to provide $400 million and $300 million respectively – India through a currency swap deal and China through a bank loan – may be scaling up their respective offers to $1 billion each.

    As he put it, “Sri Lanka’s friends, the two regional giants, have stepped up to support us in this time when we were pushed into a rather difficult corner.” What a delightful irony!

    The immediate requirement was for Colombo to pay back a $1 billion international sovereign euro-bond by dipping into foreign exchange reserves. Colombo’s attempts to raise funds from the international bond market have failed. By the end of 2019, Colombo faces the spectre of a record debt of $ 5.9 billion that must be met. The country’s foreign reserves will be severely depleted if India and China do not help out.

    Plainly put, Sri Lanka’s so-called Chinese “debt trap” is actually disinformation with the mala fide intention to bring China into disrepute, especially by those quarters for whom the Belt and Road Initiative is an eyesore.

    The fact of the matter is that, ironically, China is emerging as Sri Lanka’s lender of last resort. Bank of China opened an office in Colombo last year to help Sri Lanka whose attempts to raise dollars from international capital markets are not succeeding due to the country’s poor rating by the western ratings agencies, which has raised the cost of international borrowing. For instance, Fitch moved Sri Lanka from B+ to B, which leaves it just four notches above default status.

    Quite obviously, India and China have appeared on the same page to bail out Sri Lanka from “debt trap”. India has two swap arrangements with Sri Lanka – a bilateral one and a second within the SAARC framework. As for China, Sri Lanka finds it advantageous to borrow from China because the interest rate is very low at 2%, compared to international sovereign bonds where the interest rate hovers around 6.3%.

    All in all, it appears that Sri Lanka doesn’t face a Chinese debt situation at all. The Indian analysts should take note. Of course, this does not mean that there is no rivalry for influence between India and China. India has regarded Sri Lanka as its “backyard” but Chinese presence is expanding worldwide and in South Asian region, too, and India visualizes that Colombo’s comfort level with the Chinese partner is enviable.

    Yet another reality that gets overlooked is that Sri Lanka’s financial difficulties are largely self-inflicted. And it is not really the legacy of former President Mahinda Rajapaksa alone but of successive governments over time. In fact, Sri Lanka resorted to reckless international borrowing through past decades. Of course, the political instability due to the civil war conditions played its part as well.

    But, basically, the country needs to build up its capital account through exports and by attracting FDI. The grim reality of the Sri Lankan “debt trap” is that the economy does not generate dollar income to pay off the dollar debt the country accumulated. It is really a “dollar crisis.”

    Curiously, the US is doing nothing worthwhile to help Sri Lankan economy by way of investments or trade. Washington’s focus is on the power calculus in Colombo and the geopolitics of Sri Lanka. The primary attention last year was on the efficacy of transforming Trincomalee Port as a logistics hub of the US Navy. Actually, the IMF even made it difficult for Sri Lanka to raise money in the international markets by freezing its final payment of a $1.5 billion bailout dating back to 2016.

    Simply put, the Western narrative that China seeks to push India out of Sri Lanka has an ulterior agenda of pitching India against China in a fight for influence in Colombo. The American lobby in India is not unaware of it but blithely plays it part in the Indian media. India can and should disengage from the Western narrative. At least those sections of the media, which have the resources and acumen to think and analyze the politics of our neighborhood from an Indian perspective, should refrain from lapping up the Western narrative.

    At the end of the day, history, geography, politics and culture dictate that India will forever remain Sri Lanka’s most important partner country. No amount of Chinese investments in Sri Lanka can change that geopolitical reality. Besides, no Sri Lankan politician will ever accept Chinese hegemony, either.

    The number one priority today for India ought to be Sri Lanka’s political stability and development. From such a perspective, India should make use of the Chinese investments in Sri Lanka by participating in the projects such as Mattala airport. Again, the Chinese-funded mega $1.4 billion Colombo Port City has just completed the reclamation of land from the sea and will soon be ready for the second phase. Investment opportunities are opening up in a big way.

    The dismal experience over the East Container Terminal project of the Colombo Port shows once again that Sri Lanka is highly sensitive about Indian investments or management of strategic sectors of the economy. Paradoxically, one way of overcoming phobia could be be by joining hands with China and to jointly undertake such projects. The proposed West Container Terminal project of the Colombo Port could provide the opportunity to take such a leap of faith towards what Beijing calls the “China-India Plus” mode of cooperation.
    Nutrient, Shaolian, KIENCHIN and 3 others like this.

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