China's overland Silk Road and Maritime Silk Road Thread

Ultra

Junior Member
I see this as a very pragmatic and long term plan based on building relationships as much as roads and railways.

At its heart, is the economic blueprint for sustained Chinese prosperity for the next century, which will help ensure Chinese interests for the next millennium.

Wolf, this is one of the most insightful posts in this thread! You bring up an excellent point about China's infrastructure economy. This plan essentially opens up a huge market for China's infrastructure builders, and where infrastructure goes, manufacturing follows. This is pretty much the economic blueprint of the Chinese economy for the next 20 years.


I couldn't agree more. I think this initiative will also be transformative to all the surrounding countries especially China's allies like Pakistan - which I foresee could become what South Korea is today in the future as the benefit of this initiative help push their infrastructure and economy to a new height. As China prosper - it will invest more in their allies much like the US did with Japan and South Korea.
 

SampanViking

The Capitalist
Staff member
Super Moderator
VIP Professional
Registered Member
Very important news from Pakistan today as China announces its plans to invest the equivalent of nearly fifty billion dollars to build an economic corridor across Pakistan, from the Chinese border, through to Gwadar in the Baluchistan province in western Pakistan and; of course, very close to the Iranian/Pakistani border.

This is of courser as much to do with Iran as it is with Pakistan and the timing of the announcement and the corridor implications (principally the Iran Pakistan India and China Oil Pipeline) is a Chinese equivalent of the Russian S-300 deal.

The investment of nearly $50 billion into Pakistan is a very big deal for this country and the government talk about the investment and its fruits being "transformational"
There is also major immediate and near term Geopolitical significance. It cannot be a coincidence that this coincides with the decision by Pakistan not to participate in the anti Houthi coalition formed by Saudi Arabia and active in Yemen. There is also the implications for accession of both Iran and Pakistan into the SCO (a development which would most probably include India as well).

The visit to Pakistan is ongoing, while further visits to both India and Iran are expected shortly. It does look as though something very big is brewing and breaking this summer.

In the meantime there are a few takes on the Chinese investment: from the BBC, Bhadrakumar and Pepe Escobar.

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By M.K. Bhadrakumar

The regional security in South Asia and the adjacent regions to the west and north are on the cusp of a profound transformation. Broadly, there are three vectors involved here.

One, Iran’s integration with the international community as a ‘normal country’, a process that has already begun; two, the historic entente between Russia and China which has consolidated almost immeasurably in the past one year period since the New Cold War tendencies began appearing; and, three, a largely-unnoticed but extremely significant shift in the foreign-policy priorities of Pakistan, a genuinely ‘pivotal’ state in the politics of South Asia, given its highly strategic geographic location in the South Asian region, from where it impacts regional security in Central Asia and West Asia.

The state visit by the Chinese President Xi Jinping to Pakistan on Monday in many ways brings together the three vectors. The visit is, on the face of it, a bilateral event of historic significance to the long-standing ties between the two relationship, which from all accounts can be expected to add much strategic content to the relationship and elevate it to an altogether qualitatively new level.

However, China is also playing the long game insofar as Beijing is actually beginning the implementation of its “One Belt, One Road” initiative, which is a global project in character and scope and all but prefaces China’s inexorable rise on the world stage as a superpower.

It is extraordinary that China is committing such massive investment in excess 40 billion dollars in a single country, undeterred by the perception in the western financial circles that Pakistan is a “failing state” and a revolving door of international terrorism.

In the eighties or nineties, this would have lent itself to interpretation as “India-centric” and as a diabolical move by the Chinese policymakers to strengthen Pakistan’s capacity to challenge India, a common foe. But that is no more the case today. The impulses driving the Chinese policies toward Pakistan today are to be found elsewhere.............

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China’s immensely ambitious New Silk Road project will keep intersecting with the Russia-led Eurasia Economic Union (EEC). And that will be the day when the EU wakes up and finds a booming trade/commerce axis stretching from St. Petersburg to Shanghai. It’s always pertinent to remember that Vladimir Putin sold a similar, and even more encompassing, vision in Germany a few years ago – stretching from Lisbon to Vladivostok.

It will take time – and troubled times. But Eurasia’s radical face lift is inexorable. This implies an exceptionalist dream – the U.S. as Eurasia hegemon, something that still looked feasible at the turn of the millennium – fast dissolving right before anyone’s eyes.

All the articles are worth reading in full.
 

Franklin

Captain
A lot of MoUs. So there is nothing legally binding in a lot of this agreements.

Details of MoUs
  1. Joint Statement between the People’s Republic of China and the Islamic Republic of Pakistan on establishing the all-weather strategic cooperative partnership.

  2. Minutes of the 4th JCC of China-Pakistan Economic Corridor.

  3. Economic and Technical Cooperation Agreement between the Government of the People’s Republic of China and the Government of the Islamic Republic of Pakistan.

  4. Exchange of Notes of feasibility study of the Demonstration Project of the DTMB between the Government of the People’s Republic of China and the Government of the Islamic Republic of Pakistan.

  5. Exchange of notes on provision of Anti-Narcotics Equipment between the Government of the People’s Republic of China and the Government of the Islamic Republic of Pakistan.

  6. Exchange of notes on provision of Law Enforcement Equipment between the Government of the People’s Republic of China and the Government of the Islamic Republic of Pakistan.

  7. Exchange of Notes on Feasibility Study of Gwadar Hospital between the Government of the People’s Republic of China and the Government of the Islamic Republic of Pakistan.

  8. MOU on provision of Chinese Governmental concessional Loan for second phase up-gradation of Karakorum Highway (Havelian to Thakot) between Ministry of Commerce of the People’s Republic of China and Ministry of Finance and Economic Affairs of the Islamic Republic of Pakistan.

  9. MOU on provision of Chinese Governmental concessional Loan for Karachi-Lahore Motorway (Multan to Sukkur) between Ministry of Commerce of the People’s Republic of China and Ministry of Finance and Economic Affairs of the Islamic Republic of Pakistan.

  10. MOU on provision of Chinese Governmental concessional Loan for Gwadar port East Bay Expressway Project between Ministry of Commerce of the People’s Republic of China and Ministry of Finance and Economic Affairs of the Islamic Republic of Pakistan.

  11. MOU on provision of Chinese Governmental concessional Loan for Gwadar International Airport between Ministry of Commerce of the People’s Republic of China and Ministry of Finance and Economic Affairs of the Islamic Republic of Pakistan.

  12. Protocol on Banking Services to Agreement on Trade in Services between the Government of the Islamic Republic of Pakistan and the Government of the People’s Republic of China.

  13. MOU on provision of Material for Tackling Climate Change between National Development and Reform Commission of the People’s Republic of China and Ministry of Finance (EAD) of the Islamic Republic of Pakistan.

  14. Framework Agreement on Cooperation on Major Communications Infrastructure Project between the Government of the People’s Republic of China and the Government of the Islamic Republic of Pakistan.

  15. MOU on Cooperation between NDRC of the People’s Republic of China and ministry of Planning Development and Reform of the Islamic Republic of Pakistan.

  16. MOU on Pro Bono Projects in the Port of Gwadar Region between Ministry for Planning, Development and Reform of the Islamic Republic of Pakistan and the International Department of the Central Committee of the Communist Party of China.

  17. MOU on establishment of China-Pakistan Joint Cotton Bio-Tech Laboratory between the Ministry of Science and Technology of the People’s Republic of China and the Ministry of Science and Technology of the Islamic Republic of Pakistan.

  18. Framework Agreement between the National Railway Administration, Government of the People’s Republic of China and the Ministry of Railways, Government of the Islamic Republic of Pakistan on Joint Feasibility Study for up-gradation of ML1 and Establishment of Havelain Dry port of Pakistan Railways.

  19. Protocol on the Establishment of China-Pakistan Joint Marine Research Center between State Oceanic Administration of the People’s Republic of China and the Ministry of Science and Technology of the Islamic Republic of Pakistan.

  20. MOU on cooperation between the State Administration of Press, Publication, Radio, Films and Television of China and Ministry of Information, Broadcasting and National Heritage of Pakistan.

  21. Triple Party Agreement between China Central Television and PTV and Pakistan Television Foundation on the re-broadcasting of CCTV-NEWS/CCTV -9 Documentary in Pakistan.

  22. Protocol on establishment of Sister Cities Relationship between Chengdu city Sichuan Province of PRC and Lahore City.

  23. Protocol on establishment of Sister Cities Relationshipbetween Zhuhai City, Guangdong province of the People’s Republic of China and Gwadar city, Balochistan of the Islamic Republic of Pakistan.

  24. Protocol on establishment of Sister Cities Relationship between Karamay City, XianjianUgur, autonomous region of the People’s Republic of China and Gwadar city, Balochistan of the Islamic Republic of Pakistan.

  25. Framework Agreement between NEA and MoPNRon Gwadar-Nawabshah LNG Terminal and Pipeline Project.

  26. Commercial Contract on Lahore Orange Line Metro Train Project.

  27. Agreement on financing for Lahore Orange line Metro Train project.

  28. MOU on financing for KKH up-gradation Phase-2 (Havelian to Takot), KLM, Gwadar East Bay Expressway, Gwadar International Airport Projects.

  29. Financing Agreement relating to the 870 MW Hydro-Electric Suki Kinari Hydropower Project between EXIM Bank of China, Industrial and Commercial Bank of China Limited and SK Hydro (Private) Limited.

  30. Financing Cooperation Agreement between the EXIM Bank of China and Port Qasim Electric Power Company (Private) Limited (on Port Qasim 2x660MW Coal-fired Power Plant).

  31. Framework Facility Agreement for 720MW Karot Hydropower Project between China Development Bank Corporation, EXIM Bank of China and Karot Power Company (Private) Limited.

  32. Term Sheet of the facility for Zonergy 9x100 MW solar project in Punjab between China Development Bank Corporation, EXIM Bank of China and Zonergy Company limited.

  33. Drawdown Agreement on Jhimpir wind Power project between UEP Wind power (Private) Limited as Borrower and China Development Bank Corporation as lender.

  34. Terms and Conditions in favor of Sindh Engro Coal Mining Company for Thar Block II 3.8Mt/a mining Project, Sindh province, Pakistan Arranged by China Development Bank Corporation.

  35. Terms and Conditions in favor of Engro Powergen Thar (Private) Limited, Sindh province, Pakistan for Thar Block II 2x330MW Coal Fired Power Project Arranged by China Development Bank Corporation.

  36. Framework Agreement of Financing Cooperation in Implementing the China-Pakistan Economic Corridor between China Development Corporation and HBL.

  37. MOU with respect to Cooperation between WAPDA and CTG.

  38. MOU among PPIB, CTG, and Silk Road Fund on Development of Private Hydro Power Projects.

  39. Facility operating Agreement for Dawood Wind Power project between ICBC and PCC of China and HDPPL.

  40. Framework Agreement for Promoting Chinese Investments and industrial Parks Developments in Pakistan between ICBC and HBL on financial services corporation.

  41. The financing term sheet agreement for Thar Block –I between ICBC, SSRL.

  42. Energy Strategic Cooperation Framework Agreement between Punjab Province of Pakistan and China Huaneng Group.

  43. Framework Agreement on the China Pakistan Economic Corridor Energy Project Cooperation between Ministry of Water & Power and China Export & Credit Insurance Corporation (SINOSURE).

  44. Cooperation Agreement between Sino-Sindh Resources (Pvt.) Ltd and Shanghai Electric Group for Thar Coalfield Block I Coal-Power integrated Project in Pakistan.

  45. Cooperation Agreement for Matiyari-Lahore and Matyari (Port Qasim)-Faisalabad Transmission and Transformation Project between National Transmission Distribution Company (NTDC) and National Grid of China.

  46. IA on Port Qasim Coal fired Power Plant between Power China and GoP.

  47. Facility Agreement for the Sahiwal Coal-fired Power Plant Project between industrial and Commercial Bank of China Limited, Huaneng Shandong Electricity limited and Shandong Ruyi Group.

  48. Cooperation Agreement on Hubco Coal-fired Power Plant Project between CPIH and Hubco Power Company.

  49. Facilitation Agreement on Salt Range Coal-fired Power Project between CMEC and Punjab Government.

  50. MOU between NUML Pakistan and Xinjiang Normal University, Urumqi China for Cooperation on Higher Education.

  51. Agreement on collaboration on establishment of NUML International Center of education (NICE) between NUML Pakistan and Xinjiang Normal University, Urumqi, China.
The following projects were inaugurated in an unveiling ceremony.

Unveiling of plaques
  1. Industrial and Commercial Bank of China, Lahore Branch.

  2. Energization of 100 MW solar power plants at Quad-i-Azam solar park, Bahawalpur.

  3. FM 98 Dosti Channel studio PBC-CRI, Islamabad.

  4. Demonstration project of DTMB Broadcasting in Pakistan.

  5. China Cultural center Pakistan.

  6. China-Pakistan Joint Research Center for small hydropower, Islamabad.

  7. China-pakistan cross-border optical fiber cable system project.

  8. Metro rail transit system on the Orange Line in Lahore.
Inauguration of the following power projects was jointly done by Prime Minister Nawaz Sharif and President Xi Jinping via video link at Prime Minister Office.

Ground breaking of power projects
  1. Karot 720 MW Hydropower project.

  2. Dawood 50 MW Wind-power project.

  3. Sachal 50 MW Wind-power project.

  4. Zonergy 900 MW solar project.

  5. Jhimpir 100 MW Wind-power project.

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Ultra

Junior Member
Very important news from Pakistan today as China announces its plans to invest the equivalent of nearly fifty billion dollars to build an economic corridor across Pakistan, from the Chinese border, through to Gwadar in the Baluchistan province in western Pakistan and; of course, very close to the Iranian/Pakistani border.

All the articles are worth reading in full.


Read both articles and also did a bit more research - there was a news that I missed about the proposal to construct high speed rail line between Euroasia and China - China is ready to spend $144 billion to construct that line. The Trans-Siberian high-speed rail line seems to be also part of the mix, although one of the comment I read in one of the article made me thinking.

The comment was about how $144 billion on the high speed rail too costly compare to purchasing hundreds of fleets of jumbo cargo jets and upgrade the airports and surrounding infrastructures. I thought it makes sense, so it is really down to the economics of operating cargo jets vs trains.

What do you guys think? I think trains may be more economical in transporting large quantities of goods, but the maintenance cost of maintaining the trains and the rail lines (few hundred thousands of them) will be quite costly, but is it more costly than fleets of cargo jets and upgraded airports?
 

delft

Brigadier
Read both articles and also did a bit more research - there was a news that I missed about the proposal to construct high speed rail line between Euroasia and China - China is ready to spend $144 billion to construct that line. The Trans-Siberian high-speed rail line seems to be also part of the mix, although one of the comment I read in one of the article made me thinking.

The comment was about how $144 billion on the high speed rail too costly compare to purchasing hundreds of fleets of jumbo cargo jets and upgrade the airports and surrounding infrastructures. I thought it makes sense, so it is really down to the economics of operating cargo jets vs trains.

What do you guys think? I think trains may be more economical in transporting large quantities of goods, but the maintenance cost of maintaining the trains and the rail lines (few hundred thousands of them) will be quite costly, but is it more costly than fleets of cargo jets and upgraded airports?
Two matters:
Scale - a passenger train might carry twice - or more times - as many passengers as a jumbo, a container train carries ten times or - perhaps much - more cargo than a cargo jumbo. The investment in track and stations for the rail system is higher than for airports and air traffic control, but operating and maintenance effort will be more expensive for the air transport system at the high transport volumes to be expected for the Silk Road system.
Fuel - air transport depends on kerosine while railways use for the same transport production much less diesel fuel - which is nearly the same thing as kerosine - or electricity which can be generated without using fossil fuel.
 

delft

Brigadier
We are truly living in a different World from two months ago. With Saudi Arabia likely to fail in Yemen, Syria and Iraq after its success in destroying the state in Libya, with support from NATO, the opportunity of using terrorists will decrease and the World will become a safer place. And that will make the economic development in Asia and elsewhere easier.
 

solarz

Brigadier
Read both articles and also did a bit more research - there was a news that I missed about the proposal to construct high speed rail line between Euroasia and China - China is ready to spend $144 billion to construct that line. The Trans-Siberian high-speed rail line seems to be also part of the mix, although one of the comment I read in one of the article made me thinking.

The comment was about how $144 billion on the high speed rail too costly compare to purchasing hundreds of fleets of jumbo cargo jets and upgrade the airports and surrounding infrastructures. I thought it makes sense, so it is really down to the economics of operating cargo jets vs trains.

What do you guys think? I think trains may be more economical in transporting large quantities of goods, but the maintenance cost of maintaining the trains and the rail lines (few hundred thousands of them) will be quite costly, but is it more costly than fleets of cargo jets and upgraded airports?

I would say that the jets and airport argument is nearsighted. Planes are far less fuel efficient than trains. The HSR may have a large upfront cost, but it represents great overall savings in the future.

Train stations are also a lot easier to build than airports. You can afford to build train stations in smaller cities than can't support airports. This allows a much more extensive network coverage than air transport.

Finally, as delft mentioned, trains have a higher passenger and cargo limit than planes, and is thus far more scaleable.
 

Jeff Head

General
Registered Member
China is investing the dollars, time, effort, and planning into its long term future here.

It is absolutely critical for them to turn the Silk Road into a Super Highway and develop all of the economic structures (both financial and actual real structure) to go along with it.

It absolutely plays to their long term economic and foreign policy benefit.

...and as long as the involved nations buy into it and go along with it, there's not much others can do about it.
 

Blackstone

Brigadier
China is investing the dollars, time, effort, and planning into its long term future here.

It is absolutely critical for them to turn the Silk Road into a Super Highway and develop all of the economic structures (both financial and actual real structure) to go along with it.

It absolutely plays to their long term economic and foreign policy benefit.

...and as long as the involved nations buy into it and go along with it, there's not much others can do about it.
Well said, Jeff. Also, there's enough in China's larder to lend to all comers, and by doing so, China not only help itself with good ROI, but it also demonstrate leadership as a "responsible stakeholder." I hope US would partner with China and jointly lead that endeavor.
 
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Jeff Head

General
Registered Member
Let's not forget the complimentary, Maritime aspect to this...what the PRC calls the Maritime Silk Road:

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FOREIGN201502121016334696715653067.jpg

People's Daily Online said:
Official data showed that two-way trade volume between China and Africa exceeded 220 billion U.S. dollars for the first time in 2014, and China has been Africa's largest trade partner for the past five years in a row.


Many links at that page.
 
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