China's Westward One Belt One Road Strategy

Blackstone

Brigadier
They will not, PAK army constantly busting several hideouts of external elements in Baluchistan...
Pakistan-India relationship problems could diminish if China gets both countries to cooperate in CPEC and in the wider Belt and Road Initiative. All three sides gain.
 

AndrewS

Brigadier
Registered Member
Pakistan-India relationship problems could diminish if China gets both countries to cooperate in CPEC and in the wider Belt and Road Initiative. All three sides gain.

Yes.

However there are so many elements in both India and Pakistan who want to keep the relationship hostile.

But if there is both a security track (SCO) and economic track (OBOR/AIIB/BRICS), hopefully the benefits will be enough to overcome those who want to sabotage the relationship.
 

Blackstone

Brigadier
Yes.

However there are so many elements in both India and Pakistan who want to keep the relationship hostile.

But if there is both a security track (SCO) and economic track (OBOR/AIIB/BRICS), hopefully the benefits will be enough to overcome those who want to sabotage the relationship.
If CPEC shows early success for member states, then it might compel India to join for self interests of not being left behind the most-dynamic economic development story in South Asia.
 

timepass

Brigadier
Pakistan-India relationship problems could diminish if China gets both countries to cooperate in CPEC and in the wider Belt and Road Initiative. All three sides gain.

Yes.

However there are so many elements in both India and Pakistan who want to keep the relationship hostile.

But if there is both a security track (SCO) and economic track (OBOR/AIIB/BRICS), hopefully the benefits will be enough to overcome those who want to sabotage the relationship.

If CPEC shows early success for member states, then it might compel India to join for self interests of not being left behind the most-dynamic economic development story in South Asia.

Only ONE answer sort out Kashmir Issue (core issue of the region) in light of UN resolutions..... rest is all secondary...
 

timepass

Brigadier
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: Pakistan can provide access corridor to world 21 percent percent fuel & 29 percent gas from SCO members countries to world market.

Pakistan has formally become a full member of the Shanghai Cooperation Organization (SCO) during 17th meeting of the Heads of the State Council summit held here (SCO).

Pakistan has been an Observer with SCO since 2005 and applied for full membership of the organization in 2010. The decision, in principle, to give membership to Pakistan was taken by the SCO Heads of States meeting held in Ufa, Russia, in 2015.

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delft

Brigadier
More southwards:
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Beijing is Brunei’s new best friend
The fuel-rich sultanate has looked to China for trade and investment at a time of economic need
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June 11, 2017

When Saudi Arabia’s King Salman bin Abdulaziz arrived in Brunei earlier this year in a highly touted tour of Asia, the two oil-rich nations’ dynastic leaders exchanged diplomatic pleasantries but did not announce any new major economic or investment initiatives.

Receiving less attention, however, was a new investment deal signed a few weeks later between China’s Zhejiang Hengyi company and a Brunei partner for a US$3.5 billion integrated oil refinery and aromatic facility that is expected to begin producing eight million barrels of oil, 1.5 million tons of paraxylene and 500,000 tons of benzene annually in 2019.

The contrast in Chinese and Saudi Arabian commitments revealed a significant shift in the sultanate’s economic direction. The strict Islamist Sultanate once looked largely to the Middle East or elsewhere in the Muslim world for trade and investment ties but now relies increasingly on China. The Hengyi deal represented one of the largest foreign investments in Brunei in recent years.


In the first quarter of 2016, as the dip in global fuel prices started to bite in Brunei, Chinese investments surged to US$86 million, compared to just US$9.6 million for all of 2015. Total consolidated Chinese investment in Brunei is now estimated at around US$6 billion and scheduled to rise as Beijing cranks up its One Belt, One Road initiative.

In February, Yang Jian, China’s ambassador to Brunei, said the sultanate is an “important” country in the US$1 trillion infrastructure scheme. Brunei, ranked recently by Forbes magazine as the world’s fifth wealthiest nation due to its extraordinary oil and gas wealth, is strategically positioned for China’s scheme near the geographic center of Southeast Asia and overlooking the strategic South China Sea.

Bilateral economic ties to date have centered on energy shipments. Although China’s petroleum demand fell last year – growing at just 2.5% compared to 3.1% in 2015 – it was the world’s largest purchaser during the first quarter of this year. China imported 9.21 million barrels of oil a day in March, up 11% from February.

Those ties are now rapidly growing beyond petroleum trading. In April 2016, China Telecom Global, one of the country’s largest telecom operators, partnered with Telekom Brunei to expand local networks and improve connectivity.

Three months later, Hiseaton Food Co Ltd, based in China’s Guangxi region, joined with a government-linked company to create an offshore aquaculture farm. As part of the scheme, China agreed to send scientists and experts to establish a Brunei-Chinese aquaculture research center.

Shenglong New Energy Automobile, a China-based electric vehicle manufacturer, meanwhile, committed in September to build an assembly plant in Brunei for electric and renewable-energy fueled vehicles, including cars, mopeds and buses.

In line with China’s growing strategic investments in regional ports, Guangxi Beibu Gulf Port Group began operating Brunei’s largest container terminal in February in conjunction with a local government-linked firm.

In December, Bank of China opened its first office in Bandar Seri Begawan, the capital, a move into the local finance industry expected to facilitate trade and provide funding for Brunei’s small-to-medium enterprises, many of which need new investment to achieve the economies of scale necessary to compete globally.

China’s investments come at a time Brunei is desperate to diversify its economy away from energy exports and into more manufacturing and services. In recent years, more than 60% of gross domestic product (GDP) was derived from oil and gas. Fuel shipments account for around 95% of Brunei’s total exports and as much as 90% of government revenue, according to official statistics.

The oil price slump that started in 2015 and has endured to present has taken a sharp economic toll. Lower export revenues have forced the government to slash spending and cut back on traditionally generous public services that have contributed to making the country’s half million or so residents some of the world’s richest people on a purchasing power parity basis.

Ruling Sultan Hassanal Bolkiah is considered by many to be the world’s wealthiest monarch. He has ruled in absolutist fashion since 1967, the year his father abdicated from the throne. But recent cutbacks in state benefits and a lurch towards strict Sharia law have generated rare political ripples in the sultanate.

China has strategically leveraged into Hassanal’s “Vision Brunei 2035”, a long-term state-steered plan launched a decade ago to reduce the nation’s dependence on fuel exports and reposition the country as a new “Islamic Singapore.” Brunei and China later reached a “five point” consensus on cooperation in line with the development strategy.

In 2014, the government of China’s Guangxi Zhuang Autonomous Region signed a memorandum of understanding with Brunei to establish the so-called “Brunei-Guangxi Economic Corridor”, an infrastructure agreement worth an estimated US$500 million, according to reports. Last year’s opening of a Chinese Enterprise Association office in Brunei is expected to facilitate the scheme.

For China, Brunei has distinct advantages as an outpost for its regional interests. Unlike nearby Malaysia and Indonesia, Brunei’s politics are not beset by the same issues of race and religion. Indeed, Kuala Lumpur’s recent shift towards Beijing has led to rising anti-China sentiment, fueled by nationalistic opposition parties who claim recent overtures and deals have sold out national interests. Indonesia has a long history of repressing its small but influential Chinese minority.

Roughly 10% of Brunei’s population is known to have Chinese ancestry – though they, too, have often faced constraints in the Muslim majority country. But while Western countries and the United Nations have strongly criticized Hassanal’s imposition of harsh Sharia law, Beijing has typically remained silent on the rights-related issue.

US President Donald Trump’s withdrawal in January from the Trans-Pacific Partnership (TPP) multilateral trade agreement, of which Brunei was an original signatory and strong proponent, has further underscored the importance of Chinese trade and investment to the sultanate’s future economic prospects.

Brunei had hoped TPP would spur economic diversification and new foreign investment in key targeted sectors, namely biotechnology, agri-business, information technology and high-end services. While Brunei has recently moved up in the World Bank’s “Ease of Doing Business” survey, TPP negotiators had noted the sultanate’s lack of labor rights and a liberal competition policy as major impediments to free trade.

Brunei has notably repaid China’s silence on its imposition of Sharia law and persistent trade barriers with its own reticence on boiling disputes in the South China Sea. Brunei’s main claim in the maritime territory is the Louisa Reef – also contested by China, Vietnam and Taiwan – but the sultanate has ruffled few feathers on the issue at Association of Southeast Asian Nations’ summits or other fora.

That soft stance, from China’s perspective, has mitigated the political risk of doing business, one that has arguably constrained capital commitments to other regional countries like Indonesia, the Philippines and Vietnam. And while Brunei has reached out to other potential patrons for economic assistance in a time of need, only China has answered with rich and seemingly no-strings-attached deals.
 

Hendrik_2000

Lieutenant General
I have been looking for this video for a long time. It give the story of Karakorum in full and not bit and pieces. After watching this video I am moved
I would rank this road as one of the most difficult road built in the world
Even the Chinese are overwhelmed by the complex geological formation of the karakorum area
It started in 1959 when China send 50000 PLA soldier to built the road by hand literally 100 Chinese lives and 800 Pakistanis lives lost
The story of a Pakistani ex soldier who devoted his live tended the grave of 80 Chinese soldier is moving

The road was widened in 2006 This time around China has the technology and equipment to do the work.But even they are overwhelmed by geological complexity of the area

The fact that road is completed is testament to the ingenuity, hard work,determination and perseverance of both team Pakistani and Chinese. Enjoy the video it is along one If you have google cast it better to cast it to your TV

Even when China was poor in 59 She is rise to the occasion make me proud. I couldn't think anyone can built this road but China
 

Hendrik_2000

Lieutenant General
This is a good article about OBOR from Tsuruoka total 30% of all investment in Africa a considerable sum and in some country like Ethiopia and Kenya it has overwhelmed impact
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by professional services firm Ernst & Young said China has invested a total of US$66.4 billion in 293 foreign direct investment projects in Africa since 2005, creating 130,750 jobs.
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China’s Obor could keep African economies moving
In the first of a two-part series, Doug Tsuruoka finds experts bullish on the opportunities for African nations from Beijing's investment drive; however, local support will be key
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JUNE 12, 2017 4:10 PM (UTC+8
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A local resident greets Chinese and African workers on the Addis Ababa–Djibouti railway. Photo: Qin bin / Imaginechina
It’s a ripple effect that could transform Africa’s economies — but it will take time to gather force.

China’s bold One Belt One Road (Obor) initiative to forge an integrated economic zone that stretches from Central Asia to Europe has an African component that could energize nations such as Nigeria and Tanzania at a time when they need a lift. Growth in sub-Saharan Africa hit its lowest level in two decades last year due to unstable oil prices, inflation and political volatility.

Analysts say Obor’s impact could be sizable in Kenya and all over East Africa, where the focus on a supporting
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that touches the Indian Ocean region is spurring investment from Beijing to facilitate East-West trade. Such activities will complement strong Chinese trade ties with Nigeria, Angola and South Africa.


Obor has a firm beachhead in Africa. China surpassed the US as Africa’s largest trading partner in 2009. Chinese companies are already active on the continent, where over a million Chinese workers and immigrants
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. State-related entities and businesses from China have financed and built infrastructure projects for various African nations, including railways, ports, roads, dams and telecom networks.

“[Obor] is something that’s already happening in Africa,” says David Dollar, a senior fellow at the Washington, D.C.-based Brookings Institution. The former World Bank official estimates that China currently finances about US$10 billion a year in infrastructure investment in Africa. “That’s significant. It’s about a third of all external financing for infrastructure projects in Africa,” Dollar said.

He notes that Obor’s maritime link will benefit Africa the most when shipping routes from the South China Sea and the Indian Ocean are factored in. “There’s a need for maritime infrastructure all along these routes and East Africa is definitely part of that,” Dollar said.

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Three silk roads stretching from China to Southeast Asia Europe and Africa, Jan 2017.
Is there a danger that China will neglect the Africa portion of Obor in favor of Central Asia and Europe? “No,” Dollar said. “Sending goods by land from Central Asia to Europe is expensive and not very practical.” Container ships are much more efficient, he says. This is why the idea of expanding East Africa’s ports dovetails with Obor.

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by professional services firm Ernst & Young said China has invested a total of US$66.4 billion in 293 foreign direct investment projects in Africa since 2005, creating 130,750 jobs.


“(Obor) could prove to be a win-win situation for both partners, positioning Africa as a suitable avenue for China’s excess savings and infrastructure capacity,” the report said.

Currently, Africa ships oil, iron ore and metals to China and receives machinery, transportation, communications equipment and manufactured goods in return. Ernst & Young estimates that Chinese exports to Africa weighed in at US$82.9 billion in 2016 vs. US$54.3 billion in imports.

Obor’s expanding scope
Obor’s benefits for Africa were detailed in a
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published by the South African Institute on International Affairs (SAIIA). The piece, by policy experts Yu-Shan Wu, Elizabeth Sidiropoulos and Chris Alden, noted how China’s activities are expanding outward from East Africa and African states are showing increased interest in joining the Chinese initiative.

“With financial ambitions of this magnitude, there is no doubt that (Obor) will have a ripple effect on the continent,” the authors wrote. “Economically speaking, [Obor] could channel China’s overcapacity in areas such as infrastructure development to Africa, a necessary component for its industrialization.”

As part of a wider integration, Obor is also expected to forge economic links between Africa and both Europe and Southeast Asia. Chinese capital and technology also promise to kick-start industrialization, which is uneven and lags in many African countries.

“There is the promise of a more equitable global order compared to the current structure that neither Africa nor China helped build,” the authors pointed out.

Hard realities
But Obor’s promise must still grapple with African realities. Unstable security and investment environments made worse by the rise of Radical Islam are deterring Chinese and other foreign investors. Transport, energy and communications infrastructure in many parts of the continent are still inadequate to sustain African participation in an ambitious plan like Obor. And Africa’s private sector needs to rise to a level where it can partner with Chinese firms in construction, manufacturing and other ventures, analysts say.

“The reality on the ground is that there are many existing challenges for these Chinese projects,” said Africa analyst Janet Eom, noting a lack of infrastructure and skilled labor at local level. Eom is a research manager for the China Africa Research Initiative (CARI) at the Johns Hopkins School of Advanced International Studies in Washington, D.C.

“It remains in the hands of Africa to make the necessary linkages between national, continental and global initiatives”

On the Chinese side, Brookings’ Dollar says a lack of transparency on Beijing’s financing and other plans for Africa makes it difficult to assess Obor’s real impact on the continent.

Actual African interest in Obor also remains spotty. Kenyan President Uhuru Kenyatta was the only African head of state to attend May’s Belt and Road Summit in Beijing, though lower-ranking ministers were present from Egypt, Ethiopia and Tunisia. This compares with the 28 leaders from other countries, including Vladimir Putin of Russia, who attended the confab.

Analysts say continuing and consistent political support from African governments is key if Obor is to succeed on a regional basis.

“It remains in the hands of Africa to make the necessary linkages between national, continental and global initiatives,” the SAIIA article said.

Doug Tsuruoka is Editor-at-Large of Asia Times
 

Hendrik_2000

Lieutenant General
Comparing the chart I believe the Ethiopian's technical configuration is better.
Can't say which is getting a better deal though.

You are comparing apple to orange here because the Kenyan line gear more toward freight transportation and can carry double decker freight container
No electricity is available . Ethiopia has surplus of electricity so they used electric train which is more efficient since the motor has high efficiency

It cost more because they have to built 33 new grand station whereas the Ethiopian line use existing railstation or simple building.
Some section of the railway is elevated that add to the cost
Plus land in Ethiopia is owned by the government and in Kenya they have to pay huge compensation to the owner
Anywa the rail is built now and sofar the public is happy with it and It was built to high standard


 
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