Shanghai Cooperation Organisation (SCO) and Global South strategic cooperation

tphuang

tphuang

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What SCO could be doing with regard to Yuan and promotion of Chinese financial system.
First, Russians are moving their forex reserves to Yuan and Gold. Great for China.
https://twitter.com/i/web/status/1567761825504296960

You probably already have seen that they will be paying Gas in Rubles and Yuan.
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And the export capacity of gas to China will increase by 50 bcm through the POS2 via Mongolia. Looks like negotiation is close to being done.
https://www.rfi.fr/cn/亚洲/20220907-普京-经蒙古国向中国供应天然气的所有主要参数都已达成一致?ref=tw_i

Now, Belarusian banks are connecting to CIPS and issuing cards with UnionPay. I think the next phase of this is working on getting all the SCO countries' banks onto CIPS and using Yuan for trading.
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So, we already know about the increased Yuan trading volume in Moscow stock exchange. They are now also using CIPS.
Meanwhile, Russian banks are also starting to use China’s Cross-Border Interbank Payment System (CIPS) for international payments.
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There are enough Chinese friendly countries where Yuan and CIPS should be gaining priority.

But I think if China wants to make itself more sanction proof, it needs to work on ways to loosen restrictions on Yuan/CIPS. This kind of stuff is concerning.
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Several aspects of China’s existing financial plumbing betray this nervousness. Its own cross-border interbank payments system, cips, has been slow to admit foreign banks... A restricted currency is naturally less appealing than an unrestricted one, just as food stamps are worth less than their equivalent in cash. So a programmed digital yuan would be less appealing than a currency free of such restrictions. But if China’s conventional currency remains hard to come by, because of the government’s nervousness about speculation and misuse, then the digital yuan could be a viable alternative
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Unionpay getting more popular, now issued in 77 countries
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More Russian banks issue UnionPay cards
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siegecrossbow

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coolgod said:
Should North Korea be invited to join SCO? I mean Russia and Iran, both of which are heavily sanctioned are in SCO, adding in NK wouldn't be an issue. Is it in China's best interest to have NK join SCO?

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It looks like MBS was invited to the summit, so if MBS goes to Samarkand it would be pretty big news.

The badass SCO gang just got some new members.
View attachment 97148
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India and Pakistan are both in, why the heck not. In fact they can bring in both Koreas. It is pretty much a joke of an organization anyway but if that’s how Russia wants it, fine by me.
 
tphuang

tphuang

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With the SCO meeting this week where everyone including Xi is attending. It makes sense things are dialed back a little bit between China and India. That should be looked at as a huge positive.

This will also allow China to push further the BRI projects and trading with Yuan across central Asia and into Europe. Given the geographical presence of SCO, I tend do think it will carry more weight than BRICS.
https://twitter.com/i/web/status/1569043502599905280

China should continue to push the role of Yuan in international trading. More clearing centers for Yuan is a good thing.
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https://twitter.com/i/web/status/1568608467426099200
Elevating CIPS is important.

The relationship between China and Russia is at the center of this. Doesn't look like investments have tried up in Russia. They are just mostly carried out by smaller companies without presence in Europe and America
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Despite reports elsewhere to the contrary, Chinese Belt & Road Initiative investment into Russia has not dried up, it’s just that it has flown under the radar or has not been officially notified. In fact, a plethora of new infrastructure investments have, or are about to, reach maturity, including in nuclear power as well as other energy projects (the gas pricing of the planned
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pipeline via Mongolia has been agreed) now coming into development or online.

Other important ‘self-sufficiency’ related intent comes in that China has agreed with Gazprom, Russia’s main gas provider, to pay for Russian gas in Rubles and Chinese Yuan, shutting the US dollar out of one of the largest on-going energy transactions in the world.

Investments are also being made in Russia’s
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petrochemicals business, with Chinese investment into plants in Buryatia (Eastern Siberia, north of Mongolia) currently under construction. Sibur is one of the world’s fastest growing petrochemical businesses.

New bridges, roads, and railways are being jointly financed, with some now operational, such as the
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between Heihe and Blagoveshchensk. That connects huge volumes of trade passing through Heilongjiang Province to the Trans-Siberian railway – and vice versa. The Amur is known as the Heilong Jiang 黑龙江 in China and the Black Dragon River in English.

The two sides also mentioned that several other Amur River bridges would be jointly developed, creating additional cross-border trade avenues, as the border between the two countries extends down the Amur center line. Specifically mentioned was a non-border bridge in the Sakha Republic (Yakutia). The Amur feeds the Lena River, which is navigable and reaches the Arctic Ocean to the North.
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tphuang

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This seems like typical Western paranoia. China extending loans to countries that need this is a bad thing. But somehow, pillaging these countries' economies and sending them into hyperinflation in the name of fiscal austerity is the right way to go.

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The Eurozone will face this crisis again over the next year or two. Let's see how the Western multinational banks will try to drive them into poverty through austerity.
 
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taxiya

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tphuang said:
I don't know if this is related, but India opting out of IPEF is certainly a slam in America's face. Possibly done because of the recent pull back from the border and also the likely upcoming meeting between Xi and Modi.

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I would see India's move as more of the same reason that led them to drop off from RECEP, not joining TPP, not joining any trade block. On the one hand, India's trade competitiveness did not improve since last time they tried any blocks, on the other hand IPEF does not offer any more lenient treatments than previous ones. In India's mind joining RECP means being "killed" by China, joining TPP or IPEF means being "killed" by US, Japan and SK etc. I even doubt that India was ever interested in being included in IPEF at all, it is probably Biden who put India's name in the list without asking Modi. By doing that IPEF is a pure Biden scam, it is even worse than Obama's TPP which at least gained some enthusiasm from Japan, Australia, Canada etc.
 
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taxiya

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siegecrossbow said:
India and Pakistan are both in, why the heck not. In fact they can bring in both Koreas. It is pretty much a joke of an organization anyway but if that’s how Russia wants it, fine by me.
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To some extent I share your disappointment with what SCO has become, but I think it is far from a joke (I know it is just a word). For one thing, SCO makes western sabotage like color "revolution" much harder in member states. These things can be labeled as "terrorism" and "secessionism" that SCO would legally get involved with the member government to crush them.
 
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