Shanghai Cooperation Organisation (SCO) and Global South strategic cooperation


tphuang

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Alright, finally officially confirmed Obviously a huge visit and enormous consequences. It's simply not being covered enough right now.

This isn't just a state visit to Saudi Arabia. That would be significant on its own. This could be the start of broad geopolitical realignment of MENA toward China.
 

BlackWindMnt

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It's always interesting for me to see how eager Russia is in using Yuan in their trading. This time, with Brazil.
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If Russia forces more countries to pay them in Yuan for energy and other resources, Yuan will continue to climb in its importance (at least for trading resources/energy).

last month, Yuan became the most traded currency on Russian exchange. So for Russian, CNH is already their reserve currency. Now, China just needs to push this across more countries.
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but for Yuan to play a bigger role, they need to open up their bond market and financial market more and lift some restrictions on Yuan
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The biggest difference is in RCEP countries
I think this will come after the Chinese + Arabs meeting, that is pretty much how western asian energy exporting nations use their dollars. So i'm sure they will want to at least have a nice share of the Chinese bond and financial market to recycle and grow their yuan reserves.

Im not so familiar about this aspect of China but does/can China act like some sort of gas hub/market for ASEAN and East Asian nations? Seems like China is perfectly located once they can solve the South China sea issue.
 

tphuang

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I think this will come after the Chinese + Arabs meeting, that is pretty much how western asian energy exporting nations use their dollars. So i'm sure they will want to at least have a nice share of the Chinese bond and financial market to recycle and grow their yuan reserves.

Im not so familiar about this aspect of China but does/can China act like some sort of gas hub/market for ASEAN and East Asian nations? Seems like China is perfectly located once they can solve the South China sea issue.
You would think so but they haven't built the pipelines for its ASEAN neighbors yet. But realistically, Japan/SK can get LNG from Australia and America, so wouldn't be interested in Chinese LNG tankers. Malaysia is an LNG exporter, so it can export directly to its neighbors also. There are enough natural gas exporters around China that it wouldn't be commercially viable for China to build pipelines just for the purpose of exporting.
 

Andy1974

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Agreed, this visit is shaping up to be bigger than I thought also. The GCC is making a power move right now:

Free Trade Deals:
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Defense cooperation (huge):
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We could be about to witness the GCC unify their defense capabilities using Chinese equipment.
 

tphuang

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Yes, GCC (especially Saudis) are feeling really insecure since the US drawdown in Afghanistan and not protecting them from Iranians. The Patriot missile batteries didn't do much to protect them from Houthi drone attacks, but the silent hunter system did. Notice, how they just bought $1.3 billion more of that? They have money and are looking for a protector that doesn't judge them.

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Looks like the Saudis have now confirmed the $4 billion weapons package signed at the air show. The rumor on weibo is that CAB will be signed in the December visit. That would be quite the seismic move.

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Looks like the performance of WingLoong-2 hasn't been great with Saudis, which is why they went for CH-4 and TB-001. But WingLoong-3 is quite a different beast, so Saudis might want that.

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Egyptians are looking for Chinese loitering munitions. I'd be more excited to see them export j-10s to Egypt.

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Looks like more Moroccan sales are coming too. China loves doing these 2 sided sales. But in general, it's weapons should be attractive to GCC countries and North African countries.
 

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