Archive for ‘GeoPolitics’

23/05/2013

* China to lend $580 mln for Sri Lanka development projects

China is past-master at geopolitics. India is a novice.

Reuters: “China Development Bank Corporation will lend $580 million to Sri Lanka to help implement key infrastructure projects, a government document released on Wednesday showed.

English: Location map of Sri Lanka. Equirectan...

English: Location map of Sri Lanka. Equirectangular projection. Strechted by 101.0%. Geographic limits of the map: N: 10.2° N S: 5.5° N W: 79.2° E E: 82.3° E Made with Natural Earth. Free vector and raster map data @ naturalearthdata.com. (Photo credit: Wikipedia)

The loan will bring CDB’s total lending to Sri Lanka to more than $1.4 billion. China’s increasing influence in the island nation has stoked concerns in neighbouring India.

According to the document, $300 million of the loan will be spent on developing roads and $200 million on water supply projects, with the rest going to the national business school.

It said CDB had already extended $652 million for road development projects and $214 million for an irrigation project.

The loan announcement comes ahead of a four-day official visit to China by Sri Lankan President Mahinda Rajapaksa.

The $59 billion economy has increasingly relied on China for financing and technical expertise for reconstruction projects following the end of its long civil war in May 2009.

In March, China’s Export-Import Bank agreed a $278.2 million loan to finance a rail track to a port Beijing is building in Sri Lanka’s deep south of Hambantota.

China has loaned $1.5 billion for the port’s construction and $209 million for a nearby airport.

Similar port developments from Myanmar to Pakistan have raised Indian fears about Chinese political and military influence, but Rajapaksa has rejected such concerns, saying China’s presence in Sri Lanka is strictly business-related.”

via China to lend $580 mln for Sri Lanka development projects | Reuters.

See also: http://chindia-alert.org/political-factors/geopolitics-chinese/

About these ads
19/05/2013

* China Premier Li Keqiang in India for first foreign trip

BBC: “China‘s Premier Li Keqiang is travelling to India in the first stop of his maiden foreign trip since taking office.

Chinese and Indian flags flie in New Delhi on 18 May 2013

Upon his arrival in Delhi, Premier Li will hold talks with Prime Minister Manmohan Singh, followed by dinner at the Indian leader’s residence.

Border tensions and trade ties are expected to be among the issues discussed by the two men.

The neighbours are the world’s two most populous countries.

Beijing hopes the visit will help build trust and a new strategic partnership to the benefit of both countries, China’s official news agency Xinhua said.

Delhi thought “very highly” of Mr Li’s decision to make India his first foreign stop and the aim of the talks was to “enhance trust”, Indian foreign ministry spokesman Syed Akbaruddin said.

A decades-long border dispute flared up last month after India accused Chinese troops of crossing the countries’ de facto border in the Himalayas.

The dispute over the territory in the Ladakh region has dogged the two countries since the 1950s.

Boosting trade ties is also expected to dominate the talks. China is already one of India’s top trading partners and both countries have already agreed a new $100bn (£65bn) bilateral trade target for 2015.

Premier Li will spend three days in India before travelling on to Pakistan, Switzerland and Germany.”

via BBC News – China Premier Li Keqiang in India for first foreign trip.

15/05/2013

* Arctic Council to rule on observer status for China

FT: “The Arctic is at the centre of a global geopolitical battle as China, India and Japan attempt to join the main body involved in setting the rules for future development of the polar region.

Oil drilling in the Arctic seas has become a highly contentious issue.

At a meeting in Kiruna in northern Sweden on Wednesday and Thursday, ministers from the five Nordic countries, the US, Canada and Russia will decide whether to let 14 countries and organisations gain the status of “observer” to the Arctic Council.

China is the most controversial name on the list, but its candidacy has the support of all the Nordic countries.

Canada and Russia have expressed concerns about further opening up the council, which already has six European countries as observers as well as various intergovernmental and non-government organisations. The US has said it is undecided over the decision, which needs unanimity.

The Arctic is viewed as an increasingly strategic area due to the presence of many resources such as oil, as well as the possibility of quicker shipping routes between Europe and Asia as the ice in the polar region continues to melt.

China, Japan, South Korea, Singapore, India, the EU, Italy and Greenpeace are among the bodies applying at the twice yearly summit for observer status, which would allow them to attend all meetings but not participate in the ministerial conferences.

The council, which was launched in 1996 and serves as a body for international rulemaking on the Arctic.

In a sign of the importance the US is now according the Arctic, secretary of state John Kerry arrived on Tuesday in Sweden for talks first in Stockholm with the government and then in Kiruna.

China has heavily wooed Nordic countries such as Iceland, with which it signed the first free-trade agreement with a European country last month.

Oil exploration in the Arctic has proved to be incredibly difficult, but more than a fifth of the world’s undiscovered oil and gas reserves is thought to be in the region, and there is also great scope for mining of various minerals in places such as Greenland, northern Sweden and Finland.

A northern sea route through the Arctic to the north of Russia could cut several weeks off shipping times and thousands of kilometres off distances between Europe and Asia, especially in the summer, which experts think could soon be ice-free in parts of the region.”

via Arctic Council to rule on observer status for China – FT.com.

14/05/2013

* India and China; making up, but what about trade?

FT: “Salman Khurshid, India’s foreign minister, is back from a trip to China last week, happy to see the end of a tense stand-off over a long-running border dispute. Settling that issue will re-open the way for a planned visit by Chinese Premier Li Keqiang to India and allow the two countries to concentrate on the big topic on Khurshid’s agenda: trade.

But here, too, relations between the region’s big powers are not entirely friendly.

Back in November 2011, India and China set a target for bilateral trade of $100bn for 2015. That’s quite a leap from $2.3bn a decade ago and marks a concrete step in bringing the two nations closer together.

But the balance of trade is strongly in China’s favour. Now Kurshid has put the November 2011 agreement “on pause” until the imbalance is resolved.

According to India’s department of commerce, India’s exports to China in April to December 2012 were worth $9.7bn. In the same period, China’s exports to India were worth $41.2bn – a bilateral trade deficit for India of $31.5bn, nearly a quarter of India’s entire trade deficit in the period.

Khurshid claimed not to have minced his words:

We said that let the trade imbalance be addressed upfront as an urgent priority, and then of course we can move to the next stage which is the regional trading arrangement.

What does the minister want from China? One target is better market access, especially for India’s IT and pharmaceuticals companies. Indian business leaders complain that exports to China would be much greater if China’s big state owned enterprises could be persuaded to source from foreign suppliers.

But others say a lack of competitiveness among Indian manufacturers contributes to the problem.

“China has a very competitive manufacturing sector that is able to produce at a large scale pretty efficiently and for reasonable prices,” says Louis Kuijs, chief China economist at RBS.

“Sometimes we would be inclined to think there is a lot of [Chinese] government policy behind this. People point to the subsidies that China’s government has given to industries in the past and companies having preferential access to loans. But in the bigger scheme of things, those subsidies aren’t the driving force. China is a bit ahead in industrialisation and has becomes very competitive globally.”

Kuijs doesn’t think this is about to change. Chinese manufacturers do good business in India in both consumer goods and capital goods. And he takes the view that, despite the current cyclical slowdown, both consumption and infrastructure investment will remain robust in India, so demand for Chinese products will continue to grow.

A little tinkering on a calculator provides a bit of good news for Indian trade, however. According to data from the World Trade Organization, India’s global merchandise exports grew faster than China’s between 2005 and 2012. Over the seven-year period, India’s exports grew at an average 18.3 per cent a year, against a figure of 16.3 per cent for China and 9.4 per cent for the world as a whole.

So, Indian exports are growing relatively quickly. But China’s lower growth comes from a far higher base. In 2012, China exported goods worth more than $2tn while India’s exports were worth $293bn. Even with their faster rate of growth, it will take a long time for India’s exporters to catch up on China’s lead.”

via India and China; making up, but what about trade? | beyondbrics.

14/05/2013

A shift in Chinese strategy on North Korea?

Reblogged from China Daily Mail:

Click to visit the original post

There seems to have been a shift in Chinese-North Korean relations as the Bank of China has stopped its business with a North Korean bank:

Bank of China Ltd. said it cut off dealings with North Korea's primary foreign-exchange bank in the first publicly announced move by a Chinese state-owned company to distance itself from Pyongyang and its young leader Kim Jong Eun.

Read more… 1,039 more words

Wonder if North Korea is finally getting the message, that if it does not change its ways, its only friend, China, will be forced to abandon it.
12/05/2013

* China’s Evolving ‘Core Interests’

NY Times: “Whenever China wants to identify the issues considered important enough to go to war over, it uses the term “core interests.” The phrase was once restricted to Taiwan, the island nation that China has threatened to forcibly unify with the mainland. About five years ago, Chinese leaders expanded the term to include Tibet and Xinjiang, two provinces with indigenous autonomy movements that Beijing has worked feverishly to control.

An image of the Chinese flag and sailors standing on Spratly Islands is displayed on a big screen in Tiananmen Square, March 2, 2013.

Since then, Chinese officials have spoken more broadly about economic growth, territorial integrity and preserving the Communist system. But recently they narrowed their sights again, extending the term explicitly to the East China Sea, where Beijing and Tokyo are dangerously squabbling over some uninhabited islands. Top Chinese military officials first delivered the message to Gen. Martin Dempsey, chairman of the Joint Chiefs of Staff, when he visited Beijing last month. The next day, the Foreign Ministry spokeswoman, Hua Chunying, told reporters that “the Diaoyu Islands are about sovereignty and territorial integrity. Of course it’s China’s core interest.”

This wording, with its threatening implications, is raising new tensions in a region already on edge over North Korea and several other maritime disputes, and it will make it harder to peacefully resolve the dispute over the islands, called Diaoyu in China, and Senkaku in Japan.

While Japan has held the islands for more than a century, China also claims title and has sent armed ships and planes from civilian maritime agencies to assert a presence around them. The waters adjacent to the islands are believed to hold oil and gas deposits.

To some extent, China is simply throwing its weight around, challenging the United States and its regional allies. On Wednesday and Thursday, Chinese state-run newspapers carried commentaries questioning Japan’s sovereignty over the island of Okinawa, where about 25,000 American troops are based. Japan, whose wartime aggression against China and other countries still engenders animosity, has not helped. Last September, the government of Prime Minister Yoshihiko Noda provocatively bought three of the islands from their private owner.”

via China’s Evolving ‘Core Interests’ – NYTimes.com.

11/05/2013

* India, China working on Border Cooperation Agreement: Khurshid

The Hindu: “Mr. Khurshid visited China in the backdrop of the Chinese incursion in Daulat Beg Oldi.

External Affairs Minister Salman Khurshid speaking to the reporters after after meeting former Railways Minister Pawan Kumar Bansal at his residence in New Delhi on Saturday. Photo: PTI

Against the backdrop of China’s recent incursion in Ladakh, External Affairs Minister Salman Khurshid on Saturday said the two countries are working on a new Border Defence Cooperation Agreement.

Mr. Khurshid, just back from his visit to Beijing, said the two sides had underlined that the incidents like the recent incursion in Daulat Beg Oldi should not happen and agreed that this issue should not come in way of improving ties.

Mr. Khurshid told reporters here that special representatives of India and China will meet in a couple of months to discuss in detail the issues related to boundary. “China has proposed sometime back a proposal for Border Defence Cooperation Agreement… We have also given our suggestions,” he said.

On the recent incursion of 19 km into India’s territory by Chinese troops, he said, “we did not do any post-mortem or aportion blame.” He expressed satisfaction that the mechanisms in place worked well to resolve the stand off.

On the contentious issues which could be raised during the visit of Chinese premier Li Keqiang, Mr. Khurshid said, “there are no prickly issues, issues of major differences which can be seen as obstacles.” He said MoUs would be signed during the Chinese premier’s visit and some during Prime Minister Manmohan Singh’s subsequent visit to Beijing later this year.

“This is for the first time since 1954 that a two way visit by the two Prime Ministers of the two countries in the same year,” he said.”

via India, China working on Border Cooperation Agreement: Khurshid – The Hindu.

09/05/2013

* China Dips a Toe Into Mideast Diplomacy

For the first time, China is taking its role as a world leader in international politics, rather than staying in the background.

NY Times: “China took a modest step into Middle East diplomacy this week, hosting back-to-back visits from Mahmoud Abbas, the leader of the Palestinian Authority, and Prime Minister Benjamin Netanyahu of Israel.

But this was not exactly Camp David by the Forbidden City.

The fact that the visits were timed so the two leaders would not meet — Mr. Abbas left Beijing on Tuesday, and Mr. Netanyahu arrived Wednesday after a swing through Shanghai — signaled that neither they nor Xi Jinping, China’s leader, were ready for actual talks. But Mr. Xi did present a four-point peace proposal to Mr. Abbas, which, though it did not contain any breakthrough ideas, hinted that China had given some thought to playing a more energetic, if very limited, role as mediator in one of the world’s most protracted conflicts.

“As China’s economy, national strength and international status grow, Arab countries are looking more to China,” said Guo Xiangang, a vice president of the China Institute of International Studies in Beijing who follows China’s relations with Middle Eastern nations. “The expectations they place on China are growing.”

In their meeting on Wednesday afternoon, Prime Minister Li Keqiang of China told Mr. Netanyahu that “the Palestinian issue is a core issue affecting the peace and stability of the Middle East, and a peaceful solution reached through dialogue and negotiations is the only effective answer,” according to Xinhua, the state news agency.

“As a friend of both Israel and the Palestinians, China has always maintained an objective and fair stance, and is willing to strive together with all sides to actively advance the Middle East peace process,” Mr. Li said.

China has been careful to take a clear and consistent but not strong stand on the Israeli-Palestinian issue. China has growing trade ties with Israel — the value of their trade relationship has been estimated in official Chinese news reports to be nearly $10 billion a year — but it supports Palestinian statehood and relies on crude oil imports from Iran and Arab nations to meet its energy needs. About half of China’s oil imports come from the Middle East, and that dependency is expected to deepen.

The core of the four-point plan that Mr. Xi presented to Mr. Abbas was the establishment of a Palestinian state alongside Israel, based on the 1967 boundaries and with East Jerusalem as its capital. The plan was a formal version of China’s traditional stand on the conflict.

At the United Nations, where China sits on the Security Council, Mr. Abbas has pushed for greater status for the Palestinians, which has drawn economic reprisals from Israel and has led to a reduction in donations from foreign supporters. On Tuesday, the Chinese Foreign Ministry spokeswoman, Hua Chunying, said at a news conference that Israel had to halt the building of settlements in East Jerusalem and the West Bank, stop violence against innocent civilians and end the blockade against the Gaza Strip to clear the way for peace talks.

But China’s measured stand on the conflict was evident in some of Mr. Xi’s comments during his meeting with Mr. Abbas. “Israel’s right to exist and its reasonable security concerns should be fully respected,” Mr. Xi said, according to a report by Xinhua.”

via China Dips a Toe Into Mideast Diplomacy – NYTimes.com.

09/05/2013

* China mouthpiece claims rights over Okinawa

This is most confusing. On the one hand China is proclaiming loud and clear that it will work with its neighbours and ASEAN nations to defuse conflicting territorial claims and to foster peace. Yet, on the other hand, pronouncements such as this works in the opposite direction.  There must be something in Sun Tzu’s writings that will help to clarify this.  Do any of my READERs know?

Bangkok Post: “The lengthy article in the People’s Daily, China’s most-circulated newspaper and the mouthpiece of the ruling Communist party, argued that China may have rights to the Ryukyu island chain, which includes Okinawa.

“Unresolved problems relating to the Ryukyu Islands have reached the time for reconsideration,” wrote Zhang Haipeng and Li Guoqiang, citing post World War II declarations which require Japan to return Chinese territory.

The authors are scholars at the Chinese Academy of Social Sciences, considered China’s top state-run think tank.

The article also repeated Chinese government arguments for China’s historical claims over a set of tiny uninhabited islets in the East China Sea known as Diaoyu in Chinese and Senkaku in Japanese.

The two nations have stepped up a war of words over the dispute in recent months, with Beijing’s vessels regularly entering the waters around the Tokyo-controlled islands, stoking fears of armed conflict.

Okinawa is the biggest of the Ryukyu islands, which stretch for about 1,000 kilometres (620 miles) from Japan’s mainland, and was the centre of the Ryukyuan kingdom which paid tribute to Chinese emperors until it was absorbed by Japan in 1879.

The island is home to major US air force and marine bases as well as 1.3 million people, who are considered more closely related to Japan in ethnic and linguistic terms than to China.

But some Chinese see historical ties as a basis for sovereignty and dismiss Japan’s possession of the islands as a legacy of its aggressive expansionism that ended in defeat at the end of the Second World War.

China’s government does not make such claims, but state media have from time to time carried articles and commentaries questioning Japan’s authority.”

via China mouthpiece claims rights over Okinawa | Bangkok Post: breakingnews.

09/05/2013

China and Taiwan cross-strait representative offices: One offensive, the other defensive

Reblogged from China Daily Mail:

Click to visit the original post

Great progress has been made in the talks on mutual establishment of representative offices across the Taiwan Strait. Now both sides have begun to make preparations.

We can foresee that in the future, the mainland’s agency stationed in Taiwan will bring its great economic power into play by performing its service functions and launching peaceful offensives.

With super public-relations skill, it will become the media’s favourite, drawing great attention in Taiwan.

Read more… 747 more words

Another illustration of the Chinese pragmatism. Why let 'politics and dogma' stand in the way of good mutual trade relationship? See also: http://chindia-alert.org/social-cultural-diff/chinese-mindset/
Follow

Get every new post delivered to your Inbox.

Join 157 other followers