Archive for ‘GeoPolitics’

18/06/2015

Venezuela to get $5 billion in funding from China in next few months: PDVSA official | Reuters

Venezuela will receive a loan of $5 billion from China in the coming months for crude oil projects, a director at state-owned Petroleos de Venezuela said on Tuesday.

The flow of crude oil is seen in a container while an oilfield worker works on a drilling rig at an oil well operated by Venezuela's state oil company PDVSA, in the oil rich Orinoco belt, near Cabrutica at the state of Anzoategui April 16, 2015.  REUTERS/Carlos Garcia Rawlins

China has become Venezuela’s principal financier over the last decade, lending more than $46 billion to be repaid in oil.

“It is being discussed right now and will come within a few months,” Orlando Chacin, vice president of exploration and production at PDVSA [PDVSA.UL], said in an interview.

The resources should help the oil company as it handles the severe impact of the drop in crude prices.

Oil makes up 96 percent of the country’s foreign income.

The funds seemed to be part of an overall $10 billion loan a PDVSA source earlier this year said Venezuela had negotiated with the Development Bank of China, half for oil projects.

“They are for many projects,” Chacin said. He said many of those would be in the vast Orinoco Belt, which contains most of Venezuela’s crude, but did not offer more details.

Venezuela is looking to increase crude production in the Orinoco region to offset declines in other traditional areas and to stimulate its struggling economy.

The country’s international reserves hit 12-year lows this month as the economy suffers a recession, high inflation and shortages of basic goods.

via Venezuela to get $5 billion in funding from China in next few months: PDVSA official | Reuters.

01/06/2015

Pranab in Sweden, key pacts to be signed – The Hindu

President Pranab Mukherjee on Sunday arrived here on the first leg of his five-day state visit to Sweden and Belarus, the first ever by any Indian head of State, during which a number of key agreements on sustainable development, scientific research are likely to be signed.

Sweden's Crown Princess Victoria and Prince Daniel receive President Pranab Mukherjee at Arlanda airport, north of Stockholm.

On his arrival, Mr. Mukherjee was received by Crown Princess Victoria at the Arland airport. Later, he was received at the Royal Mews by the King Carl XVI Gustaf and Queen Silvia from where he was taken on a horse-drawn cortege to the Royal Palace, where the traditional welcoming ceremony took place.

Earlier in New Delhi, he was given a ceremonial send-off at Rashtrapati Bhavan by Prime Minister Narendra Modi, Vice President Hamid Ansari, Delhi Lieutenant Governor Najeeb Jung, External Affairs Minister Sushma Swaraj, Finance Minister Arun Jaitley and the three Service Chiefs.

During his three-day State visit in Sweden, the President will meet Prime Minister Stefan Lofven, the Speaker of the Swedish Parliament, and the Leader of Opposition, Anna Kinberg Batra besides number of meetings with the King and the Queen. The visit will focus on innovation, sustainable development, urban development and scientific research with both countries exploring ways to enhance mutual exchange in the areas of trade and science.

via Pranab in Sweden, key pacts to be signed – The Hindu.

26/05/2015

Taiwan offers South China Sea peace plan | Reuters

Taiwan proposed a peace initiative on Tuesday to resolve territorial disputes in the South China Sea that it says will reduce tensions that have put Beijing at odds with its neighbors and the United States.

Taiwan President Ma Ying-jeou arrives at Taiwan's Mainland Affairs Council in Taipei, Taiwan, April 29, 2015. REUTERS/Pichi Chuang

The South China Sea Peace Initiative announced by President Ma Ying-jeou called on claimants to temporarily shelve their disagreements to enable negotiations on sharing resources.

Ma’s plan is similar to a 2012 proposal for the East China Sea, which allowed Taiwan and Japan to jointly fish in the contested waters.

However it appeared unlikely the plan would be accepted by China, which claims most of the South China Sea and has rebuffed earlier attempts at multilateral negotiations.

“We believe Chinese people on both sides of the Strait have a duty to jointly protect China’s territorial sovereignty and maritime rights and interests and safeguard the stability of the South China Sea region,” said Hua Chunying, a spokeswoman for China’s Foreign Ministry, when asked about the plan on Tuesday.

China views self-governed Taiwan as a renegade province.

Taiwan has so far played a marginal role in disputes between China and its neighbors in the South China Sea, through which $5 trillion in ship-borne trade passes every year.

China, the Philippines, Vietnam, Malaysia, Taiwan and Brunei all have overlapping claims in the South China Sea. China said on Monday it had lodged a complaint with the United States over a U.S. spy plane that flew over parts of the disputed sea.

Ma’s remarks in a keynote speech at an international law conference in Taipei were the most public comments by Taiwan since the United States, its biggest ally, raised concerns over the speed and breadth of China’s land reclamation in the area.

“We demand that freedom of navigation and overflight be respected in the South China Sea,” said Ma, who urged a peaceful resolution “before a major conflict breaks out”.

Taiwan normally maintains a low-key approach to such issues but has coast guard and military facilities in the area, including an airstrip and soon-to-be-completed port on Taiping Island, also known as Itu Abu, the largest natural land mass in the disputed Spratlys archipelago.

“I believe the mainland side understands the spirit and principle of our South China Sea peace initiative,” Taiwan Foreign Minister David Lin told reporters after Ma’s speech.

The rival claims by Taiwan and China go back to before they split in a civil war in 1949 after the defeated Nationalists fled to the island from the Communists.

via Taiwan offers South China Sea peace plan | Reuters.

18/05/2015

Narendra Modi arrives in South Korea on final leg of tri-nation tour – The Hindu

Prime Minister Narendra Modi arrived in Seoul on Monday on the last leg of his three-nation visit during which he will hold talks with the South Korean leadership aiming to give a fillip to economic and trade cooperation.

Prime Minister Narendra Modi at the Seoul National Cemetery. Photo: PIB

A slew of agreements are expected to be signed during the visit including one on Double Taxation Avoidance Convention, cooperation in shipping and logistics, audiovisual co-production, transport, highways and electric power development in new energy industries.

The Prime Minister, who flew in from Mongolia after his three-day visit to China, will hold talks on the entire gamut of bilateral, regional and global issues with President Park Geun-hye and explore ways to upgrade cooperation in diversified areas.

He will have a hectic schedule that will start with a wreath—laying ceremony at the Seoul National Cemetery.

Mr. Modi will address a community reception where about 1,500 members of the Indian community are expected to attend before getting into talks with the Korean President.

Mr. Modi, who is keen to woo Korean investments in India, will address India—Republic of Korea CEOs Forum, which would also be attended by the Korean President.

The Prime Minister will follow this up with meetings with some of the heads of Korean companies that are willing to invest in India or have already invested in India.

He will also visit the Hyundai Heavy Industries shipyard in the backdrop of shipbuilding emerging as an important area of cooperation between the two countries.

via Narendra Modi arrives in South Korea on final leg of tri-nation tour – The Hindu.

17/05/2015

India to open $1 billion credit line to finance infrastructure in Mongolia | Reuters

India will open a $1 billion credit line to bolster Mongolia‘s “economic capacity and infrastructure”, the Mongolian and Indian prime ministers announced on Sunday.

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Mongolia is seeking investment in infrastructure for the transport of its minerals as well as in generating energy. Money has been tight for the Mongolian government since the coal market in China weakened and growth has slowed.

Indian Prime Minister Narendra Modi said he hoped his visit would bring closer economic relations that could lead to cooperation in Mongolia’s minerals sector. India has no investments in Mongolia’s mines, although Indian companies have expressed interest in its coal.

Modi said economic relations between the two countries had been modest though that would change as India grew.

“As the Indian economy adds strength to our region and the world, it will also benefit Mongolia,” he said.

Modi began a three-nation Asian tour on Thursday with a focus on economic ties.

Before Ulan Bator, Modi visited the Chinese cities of Shanghai and Beijing. He is next scheduled to go to South Korea.

Mongolian Prime Minister Chimed Saikhanbileg said India would be opening a $1 billion credit line that could be used for expanding the landlocked nation’s railway system.

Mongolia is building a rail link from its coal mines in the Gobi desert to overcome bottlenecks in deliveries to China, but it is seeking funding to finish the job.

Saikhanbileg also mentioned establishing a “joint investment fund” but he did not elaborate.

Indian and Mongolian officials signed 14 agreements in areas such as renewable energy, cyber security and dairy production.

Modi’s visit to Ulan Bator was the first by an Indian prime minister although India was the first country to open diplomatic relations with the north Asian country outside of the Soviet bloc, in 1955.

Modi said India and Mongolia shared friendly connections, recalling how millennia ago, Indians helped bring Buddhism.

“We have a strong convergence of views,” Modi said, adding: “We are starting a new era in our partnership.”

via India to open $1 billion credit line to finance infrastructure in Mongolia | Reuters.

12/05/2015

Optics as well as substance important as India’s Modi visits China | Reuters

When Indian Prime Minister Narendra Modi arrives in the ancient city of Xian on Thursday at the start of a visit to China, he will be met by Chinese President Xi Jinping, in an unusual departure from normal protocol.

India's Prime Minister Narendra Modi (R) and China's President Xi Jinping shake hands during a photo opportunity ahead of their meeting at Hyderabad House in New Delhi September 18, 2014. REUTERS/Ahmad Masood

Top Chinese leaders almost never travel outside Beijing to meet senior foreign guests on bilateral visits, and Xi’s appearance in Xian, located in Xi’s home province of Shaanxi, underscores China’s determination to set aside past rancor between the world’s two most populous nations, experts said.

“It definitely indicates the significance our president puts on Mr. Modi’s visit,” said Li Li, an India expert at the government-backed China Institutes of Contemporary International Relations.

“From the Chinese side, we were very impressed by the hospitality extended by Mr. Modi during Xi Jinping’s visit to India,” he added, referring to Modi greeting Xi in his home state of Gujarat when Xi visited India last year.

Modi will visit a Xian pagoda connected to Xuanzang, also known as Tripitaka, the monk who bought the Buddhist sutras to China from India thousands of years ago, according to people briefed on the trip.

“It is sending a very important message,” Li said of Xi’s going to Xian to greet Modi, a place closely connected to the deep historical links between China and India.

Still, the list of problems both countries face are considerable, ranging from a festering border dispute to China’s support for India’s arch-rival Pakistan.

Mistrust runs deep, something Xi will be keenly aware of despite the bonhomie and billions of dollars in deals likely to be signed.

Modi’s new account on Chinese social media site Weibo, China’s version of Twitter, was filled with messages soon after launching this month asking him to return what China calls South Tibet, otherwise known as the Indian state of Arunachal Pradesh.

“This is the great, great pressure the Chinese government is facing,” said Mao Siwei, a former senior Chinese diplomat who was based in India and Pakistan, talking about the need to manage Chinese public concern about the disputed area.

China claims more than 90,000 sq km (35,000 sq miles) disputed by New Delhi in the eastern sector of the Himalayas.

India says China occupies 38,000 square km (14,600 sq miles) of its territory on the Aksai Chin plateau in the west.

In September, the two armies faced off in the Ladakh sector in the western Himalayas just as Xi was visiting India for the first summit talks with Modi. This time, the border has been quiet ahead of Modi’s arrival.

While chances of a breakthrough on the border look distant, the exchange of visits by Modi and Xi so soon after both took office is a positive sign, said Ram Madhav, a senior leader of the Rashtriya Swayamsevak Sangh, a hardline Hindu nationalist organization that has close ties to Modi’s BJP.

“There is an earnest eagerness to connect with the Indian leadership,” Madhav told a forum in Beijing.

“Prime Minister Modi has chosen to come in his first year (of office) to China. It shows that the leaders on both sides are seriously attempting to … bridge the most important challenge between the two countries – the trust deficit.”

via Optics as well as substance important as India’s Modi visits China | Reuters.

11/05/2015

U.S. Congressman says engagement with China has diminished under Xi | Reuters

A United States Congressman told reporters that China’s engagement with U.S. lawmakers has diminished under President Xi Jinping in a marked change from the policy of his predecessors.

Chinese President Xi Jinping speaks with U.S. State Secretary John Kerry (R) during a lunch banquet in the Great Hall of the People in Beijing November 12, 2014.     REUTERS/Greg Baker/Pool

He also said that Chinese and Hong Kong officials were looking for a scapegoat when they blamed last years’ pro-democracy protests on “foreign forces”.

“I think it has diminished,” Congressman Matt Salmon said of China’s engagement with U.S. lawmakers under President Xi. “This president has a whole different philosophy. In fact I think if anything, this president is moving in the other direction, (away) from constructive engagement from the past two presidents.”

Salmon is chairman of the subcommittee on Asia and the Pacific under the House Committee on Foreign Affairs. The Republican representative from Arizona is in the middle of his fifth term in Congress.

Salmon was in Hong Kong as the head of a U.S. Congressional delegation, which also visited Vietnam and discussed political, trade and economic issues.

Salmon said he had not been contacted by anyone from the Chinese Embassy since he became chairman of the Asia Pacific subcommittee.

“It’s kind of strange because every other embassy in the region has reached out to me, and their ambassadors have asked for an audience with me, every one of them except for China,” he said.

The United States and China are the world’s two biggest economies. Chinese President Xi is scheduled to make his first state visit to the United States in September as the countries seek to ease tensions over issues ranging from trade and human rights to Internet hacking and theft.

Salmon said he and his delegation had met Hong Kong Chief Executive Leung Chun-ying and told him the United States had not played any role in last year’s pro-democracy protests, in which tens of thousands of people occupied major highways for two and a half months to demand open nominations in the city’s next chief executive election.

Chinese and Hong Kong officials have blamed “foreign forces” for instigating the unrest, which Salmon said was “a convenient way to scapegoat someone else”.

via U.S. Congressman says engagement with China has diminished under Xi | Reuters.

08/05/2015

China Parades Closer Ties in Moscow – China Real Time Report – WSJ

When a Chinese honor guard joins a military parade in Russia’s capital this weekend, watched by China’s President Xi Jinping, it will mark more than just a symbolic recognition of the two countries’ contributions to the Allied victory in 1945. As the WSJ’s Jeremy Page reports:

China’s participation also reflects an upgrade of its military ties with Russia, including joint naval exercises and a revival of arms purchases, that could complicate U.S.-led efforts to counter both nations’ expanding military activities, analysts and diplomats say.

The 102 Chinese troops who will join the Victory Day parade in Moscow on Saturday were seen during a rehearsal this week marching through streets near Red Square singing the Russian wartime ballad “Katyusha”, according to video footage posted online.

The only other foreign countries with troops in the parade are India, Mongolia, Serbia and six former Soviet states.

Three Chinese navy ships also made a rare foray into the Black Sea on their way to join commemorations in Russia’s southern port of Novorossiysk on Saturday.

The Chinese ships—two missile destroyers and a supply vessel — will then take part in joint exercises with the Russian navy in the Mediterranean Sea for the first time, according to Chinese and Russian authorities.

Both sides say the drills aren’t directed at other countries, but the timing, after Russia’s 2014 annexation of Crimea, and the location, on NATO’s southern flank, have compounded Western concerns about an emerging Moscow-Beijing axis.

via China Parades Closer Ties in Moscow – China Real Time Report – WSJ.

27/04/2015

China offers 20 mln yuan in humanitarian aid to quake-hit Nepal – Xinhua | English.news.cn

The Chinese government has decided to provide 20 million yuan (3.3 million U.S. dollars) in humanitarian aid to Nepal following the massive earthquake, according to the Ministry of Commerce on Sunday.

The aid, including supplies of tents, blankets and generators, will be delivered to Nepal by chartered planes, the ministry said, adding China will offer further support according to Nepal’s demands.

A massive 8.1-magnitude quake shook Nepal at 2:11 p.m. (Beijing Time), killing more than 2,000 people in the country.

A 62-member China International Search and Rescue Team (CISAR) arrived in Nepal’s capital Katmandu at Sunday noon and started quake-relief work, according to the China Earthquake Administration.

via China offers 20 mln yuan in humanitarian aid to quake-hit Nepal – Xinhua | English.news.cn.

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20/04/2015

Chinese president to launch economic corridor link in Pakistan | Reuters

Chinese President Xi Jinping arrived in Pakistan on Monday to launch $46 billion in projects linking the allies, a figure that would far exceed U.S. spending in Pakistan and underscores China’s economic ambitions in Asia and beyond.

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The infrastructure and energy projects are aimed at establishing a Pakistan-China Economic Corridor between Pakistan’s southern Gwadar port on the Arabian Sea and China’s western Xinjiang region.

The plan is part of China’s aim to forge “Silk Road” land and sea ties to markets in the Middle East and Europe and reflects a shift of economic power in the region to China, said Mushahid Hussain Sayed, chairman of the Pakistani parliament‘s defense committee.

“Pakistan, for China, is now of pivotal importance. This has to succeed and be seen to succeed,” he said.

The corridor, a network of roads, railways and pipelines, will pass through Pakistan’s poor Baluchistan province where a long-running separatist insurgency, which the army has again vowed to crush, will raise doubts about the feasibility of the plan.

The security of Chinese workers will be a prime concern for Xi. In his talks with Pakistani Prime Minister Nawaz Sharif and military leaders, Xi is also likely to raise China’s fears that Muslim separatists from Xinjiang are teaming up with Pakistani militants.

Xi has linked economic cooperation with security.

“Our cooperation in the security and economic fields reinforce each other, and they must be advanced simultaneously,” he said in a statement to media on the eve of his two-day visit.

Xi is expected to call for greater efforts to bring peace to Afghanistan, where Pakistan is keen to restrict the influence of is rival India.

via Chinese president to launch economic corridor link in Pakistan | Reuters.

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