Archive for ‘Infrastructure’

29/09/2019

China anniversary: The deep cuts of 70 years of Communist rule

Children waving Chinese flagsImage copyright GETTY IMAGES
Image caption China’s version of its past is a story of prosperity, progress and sacrifice for the common good

China’s extraordinary rise was a defining story of the 20th Century, but as it prepares to mark its 70th anniversary, the BBC’s John Sudworth in Beijing asks who has really won under the Communist Party’s rule.

Sitting at his desk in the Chinese city of Tianjin, Zhao Jingjia’s knife is tracing the contours of a face.

Cut by delicate cut, the form emerges – the unmistakable image of Mao Zedong, founder of modern China.

The retired oil engineer discovered his skill with a blade only in later life and now spends his days using the ancient art of paper cutting to glorify leaders and events from China’s communist history.

“I’m the same age as the People’s Republic of China (PRC),” he says. “I have deep feelings for my motherland, my people and my party.”

Zhao Jingjia with a paper cut of Mao Zedong
Image caption For people like Zhao Jingjia, China’s success outweighs the “mistakes” of its leaders

Born a few days before 1 October 1949 – the day the PRC was declared by Mao – Mr Zhao’s life has followed the dramatic contours of China’s development, through poverty, repression and the rise to prosperity.

Now, in his modest but comfortable apartment, his art is helping him make sense of one of the most tumultuous periods of human history.

“Wasn’t Mao a monster,” I ask, “responsible for the deaths of tens of millions of his countrymen?”

“I lived through it,” he replies. “I can tell you that Chairman Mao did make some mistakes but they weren’t his alone.”

“I respect him from my heart. He achieved our nation’s liberation. Ordinary people cannot do such things.”

On Tuesday, China will present a similar, glorious rendering of its record to the world.

The country is staging one of its biggest ever military parades, a celebration of 70 years of Communist Party rule as pure, political triumph.

Beijing will tremble to the thunder of tanks, missile launchers and 15,000 marching soldiers, a projection of national power, wealth and status watched over by the current Communist Party leader, President Xi Jinping, in Tiananmen Square.

An incomplete narrative of progress

Like Mr Zhao’s paper-cut portraits, we’re not meant to focus on the many individual scars made in the course of China’s modern history.

It is the end result that matters.

Mao Zedong declares the People's Republic of China in Beijing on 1 Oct 1949Image copyright XINHUA/AFP
Image caption Mao Zedong pronounces the dawn of the People’s Republic of China on 1 October 1949

And, on face value, the transformation has been extraordinary.

On 1 October 1949, Chairman Mao stood in Tiananmen Square urging a war-ravaged, semi-feudal state into a new era with a founding speech and a somewhat plodding parade that could muster only 17 planes for the flyby.

This week’s parade, in contrast, will reportedly feature the world’s longest range intercontinental nuclear missile and a supersonic spy-drone – the trophies of a prosperous, rising authoritarian superpower with a 400 million strong middle class.

It is a narrative of political and economic success that – while in large part true – is incomplete.

New visitors to China are often, rightly, awe-struck by the skyscraper-festooned, hi-tech megacities connected by brand new highways and the world’s largest high-speed rail network.

Shanghai skylineImage copyright GETTY IMAGES
Image caption Those in China’s glittering cities may accept the trade-off of political freedom for economic growth

They see a rampant consumer society with the inhabitants enjoying the freedom and free time to shop for designer goods, to dine out and to surf the internet.

“How bad can it really be?” the onlookers ask, reflecting on the negative headlines they’ve read about China back home.

The answer, as in all societies, is that it depends very much on who you are.

Many of those in China’s major cities, for example, who have benefited from this explosion of material wealth and opportunity, are genuinely grateful and loyal.

In exchange for stability and growth, they may well accept – or at least tolerate – the lack of political freedom and the censorship that feature so often in the foreign media.

For them the parade could be viewed as a fitting tribute to a national success story that mirrors their own.

But in the carving out of a new China, the knife has cut long and deep.

The dead, the jailed and the marginalised

Mao’s man-made famine – a result of radical changes to agricultural systems – claimed tens of millions of lives and his Cultural Revolution killed hundreds of thousands more in a decade-long frenzy of violence and persecution, truths that are notably absent from Chinese textbooks.

Archive image of a starving woman and child during the famine in ChinaImage copyright GETTY/TOPICAL
Image caption Tens of millions starved to death under Mao, as China radically restructured agriculture and society

After his death, the demographically calamitous One Child Policy brutalised millions over a 40-year period.

Still today, with its new Two Child Policy, the Party insists on violating that most intimate of rights – an individual’s choice over her fertility.

The list is long, with each category adding many thousands, at least, to the toll of those damaged or destroyed by one-party rule.

Chinese baby in front of Chinese flagImage copyright GETTY IMAGES
Image caption Beijing still regulates how many children families can have

There are the victims of religious repression, of local government land-grabs and of corruption.

There are the tens of millions of migrant workers, the backbone of China’s industrial success, who have long been shut out of the benefits of citizenship.

A strict residential permit system continues to deny them and their families the right to education or healthcare where they work.

And in recent years, there are the estimated one and a half million Muslims in China’s western region of Xinjiang – Uighurs, Kazakhs and others – who have been placed in mass incarceration camps on the basis of their faith and ethnicity.

China continues to insist they are vocational schools, and that it is pioneering a new way of preventing domestic terrorism.

The stories of the dead, the jailed and the marginalised are always much more hidden than the stories of the assimilated and the successful.

Viewed from their perspective, the censorship of large parts of China’s recent history is not simply part of a grand bargain to be exchanged for stability and prosperity.

People holding pictures of Mao and the Little Red Book in Tiananmen Square, 1966

Getty
Timeline of modern China

  • 1949 Mao declares the founding of the People’s Republic of China
  • 1966-76 Cultural Revolution brings social and political upheaval
  • 1977 Deng Xiaoping initiates major reforms of China’s economy
  • 1989 Army crushes Tiananmen Square pro-democracy protests
  • 2010 China becomes the world’s second-largest economy
  • 2018 Xi Jinping is cleared to be president for life
It is something that makes the silence of their suffering all the more difficult to penetrate.

It is the job of foreign journalists, of course, to try.

‘Falsified, faked and glorified’

But while censorship can shut people up, it cannot stop them remembering.

Prof Guo Yuhua, a sociologist at Beijing’s Tsinghua University, is one of the few scholars left trying to record, via oral histories, some of the huge changes that have affected Chinese society over the past seven decades.

Her books are banned, her communications monitored and her social media accounts are regularly deleted.

“For several generations people have received a history that has been falsified, faked, glorified and whitewashed,” she tells me, despite having been warned not to talk to the foreign media ahead of the parade.

“I think it requires the entire nation to re-study and to reflect on history. Only if we do that can we ensure that these tragedies won’t be repeated.”

People with poster of Mao ZedongImage copyright GETTY IMAGES
Image caption Can progress really be attributed to the leadership?

A parade, she believes, that puts the Communist Party at the front and centre of the story, misses the real lesson, that China’s progress only began after Mao, when the party loosened its grip a bit.

“People are born to strive for a better, happier and more respectful life, aren’t they?” she asks me.

“If they are provided with a tiny little space, they’ll try to make a fortune and solve their survival problems. This shouldn’t be attributed to the leadership.”

‘Our happiness comes from hard work’

As if to prove the point about how the unsettled, censored pasts of authoritarian states continue to impact the present, the parade is for invited guests only.

Mao's portrait hanging in Tiananmen SquareImage copyright GETTY IMAGES
Image caption Mao’s portrait will, as it always is, be watching over the events in Tiananmen Square

Another anniversary, of which Tiananmen Square is the centrepiece, is also being measured in multiples of 10 – it is 30 years since the bloody suppression of the pro-democracy protests that shook the foundations of Communist Party rule.

The troops will be marching – as they always do on these occasions – down the same avenue on which the students were gunned down.

The risk of even a lone protester using the parade to mark a piece of history that has largely been wiped from the record is just too great.

With central Beijing sealed off, ordinary people in whose honour it is supposedly being held, can only watch it on TV.

Zhao

Back in his Tianjin apartment, Zhao Jingjia shows me the intricate detail of a series of scenes, each cut from a single piece of paper, depicting the “Long March”, a time of hardship and setback for the Communist Party long before it eventually swept to power.

“Our happiness nowadays comes from hard work,” he tells me.

It is a view that echoes that of the Chinese government which, like him, has at least acknowledged that Mao made mistakes while insisting they shouldn’t be dwelt on.

“As for the 70 years of China, it’s extraordinary,” he says. “It can be seen by all. Yesterday we sent two navigation satellites into space – all citizens can enjoy the convenience that these things bring us.”

Media caption What was China’s Cultural Revolution?

Source: The BBC

05/09/2019

Fourth China-Arab states expo opens in NW China

CHINA-NINGXIA-CHINA-ARAB STATES EXPO-OPENING (CN)

The fourth China-Arab States Expo is opened in Yinchuan, capital of northwest China’s Ningxia Hui Autonomous Region, Sept. 5, 2019. (Xinhua/Feng Kaihua)

YINCHUAN, Sept. 5 (Xinhua) — The fourth China-Arab States Expo opened Thursday in Yinchuan, capital of northwest China’s Ningxia Hui Autonomous Region.

The four-day event will feature trade fairs and forums on infrastructure, Internet plus healthcare, high technology, modern agriculture, logistics, tourism, digital economy and industrial cooperation.

Sponsored by the Ministry of Commerce, China Council for the Promotion of International Trade and Ningxia regional government, this year’s event attracts around 12,600 participants from 2,900 regional organizations, commerce chambers, associations and enterprises in 89 countries, according to the organizer of the expo.

Source: Xinhua

29/08/2019

Xi asks China, Uzbekistan to promote quality Belt and Road construction

CHINA-BEIJING-XI JINPING-UZBEK PM-MEETING (CN)

Chinese President Xi Jinping meets with visiting Uzbek Prime Minister Abdulla Aripov at the Great Hall of the People in Beijing, capital of China, Aug. 28, 2019. (Xinhua/Yao Dawei)

BEIJING, Aug. 28 (Xinhua) — Chinese President Xi Jinping met with visiting Uzbek Prime Minister Abdulla Aripov here on Wednesday, calling on the two countries to jointly push forward the high-quality construction of the Belt and Road.

Xi asked Aripov to convey his sincere regards to Uzbek President Shavkat Mirziyoyev.

The key to the constant leap-forward development of China-Uzbekistan relations is that both sides always adhere to the spirit of good-neighborliness, mutual benefit and mutual assistance, according to Xi.

Xi stressed that he attaches great importance to the development of the China-Uzbekistan comprehensive strategic partnership, which is in line with the fundamental interests of the two countries and their peoples.

Hailing the achievements of the fifth meeting of the China-Uzbekistan intergovernmental committee of cooperation, Xi said that the cooperation goals set by the two sides will certainly be realized as long as the bilateral relationship stays on the right track.

Xi called on both countries to further promote the high-quality construction of the Belt and Road, enhance synergy between national development strategies, strengthen connectivity through cross-border roads and railways, expand cooperation in trade, investment, high and new technology, energy and other fields, as well as foster new highlight in people-to-people and cultural exchanges.

China is willing to increase imports of Uzbek quality agricultural products, Xi said, adding that Uzbekistan is welcome to attend the second China International Import Expo as guest of honor later this year.

In addition, Xi said that the two sides should work together to combat the “three evil forces” of terrorism, separatism and extremism, fight against drug trafficking and other transnational organized crimes.

The rejuvenation of the Chinese nation is to seek happiness for the Chinese people and will also benefit world peace and human progress, Xi said, stressing that China will absolutely not follow the old path of “a strong country must seek hegemony.”

China is ready to enhance coordination with Uzbekistan on international affairs, safeguard common interests of the two countries, uphold multilateralism and promote democracy in international relations, Xi said.

He also called on the two countries to work with other members of the Shanghai Cooperation Organization (SCO) to raise the awareness of a community with a shared future and lift cooperation in various fields, so as to promote further development of the SCO and benefit peoples of various countries in the region.

Aripov conveyed President Mirziyoyev’s sincere greetings and lofty respect to President Xi and his warm congratulations on the 70th anniversary of the founding of the People’s Republic of China.

President Mirziyoyev sincerely hopes China will achieve greater prosperity and early national rejuvenation under the leadership of President Xi, according to Aripov.

Calling China “the closest and most reliable neighbor and partner” of Uzbekistan, Aripov said that Uzbekistan will work with China to firmly implement the important consensus reached by the two heads of state.

Mirziyoyev has appointed a special agency to synergize development strategies with the Chinese side, actively promote cooperation with China on the construction of the Belt and Road, and expand people-to-people and cultural exchanges, according to Aripov.

Uzbekistan firmly supports China in safeguarding its sovereignty, security and unity, and will continue to actively work with China to combat the “three evil forces” of terrorism, separatism and extremism, said Aripov.

Aripov is paying an official visit to China from Tuesday to Thursday at the invitation of Chinese Premier Li Keqiang.

Source: Xinhua

25/08/2019

China increases its presence in Russia’s former Central Asian backyard

  • A recent joint exercise in Tajikistan is the latest example of Beijing’s growing security and economic interests in the former Soviet republic
  • Analysts say Moscow may not be happy about China’s growing reach in the lawless, mountainous area and will be keeping an eye on the situation
Chinese and Tajik troops completed a joint exercise earlier this month in the mountainous region of Gorno-Badakhshan. Photo: Xinhua
Chinese and Tajik troops completed a joint exercise earlier this month in the mountainous region of Gorno-Badakhshan. Photo: Xinhua
China is increasing its military and economic presence in parts of central Asia that Russia has traditionally considered its sphere of influence – a development some analysts believe could cause concern in Moscow.
While Russia’s influence remains strong in many former Soviet republics, China is steadily building up its military and economic influence in Tajikistan, particularly in the remote, mountainous areas on its western borders where central government authority is weak.

Chinese troops recently concluded a joint drill in eastern Tajikistan involving 1,200 troops from both countries.

The eight-day exercise that finished on August 13 was conducted in the autonomous Gorno-Badakhshan autonomous region, a sparsely populated territory in the high Pamir mountains, which borders China’s Xinjiang region and Afghanistan.
China has been increasing its security presence in the strategically sensitive region. Photo: Xinhua
China has been increasing its security presence in the strategically sensitive region. Photo: Xinhua

Although this year’s exercise involved fewer troops than the 10,000 involved in a previous drill three years ago, it tested the use of advanced aerial vehicles and ground reconnaissance technology to monitor the area.

The landlocked country is strategically important for China, which is worried that the porous borders will serve as an entry point for drugs and Islamic militants into Xinjiang, where its deradicalisation strategy has led to the detention of a million Muslim minorities in reeducation camps.

It also sits along the trade routes China hopes to develop under the Belt and Road Initiative – Beijing’s flagship plan to expand its global influence through infrastructure, trade and investment – but the area has long been plagued by lawlessness and outbreaks of violence.

The recent exercise tested aerial surveillance techniques. Photo: Xinhua
The recent exercise tested aerial surveillance techniques. Photo: Xinhua

Artyom Lukin, a professor of international politics at Far Eastern Federal University in Vladivostok, said Russia was not happy about the deployment of Chinese forces in Tajikistan.

“Russia has traditionally considered Central Asia, including Tajikistan, as its sphere of political-military influence,” he said.

Observers said other Central Asian republics – such as Kazakhstan, Uzbekistan and Kyrgyzstan – are likely to stay within Moscow’s orbit, but China is steadily building closer security ties with Tajikistan.

In February, China’s defence ministry denied that it was building a base and stationing troops in the country, but defended its closer military cooperation with Tajikistan.

The recent training exercise was conducted in an area Russia has long seen as part of its sphere of influence. Photo: Xinhua
The recent training exercise was conducted in an area Russia has long seen as part of its sphere of influence. Photo: Xinhua

China has long-standing security interests in the country and in 2016 it agreed to finance 11 border outposts and a training centre for guards along the Afghan border.

This was part of a deal Beijing made through the Quadrilateral Cooperation and Coordination Mechanism – which also involves Pakistan, Afghanistan and Tajikistan – to strengthen cooperation in combating terrorism and improving security.

China has also overtaken Russia economically, becoming the largest foreign investor in Tajikistan in 2016, accounting for 30 per cent of Tajikistan’s total direct accumulated investments, state news agency Xinhua reported.

Banned Muslim political party blamed for deadly attack on tourists in Tajikistan

China’s direct investment in Tajikistan was worth US$95 million in 2017, according to the latest available figures. China has also grown to become the country’s third largest trading partner with bilateral trade reaching around US$1.5 billion in 2018.

A recent opinion piece published by the Russian state-owned news agency Sputnik suggested China may be “getting carried away” by its investments in the region.

The article suggested that China’s growing presence in the country could lead to a “partial loss” of Tajikistan’s sovereignty and argued that Beijing may want to take control of the border with Afghanistan.

China also has economic interests to protect. Photo: Xinhua
China also has economic interests to protect. Photo: Xinhua

But Lukin said even though this growing involvement may be an irritant for Russia, the strategic partnership between China and Russia will remain strong.

The two countries remain the key players in the Shanghai Cooperation Organisation, an economic and security alliance that includes the Central Asian republics and India and Pakistan.

The two are also keen to cooperate more closely due to their tense relationship with the United States. This year Russian and Chinese armed forces  have stepped up their cooperation, and last week used a UN Security Council debate to criticise the US for pulling out of the Intermediate-Range Nuclear Forces Treaty. Washington defended the move as necessary response to Beijing and Moscow’s build up of arms.

Why Chinese investors are struggling to gain a foothold in Tajikistan

Lukin said: “Moscow no doubt understands that in terms of security, Tajikistan’s border, adjacent to China’s Xinjiang and Afghanistan, is truly a vital concern for Beijing.

“The presence of Chinese troops could actually benefit Russia, because it will be China bearing the costs of policing Tajikistan’s mountainous border areas.”

Stephen Blank, a former professor at the US Army War College and a specialist in Eurasian security, said that while Russia has mostly stayed silent about China’s presence in Tajikistan, it was closely watching the situation.

“What happens in the long run depends on how far China goes to extend its military presence in Central Asia. And if it keeps extending, it may well provoke some expression of concern in Russia beyond the silence that has hitherto been the case,” Blank said.

Chinese troops could play an increasing role in policing the area in future. Photo: Xinhua
Chinese troops could play an increasing role in policing the area in future. Photo: Xinhua

“[The recent drills] look like conventional war-fighting exercises as much as anti-terrorist operations and suggest that China may have bigger contingencies than anti-terrorism in mind.”

Mathieu Duchatel, director of the Asia programme at the Institut Montaigne, a French think tank, said both Russia and China share similar concerns about terrorism and drug trafficking in Central Asia.

He said Russia had not objected to the security pact with Pakistan, Afghanistan and Tajikistan because there are more important strategic priorities in China-Russia relations.

“Overall, Russia’s acceptance of a security role for China in Central Asia shows how Russia realistically adjusts to the changing balance of power with China, and is able to avoid a zero-sum game on issues where parallel efforts by China and Russia can serve Russian security interests,” he said.

Source: SCMP

17/08/2019

Are Chinese infrastructure loans putting Africa on the debt-trap express?

  • Beijing has lent billions of dollars to countries on the continent to build railways, highways and airports but critics say the borrowings are unsustainable
  • Chinese officials say the projects will pay off in the long run and host nations are well aware of their limits and needs
Illustration: Lau Kakuen
Illustration: Lau Kakuen
When Clement Mouamba went to Beijing last year, he had two main tasks.
The prime minister of the Republic of Congo needed to find out exactly how much his country owed to China, a number the struggling, oil-rich central African nation had until then not been able to provide the International Monetary Fund (IMF) to qualify for a bailout. He also needed to convince Beijing to restructure its debt to ensure sustainability.
The IMF had put talks for further loans on hold until Mouamba’s administration could say exactly how much it had to repay to the country’s external creditors, including China – the republic’s single largest bilateral lender – and oil multinationals such as Glencore and Trafigura.
The country, which heavily depends on oil revenue, turned to China and private oil majors for funding to run the government when in 2014 oil prices fell from a high of US$100 per barrel to as low as US$30.

Critics say countries on the continent are being burdened with unrealistic levels of debt for inviable infrastructure backed and built by China without adequate transparency and scrutiny.

The biggest concern is that several African countries will be left with huge debts and grandiose infrastructure that they cannot maintain and run profitably. I liken it to borrowing money to buy a Tesla when you don’t have adequate access to electricity: Obert Hodzi of the University of Helsinki in Finland

But Chinese observers say the West must take some of the blame for the countries’ debt problems and that the support China offers will benefit the host countries in the long run.

In the early 1990s, when China began to embrace Africa again after years of isolation from the outside world, the aspiring manufacturer was at a serious disadvantage in the race for raw materials and markets for its industrial goods.

The former colonial powers of the West had already sewn up deals for many of the continent’s most lucrative and readily exploitable reserves, from fossil fuels to minerals.

China needed new strategies to convince African governments to allow it access raw materials for its industries and markets for its products to a largely unfamiliar partner.

China also wanted to challenge the dominance of the US in global trade and politics so it courted allies in Africa to help it push for political legitimacy in international institutions.

A Kenya Railways freight train leaves the port station on the Mombasa-Nairobi railway in Mombasa, Kenya, a huge project backed by China. Photo: Bloomberg
A Kenya Railways freight train leaves the port station on the Mombasa-Nairobi railway in Mombasa, Kenya, a huge project backed by China. Photo: Bloomberg

At the time, many African leaders were under fire to liberalise their economies. China’s approach was to promise not to meddle in individual country’s internal affairs and assure African countries that they could get billions in exchange for future delivery of minerals through resource-backed deals.

Beijing sold its policies that it had no conditions attached to its development finance. In the drive to drum up business, China promised affordable loans for African countries to build roads, bridges, highways, airports and power dams.

Is Kenya’s Chinese-built railway a massive white elephant?

But Beijing also pursued tied finance, ensuring that countries borrowing from China used Chinese contractors to implement the projects rather than open them up to outside bids.

In addition, many of the deals were built on weak financial, technical and environmental conditions, with Chinese state firms conducting the technical feasibility, environmental impact assessment and financial viability studies for free for projects that they also build.

For example, in Kenya, the China Road and Bridge Corporation conducted a free feasibility study that was used in the construction of the railway.

The same company was handed the contract to implement the project and is operating both the passenger and cargo train service for a fee.

Chinese companies were responsible for the construction of a rail line between Addis Ababa and Djibouti. Photo: AFP
Chinese companies were responsible for the construction of a rail line between Addis Ababa and Djibouti. Photo: AFP

In contrast, the World Bank and its partner institution, the IMF, demand that such studies be done by an independent consultant and not by the company that implements the project.

According to data compiled by the China-Africa Research Initiative, at the Johns Hopkins University School of Advanced International Studies, Beijing has advanced loans worth US$143 billion to African countries since 2000, levels that some critics say are unsustainable for the borrowers.

China meets resistance over Kenya coal plant, in test of its African ambitions

For many of China’s new African partners, these arrangements – from easy lending terms, to non-competitive bidding and opaque contract details – have led to new problems – problems that corrupt or poorly managed governments now share substantial responsibility.

Some critics, both in the West and in host countries, suggest there is a “debt-trap strategy” at the heart of Beijing’s push for international business and influence, but there is no evidence that China deliberately pushes other countries into debt to seize their assets or gain sway.

However, the drive for overseas contracts and big business has led some countries into difficulties with new debts, and there are question marks over the viability of many of the projects the money is funding.

Obert Hodzi, an international relations expert at the University of Helsinki in Finland, said the Addis Ababa-Djibouti railway and the Mombasa-Nairobi railway were good examples of huge projects that were financed by easy borrowing terms from China but were not sustainable and that had in turn forced the African partners to seek further Chinese help.

“The biggest concern is that several African countries will be left with huge debts and grandiose infrastructure that they cannot maintain and run profitably,” Hodzi said. “I liken it to borrowing money to buy a Tesla when you don’t have adequate access to electricity.”

Ken Opalo, a Kenyan scholar at Georgetown University in Washington, said the key issue was the inability of African countries to design projects that were actually needed for the local economies.

A road is not just a means of transport but an economic belt or corridor that will catalyse the development of the whole region: Huang Xueqing, spokeswoman for the Chinese embassy in Nairobi

“Most African countries have been willing to accept projects designed, financed, and implemented by Chinese firms,” Opalo said.
“It would be better to decouple the feasibility studies and design phases of projects from the financing. That way African governments can ensure that they are truly getting value for money.”
But Chinese officials said Beijing had invested in infrastructure largely at the request of the host countries, adding that it could take time to yield returns on the projects.

Huang Xueqing, spokeswoman for the Chinese embassy in Nairobi, said the projects were valid assets with value that would grow in time.

“So, in the long run, it is beneficial to the host countries. Just like when young people buy a house with a mortgage, they may take some debts, but they have a place to live in and have their own assets,” Huang said.

“Underdeveloped infrastructure is the bottleneck that has been holding back Africa’s development. Up to today, many African countries, although in the same continent, are not connected with direct flights, railways or even roads. You have to fly to Paris or Zurich in order to get to some African countries.

“A road is not just a means of transport but an economic belt or corridor that will catalyse the development of the whole region.”

Huang said Beijing had advised the countries to act within their means and not to overstretch themselves when they considered projects that might not be in line with local conditions.

“When making investment decisions, the Chinese side, along with the recipient countries, carry out rigorous feasibility studies and evaluations. We do things according to our ability,” she said.

China’s leadership has also said it is paying close attention to the fiscal and financial difficulties faced by some African countries.

“As a good friend and good brother … the Chinese side is willing to lend a helping hand when needed by the African people to help them overcome temporary difficulties,” State Councillor and Foreign Minister Wang Yi said in January while on a trip to Ethiopia, adding that the debt situation in Africa is also a legacy issue.

China must allay any debt-trap fears in its dealings with Africa

“The African debt issue does not come up today, still less is it caused by the Chinese side. The African people know who are the initiators of African debt.”

The West should take a lot of the blame for worsening debt problems in some African countries, according to Li Anshan, from Peking University’s Centre for African Studies.

He cited the cases of Liberia and the Democratic Republic of Congo, two countries that have had close relations with the West for many years but remain ravaged by war and poverty despite immense natural resources.

“China-Africa relations have been going on for quite some time. Is there any African country which has got poorer because of its deal with China?” Li said.

Gyude Moore, a former Liberian minister of public works whose department oversaw construction and maintenance of various public infrastructure funded and built by China, said it would be difficult to imagine that China would knowingly ensnare its partners in debt.

“China attempts to differentiate itself from Western donors by limiting non loan-related conditionality. China also practices non-interference, so how a country manages its resources, treats its people or deploy its finances were considered ‘internal’,” he said.

“So, Chinese loans are negotiated faster and place less emphasis on public financial management.”

Moore, now a visiting fellow at the Centre for Global Development, said there were trade-offs in such situations.

China focuses on sustainable projects to dismiss fears of African debt trap

“If the loans are going to be fast – the due diligence will not be as rigorous. Chinese project selection mixes political with economic considerations. So, while a project may not make as much economic sense, it may pay political dividends,” he said.

He said non-transparent processes would invite abuse, be they Chinese, Western or African.

Other observers say the question of opacity is more directly related to China’s own economic system.

Howard French, author of China’s Second Continent: How a Million Migrants are Building a New Empire in Africa, said China has very limited transparency and public accountability in its own domestic processes.

The Mombasa railway station is seen in Mombasa, Kenya, in 2018. Photo: Xinhua
The Mombasa railway station is seen in Mombasa, Kenya, in 2018. Photo: Xinhua

“So it would be unusual to expect that China would introduce greater transparency and accountability in its dealings with African countries than it is used to at home – that is, unless African governments insist on it,” French said.

“And this is where African governance comes in. African states should insist on contract transparency but often don’t do so because that offers leaders plentiful opportunities for graft.”

David Shinn, professor of international relations at George Washington University in Washington, agreed that China’s lack of loan transparency was a huge problem and increased the risk of corruption on both the African and Chinese sides. But he also said that in some cases, African governments might have negotiated poorly.

“This is, however, the responsibility of the African government. I don’t think China is purposely trying to encourage African debts in order to gain leverage,” Shinn said.

“In fact, China is becoming more careful about its lending because it is concerned it has made too much credit available to some African countries.”

China ‘ready to talk’ about trade deal with East Africa bloc

Huang Hongxiang, director of China House, a Nairobi-based consultancy that helps Chinese in Africa integrate better, agreed, saying the Chinese government needs to communicate more about projects in Africa but African countries also have a bigger part to play in ensuring better deals.

“On commercial viability, accountability, transparency and governance, I believe the responsibility does not lie with China, the US or the West but in the hands of African countries,” he said.

Wherever the fault lies, one thing is clear when money is wasted on ill-designed projects that have little to no economic return, according to Opalo.

“The lack of planning and transparency creates default risks … [and] African taxpayers will be left holding the bag.”

This article is the third in a series examining the local impact of Chinese investment and infrastructure projects in Africa. Read part one  here and part two

 here

.

The next report will examine whether African countries can speak with one voice in relations with China.
Source: SCMP
15/06/2019

Chinese, Turkish presidents vow to promote bilateral cooperation

TAJIKISTAN-DUSHANBE-XI JINPING-TURKISH PRESIDENT-MEETING

Chinese President Xi Jinping (R) meets with his Turkish counterpart Recep Tayyip Erdogan in Dushanbe, Tajikistan, June 15, 2019. (Xinhua/Wang Ye)

DUSHANBE, June 15 (Xinhua) — Chinese President Xi Jinping met his Turkish counterpart, Recep Tayyip Erdogan, here on Saturday, agreeing to promote bilateral cooperation on the sidelines of the fifth summit of the Conference on Interaction and Confidence Building Measures in Asia.

Xi said that he highly values China-Turkey relations and is willing to work with Erdogan to translate bilateral friendship into mutual trust, and constantly open new chapters in promoting the China-Turkey strategic cooperative relationship.

China and Turkey should give each other firm support on issues that touch their respective core interests and major concerns, and step up the anti-terrorism cooperation, Xi said.

Calling Turkey a traditional Silk Road country, Xi said that China stands ready to enhance their mutually beneficial cooperation within the Belt and Road framework.

The Chinese president also called on the two countries, both important members of the Group of 20 (G20), to strengthen their communication and coordination on multilateral arenas such as the G20.

Agreeing with Xi, Erdogan said that Turkey attaches great importance to relations with China, adding that Turkey is willing to strengthen high-level exchanges between the two countries and expand their cooperation in economy, trade, finance, infrastructure construction and other fields.

The Belt and Road Initiative is very important to Turkey, he said, adding that his country is willing to actively participate in its joint construction and cooperation.

Source: Xinhua

13/03/2019

China’s coastal province Shandong unveils bln-dollar infrastructure plan

JINAN, March 13 (Xinhua) — Transport authorities in east China’s Shandong Province announced that it plans to invest 162.2 billion yuan (about 24.2 billion U.S. dollars) on roads, railways, ports and airports this year.

The investment is aimed at building an integrated infrastructure network in the province, said Jiang Cheng, head of the provincial transport department.

Last year, fixed asset investment in Shandong’s transportation sector reached 160 billion yuan, among which 115.8 billion yuan was spent on roads, highways and waterways, up 28 percent year on year.

This year, 61 percent of the investment will be on roads, Jiang said.

Shandong has set a target for its expressway mileage to reach 7,400 km by 2020. By the end of this year, the total will hit 6,400 km, he said.

More roads, bridges, and stations will be built in rural areas, he added.

About 10 railway projects are under construction in the province this year, with a total planned investment of 32 billion yuan (4.7 billion dollars). Upon completion, the province will be better connected with big cities such as Beijing, Shanghai and Tianjin.

Shandong had a permanent population of 100.4 million at the end of 2018. It is one of the most populous provinces in China. An improved infrastructure network will better meet economic and social needs.

Source: Xinhua

07/03/2019

Chinese companies in Africa create great development opportunities

BEIJING, March 6 (Xinhua) — Chinese companies operating in Africa have created huge opportunities for the continent’s development, a senior political advisor said Wednesday at a press conference on the sidelines of the annual sessions of the top legislative and political advisory bodies.

There are more than 10,000 Chinese companies in Africa and over 90 percent of them are private businesses, said Nan Cunhui, a member of the Standing Committee of the Chinese People’s Political Consultative Conference National Committee, citing a recent survey.

These companies have built roads, railways, airports, ports and other infrastructure projects in Africa, addressing the bottleneck in development, said Nan, also a vice chairman of the All-China Federation of Industry and Commerce. They have also invested in green energy development, including photovoltaic power stations, to boost local power supply.

The Chinese companies have also brought advanced technologies, development concepts and management to the continent, Nan said.

Citing the operation of an industrial park in Egypt as an example, Nan said over 95 percent of the employees are locals who develop professional skills and gain managerial know-how through their work.

“Chinese companies in Africa have contributed a lot to the local economic development through infrastructure construction, job creation and tax payment,” Nan said. “I believe China-Africa cooperation will go from strength to strength.”

Source: Xinhua

28/02/2019

HKSAR gov’t sees Greater Bay Area development as golden opportunity

HONG KONG, Feb. 27 (Xinhua) — The financial secretary of China’s Hong Kong Special Administrative Region (HKSAR) government delivered Hong Kong’s annual budget on Wednesday, saying the Guangdong-Hong Kong-Macao Greater Bay Area offers golden opportunities for Hong Kong to explore new directions and open up new horizons.

To support implementation of various measures, the budget, themed “supporting enterprises, safeguarding jobs, stabilizing the economy, strengthening livelihoods,” provides new resources ready for use of about 150 billion HK dollars (about 19.1 billion U.S. dollars), with additional resources earmarked for various purposes.

“This demonstrates our determination to enhance public services, support enterprises, relieve people’s burden and invest for the future,” Financial Secretary of the HKSAR government Paul Chan said.

Under mounting external pressures, Hong Kong’s economic growth moderated from 4.1 percent in the first half of 2018 to 2.1 percent in the second half of the year, with growth for the fourth quarter at a mere 1.3 percent, the lowest since the first quarter of 2016, he said.

Overall, Hong Kong’s economy grew by 3 percent in 2018, at the lower end of the range projected in last year’s Budget but still higher than the trend growth rate of 2.8 percent over the past decade, he added.

Chan forecast a surplus of 58.7 billion HK dollars for 2018-19. Fiscal reserves are expected to reach 1,161.6 billion HK dollars by March 31, 2019; economic growth of 2 to 3 percent in real terms for Hong Kong in 2019.

He said the development of innovation and technology (I&T) will bring huge economic benefits to Hong Kong, adding that sufficient resources, with a commitment of over 100 billion HK dollars has been allocated in this area so far.

More efforts will be made to support scientific research and I&T sectors by developing I&T infrastructure, promoting research and development (R&D), pooling talent, supporting enterprises and promoting reindustrialization.

Talking about national development strategy, Chan emphasized that the Greater Bay Area development and the Belt and Road Initiative are providing rare opportunities for Hong Kong.

Chan said that the outline development plan for the Greater Bay Area, promulgated last week, is a milestone setting out the development directions for the Greater Bay Area up to 2035.

Hong Kong, positioned as international financial, transportation and trade centers as well as an international aviation hub in the Greater Bay Area, will strengthen its roles as a global offshore Renminbi business hub and an international asset and risk management center; and will devote great efforts to develop I&T industries as well as international legal and dispute resolution services, the financial chief said.

Meanwhile, the Belt and Road Initiative will create greater room for Hong Kong’s economic and social development. There has been positive outcomes in areas such as supporting industries in exploring markets, establishing business matching platforms for enterprises and encouraging Hong Kong’s professional services sector to participate in Belt and Road projects.

As for land supply, Chan said, the HKSAR government will ensure that adequate resources are provided to support fully the short, medium and long-term measures to increase land and housing supply.

The estimated public housing production for the next five years is about 100,400 units and the supply of first-hand private residential units is expected to remain at a relatively high level in the coming three to four years at about 93,000 units, according to Chan. (1 U.S. dollar = 7.84 HK dollars)

Source: Xinhua

17/02/2019

India high speed train breaks down on first trip

PM Modi flags off the Vande Bharat ExpressImage copyrightREUTERS
Image captionPM Narendra Modi flagged off the Vande Bharat Express on Friday

India’s fastest train has broken down on its first trip, a day after it was inaugurated by Prime Minister Modi.

The Indian-built semi high-speed Vande Bharat Express was returning to the capital Delhi from the city of Varanasi after its first outing when brakes in a carriage reportedly jammed.

Indian media quoted a railways spokesperson as saying the train may have struck cattle on the line.

The train reached a speed of 180km/hr (110mph) during trials.

Soon after the brakes failed, the drivers noticed smoke in the last four coaches and power was lost in all compartments.

Those on board, mostly railway officials and journalists, had to take another train to get back to Delhi.

Despite the railway ministry’s suggestion that the train may have hit a cow, NDTV reported that there were no signs of damage on the front of the train after the incident.

The new train service is expected to start its commercial run from Sunday. It is expected to reduce the travel time between Delhi and Varanasi by six hours.

Source: The BBC

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