Archive for ‘Russia’

28/07/2019

Latin America trade grows as China and US tussle for influence

  • Chinese Foreign Minister Wang Yi wraps up tour of Brazil and Chile, as Colombian president heads for Beijing
  • Ecuador president tells US Secretary of State Mike Pompeo ‘smaller countries pay when the big ones fight’
Chinese Foreign Minister Wang Yi is greeted by an honour guard as he arrives at the Itamaraty Palace for a meeting with his Brazilian counterpart Ernesto Araujo on Thursday. Photo: AP
Chinese Foreign Minister Wang Yi is greeted by an honour guard as he arrives at the Itamaraty Palace for a meeting with his Brazilian counterpart Ernesto Araujo on Thursday. Photo: AP
Latin American countries are caught in the middle of a geopolitical tug of war between Beijing and Washington as China boosts its ties in the region in a bid to counterbalance the effects of its trade war with the US.
China’s Foreign Minister Wang Yi wraps up a tour of Latin America on Sunday which began last week in Brazil and ended with an official visit to Chile. He returns to Beijing on the same day Colombia’s President Ivan Duque Marquez arrives for a three-day state visit to China which will include a meeting with Chinese President Xi Jinping.
Wang was in Brazil for the latest summit of foreign ministers from the BRICS countries – an association of emerging countries made up of Brazil, Russia, India, China and South Africa – as well as the third China-Brazil foreign ministers’ comprehensive strategic dialogue with Brazilian Foreign Minister Ernesto Araujo.
China has overtaken the US as Brazil’s largest trading partner, with Brazilian soybeans – one of the country’s biggest exports – and other agricultural products replacing American imports since the start of the US-China trade war a year ago.
Brazilian soybeans – one of the country’s biggest exports – and other farm products are being sold to China as a result of the trade war. Photo: Reuters
Brazilian soybeans – one of the country’s biggest exports – and other farm products are being sold to China as a result of the trade war. Photo: Reuters

The growing importance of China to Brazil’s economy has created a difficult position for President Jair Bolsonaro, who accused Beijing of trying to buy Brazil during his election campaign, but changed tack on assuming office in January.

In March, Bolsonaro called China his country’s “main partner, politically as well as economically and commercially” and announced plans to travel to Beijing this year, a visit which was confirmed on Tuesday for late October.

China is now Latin America’s second largest trading partner with bilateral trade at US$307.4 billion, growing 18.9 per cent over the previous year, according to China’s ministry of commerce, in a relationship focused on commodity imports, including mining products like copper and energy, as well as soybeans and other agricultural goods.

While the US and China have tentatively agreed to resume talks in Shanghai next week, China and Latin American countries are likely to continue deepening their trade relations as production chains realign as a result of the trade war, according to Gustavo Oliveira, assistant professor of global and international studies at the University of California, Irvine.

“This means Chinese imports of Latin American agricultural and mineral commodities, and Latin American imports of Chinese manufactured products and hi-tech, might contribute to China’s ability to stand its ground against US pressure,” he said.

China in Latin America: partner or predator?
Oliveira said domestic contradictions in most Latin American countries complicated relations with China, as few leaders had the capacity to press or leverage China for much. “Unfortunately, therefore, most in this crop of Latin American leaders are basically placing themselves as junior partners or pawns in the geopolitical tug of war between the US and China.”
US Secretary of State Mike Pompeo put the pressure on Latin American countries over their relationship with China during his four-day tour of the region last weekend, when he visited Argentina, Ecuador, Mexico, and El Salvador.
In a joint interview with Pompeo during the visit, Ecuador’s new President Lenin Moreno defended the country’s China ties, and urged Washington and Beijing to resolve their conflicts for the benefit of other nations in the region.
“We hope that the US and China, the greatest powers in the world now, will find agreement easily because, unfortunately, when the big ones are discussing or fighting and have conflicts, the ones that are paying for all of that are the smaller countries,” he said.
“Now, when two elephants fight, the ones who lose are the insects who are of course being crushed by the elephants in the attempt to evade them.”
US Secretary of State Mike Pompeo (left) and Ecuadorian President Lenin Moreno hold a joint press conference during Pompeo’s tour of Latin America on July 20. Photo: EPA-EFE
US Secretary of State Mike Pompeo (left) and Ecuadorian President Lenin Moreno hold a joint press conference during Pompeo’s tour of Latin America on July 20. Photo: EPA-EFE

Pompeo blasted China’s role in the region during a previous tour of South America in April, when he singled out Beijing’s support for President Nicolas Maduro of Venezuela. Maduro is backed by Beijing, Russia and other allies, while the US and many European countries have supported opposition leader Juan Guaido as legitimate president since elections in January.

Speaking from Chile on that tour, Pompeo said Beijing’s calls for non-intervention in Venezuela were “hypocritical” and aimed at protecting Beijing’s investments in the country, as well as debts owed to China by Venezuela.

Pompeo also accused Beijing of “sowing discord” in the region through debt traps. “When China does business in places like Latin America, it often injects corrosive capital into the economic bloodstream, giving life to corruption and eroding good governance,” he said.

Professor Cui Shoujun of Renmin University in Beijing said Washington’s concerns about “debt trap diplomacy” in Latin America reflected concerns that China’s growing involvement in financing infrastructure and development projects would make the region more pro-China.

“China’s interests in Latin America go beyond raw materials extraction,” he said. “The biggest point of tension between the US and China in the region is perhaps that China presents an alternative model for development that is very different from the Western model.”

‘Mr Pompeo, you can stop’: China hits back over Latin America criticism

While the US was drumming up tensions about China across the world, Beijing was not openly retaliating but responding with investment and trade for global partners, said Kevin Gallagher, researcher on China-Latin America ties, and professor at Boston University.

“The US points fingers and makes angry speeches in the region as China cuts investment deals and helps address infrastructure needs,” he said.

“Latin American countries’ governments are rightly keeping their heads down on the broader geopolitical winds, and are getting down to business with their largest trading partner.”

Source: SCMP

09/07/2019

Xi Jinping says China, Russia and India should take ‘global responsibility’ to protect interests

  • Chinese president also called for the three nations to uphold multilateralism in talks with Vladimir Putin and Narendra Modi in Osaka
  • In a separate meeting with other BRICS leaders, he said Beijing opposed ‘illegal and unilateral sanctions’ and ‘long-arm jurisdiction’
(From left) Russian President Vladimir Putin, Indian Prime Minister Narendra Modi and Chinese leader Xi Jinping meet on the sidelines of the G20 summit in Osaka, Japan, on Friday. Photo: EPA-EFE
(From left) Russian President Vladimir Putin, Indian Prime Minister Narendra Modi and Chinese leader Xi Jinping meet on the sidelines of the G20 summit in Osaka, Japan, on Friday. Photo: EPA-EFE
Chinese President Xi Jinping on Friday called on the leaders of Russia and India to take “global responsibility” to safeguard the three countries’ interests and uphold multilateralism, as Beijing seeks to rally support amid its protracted trade war with Washington.
Xi made the remarks during a trilateral meeting with Vladimir Putin and Narendra Modi on the sidelines of the annual 
Group of 20

summit of world leaders in Osaka, Japan.

The trilateral meeting was part of the Chinese leader’s efforts to marshal international support ahead of his 
high-stakes meeting

with US President Donald Trump, seeking to reach a truce on the year-long trade conflict between the world’s two biggest economies.

“The rise of protectionism and unilateralism has severely affected global stability and economic growth, as well as the existing international order which emerging economies and developing countries have relied on,” Xi was quoted as saying by state broadcaster CCTV.

“China, Russia and India should take on global responsibility to safeguard the fundamental and long-term interests of these three countries and the world,” he said.

Xi also called for the nations to promote “a more multipolar world and the democratisation of international relations” – meaning with less reliance on a US-led world order.

During a meeting with leaders of the other BRICS countries – major emerging economies Brazil, Russia, India, China and South Africa – Xi also said Beijing opposed what it saw as “illegal and unilateral sanctions” and “long-arm jurisdiction”.

The efforts to forge closer ties among China, Russia and India come as all three nations are locked in disputes with the United States.

New Delhi, a key strategic ally in Washington’s Indo-Pacific policy to contain China’s rise, has been upset over tariffs imposed on Indian goods by the Trump administration. Meanwhile, geopolitical rivalry and the Kremlin’s alleged meddling in US elections has strained relations between Moscow and Washington.

Beneath the smiles and handshakes, tensions simmer as world leaders meet for G20

Wu Jianghao, director general of the Chinese foreign ministry’s Asian affairs department, said the trilateral meeting laid out a framework for future cooperation.

“The three countries have spoken with one voice on some major global issues, helping stability and injecting positive energy to the current international situation – which is filled with instability and uncertainties,” Wu said at a briefing on Friday.

Wu said that the leaders did not talk about Huawei Technologies or 5G networks, but that the three countries had maintained good communication on telecoms issues and would continue to cooperate.

Washington has banned US companies from selling American technology to Huawei and put pressure on its allies to block the Chinese tech firm over security concerns.

(From left) US President Donald Trump, Japanese Prime Minister Shinzo Abe and Indian Prime Minister Narendra Modi pose for a photo before their meeting. Photo: AP
(From left) US President Donald Trump, Japanese Prime Minister Shinzo Abe and Indian Prime Minister Narendra Modi pose for a photo before their meeting. Photo: AP

Meanwhile, the United States is also seeking to build ties with India, with Trump holding trilateral talks with Modi and Japanese Prime Minister Shinzo Abe on Friday.

Indian Foreign Secretary Vijay Gokhale described that trilateral meeting as “very good”, saying it was “short but very productive”.

“The main topic of discussion was the Indo-Pacific, about how the three countries could work together in terms of connectivity, infrastructure and ensuring that peace and stability is maintained, and working together to build upon this new concept so that it would benefit the region as a whole and the three countries,” Gokhale said.

On the Modi-Trump bilateral meeting, he said the two leaders had “a very warm discussion”. They also briefly discussed 5G, with the focus on business cooperation between the two countries to leverage their technology and the potential of the Indian market, according to Gokhale.

He said the discussion of how to develop 5G networks was “in terms of business, not in terms of governments”. “It’s an exciting new area that India and the US can work together [on],” he said.

Source: SCMP

09/07/2019

‘We need to talk’: call for Chinese and Indian navies to communicate

  • Ambassador to China Vikram Misri says they will be ‘meeting more and more in common waters’, and more exchanges are needed
  • He also says preparations are under way for President Xi Jinping to visit India
The INS Kolkata arrives in Qingdao for PLA Navy 70th anniversary celebrations in April. The Indian ambassador called for more communication between the two navies. Photo: Reuters
The INS Kolkata arrives in Qingdao for PLA Navy 70th anniversary celebrations in April.
The Indian ambassador called for more communication between the two navies. Photo: Reuters
The Chinese and Indian navies should establish communication because they are increasingly operating within close proximity, according to India’s ambassador to China.

While the two nations’ militaries communicated extensively, it was mainly between their land forces, and that should be extended to the navies and air forces, Vikram Misri said.

“We need to talk about the two air forces and the two navies – especially the two navies – because we are operating in the same waters and increasingly in the coming years, we will be meeting more and more in common waters,” Misri said.

“I think it is important for us to develop those levels of understanding and communication,” he said. “There are some [navy and air force] exchanges now, but not as well developed as in the case of the land force.”
China and India have made efforts to repair their relations since a tense stand-off at the Doklam plateau two years ago, when communications between their forces along the border were seen as inadequate to contain the tension.
China and India have sought to repair relations after a tense stand-off at Doklam. Photo: AFP
China and India have sought to repair relations after a tense stand-off at Doklam. Photo: AFP

Misri said the two nations had made incremental progress, and opened new points where “border personnel can meet and exchange information, or exchange views about any particular situation”.

The ambassador was visiting the Indian consulate in Hong Kong over the weekend, six months after taking up the post and six weeks after Prime Minister Narendra Modi was re-elected.

He said preparations were under way for Chinese President Xi Jinping to visit India, which was expected to happen in the fourth quarter, after they pledged earlier to strengthen cooperation.

Tensions between 

China and India

have periodically flared along their 4,000km (2,485-mile) border, resulting in a brief war in 1962. Relations have also been strained by China’s ties with Pakistan, and India’s concern over China’s growing presence in the Indian Ocean.

India has also not signed on to China’s global trade and infrastructure strategy, the

Belt and Road Initiative

, which has projects that run through the disputed Kashmir region.

“Our concerns with regards to this particular initiative are very clear, and we have continued to share them very, very frankly with our Chinese partners,” Misri said. “I think there is understanding on the part of our Chinese partners with regard to this.”
Indian ambassador to China Vikram Misri said New Delhi’s concerns on the Belt and Road Initiative were clear. Photo: Xiaomei Chen
Indian ambassador to China Vikram Misri said New Delhi’s concerns on the Belt and Road Initiative were clear. Photo: Xiaomei Chen

But he said the two nations should not let their differences evolve into disputes, and they should focus on areas where they can cooperate.

One such area was maritime and investment cooperation in the Indo-Pacific region, including infrastructure and disaster response. The US in recent years has focused on the Indo-Pacific region, and has asked its allies to send naval vessels to the area as a counterbalance to Beijing.

“We have made the point that our vision of the Indo-Pacific is not a strategy, which sometimes is a concern on the part of some partners, aimed against any particular country,” Misri said. “It is definitely not a military alliance in any format.

“It is on the other hand a vision that aims at economic and development cooperation with our partners in the Indo-Pacific space,” he said, adding that India was discussing such cooperation with China.

He also said trilateral meetings between China, India and Russia would become more regular after their three leaders met on the sidelines of the 

Group of 20

summit in Osaka, Japan last month, when they vowed to uphold multilateralism.

Those meetings would allow the nations to address challenges facing the international trading system and pushback against globalisation, but Misri said they should not be seen as a bid to counter the US, which is also involved in a trade battle with India.

India also had a trilateral meeting with Japan and the United States during the G20 summit.

“The fact that these countries seek us out also shows that they see value in engaging with India, and we have important issues to discuss in each of these settings,” he said. “None of our individual relationships is going to come at the cost of a relationship with any other partner.”

The ambassador said there could be a broader consensus on counterterrorism. Photo: AP
The ambassador said there could be a broader consensus on counterterrorism. Photo: AP

Misri also said there could be a broader consensus between China and India on counterterrorism. The two nations have clashed over Indian efforts to blacklist Masood Azhar, leader of the Pakistan-based terror group Jaish-e-Mohammed (JeM), at the United Nations, which China objected to for years – a move seen in India as being done at the behest of Islamabad.

Azhar was finally listed as a global terrorist by the UN in May, after JeM claimed responsibility for a deadly terror attack on Indian security forces in Pulwama in February, although the listing did not directly reference the attack.

“It could have happened earlier … but I’m glad that it did happen, and we hope to build on that – that should be taken as progress, and we hope to build on that in the coming years,” Misri said.

“Everybody is aware of the context in which the listing happened, and therefore, I don’t think it’s hidden from anybody as to what this was aimed at or who this was aimed at, or what the motivation for the action might have been.”

As for the tensions between India and Pakistan following the terror strike in Indian-controlled Kashmir, Misri said progress would be “largely dependent on Pakistan” and the actions it needed to take to address the “ecosystem of terror that prevails in different parts of that country”.

Source: SCMP

06/07/2019

New Delhi and Beijing cannot let differences turn into disputes: India’s ambassador to China

  • Ambassador Vikram Misri has called on China to balance its US$60 billion trade deficit with India ‘before the issue becomes politically sensitive’
  • He also says India will not take sides over its use of US-blacklisted Huawei, as ‘any decision taken over this will only be taken in our national interest’
Indian ambassador to China Vikram Misri says that while the countries’ differences will not derail ties, there are still thorny issues to grapple with. Photo: CGTN
Indian ambassador to China Vikram Misri says that while the countries’ differences will not derail ties, there are still thorny issues to grapple with. Photo: CGTN
India and China must actively manage their differences

so they do not get in the way of the Asian superpowers working together for global stability, India’s top diplomat in China said on Friday.

To emphasise his point, Ambassador Vikram Misri listed eight long-standing and new bilateral issues that required attention, including 
India

’s almost US$60 billion trade deficit with China, cooperation on counterterrorism and a

peaceful resolution to their border dispute

.

“This trade imbalance is not economically sustainable in the long run,” said Misri at an Asia Society event in Hong Kong. “It is in our mutual interest to find workable solutions before the markets react in unpredictable ways and the issue becomes politically sensitive.”
Frosty ties between two of the world’s largest economies have thawed in the past year following a 73-day 
military stand-off in the Himalayas

in 2017, with Beijing seeking to forge closer ties with New Delhi amid its ongoing trade and tech war with the United States.

Ivanka Trump, the unlikely messenger of India-US relations
In May, Beijing dropped its long-held objections towards United Nations sanctions on

Masood Azhar

, the founder and leader of terrorist group Jaish-e-Mohammed, which was behind the suicide bombing of Indian soldiers that brought India and Pakistan to the brink of war earlier this year.

Analysts said this would pave the way for a better relationship between India and China.
Misri said both countries enjoyed a “full-spectrum relationship” of economic, commercial and people-to-people ties, and this was reinforced by the “strong personal bond” Indian Prime Minister

Narendra Modi

and Chinese President

Xi Jinping

had, despite the “elements of competition”.

The leaders of the two nations met four times last year and twice in 2019, with Xi set to visit India later this year. Both men share an understanding that “our rise can be mutually reinforcing” and a mutual interest in “preventing differences from turning into disputes”, the ambassador added.

But while Misri, a career diplomat posted to Beijing at the start of this year, stressed that differences would not derail ties, he made no bones about the thorny issues both sides are grappling with.

Will Modi’s snub of Xi’s belt and road derail China-India ties?
Both nations are still engaged in the second of a three-stage process to settle their border dispute – the world’s largest in terms of area, he said.
The first stage was an agreement on the political parameters for a boundary settlement in 2005. The current stage involves agreeing on a framework for a boundary settlement, which Misri said would be translated “into a delineated and demarcated boundary” in the final stage.
Communication over water and shared rivers has also been a key area of cooperation for the two nations.
Indian ambassador to China Vikram Misri speaking at the Asia Society in Hong Kong. Photo: Asia Society
Indian ambassador to China Vikram Misri speaking at the Asia Society in Hong Kong. Photo: Asia Society

They have established channels for information sharing on cross-frontier rivers, which last year enabled the Chinese side to warn the relevant Indian authorities of a landslide which would send a large amount of water to India. While in this instance the two sides were able to avert a loss of life, they can do more to broaden cooperation, Misri said.

He alluded to how China and India are vying for influence in the Indian Ocean, saying it was an area where both had “contiguous zones of maritime interest”.

The two sides need to work together to preserve peace and stability in the Indo-Pacific region – which stretches from the Indian Ocean to the central Pacific Ocean – and ensure transparent economic and commercial cooperation, infrastructure and connectivity, he said.

As China, India and Russia draw close, has Trump overplayed his hand?

Misri, who served as the private secretary to Modi as well as former prime ministers Manmohan Singh and I.K. Gujral, said there were three areas of mutual interest for India and China.

Besides a “peaceful periphery”, they should cooperate to ensure there are open international systems regarding trade and technology, and that global governance is reformed so the voices of nations such as theirs can be heard.

The Russia-India-China trilateral meeting on the sidelines of last month’s 

G20

summit in Osaka, where leaders discussed issues ranging from energy security to climate change, was an opportunity to discuss alternative viewpoints on changing international issues.

This was crucial amid the economic instability caused by 
US-China trade tensions

, that were causing “generalised damage” to the global economy, Misri said.

In the question and answer session with the event’s 112 attendees, Misri was asked if India was feeling the pressure to choose in the face of US efforts to get its allies to reconsider using or ban Chinese tech firm 
Huawei

from their superfast 5G networks.

Washington says Huawei equipment could be used by Beijing for spying and the US Commerce Department has placed the company on its entity list, effectively banning US companies from selling equipment and components to it.
When US President 
Donald Trump

and Xi met at the G20 summit, Trump announced American companies could resume sales to Huawei as long as the products involved did not threaten national security.

Misri referred to this, and said: “Let’s see how it shapes up.”
He added the issue was far from decided for India as it had only achieved 4G connectivity recently and was not yet ready to build out its 
5G

infrastructure.

Still, he said, “there’s no question on taking sides over this”. “Our leadership is very clear that any decision taken over this will only be taken in our national interest.”
Source: SCMP
28/06/2019

China, Russia to lift military relations to new high: defense ministry

BEIJING, June 27 (Xinhua) — China and Russia will bring their military relations to a new high under the strategic guidance of leaders of both countries, a spokesperson for the Chinese military said Thursday.

The two sides will enhance their mutual support on their respective core interests, and improve exchange and cooperation mechanisms at all levels and in different fields, Ren Guoqiang, spokesperson of the Ministry of National Defense, said at a press conference.

The two militaries will deepen cooperation in high-level exchanges, practical training, equipment and technology development and counter-terrorism, and promote strategic cooperation, Ren said.

Source: Xinhua

27/06/2019

China’s growing demand for clean energy and natural gas sparks contest in the Middle East

  • First Qatar, and now Saudi Arabia, are competing to dominate China’s fast-growing natural gas market, already the third largest in the world, as Beijing encourages the switch from coal to cleaner, greener energy
  • A PetroChina LNG tank at Rudong port in Nantong, Jiangsu province. China’s massive and rapidly growing appetite for natural gas is sparking off a scramble in the Middle East, as energy producers compete to become the biggest player in the market. Photo: Reuters
    A PetroChina LNG tank at Rudong port in Nantong, Jiangsu province. China’s massive and rapidly growing appetite for natural gas is sparking off a scramble in the Middle East, as energy producers compete to become the biggest player in the market. Photo: Reuters
    As more countries turn towards clean energy, the geoeconomic impact of natural gas as a fuel has become second only to that of oil. Over the past decade, the global demand for this carbon-free energy source has risen considerably and one major buyer is China.
    The third largest global market for natural gas, China has implemented government policies to replace the use of coal as fuel and millions of households are switching over to clean energy. Consequently, China’s market for gas expanded by a record 43 billion cubic metres last year to reach 280 billion cubic metres at the end of 2018.
    With the recent

    tax cuts in April

    , China’s gas consumption should continue to grow in the year ahead. As the demand spirals further, natural gas consumption in China is estimated to grow to around 620 billion cubic metres in 2030.

    Prioritising its energy security, Beijing last year approved a 22-year gas supply deal between QatarGas and PetroChina International Co. The agreement is PetroChina’s largest LNG supply deal by volume, and will provide 3.4 million tonnes of liquefied natural gas annually.
    With this deal, which QatarGas initiated with Total and ExxonMobil Corp as partners, Qatar achieved regional dominance and filled a vacuum left by major gas producer Iran, currently the target of US sanctions. Interestingly, Beijing has also unwittingly sparked off a competition between Qatar and Saudi Arabia, the kingpins of the Middle Eastern energy industry.
    A vessel carrying Qatar LNG looking to berth in Shenzhen, China last August. Qatar’s recent deal highlighted the massive and growing Chinese appetite for natural gas. Photo: Reuters
    A vessel carrying Qatar LNG looking to berth in Shenzhen, China last August. Qatar’s recent deal highlighted the massive and growing Chinese appetite for natural gas. Photo: Reuters
    China to become world’s top natural gas importer in 2019: report
    By exporting gas, as well as oil, Qatar sail unruffled through the

    economic and diplomatic boycott

    imposed by Saudi Arabia, the United Arab Emirates, Bahrain and Egypt in June 2017, over allegations that Qatar supports terrorism and is friendly with Iran, which the region sees as an enemy. Qatar denies this. Meantime, Qatar plans to further increase its gas output. To attract more buyers, it is offering attractive long-term supply contracts to other countries in the region.

    Inspired by the success of Qatar Gas, Saudi Arabia has stepped up its efforts to capture this new market. The Saudi state-owned oil giant Aramco plans to build an “energy bridge” between Saudi Arabia and China to better meet Beijing’s growing requirements for oil, gas, including LNG, said Aramco’s chief executive Amin Nasser at an industry event in Beijing in March.

    Aramco, already a major supplier of crude oil to China, would need to invest US$150 billion over the next decade to realise its plans to convert crude oil into chemicals, and eventually become a gas producer. “We need to help our stakeholders – including here in China and the wider Asia region – realise that oil and gas will remain vital to world energy for decades to come,” said Nasser.

    An Aramco employee near an oil tank in Saudi Arabia. Aramco has grand ambitions to become a major producer of natural gas. Photo: Reuters
    An Aramco employee near an oil tank in Saudi Arabia. Aramco has grand ambitions to become a major producer of natural gas. Photo: Reuters

    The vision of Saudi Arabia as a major natural gas producer is in in line with Saudi Crown Prince Mohammed bin Salman’s economic plan Vision 2030. Riyadh has only Qatar to beat, with Iran on the back foot. Under sanctions pressure, Tehran, despite plans to increase gas exports, has clung on to just 1 per cent of the natural gas market, exporting 36.24 million cubic metres daily. Yet Iran was once part of the so-called regional gas troika along with Russia and Qatar, and is located at the cusp of several energy transit corridors. China, defying sanctions, continues to buy oil from Iran.

    In around five years, Riyadh could become a major gas exporter. Saudi Arabia has already replaced Iran as the main energy provider in countries such as China, Pakistan and India, and has made huge investments in energy projects in these countries.

    However, Qatar is also playing smart, sharply lowering its prices to clinch deals and make the right business connections. The competition for the growing natural gas market is a long game. The main possible setback for Riyadh is that its gas reserves do not match those in Qatar and Iran.

    Source: SCMP

26/06/2019

Pompeo meets India PM Modi for talks on trade, defence

NEW DELHI (Reuters) – U.S. Secretary of State Mike Pompeo met India’s Prime Minister Narendra Modi on Wednesday for talks on trade and defence issues that have strained ties between the countries.

Just days before Pompeo’s visit, India slapped higher retaliatory tariffs on 28 U.S. products following Washington’s withdrawal of key trade privileges for New Delhi.

Indian broadcasters showed footage of Pompeo exchanging handshakes with Modi at the prime minister’s official residence in the capital New Delhi on Wednesday morning. Neither side released details of the meeting.

India’s relations with Russia and Iran – both under U.S. sanctions – are also a sore point.

Under U.S. pressure, India has stopped buying oil from Iran, one of its top suppliers. The United States has also stepped up pressure on India not to proceed with its purchase of S-400 surface-to-air missile systems from Russia.

Pompeo is scheduled to have lunch with foreign minister Subrahmanyam Jaishankar, followed by a news conference at 1400 local time (0930 GMT), the foreign ministry said.

He is expected to round off the trip with a policy speech hosted by the U.S. Embassy on Wednesday evening, before departing on Thursday for the G20 summit in Japan.

Source: Reuters

17/06/2019

Oil tanker attacks: did Iran’s ties with China just go up in smoke?

  • Washington has blamed Tehran for an attack on two oil tankers near the Strait of Hormuz, putting pressure on Iran’s allies like China
  • Beijing usually backs its trade partner – but experts say the trade war with the US and problems with Huawei may have changed the equation
A tanker burns in the Gulf of Oman after a mystery attack that the United States has blamed on Iran. Photo: AFP
A tanker burns in the Gulf of Oman after a mystery attack that the United States has blamed on Iran. Photo: AFP
When 
Shinzo Abe

headed to Tehran this week for the first visit by a sitting Japanese prime minister in four decades, some in the diplomatic world imagined he could be the man to bring

Iran

back to the negotiating table with the

United States

.

Those hopes were torpedoed on Thursday when, on the same day Abe was meeting Iran’s supreme leader Ayatollah Khamenei, explosions ripped through two oil tankers, one Japanese and one Norwegian, near the Strait of Hormuz, a strategically significant shipping lane.
The attack immediately overshadowed an earlier success for Abe, who had met President Hassan Rowhani a day before and was assured Iran would stick to the terms of a 2015 agreement limiting its nuclear activities.
Washington accused Iran of being behind the attack on the tankers, releasing a video on Friday that it said showed Iran’s revolutionary guard removing an unexploded mine from one of the ships, and warning that it would “defend its interests”.
Iranian President Hassan Rowhani and Japanese Prime Minister Shinzo Abe meet Iran’s Supreme Leader Ayatollah Ali Khamenei in Tehran. Photo: Reuters
Iranian President Hassan Rowhani and Japanese Prime Minister Shinzo Abe meet Iran’s Supreme Leader Ayatollah Ali Khamenei in Tehran. Photo: Reuters

Tehran, for its part, claimed to have been set up, with its foreign minister Mohammad Javad Zarif saying “suspicious doesn’t begin to describe” the incident. So much, then, for hopes of mediation.

US President

Donald Trump

, who had encouraged the Japanese leader’s visit, admitted on Twitter soon afterwards that when it came to negotiating, “they are not ready, and neither are we!”

Still, the incident exposed more than just the naivety of those hoping for an Abe-led breakthrough. In raising the stakes in Washington’s confrontation with Tehran, it also threw the spotlight on Iran’s dwindling number of allies – and perhaps most significantly on its largest trading partner, China – which face mounting pressure to rethink the relationship.

Tanker attacks: world divided over Iran role as Saudi prince breaks silence
The day after the attack, China’s President

Xi Jinping

said Beijing would promote its ties with Iran “however the situation changes” – a comment made during a meeting with Iranian President Hassan Rowhani on the sidelines of the Shanghai Cooperation Organisation summit in Kyrgyzstan – but diplomatic observers question just how far China can go in accommodating its controversial trading partner.

BEST FRIENDS FOREVER?

Iran has long been able to count on support from China, which accounts for 30 per cent of the Islamic republic’s exports and imports, and its willingness to defy US pressure is a gamble at least partly based on an assumption it can continue to count on Beijing’s support.

As Iran’s largest economic partner – Chinese direct investment in Iran hit a record high of nearly US$4 billion last year, according to data analysis project ChinaMed – Beijing already plays a key role in relieving US pressure on Iran, said Mohsen Shariatinia, assistant professor of regional studies at Shahid Beheshti University in Tehran.

But experts warn that reliance will come into question as China becomes increasingly hamstrung by its own problems.

China has enough problems of its own, starting with US pressure on Huawei. Photo: EPA
China has enough problems of its own, starting with US pressure on Huawei. Photo: EPA
Chief among Beijing’s headaches are its

trade war

with Washington and the related assault on its

5G

giant

Huawei

– which, as analysts point out, originally ignited over allegations it was defying US sanctions on Iran. Beijing will also be well aware of the need to keep

Saudi Arabia

, its second-biggest oil supplier and Tehran’s critic-in-chief, happy.

On the other hand, analysts say, China will be wary of being seen to abandon its old friend, as doing so would send a message to other nations at odds with Washington that they could no longer look to China as a diversification strategy.
“This could mean Chinese investment is vulnerable to US interference,” said Esfandyar Batmanghelidj, founder of Bourse Bazaar, a media company that supports business diplomacy between Europe and Iran.
Sanctions drive Iranian students away from US towards Asia
Doing so, Batmanghelidj said, would put a question mark over one of China’s most significant foreign policies of recent years – President Xi’s signature

Belt and Road Initiative

to fund infrastructure across Eurasia.

THE BELT AND ROAD QUESTION
Tensions between Iran and the US have reached boiling point in recent weeks, after the Trump administration last month ended waivers on sanctions for nations importing Iranian oil – a move the US says is aimed at making the republic “radioactive to the international community” and which Rowhani has described as an “economic war against Iran”.
So far, China has largely stuck by the Islamic Republic, continuing to buy fuel from it despite the latest wave of US sanctions on Iranian oil that followed Trump’s decision last year to withdraw the US from the landmark 2015 agreement curbing Tehran’s nuclear development.
The deal had been widely lauded as a triumph of multilateralism and the dawning of a new economic era for Iran.
US releases video of ‘Iranian forces removing unexploded mine’ from ship
Part of its eagerness to support Iran has stemmed from the Islamic Republic’s key position in the Belt and Road plan. In 2017 alone, China signed deals for more than US$15 billion in Iranian infrastructure investment, according to the

Chinese Communist Party

mouthpiece China Daily.

Planned projects include high-speed rail lines, upgrades to the nation’s electrical grid, and natural gas pipelines. The two nations have also vowed to boost bilateral trade to US$600 billion in the next seven years.
“China sees Iran as its Western gateway, where not only is it a big market in itself, but it will also be the gateway to the rest of the 
Middle East

and ultimately to Europe for China,” said Anoush Ehteshami, professor of international relations at Durham University in Britain.

Nisha Mary Mathew, at the Middle East Institute in Singapore, said that China’s relationship with Iran was not just economic – but primarily strategic, with both nations envisioning an international order that was no longer dominated by the US and its Western allies.
DEFIANCE, FOR NOW
If the belt and road gives China good reason to stick with Iran, there are plenty of voices urging just that action. As Andrea Ghiselli at Shanghai’s Fudan University pointed out, US sanctions until now have only strengthened the hardline factions in Iran’s government.
The combination of the US withdrawal from the nuclear deal – which had the support of the international community – along with Europe’s tepid efforts to rescue it, may have emboldened those favouring resistance over negotiation.
Xi’s supportive comments in Kyrgyzstan were only the latest in a string of remarks from China that could encourage such factions.
If Trump kills off Huawei, do Asia’s 5G dreams die?
After China’s Foreign Minister Wang Yi met Iranian Foreign Minister Mohammad Javad Zarif in Beijing last month, the ministry’s spokesman Lu Kang said China’s economic relationship with Iran was “reasonable and lawful”.
Two months prior to that, China’s Minister of Commerce Zhong Shan, while hosting his Iranian counterpart Farhad Dejpasand, had claimed China’s “determination to maintain and develop the China-Iran comprehensive strategic partnership is unshakeable”.
Chinese President Xi Jinping with Iranian President Hassan Rowhani. Photo: AFP
Chinese President Xi Jinping with Iranian President Hassan Rowhani. Photo: AFP

Even so, the pressure is getting to some. In February, Foreign Minister Zarif temporarily resigned, in what Andrea Ghiselli at Fudan University in Shanghai called a clear sign of the “changing and precarious power balance with Iran’s foreign policy establishment”.

And nowhere is the pressure felt more keenly than the economy and China’s ability to serve as a lifeline.

“The real anxiety in Iran right now is about market share,” said Bourse and Bazaar’s Batmanghelidj. “If you’re exporting zero oil and your customers are buying oil elsewhere, you lose market share.

“The government wants to know if it agreed to go back to the negotiating table and the US promised sanctions relief, that there are people who are going to buy in significant volume.”

TURNING POINT: HUAWEI

For many analysts, the event most likely to have changed the equation in Beijing’s eyes is the arrest by the Canadian authorities of 

Meng Wanzhou

, the chief financial officer of Chinese telecom giant Huawei.

Meng’s arrest came at the request of the US government, which claimed her company had violated sanctions by selling equipment to Iran.
Many observers saw the action as Washington’s way of signalling to Chinese companies that they would face repercussions if they eased the pressure on Iran by continuing to trade.
Huawei’s chief financial officer Meng Wanzhou. Photo: Reuters
Huawei’s chief financial officer Meng Wanzhou. Photo: Reuters

“Going after Huawei was about going after Chinese enterprises – signalling that they can no longer trade with Iran with impunity,” Batmanghelidj said.

Since then, Chinese firms have shown increased skittishness towards trading with Iran. According to China’s General Customs Administration, Chinese exports to Iran declined by more than half between October 2018 and February 2019, from over US$1 billion to just under US$500 million.

Mohammad Ali Shabani, a researcher at the School of Oriental and African Studies in London, said other countries in the region were now watching to see if China would blink in the face of US pressure. “This could have dire consequences for China’s image as a reliable partner,” he said.

NOT JUST ABOUT AMERICA

There are reasons beyond US pressure that may factor into Beijing’s thinking. It has long stated its opposition to Iranian nuclear weapons development, and Chinese Foreign Minister Wang Yi has said that China is “ready” to take on “its due responsibilities and make a greater contribution to world peace and common development”.

Trade war: here are Beijing’s options – and none look any good

Zhao Hong, at the Research School of Southeast Asian Studies at Xiamen University, said that in stepping up as a responsible world power Beijing faced a dilemma over its approach to Iran.
“Chinese leaders have to painfully balance an impulse towards economic cooperation with Iran against other vital interests, including convincing Washington that China is a responsible stakeholder,” he wrote in the Journal of Contemporary China.
Saudi Aramco's Ras Tanura oil refinery. The country is China’s second-largest oil supplier after Russia. Photo: Reuters
Saudi Aramco’s Ras Tanura oil refinery. The country is China’s second-largest oil supplier after Russia. Photo: Reuters

Then there is China’s relationship with Iran’s chief adversary, Saudi Arabia, to consider. Riyadh is China’s second-largest oil supplier, behind Russia, and it plays a central role in Beijing’s energy strategy.

According to International Trade Centre data, more than 12 per cent of China’s imported oil came from Saudi Arabia last year, compared with just 6 per cent from Iran. Last year, Saudi Arabia shipped 56.73 million tonnes of oil to China, or 1.135 million barrels per day.

Why would Kim Jong-un trust Trump, now that he’s ripped up Iran’s nuclear deal?

This April, China imported 6.3 million tonnes of oil from Saudi Arabia, nearly twice the 3.24 million tonnes it imported from Iran, according to China’s General Administration of Customs.

Iran’s comparatively small share of China’s oil imports market and its heavy reliance on China as a trading partner add up to a deeply uneven relationship, experts say, and it is this imbalance that will encourage the US that China may be open to rethinking its ties.

As Jon Alterman, director of the Middle East programme at Washington DC think tank the Centre for Strategic and International Studies, pointed out, while China was Iran’s largest trading partner, Iran represented less than 1 per cent of China’s international trade.

“Iran needs China,” Alterman said. “But to China, Iran is expendable.”

Source: SCMP

17/06/2019

China rockets to forefront of global space race with sea launch success

  • China has become the first nation to fully own and operate a floating launch platform for its space missions
China has successfully launched a rocket into space from the Yellow Sea, making it the first nation to fully own and operate a floating sea launch platform. Photo: China National Space Administration
China has successfully launched a rocket into space from the Yellow Sea, making it the first nation to fully own and operate a floating sea launch platform. Photo: China National Space Administration
China successfully launched a rocket into space from a civilian cargo ship at sea on Wednesday, becoming the first nation to fully own and operate a floating sea launch platform, a technology expected to significantly reduce the cost and risk of space missions.
A Long March 11WEY rocket blasted off from the ship in the Yellow Sea at noon Beijing time, according to the China National Space Administration.
About six minutes later, five commercial satellites and a pair of “technical experiment” probes – called Bufeng, or Wind Catchers – reached their designated orbits.

The Wind Catchers will work together to detect winds on the surface of the world’s oceans. They will boost China’s ability to monitor and forecast typhoons and other extreme weather events, according to the administration.

“Launching a rocket from the sea has the advantages of high flexibility, good adaptability for specific tasks, and excellent launch economy,” said a statement on the administration’s website.

“It can flexibly select the launch point and touchdown area to meet the needs of various payloads for different orbits, and provide better aerospace commercial launch services for countries along the belt and road,” it added, referring to the Belt and Road Initiative, China’s plan to grow global trade.

The Long March 11 is a four-stage, solid fuel rocket with a design similar to a ballistic missile. It can carry a payload of about 700kg to the Earth’s lower orbit.

The first two stages of the rocket dropped in open waters in the northern Pacific Ocean, according to the administration. The rocket was equipped with a flight suspension system in case of any abnormal situation, but none occurred.

“The rocket debris will not cause damage to surrounding waters,” the administration said.

The world’s first ocean rocket launch platform, the Sea Launch, was jointly built by companies from Russia, the United States, Norway and Ukraine in the late 1990s. Its operation was halted in 2014 after military conflicts broke out between Russia and Ukraine.

Li Hong, president of the China Academy of Launch Vehicle Technology, told state media in March that the Chinese rocket and launch platform were designed and owned entirely by China, so it would not have similar problems caused by international disputes as the Sea Launch.

The launch was expected to encounter many technical and engineering challenges, including simplified procedures for pre-launch testing, the rocking motion of the ship and heat dissipation in a confined space.

But Chinese space authorities have argued the inconvenience would be offset by numerous advantages. For instance, the technology would allow China to move its launch site to as far away as Hawaii for quicker, cheaper satellite insertion to certain orbits, according to Xinhua.

Preparations get under way for Wednesday’s successful Chinese space launch from the northern Pacific ocean. Photo: China National Space Administration
Preparations get under way for Wednesday’s successful Chinese space launch from the northern Pacific ocean. Photo: China National Space Administration

A maritime launch is also expected to reduce the risk of rocket debris falling into densely populated areas.

Chinese space launch sites are typically located inland for defence purposes.

China has built its sea launch capability mainly to bolster the commercial space sector, according to Chinese space authorities.

In this mission, the rocket was sponsored and named after WEY, a young luxury car brand by Chinese sports utility vehicle manufacturer Great Wall Motor.

Chang’e 4 landing marks start of new China-US space race
Some cutting-edge car technology, such as new paint materials, will go into space for testing in the most extreme environments, according to state media reports.
The payloads include the Jilin 03A, the latest addition to a high-definition Earth observation satellite network, according to Changguang Satellite Technology Corporation, the satellite’s owner.
The company said the constellation, which will eventually comprise more than 20 satellites, would achieve global coverage for commercial applications.
One of the satellites launched on Wednesday belongs to Shanghai-based LinkSure Network, which has ambitious plans to provide free Wi-fi to everyone on the planet. The company has said it plans to eventually launch more than 200 satellites as part of the project.
Source: SCMP
06/06/2019

Russia and China sign deals worth US$20 billion as Xi Jinping and Vladimir Putin’s growing friendship bears fruit

  • Agreements to boost cooperation in spheres such as energy and technology highlight closer partnership in face of tensions with US
Xi Jinping and Vladimir Putin agreed to deepen their unprecedented partnership. Photo: Xinhua
Xi Jinping and Vladimir Putin agreed to deepen their unprecedented partnership. Photo: Xinhua

China and Russia have signed more than US$20 billion of deals to boost economic ties in areas such as technology and energy following Xi Jinping’s summit with his “best friend” Vladimir Putin.

Wednesday’s meeting between the two presidents, who have spoken of their desire to boost practical cooperation in the face of increasing rivalry with the United States, marked the start of Xi’s three-day visit to Russia to commemorate the 70th anniversary of the establishment of diplomatic relations between Moscow and Beijing.

On Thursday the Chinese commerce ministry said that the two sides aimed to increase the volume of trade between the two countries to US$200 billion a year following last year’s 24.5 per cent rise to a record level of US$108 billion.

Gao Feng, a spokesman for the ministry, said the deals covered areas such as nuclear power, natural gas, automobiles, hi-tech development, e-commerce and 5G communications.

The deals were the first concrete results of the warm words exchanged between the leaders, who agreed to deepen their “unprecedented” strategic partnership for “mutual advantage”.

“We discussed the current state of, and prospects for, bilateral cooperation in a businesslike and constructive manner, and reviewed, in substance, important international issues while paying close attention to Russia-China cooperation in areas that are truly important for both countries,” Putin said in a joint press statement with Xi on Wednesday.

Xi – who had previously told Russian media that he “treasured” the relationship with Putin, whom he described as “my best friend” – said the two countries would work to “build mutual support and assistance in issues that concern our key interests in the spirit of innovation, cooperation for the sake of mutual advantage, and promote our relations in the new era for the benefit of our two nations and the peoples of the world”.

Russia is already China’s biggest oil exporter, and has agreed to further joint ventures. Photo: Reuters
Russia is already China’s biggest oil exporter, and has agreed to further joint ventures. Photo: Reuters

Putin also highlighted the energy cooperation between the two countries, adding that Russia was China’s leading oil exporter and the eastern route of a gas pipeline between Russia and China will enter service in December.

China and Russia seek closer economic ties to counter US pressure

Novatek and Sinopec, Russian and China’s leading natural gas companies, signed a preliminary deal with Russian state-owned bank Gazprombank on Wednesday to set up a joint venture to market gas in China.

The Russian natural gas company is also forming a partnership with China Natural Petroleum Corporation and China National Offshore Oil Corporation to develop an Arctic natural gas facility, with both Chinese companies holding a 10 per cent stake in the project, according to S&P Global Platts, an energy information provider.

A general contract was also signed to build extra units of the Xudabao Nuclear Power Plant, located on the coast of the northeastern Chinese province of Liaoning.

Chinese tech giant Huawei has agreed a deal with Russian telecoms firm MTS. Photo: Xinhua
Chinese tech giant Huawei has agreed a deal with Russian telecoms firm MTS. Photo: Xinhua

The Chinese commerce ministry also said that Moscow had agreed to increase its soybean exports after imports from America declined sharply due to the ongoing trade war.

Andrey Denisov, Russia’s ambassador to China, was quoted by Chinese media as saying that the country should “double” its soybean exports to China, which currently make up a tiny proportion of the overall quantities bought by China.

The two sides are also discussing a US$153.3 million investment to create a joint agricultural holding company in Primorsky in Russia’s far east.

Russia’s Putin calls time on UK spy scandal: ‘it’s your agent, not ours’

Meanwhile, Chinese telecoms giant Huawei, which has been targeted by US sanctions after it was accused of spying and undermining national security, signed a deal with Russian telecoms company MTS to develop a 5G network.

China Investment Corporation and RDIF, a Russian sovereign wealth fund, were also reported to have agreed to set up a US$1 billion joint technology research fund, according the US-based analysts Sovereign Wealth Fund Institute.

Shi Yinhong, an international relations professor at Renmin University of China, said the two sides were boosting their strategic and diplomatic collaboration at a time of “extraordinary” tensions between Washington and Beijing.

“Though concrete cooperation in hi-tech areas [between Beijing and Moscow] is necessarily limited, in the purely military field it is assured,” Shi, an adviser to China’s State Council, said.

China’s Huawei signs deal to develop 5G in Russia

Last September, 300,000 soldiers from the two countries took part in

Vostok 20
18

a joint military exercise in eastern Siberia, the largest such drill in Russia in nearly four decades.

While Xi is highlighting his rapport with his “best friend” Putin, the professor added, “the romance has gone out of the personal relationship between Xi and [Donald] Trump”.
Source: SCMP
Law of Unintended Consequences

continuously updated blog about China & India

ChiaHou's Book Reviews

continuously updated blog about China & India

What's wrong with the world; and its economy

continuously updated blog about China & India