Posts tagged ‘Joe Biden’

09/04/2015

China to Build Pipeline From Iran to Pakistan – China Real Time Report – WSJ

China will build a pipeline to bring natural gas from Iran to Pakistan to help address Pakistan’s acute energy shortage, under a deal to be signed during the Chinese president’s visit to Islamabad this month, Pakistani officials said. As the WSJ’s Saeed Shah reports:

The arrival of President Xi Jinping is expected to showcase China’s commitment to infrastructure development in ally Pakistan, at a time when few other countries are willing to make major investments in cash-strapped, terrorism-plagued, Pakistan.

The pipeline would amount to an early benefit for both Pakistan and Iran from the framework agreement reached earlier this month between Tehran and the U.S. and other world powers to prevent Iran from developing nuclear weapons. The U.S. had previously threatened Pakistan with sanctions if it went ahead with the project.

Dubbed the “Peace Pipeline,” the project will further bolster improving ties between Pakistan and Iran, which had been uneasy neighbors for decades as a result of Pakistan’s ties to Iran’s long-term adversaries, Saudi Arabia and the U.S.

“We’re building it,” Pakistani Petroleum Minister Shahid Khaqan Abbasi told The Wall Street Journal, referring to the pipeline. “The process has started.”

The pipeline will bring much-needed gas to Pakistan, which suffers from a crippling electricity deficit because of a shortage of fuel for its power-generation plants. Pakistan has been negotiating for months behind the scenes for China to build the Pakistani portion of the pipeline, which will cost up to $2 billion.

via China to Build Pipeline From Iran to Pakistan – China Real Time Report – WSJ.

30/09/2014

Obama-Modi Meeting Offers Chance to Reset U.S.-India Ties – Businessweek

President Barack Obama and Indian Prime Minister Narendra Modi’s meetings in Washington give the two leaders to chance to reinvigorate an economic relationship that both see crucial to growth and security.

Indian Prime Minister Narendra Modi

The two days of talks, which began with a private dinner for Modi at the White House last night, are pivotal, U.S. officials said ahead of the summit. In addition to Obama’s sessions with Modi, Vice President Joe Biden and Secretary of State John Kerry will host today a luncheon for the Indian leader.

This is the first time Obama and Modi have met, and it also is Modi’s first visit to the U.S. since he was denied a visa in 2005 over anti-Muslim riots in his state of Gujarat three years earlier. Modi won a landslide election win in May, and the U.S. is seeking to repair relations while India is wooing foreign investors to revive its economy.

“The U.S. is eagerly trying to move forward with Modi in order to put the past behind them,” Milan Vaishnav, an associate in the South Asia program at the Carnegie Endowment for International Peace in Washington, said in a phone interview. “The two sides have a foundation in terms of a bilateral government-to-government relationship and a people-to-people relationship to build on. In terms of a leader-to-leader relationship, this is almost like starting anew.”

via Obama-Modi Meeting Offers Chance to Reset U.S.-India Ties – Businessweek.

14/12/2013

Susan Rice Attempts to Solve the Japan-China Deadlock – FPIF

Sending Caroline Kennedy, a household name in the United States, to Japan as the ambassador indicates that President Obama has realized there is no better choice than using the tension in East Asia to capture and retain the attention of the American public to his amazing skills in handling Asia. While the jingoistic heat may stay for a while, the White House will cool it down soon.

Trans-Asian Railway

In 1940, the GDP (in US$ billion) of Germany, Japan, the UK and the U.S. amounted to US$387, $192, $316 and $943 respectively, with a ratio between the two Axis and the two Allied powers at 0.4599:1. In 2012, the GDP of China, Japan and the U.S. amounted to $8,358, $5,960 and $15,685 billion respectively, with a ratio between China and the U.S.-Japan team at 0.3861:1.  The GDP per capita of the U.S. in 2012 was US$49,965 and that of Japan was US$46,720, but the Chinese figure was merely US$6,188 which was less than 7% of the U.S.-Japan combined total.

Strategically speaking, without Taiwan as the “unsinkable aircraft carrier”, China’s air force is fragile around the islands in dispute, not to mention their wide generational gap behind the U.S. fighters.  Even laymen know that when Boeing is promoting the latest model—787 Dreamliner, China is still at the infant stage of manufacturing passenger jets. In terms of national strength and technology, China cannot match with the United States. The current hawkish talks will no doubt help newspapers sell better and online journals attract more eyeballs but insiders and military experts know that this confrontational game is asymmetrical. Nevertheless, both Tokyo and Beijing benefit from playing this game for domestic politics consideration in due course.

Prime Minister Shinzo Abe can make the best use of it to consolidate the public support for his Liberal Democratic Party during the newly won 4-year term at the House of Representatives by proving that his party is more protective of Japan’s national interest than the Democratic Party of Japan whose leaders like Naoto Kan and Yukio Hatoyama appeared to be weak at the bargaining table during their governance 2009-12.

To the Chinese Communist Party, the Sino-Japanese tension is the most gifted justification for fostering patriotism and weakening the idolization of the West by some netizens and scholars. All the parties in power know that this confrontational show will not lead to any combat and will not last long. When the calculation and pressure for election campaigning in Japan subside after 2016, serious negotiation will resume. Both sides do not want to see long-term shrinkage of trade volume and cannot afford to leave the crude and gas under the sea untouched forever. In fact, a delegation of leading Japanese business leaders, including Fujio Cho (honorary chairman of Toyota Motors) and Hiromasa Yonekura (honorary chairman of Nippon Steel and Sumitomo Metals) is having a week-long stay in Beijing to try to open the door for peace by meeting at least the Chinese Vice-Premier Wang Yang who is in charge of trade and commerce.

This 2014-16 period will therefore be the show time for the White House to mastermind the progress towards a warm feeling for talks. National Security Advisor Susan Rice revealed a hint on how the U.S. could pave the way for a Japan-China deal in her Georgetown University script. In the eighth paragraph of the speech titled “America’s Future in Asia”, she began by saying that when “it comes to China, we seek to operationalize a new model of major power relations” and then brought the audience to the Korean Peninsula, Iran, Afghanistan, “Sudan”, “sub-Saharan Africa” and even benefits of “the peoples of Africa”. Why is Africa dragged into this already complicated problem in a speech supposed to be on America-Asia when “it comes to China”?

Knowing that China is not just rushing to complete the 80,900-km Trans-Asian Railway project and the Bangladesh-China-India-Myanmar (BCIM) Economic Corridor, but also going to provide US$1 trillion of financing to Africa in the years to 2025 through the state-owned banks including the Eximbank to further increase the Chinese stakes in this under-developed continent, Washington could bargain for favors towards the U.S., Japan and even the Philippines by offering, say, ‘less barriers’ to China’s advancement to Africa. To China, the natural resources in western Asia, Latin America and Africa represent the lion share of the commodities the 1.3 billion population needs. Here is the simple equation Susan Rice is going to show the pragmatic Chinese helmsman rulers: In the wake of China’s no match for the military strength of the U.S. worldwide, a smaller share in the east (East Asia) plus a larger (or less costly) share in the west (western Asia and Africa) can yield the same amount of sum in the end.  It is how and why a deal is possible.

via Susan Rice Attempts to Solve the Japan-China Deadlock – FPIF.

09/12/2013

Guest post: Senkaku – accelerating the China relocation trade? | beyondbrics

The debate continues on the motivations and risks of China’s decision on November 23 to announce an East China Sea Air Defence Identification Zone (ADIZ) which critically includes the disputed Senkaku Islands (know in China as Daioyu). There is little dispute that the standoff between China, Japan and the US has the capacity to escalate into something much more dangerous unless US Vice-President Joe Biden’s recent Asia trip is effective in ratcheting down tensions.

Has China miscalculated in terms of the rapid US response of B52 bomber sorties over the disputed Islands or prospective US naval deployment build-up in the region? Or is this the preliminary phase of a much longer-term slow creep by China in fulfilling its ambitions in establishing a more dominant regional role? Vietnam, the Philippines, Taiwan, Malaysia and Brunei (all US allies) are – like Japan – enmeshed in arguments with Beijing over relatively minor but potentially strategic bits of maritime real estate. Does the US administration have the willingness to back its allies on all fronts

Others have argued that the new Chinese leadership under President Xi Jinping are using nationalist sentiment to distract the Chinese public from the growth slowdown as well as solidify support among the Chinese military. Meanwhile Japan has been busily building up mutual defence and security ties across southeast Asia, and with Australia and India, as a hedge against Beijing. The state visit of the Japanese Emperor to India to has taken on even more significance.

While the geopolitical dynamics remain fluid and uncertain, a more definite consequence of the dispute may well be to accelerate the China relocation macro theme with major implications for FDI flows in the rest of the region. Up until now the primary motivation for foreign companies with large scale manufacturing operations to relocate from China has been the rapid rise in Chinese labour costs and the growing signs of worker shortages. The case was made most effectively by former World Bank Chief Economist Justin Yifu Lin (see Chandra, Lin and Wang (2012)) who suggested that:

industrial upgrading has increased wages and is causing China to graduate from labor-intensive to more capital-and technology-intensive industries. These industries will shed labor and create a huge opportunity for lower wage countries to start a phase of labor-intensive industrialization.

This process, which they called the Leading Dragon Phenomenon, offers an unprecedented opportunity to low-income countries where the industrial sector is underdeveloped and investment capital and entrepreneurial skills are leading constraints to manufacturing. They also note that low income countries such can seize the opportunity and resolve the constraints by attracting some of the FDI flowing currently from China, India and Brazil into the manufacturing sectors of other developing countries.

So the relocation of factories as a result of China economic rebalancing is a multi-year structural trend that is likely to be the dominant macro theme for developing economies for the next decade and beyond. But it is becoming more apparent that political risk mitigation in the face of resurgent Chinese regional territorial ambitions and aggressiveness will re-inforce the macroeconomic justification for diversifying away from China. Japanese outward FDI has increased for two years in succession, with 2012 the second highest increase in history ($122.4bn, an increase of 12.5 per cent over the previous year). Japan’s total outward FDI stock exceeded $1tn. However what is more interesting, as illustrated in the diagram below, is that Japan’s FDI flow to ASEAN has grown relative to that towards China.

Even if it’s a remote scenario, what if accidental engagement between Japanese and Chinese fighters in the newly announced ADIZ rapidly escalated into a more serious conflict or even declaration of war? The hundreds of billions of dollars of Japanese investment into factories in China would appear at risk. Even if we exclude the expropriation of factories directly, at the very minimum, the experience of Chinese nationalist protests over the Yasukune shrine visits by Japanese politicians or in the more distant past the US bombing of the Chinese embassy in Belgrade are clearly risks that policy makers and boards of Japanese multinationals must be increasingly worried about. And, unlike Chinese holdings of US treasuries that could be liquidated reasonably quickly, albeit potentially at the risk of self-destructively causing a meltdown in global financial markets, FDI in factory assets is, by its very nature, immobile. Moreover Japanese managers and workers in China would also be vulnerable. One might argue that there is a risk of a similar level of concern developing in Seoul or Taipei or perhaps even Washington.

via Guest post: Senkaku – accelerating the China relocation trade? | beyondbrics.

Ifty Islam is the managing partner of AT Capital in Dhaka, Bangladesh. Ifty.islam@ at-capital.com

01/12/2013

U.S. airlines give China flight plans for defense zone | Reuters

U.S. airlines United, American and Delta, have notified Chinese authorities of flight plans when traveling through an air defense zone Beijing has declared over the East China Sea, following U.S. government advice.

A group of disputed islands, Uotsuri island (top), Minamikojima (bottom) and Kitakojima, known as Senkaku in Japan and Diaoyu in China is seen in the East China Sea, in this photo taken by Kyodo September 2012. REUTERS/Kyodo

The zone has raised tensions, particularly with Japan and South Korea, and is likely to dominate the agenda of a visit to Asia this week of U.S. Vice President Joe Biden. He will travel to Japan, China, and South Korea and try to ease tensions, senior American officials said.

However, China\’s declaration of the zone also represents a historic challenge by the emerging world power to the United States, which has dominated the region for decades.

China published co-ordinates for the zone last weekend. The area, about two-thirds the size of the United Kingdom, covers most of the East China Sea and the skies over a group of uninhabited islands at the center of a bitter territorial dispute between Beijing and Tokyo.

Beijing wants all foreign aircraft passing through the zone, including passenger planes, to identify themselves to Chinese authorities.

On Friday, the United States said it expected U.S. carriers to operate in line with so-called notices to airmen issued by foreign countries, although it added that the decision did \”not indicate U.S. government acceptance of China\’s requirements.

A spokesman for Delta Airlines said it had been complying with the Chinese requests for flight plans for the past week. American and United said separately that they were complying, but did not say for how long they had been doing so.

Airline industry officials said the U.S. government generally expected U.S. carriers operating internationally to comply with notices issued by foreign countries.

In contrast, Japanese carriers ANA Holdings and Japan Airlines have flown through the zone without informing China, under an agreement with the Tokyo government. Neither airline has experienced problems.

The airlines said they were sticking with the policy even after Washington\’s advice to its carriers.

Any sign that the United States was even tacitly giving a nod to China\’s air defense zone would disturb Tokyo, which is hoping for a display of solidarity when Biden visits Japan starting on Monday.

via U.S. airlines give China flight plans for defense zone | Reuters.

20/07/2013

Joe Biden’s India Itinerary

WSJ: “U.S. Vice President Joe Biden arrives in New Delhi Monday for a visit focused on improving business ties between the two nations.

Mr. Biden, 70, begins his four-day India tour with a trip to Gandhi Smriti in New Delhi, a museum dedicated to Mahatma Gandhi, who led India to independence from Britain in 1947. The Democratic Party politician, who is visiting India with his wife, is also expected to meet Prime Minister Manmohan Singh, President Pranab Mukherjee and Vice President Mohammad Hamid Ansari, among other leaders, before travelling to Mumbai. Mr. Biden last visited India in 2008, when he was a member of the American Senate.

Mr. Biden’s wife, Jill Biden, will visit the Taj Mahal in Agra and is expected to address school children in Mumbai.

Relations between Washington and New Delhi have been warming in recent years, with the U.S. viewing India as an emerging superpower that can serve as a counterbalance to China’s growing influence in South Asia.

In a speech at the George Washington University in the U.S. on Friday, Mr. Biden singled out civil-nuclear cooperation, trade and investment as key issues the U.S. sought to collaborate on with India in the coming years. “There’s a lot of work to do,” Mr. Biden said in his speech, referring to strengthening India-U.S. ties. He also welcomed India’s decision this week to ease overseas-investment rules for telecom, defense and insurance.”

via Joe Biden’s India Itinerary – India Real Time – WSJ.

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