China and Pakistan will hold 100 events to celebrate the 70th anniversary of the establishment of their diplomatic ties.

Diplomatic relations between the two countries were established on May 21, 1951. A virtual ceremony will be simultaneously held in Islamabad and Beijing&nbsp;to mark this date.

On World Puppetry Day on March 21, the Pakistan Embassy in Beijing is going to hold a puppet show to celebrate 70 years of diplomatic relations with China at the China Puppet Art Theater in Beijing. This will be a joint initiative with the Rafi peer art theatre of Pakistan.

The show will celebrate the civilisation and cultural heritage of both countries through puppets.

For Pakistan, it’s a big deal and for China, there's no better way to celebrate than holding a puppet show.

What will the show look like?

Pakistan owes 17.1 billion dollars to China, due to the China-Pakistan Economic Corridor (CPEC).

For China, CPEC is a geopolitical game-changer - the biggest success of Chinese expansionism, and for Pakistan, it is a lifetime opportunity and its last chance for economic modernisation.

CPEC was sold as the ultimate solution to Pakistan's economic troubles. But&nbsp;it was China that has squeezed all the benefits.

The actual worth of this puppet show can also be estimated based on Pakistan's silence on the persecution of Uighurs in Xinjiang,&nbsp;its support for the dictatorial Hong Kong national security law. The several Intel-sharing deals between PLA and the Pakistan Army, or the conspicuous support these two countries provide each other for their respective nefarious policies at global platforms.

China is holding a puppet show with Pakistan is funnier than anything satirists could ever come up with. It leaves little to the imagination on what sort of ties these two countries have.&nbsp;

One pulls the strings through financial support. The other willfully complies with diplomatic silence. They don't need a puppet show to prove who's in control.

(With inputs from agencies)

China and Pakistan will hold 100 events to celebrate the 70th anniversary of the establishment of their diplomatic ties. Diplomatic relations between the two countries were established on May 21, 1951.

China and Pakistan will hold 100 events to celebrate the 70th anniversary of the establishment of their diplomatic ties. Diplomatic relations between the two countries were established on May 21, 1951. A virtual ceremony will be simultaneously held in Islamabad and Beijing to mark this date. On World Puppetry Day on March 21, the Pakistan Embassy in Beijing is going to hold a puppet show to celebrate 70 years of diplomatic relations with China at the China Puppet Art Theater in Beijing. This will be a joint initiative with the Rafi peer art theatre of Pakistan. The show will celebrate the civilisation and cultural heritage of both countries through puppets. For Pakistan, it’s a big deal and for China, there's no better way to celebrate than holding a puppet show. What will the show look like? Pakistan owes 17.1 billion dollars to China, due to the China-Pakistan Economic Corridor (CPEC). For China, CPEC is a geopolitical game-changer - the biggest success of Chinese expansionism, and for Pakistan, it is a lifetime opportunity and its last chance for economic modernisation. CPEC was sold as the ultimate solution to Pakistan's economic troubles. But it was China that has squeezed all the benefits. The actual worth of this puppet show can also be estimated based on Pakistan's silence on the persecution of Uighurs in Xinjiang, its support for the dictatorial Hong Kong national security law. The several Intel-sharing deals between PLA and the Pakistan Army, or the conspicuous support these two countries provide each other for their respective nefarious policies at global platforms. China is holding a puppet show with Pakistan is funnier than anything satirists could ever come up with. It leaves little to the imagination on what sort of ties these two countries have. One pulls the strings through financial support. The other willfully complies with diplomatic silence. They don't need a puppet show to prove who's in control. (With inputs from agencies)

Art imitates reality: A 'puppet show' to celebrate 70 years of China-Pakistan ties

For Beijing, alliance with Pakistan is a geopolitical game-changer - a success of Chinese expansionism, and for Islamabad, it is a life-time opportunity and its last chance for economic modernisation.

CPEC was sold as the ultimate solution to Pakistan's economic troubles. But, it was China that has squeezed all the benefits.

Foreign direct investment in Pakistan has seen a 27 per cent decline in the first seven months of the current fiscal, owing mainly to the fall in investment from its close ally China, a media report said on Tuesday.

The Foreign Direct Investment (FDI) in Pakistan during the first seven years fell by 27 per cent compared to the same period last fiscal year, Dawn newspaper reported, quoting the State Bank of Pakistan (SBP) as saying.

The SBP, the central bank, on Monday said that the FDI during July-January FY-21 was USD 1.145 billion against an inflow of USD 1.577bn in the same period last fiscal year.

The inflow during January was USD 192.7 million compared to USD 219 million in the same month of the previous fiscal year, registering a 12 per cent decline.

However, the seven-month decline was mainly due to a decline in net FDI from China and an increase in net outflow to Norway, the report said.

The country-wise details showed that net inflow of FDI from China was USD 402.8 million against USD 502.6 million in the same period of last fiscal year.

So far, the net FDI from China is the highest in the list of inflows from other countries.

The inflows from China were USD 707.2 million during the seven months but the outflow of USD 304.4 million in the same period reduced the net FDI to USD 402.8 million.

Others from where over USD 100 million net FDIs were received were the Netherlands and Hong Kong, as they invested USD 122 million and USD 105 million, respectively, during the first seven months of FY21.

The inflows of FDI from the UK (USD 83.8m), the US (USD 73.5m) and Malta (USD 60.6m) were also significant during the seven months.

However, a drastic change in the inflows from Norway affected the overall inflow of FDI this year.

The SBP data shows that during the seven months of the previous fiscal year, the inflow from Norway was USD 288.5 million, while in the seven months of the current financial year a net outflow of USD 25.8 million was noted instead of any inflow from the Scandinavian country.

The power sector attracted the highest investment of USD 475.8 m against USD 373 m in the same period of last financial year; an increase of 27.6 per cent.

(With inputs from agencies)

For Beijing, alliance with Pakistan is a geopolitical game-changer - a success of Chinese expansionism, and for Islamabad, it is a life-time opportunity and its last chance for economic modernisation.

For Beijing, alliance with Pakistan is a geopolitical game-changer - a success of Chinese expansionism, and for Islamabad, it is a life-time opportunity and its last chance for economic modernisation. CPEC was sold as the ultimate solution to Pakistan's economic troubles. But, it was China that has squeezed all the benefits. Foreign direct investment in Pakistan has seen a 27 per cent decline in the first seven months of the current fiscal, owing mainly to the fall in investment from its close ally China, a media report said on Tuesday. The Foreign Direct Investment (FDI) in Pakistan during the first seven years fell by 27 per cent compared to the same period last fiscal year, Dawn newspaper reported, quoting the State Bank of Pakistan (SBP) as saying. The SBP, the central bank, on Monday said that the FDI during July-January FY-21 was USD 1.145 billion against an inflow of USD 1.577bn in the same period last fiscal year. The inflow during January was USD 192.7 million compared to USD 219 million in the same month of the previous fiscal year, registering a 12 per cent decline. However, the seven-month decline was mainly due to a decline in net FDI from China and an increase in net outflow to Norway, the report said. The country-wise details showed that net inflow of FDI from China was USD 402.8 million against USD 502.6 million in the same period of last fiscal year. So far, the net FDI from China is the highest in the list of inflows from other countries. The inflows from China were USD 707.2 million during the seven months but the outflow of USD 304.4 million in the same period reduced the net FDI to USD 402.8 million. Others from where over USD 100 million net FDIs were received were the Netherlands and Hong Kong, as they invested USD 122 million and USD 105 million, respectively, during the first seven months of FY21. The inflows of FDI from the UK (USD 83.8m), the US (USD 73.5m) and Malta (USD 60.6m) were also significant during the seven months. However, a drastic change in the inflows from Norway affected the overall inflow of FDI this year. The SBP data shows that during the seven months of the previous fiscal year, the inflow from Norway was USD 288.5 million, while in the seven months of the current financial year a net outflow of USD 25.8 million was noted instead of any inflow from the Scandinavian country. The power sector attracted the highest investment of USD 475.8 m against USD 373 m in the same period of last financial year; an increase of 27.6 per cent. (With inputs from agencies)

FDI in Pakistan down by 27 per cent in the first seven months; investment from China dwindles: Report

China on Monday dismissed reports that it asked Pakistan of additional guarantees for approving a USD 6 billion loan for a railway line project and moving away from its financial commitments to the ambitious China-Pakistan Economic Corridor (CPEC).&nbsp;

Chinese Foreign Ministry spokesman Zhao Lijian said despite the global economic recession, "China's input in the Belt and Road Initiative (BRI) including the CPEC" has increased.&nbsp;

Watch |&nbsp;

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"I would also like to stress that against the global economic recession, China's input in the Belt and Road Initiative (BRI) including the CPEC has not reduced but rather increased against the odds," Zhao was quoted as saying by news agency PTI. &nbsp;

Also read | <a href="https://www.wionews.com/south-asia/china-seeks-additional-guarantees-before-sanctioning-usd-6-billion-loan-for-rail-project-in-pakistan-351771">China seeks additional guarantees before sanctioning USD 6 billion loan for rail project in Pakistan</a>

"Over the first three quarters, China's direct financial investment in BRI countries increased by around 30 per cent, offering China's support to many BRI partner countries in their effort to fight the epidemic and recover their economy."

CPEC is a crucial part of Chiná's multi-billion-dollar BRI.

The corridor which connects China's Xinjiang province to Gwadar Port in Pakistan's Balochistan has been opposed by India as it passes through Pakistan-occupied Kashmir (PoK).&nbsp;

Recently, Pakistani media has reported that China has asked Pakistan to provide additional guarantees before sanctioning the 6 billion dollar loan for the Main Line-1 (ML-1) railway line project due to Islamabad's vulnerable economic condition.&nbsp;

Zhao also rejected claims that China is moving away from its initial commitments to Pakistan under the CPEC due to a rise in corruption and militant attacks.&nbsp;

 
&nbsp;

China on Monday dismissed reports that it asked Pakistan of additional guarantees for approving a USD 6 billion loan for a railway line project and moving away from its financial commitments to the ambitious China-Pakistan Economic Corridor (CPEC).

China on Monday dismissed reports that it asked Pakistan of additional guarantees for approving a USD 6 billion loan for a railway line project and moving away from its financial commitments to the ambitious China-Pakistan Economic Corridor (CPEC). Chinese Foreign Ministry spokesman Zhao Lijian said despite the global economic recession, "China's input in the Belt and Road Initiative (BRI) including the CPEC" has increased. Watch | "I would also like to stress that against the global economic recession, China's input in the Belt and Road Initiative (BRI) including the CPEC has not reduced but rather increased against the odds," Zhao was quoted as saying by news agency PTI. Also read | China seeks additional guarantees before sanctioning USD 6 billion loan for rail project in Pakistan "Over the first three quarters, China's direct financial investment in BRI countries increased by around 30 per cent, offering China's support to many BRI partner countries in their effort to fight the epidemic and recover their economy." CPEC is a crucial part of Chiná's multi-billion-dollar BRI. The corridor which connects China's Xinjiang province to Gwadar Port in Pakistan's Balochistan has been opposed by India as it passes through Pakistan-occupied Kashmir (PoK). Recently, Pakistani media has reported that China has asked Pakistan to provide additional guarantees before sanctioning the 6 billion dollar loan for the Main Line-1 (ML-1) railway line project due to Islamabad's vulnerable economic condition. Zhao also rejected claims that China is moving away from its initial commitments to Pakistan under the CPEC due to a rise in corruption and militant attacks.

China rejects reports of seeking guarantees from Pakistan for approving $6 billion loan

For China, China-Pakistan Economic Corridor (CPEC) is a geopolitical game-changer - the biggest success of Chinese expansionism, and for Pakistan, it is a life-time opportunity and its last chance for economic modernisation.

For the last 18 months, the US$60 billion infrastructure project has been both a source of interest and concern even as there has been a global debate over its potential and problems.

China appears to be backing away from its initial financial promises to Pakistan under Beijing-financed CPEC, amid rising corruption and terrorist attacks on Chinese engineers.

According to Asia Times, Pakistan Army is set to take near-total control of the CPEC in a bid to reassure Beijing that their investments will be more secure amid terrorist attacks on Chinese engineers and others facilitating the infrastructure projects.

The new bill comes at a time when reports suggest that China is slowly retreating from its promises.

Overall lending by the state-backed China Development Bank and the Export-Import Bank of China declined from a peak of USD 75 billion in 2016 to just $4 billion last year. Provisional 2020 figures show that amount shrunk to around $3 billion in 2020, according to data of Boston University researchers in the United States.

The belt-tightening is believed to be in line with Beijing's so-called "rethink strategy" for its US$1 trillion BRI, which is under broad fire for "structural weaknesses" including opacity, corruption, overlending to poor countries resulting in "debt traps" and adverse social and environmental impacts, the Boston University researchers said.

Pakistan Prime Minister Imran Khan, whose government is criticised for being under military control, is also facing flak in his country for not prioritising and expediting big-ticket Chinese infrastructure investments, Asia Times reported.

In 2018, Imran Khan had put on hold several CPEC projects suspecting corruption by the previous government. However, two years later, several of his Cabinet members were named in big corruption scandals involving the country's power sector. About one-third of Pakistan's power companies are involved in Chinese projects under the CPEC.

The 278-page inquiry report, compiled by the Securities and Exchange Commission of Pakistan (SECP) and presented to Imran Khan in April, unearthed alleged irregularities worth over USD 1.8 billion in subsidies given to 16 independent power producers (IPPs) including those belonging to Imran Khan's advisors Razak Dawood and Nadeem Baber, Asia Times said.

The SCEP had also investigated the profits earned by the Chinese power companies. The report revealed that Huang Shandong Ruyi Pakistan Ltd (HSR) and Port Qasim Electric Power Co Ltd (PQEPCL) were together overpaid by 483.6 billion rupees (USD 3 billion).

Terrorists in Balochistan province, meanwhile, have intensified their attacks on CPEC projects and Chinese nationals working on them, raising the security costs and political risks of the projects. Islamabad's move to give the military more control over the scheme is a clear attempt to mollify China's rising security concerns.

(With inputs from agencies)

For China, China-Pakistan Economic Corridor (CPEC) is a geopolitical game-changer - the biggest success of Chinese expansionism, and for Pakistan, it is a life-time opportunity and its last chance for economic modernisation.

For China, China-Pakistan Economic Corridor (CPEC) is a geopolitical game-changer - the biggest success of Chinese expansionism, and for Pakistan, it is a life-time opportunity and its last chance for economic modernisation. For the last 18 months, the US$60 billion infrastructure project has been both a source of interest and concern even as there has been a global debate over its potential and problems. China appears to be backing away from its initial financial promises to Pakistan under Beijing-financed CPEC, amid rising corruption and terrorist attacks on Chinese engineers. According to Asia Times, Pakistan Army is set to take near-total control of the CPEC in a bid to reassure Beijing that their investments will be more secure amid terrorist attacks on Chinese engineers and others facilitating the infrastructure projects. The new bill comes at a time when reports suggest that China is slowly retreating from its promises. Overall lending by the state-backed China Development Bank and the Export-Import Bank of China declined from a peak of USD 75 billion in 2016 to just $4 billion last year. Provisional 2020 figures show that amount shrunk to around $3 billion in 2020, according to data of Boston University researchers in the United States. The belt-tightening is believed to be in line with Beijing's so-called "rethink strategy" for its US$1 trillion BRI, which is under broad fire for "structural weaknesses" including opacity, corruption, overlending to poor countries resulting in "debt traps" and adverse social and environmental impacts, the Boston University researchers said. Pakistan Prime Minister Imran Khan, whose government is criticised for being under military control, is also facing flak in his country for not prioritising and expediting big-ticket Chinese infrastructure investments, Asia Times reported. In 2018, Imran Khan had put on hold several CPEC projects suspecting corruption by the previous government. However, two years later, several of his Cabinet members were named in big corruption scandals involving the country's power sector. About one-third of Pakistan's power companies are involved in Chinese projects under the CPEC. The 278-page inquiry report, compiled by the Securities and Exchange Commission of Pakistan (SECP) and presented to Imran Khan in April, unearthed alleged irregularities worth over USD 1.8 billion in subsidies given to 16 independent power producers (IPPs) including those belonging to Imran Khan's advisors Razak Dawood and Nadeem Baber, Asia Times said. The SCEP had also investigated the profits earned by the Chinese power companies. The report revealed that Huang Shandong Ruyi Pakistan Ltd (HSR) and Port Qasim Electric Power Co Ltd (PQEPCL) were together overpaid by 483.6 billion rupees (USD 3 billion). Terrorists in Balochistan province, meanwhile, have intensified their attacks on CPEC projects and Chinese nationals working on them, raising the security costs and political risks of the projects. Islamabad's move to give the military more control over the scheme is a clear attempt to mollify China's rising security concerns. (With inputs from agencies)

China retreating from promises to Pakistan under economic corridor: Report

At a time when financial institutions and banks of China are showing reluctance in investing in the China-Pakistan economic corridor (CPEC), Imran Khan has decided to seek $2.7 billion loan from China for the construction of package-I of the Mainline-1 project. 
 
<a href="https://www.wionews.com/south-asia/chinese-banks-looking-to-curtail-investments-in-cpec-due-to-instability-in-pakistan-323485">Also read | Chinese banks looking to curtail investments in CPEC due to instability in Pakistan</a> 
 
The Main Line 1 railway track connects Karachi in the South to Peshawar in the North of Pakistan.&nbsp;

At the sixth meeting of the financing committee on ML-1 project, which includes dualisation and upgrading of the 1,872 km railway track from Peshawar to Karachi, decided that Pakistan would initially request China to sanction the only USD 2.73 billion in loan out of the total estimated Chinese financing of about USD 6.1 billion.

This development comes even as Pakistan's economy has been teetering on the verge of bankruptcy for some time and the COVID-19 pandemic has made the situation even worse.

The Ministry of Economic Affairs has been directed to formally send the Letter of Intent to China next week as Beijing is expected to finalise its next year's financing plans by the end of the current month, The Express Tribune reported.

CPEC was sold as the ultimate solution to Pakistan's economic troubles. But, it was China that has squeezed all the benefits.

This move will further impact Pakistan’s already battered economy, even as the spread of the coronavirus pandemic was contained.&nbsp;

However, PM Imran Khan has repeatedly highlighted the need to complete the $60-billion CPEC saying that it would push socio-economic development.

For China, CPEC is a geopolitical game-changer - the biggest success of Chinese expansionism, and for Pakistan it is a life-time opportunity and its last chance for economic modernisation.

(With inputs from agencies)

At a time when financial institutions and banks of China are showing reluctance in investing in the China-Pakistan economic corridor (CPEC), Imran Khan has decided to seek $2.

At a time when financial institutions and banks of China are showing reluctance in investing in the China-Pakistan economic corridor (CPEC), Imran Khan has decided to seek $2.7 billion loan from China for the construction of package-I of the Mainline-1 project. Also read | Chinese banks looking to curtail investments in CPEC due to instability in Pakistan The Main Line 1 railway track connects Karachi in the South to Peshawar in the North of Pakistan. At the sixth meeting of the financing committee on ML-1 project, which includes dualisation and upgrading of the 1,872 km railway track from Peshawar to Karachi, decided that Pakistan would initially request China to sanction the only USD 2.73 billion in loan out of the total estimated Chinese financing of about USD 6.1 billion. This development comes even as Pakistan's economy has been teetering on the verge of bankruptcy for some time and the COVID-19 pandemic has made the situation even worse. The Ministry of Economic Affairs has been directed to formally send the Letter of Intent to China next week as Beijing is expected to finalise its next year's financing plans by the end of the current month, The Express Tribune reported. CPEC was sold as the ultimate solution to Pakistan's economic troubles. But, it was China that has squeezed all the benefits. This move will further impact Pakistan’s already battered economy, even as the spread of the coronavirus pandemic was contained. However, PM Imran Khan has repeatedly highlighted the need to complete the $60-billion CPEC saying that it would push socio-economic development. For China, CPEC is a geopolitical game-changer - the biggest success of Chinese expansionism, and for Pakistan it is a life-time opportunity and its last chance for economic modernisation. (With inputs from agencies)

Imran govt needs help again: Pakistan seeks $2.7 billion loan from China for CPEC project

China is failing in Pakistan. Most investors think twice before funding projects in Pakistan.

Corruption, terrorism, violence and security concerns make Pakistan a deadly destination but China has kept pumping money to lay its debt trap.

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In January, the ground was broken for the first SEZ titled Allama Iqbal Industrial City in Faisalabad in Punjab province. However, the SEZ plan faces delays due in part to the fact that participating Chinese companies are expecting difficulties in managing human and material resources amid pandemic restrictions resulting in production delays and higher costs.

Now, the strategy may be backfiring. China's projects in Pakistan have been stalled due to rampant corruption and violent attacks. PM Imran Khan is now facing heat from the opposition because his own officials are in the dock.

PM Imran Khan wants to be known as a crusader against corruption whether it was the Sharifs or the Bhutto Zardaris, Khan has been relentless in his crackdown but the selected prime minister has been selective in his clampdown.

Imran Khan hasn't gone after the corrupt officials in his own team with the same enthusiasm. It began with lieutenant general Asim Saleem Bajwa - the pizza general who still remains the chairman of CPEC.

Fresh reports now indicate more dirty hands could be in the mix. Two advisers of Imran Khan are allegedly beneficiaries of government subsidies. The securities and exchange commission of Pakistan conducted an enquiry. It found irregularities worth over $1.8 billion in government subsidies. They were given to 16 independent power producers including Razak Dawood and Nadeem Baber Baber.

The same report accuses two Chinese companies of inflating their costs to set up coal plants which is the same kind of corruption that Imran Khan promised to put a stop to when he took charge.

In 2018, when Imran Khan assumed office, he issued an order. Several CPEC projects were put on hold allegedly over the suspicion of corruption but since the inner circle of Imran Khan has been named in graft complaints progress on CPEC has stalled.

Violent attacks on Chinese investments and limits on borrowing have added to Islamabad's troubles almost a month ago, 14 security personnel were killed in Gwadar. The city where China is building the deepest seaport in the world.

The outbreak of the Wuhan virus has caused further delays. The pandemic is hurting Pakistan's plans to build special economic zones with China's help. Reports say Chinese companies are facing production delays.

Managing human and material resources is proving to be a struggle for the Pakistan government alongside inflated bills. The opposition faced with a barrage of corruption lawsuits is now breathing down Imran Khan's neck.

They accused the prime minister of not expediting key infrastructure projects with China. Imran Khan is struggling to get things back on track. It won't come as a surprise if Beijing decides to dial the Pakistani military for help.

China is failing in Pakistan. Most investors think twice before funding projects in Pakistan. Corruption, terrorism, violence and security concerns make Pakistan a deadly destination but China has kept pumping money to lay its debt trap.

China is failing in Pakistan. Most investors think twice before funding projects in Pakistan. Corruption, terrorism, violence and security concerns make Pakistan a deadly destination but China has kept pumping money to lay its debt trap. In January, the ground was broken for the first SEZ titled Allama Iqbal Industrial City in Faisalabad in Punjab province. However, the SEZ plan faces delays due in part to the fact that participating Chinese companies are expecting difficulties in managing human and material resources amid pandemic restrictions resulting in production delays and higher costs. Now, the strategy may be backfiring. China's projects in Pakistan have been stalled due to rampant corruption and violent attacks. PM Imran Khan is now facing heat from the opposition because his own officials are in the dock. PM Imran Khan wants to be known as a crusader against corruption whether it was the Sharifs or the Bhutto Zardaris, Khan has been relentless in his crackdown but the selected prime minister has been selective in his clampdown. Imran Khan hasn't gone after the corrupt officials in his own team with the same enthusiasm. It began with lieutenant general Asim Saleem Bajwa - the pizza general who still remains the chairman of CPEC. Fresh reports now indicate more dirty hands could be in the mix. Two advisers of Imran Khan are allegedly beneficiaries of government subsidies. The securities and exchange commission of Pakistan conducted an enquiry. It found irregularities worth over $1.8 billion in government subsidies. They were given to 16 independent power producers including Razak Dawood and Nadeem Baber Baber. The same report accuses two Chinese companies of inflating their costs to set up coal plants which is the same kind of corruption that Imran Khan promised to put a stop to when he took charge. In 2018, when Imran Khan assumed office, he issued an order. Several CPEC projects were put on hold allegedly over the suspicion of corruption but since the inner circle of Imran Khan has been named in graft complaints progress on CPEC has stalled. Violent attacks on Chinese investments and limits on borrowing have added to Islamabad's troubles almost a month ago, 14 security personnel were killed in Gwadar. The city where China is building the deepest seaport in the world. The outbreak of the Wuhan virus has caused further delays. The pandemic is hurting Pakistan's plans to build special economic zones with China's help. Reports say Chinese companies are facing production delays. Managing human and material resources is proving to be a struggle for the Pakistan government alongside inflated bills. The opposition faced with a barrage of corruption lawsuits is now breathing down Imran Khan's neck. They accused the prime minister of not expediting key infrastructure projects with China. Imran Khan is struggling to get things back on track. It won't come as a surprise if Beijing decides to dial the Pakistani military for help.

China-Pak CPEC project stalled due to rampant corruption, violent attacks

In a major embarrassment, a BRI railway project has been stalled in Pakistan. China wants a higher interest rate on its loans. What are Islamabad's options?

Gravitas: Pakistan's BRI Railway project stalled

In recent years, China has cultivated a wide variety of political allies in Sri Lanka.

In a video conference organised by China in June, various representatives of Sri Lanka's major political parties participated&nbsp;such as&nbsp;People's Front, United National Party, Sri Lanka Freedom Party and People's United Front of Sri Lanka.

On the face of it, the&nbsp;meeting was to discuss the coronavirus&nbsp;outbreak and the Belt and Road Initiative (BRI). However, one report stated that China was using this opportunity to cultivate a "bipartisan bond".

Allegedly, China has commissioned local pollsters to gauge voter sentiment, because China has invested billions of dollars in it.

<a href="https://www.wionews.com/world/china-using-buddhist-clergy-and-leaders-to-compromise-sri-lanka-elections-317068">Also read|&nbsp;China using Buddhist clergy and leaders to compromise Sri Lanka elections</a>

Sri Lanka has an external debt of $55 billion, and China accounts for 10 per cent of that debt. Until last year, it has invested $11 billion into Sri Lanka, out of which $8&nbsp;billion was just for the BRI. These investments in Sri Lanka are rapidly growing.

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In northern Sri Lanka, China has begun investing in rubber and team coconut cultivation. Both governments are reportedly discussing investment worth $30-40 million in the plantation industry.

Chinese money is now reaching the grassroots of the Sri Lankan economy, and other investing countries are losing their opportunities. The Quad nations such as the US, Japan and India haven't been able to get their projects off the ground.

<a href="https://www.wionews.com/world/china-tried-to-steal-vaccine-research-from-us-university-investigators-316899">Also read|&nbsp;China tried to steal vaccine research from US university: Investigators</a>

Within months, the Sri Lankan government has sent mixed signals over two multi-billion dollar infrastructure projects.The first being the elevated light railway system which was to be built by Japan. It was supposed to pass through parts of greater Colombo. However, the Sri Lankan government has put this project on hold.

The second project is the Colombo port project under which an expanded container terminal was to be built by Japan and India in partnership&nbsp;with Sri Lanka getting the majority ownership. However, the&nbsp;project has still not received a green light from the local government who&nbsp;apparently&nbsp;are hoping for a better deal.

Around 30 trade unions and employees of the Sri Lankan ports authority had gone on strike over the&nbsp;dea demanding the deal to be scrapped. However, the&nbsp;strike was called off.

Interestingly, the Chairman of the Sri Lanka Ports Authority is General R. M. Daya Ratnayake, a man appointed by the President and&nbsp;someone who has served as a post-war army chief.

The US, too, is facing something similar. American government&nbsp;offered a $480 million grant to Sri Lanka, which could be refused by the Sri Lankan government. Mahinda Rajapaksa had opposed the grant from America while his party was in opposition.

A committee was set up to look into it, who opposed the agreement, in their report to the President.

The Rajapaksas reportedly left the decision to his cabinet. Now, with the elections soon approaching, the views of the&nbsp;cabinet won't matter.

So, while India, Japan and the US are still unsure about their projects, China is the only country that has had all its projects approved in Sri Lanka.

In recent years, China has cultivated a wide variety of political allies in Sri Lanka. In a video conference organised by China in June, various representatives of Sri Lanka's major political parties participated such as People's Front, United National Party, Sri Lanka Freedom Party and People's United Front of Sri Lanka.

In recent years, China has cultivated a wide variety of political allies in Sri Lanka. In a video conference organised by China in June, various representatives of Sri Lanka's major political parties participated such as People's Front, United National Party, Sri Lanka Freedom Party and People's United Front of Sri Lanka. On the face of it, the meeting was to discuss the coronavirus outbreak and the Belt and Road Initiative (BRI). However, one report stated that China was using this opportunity to cultivate a "bipartisan bond". Allegedly, China has commissioned local pollsters to gauge voter sentiment, because China has invested billions of dollars in it. Also read| China using Buddhist clergy and leaders to compromise Sri Lanka elections Sri Lanka has an external debt of $55 billion, and China accounts for 10 per cent of that debt. Until last year, it has invested $11 billion into Sri Lanka, out of which $8 billion was just for the BRI. These investments in Sri Lanka are rapidly growing. × In northern Sri Lanka, China has begun investing in rubber and team coconut cultivation. Both governments are reportedly discussing investment worth $30-40 million in the plantation industry. Chinese money is now reaching the grassroots of the Sri Lankan economy, and other investing countries are losing their opportunities. The Quad nations such as the US, Japan and India haven't been able to get their projects off the ground. Also read| China tried to steal vaccine research from US university: Investigators Within months, the Sri Lankan government has sent mixed signals over two multi-billion dollar infrastructure projects.The first being the elevated light railway system which was to be built by Japan. It was supposed to pass through parts of greater Colombo. However, the Sri Lankan government has put this project on hold. The second project is the Colombo port project under which an expanded container terminal was to be built by Japan and India in partnership with Sri Lanka getting the majority ownership. However, the project has still not received a green light from the local government who apparently are hoping for a better deal. Around 30 trade unions and employees of the Sri Lankan ports authority had gone on strike over the dea demanding the deal to be scrapped. However, the strike was called off. Interestingly, the Chairman of the Sri Lanka Ports Authority is General R. M. Daya Ratnayake, a man appointed by the President and someone who has served as a post-war army chief. The US, too, is facing something similar. American government offered a $480 million grant to Sri Lanka, which could be refused by the Sri Lankan government. Mahinda Rajapaksa had opposed the grant from America while his party was in opposition. A committee was set up to look into it, who opposed the agreement, in their report to the President. The Rajapaksas reportedly left the decision to his cabinet. Now, with the elections soon approaching, the views of the cabinet won't matter. So, while India, Japan and the US are still unsure about their projects, China is the only country that has had all its projects approved in Sri Lanka.

How China is safeguarding its interests in Sri Lanka

China is taking a dangerous path in its attempts to make the Belt and Road Initiative (BRI) successful.&nbsp;

The dragon is forcing the projects down the throat of its partners and Myanmar is one such example, a country that now regrets its contract with Beijing.&nbsp;

Also read |&nbsp;<a href="https://www.wionews.com/world/will-chinas-bad-loan-crisis-lead-to-the-collapse-of-its-economy-312044">Will China's bad loan crisis lead to the collapse of its economy?</a>

The all-powerful generals of Myanmar&nbsp;have spoken out about their discontent over China forcing BRI projects on them.&nbsp;

Also read |&nbsp;<a href="https://www.wionews.com/world/chinas-debt-trap-increases-amid-budget-deficit-bri-roadblock-312031">China's debt trap increases amid budget deficit, BRI roadblock</a>&nbsp;

This is about the China-Myanmar Economic Corridor, something similar to CPEC between Beijing and Islamabad.&nbsp;

This project gives China access to the Bay of Bengal and the eastern part of the Indian Ocean.&nbsp;

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Myanmar's national debt stands at $10 billion, out of which they owe $4 billion to China.&nbsp;

Reportedly, Myanmar has to pay China $500 million annually.&nbsp;

Naypyidaw has now sought New Delhi's help to expedite infrastructure projects with India.&nbsp;

Both nations are working on a transit transportation project that passes through the northeastern Indian state of Mizoram.&nbsp;

The project will open up sea routes and a highway transport system. It will link a seaport in the Indian city of Kolkata to Rakhine and the Chin states in Myanmar.&nbsp;

These projects have angered the dragon and now Beijing is playing dirty.&nbsp;

Reports say Beijing is training rebel groups that could target Indian interests in Myanmar.&nbsp;

WION told you this earlier too.&nbsp;

Naypyidaw has accused Beijing of arming the Arakan Army and the Arakan Rohingya Salvation Army, the rebel groups that operate in the Rakhine state.&nbsp;

Last year, a report had claimed that the armies of India and Myanmar prevented an attack on a transport project. The perpetrator was apparently of the Arakan Army.&nbsp;

This is not the first time that China has been accused of supporting armed groups with weapons and funds in Myanmar.&nbsp;

Between 2015 and 2017, Chinese nationals were accused of funding the Myanmar National Democratic Alliance Army. This is a communist-inspired armed group.&nbsp;

This group used a WeChat account to collect funds worth over $500,000. Payments made by Chinese citizens were allegedly held in Chinese banks.

These include payments in&nbsp;a state-owned bank&nbsp;in China and the accounts were suspended after news agency Reuters reported about it.&nbsp;

Earlier also, China has backed insurgent groups, including fuelling United Wa State Army, Myanmar's largest armed ethnic group.&nbsp;

A Chinese businessman gave this group as much as $1.5 billion and the funding came from a Ponzi scheme.&nbsp;

That businessman defrauded nearly a million Chinese investors, who lost nearly $7.6 million.&nbsp;

So, Myanmar is wary of Chinese investments and this is the reason why projects backed by India are getting a push.&nbsp;

China is taking a dangerous path in its attempts to make the Belt and Road Initiative (BRI) successful. The dragon is forcing the projects down the throat of its partners and Myanmar is one such example, a country that now regrets its contract with Beijing.

China is taking a dangerous path in its attempts to make the Belt and Road Initiative (BRI) successful. The dragon is forcing the projects down the throat of its partners and Myanmar is one such example, a country that now regrets its contract with Beijing. Also read | Will China's bad loan crisis lead to the collapse of its economy? The all-powerful generals of Myanmar have spoken out about their discontent over China forcing BRI projects on them. Also read | China's debt trap increases amid budget deficit, BRI roadblock This is about the China-Myanmar Economic Corridor, something similar to CPEC between Beijing and Islamabad. This project gives China access to the Bay of Bengal and the eastern part of the Indian Ocean. × Myanmar's national debt stands at $10 billion, out of which they owe $4 billion to China. Reportedly, Myanmar has to pay China $500 million annually. Naypyidaw has now sought New Delhi's help to expedite infrastructure projects with India. Both nations are working on a transit transportation project that passes through the northeastern Indian state of Mizoram. The project will open up sea routes and a highway transport system. It will link a seaport in the Indian city of Kolkata to Rakhine and the Chin states in Myanmar. These projects have angered the dragon and now Beijing is playing dirty. Reports say Beijing is training rebel groups that could target Indian interests in Myanmar. WION told you this earlier too. Naypyidaw has accused Beijing of arming the Arakan Army and the Arakan Rohingya Salvation Army, the rebel groups that operate in the Rakhine state. Last year, a report had claimed that the armies of India and Myanmar prevented an attack on a transport project. The perpetrator was apparently of the Arakan Army. This is not the first time that China has been accused of supporting armed groups with weapons and funds in Myanmar. Between 2015 and 2017, Chinese nationals were accused of funding the Myanmar National Democratic Alliance Army. This is a communist-inspired armed group. This group used a WeChat account to collect funds worth over $500,000. Payments made by Chinese citizens were allegedly held in Chinese banks. These include payments in a state-owned bank in China and the accounts were suspended after news agency Reuters reported about it. Earlier also, China has backed insurgent groups, including fuelling United Wa State Army, Myanmar's largest armed ethnic group. A Chinese businessman gave this group as much as $1.5 billion and the funding came from a Ponzi scheme. That businessman defrauded nearly a million Chinese investors, who lost nearly $7.6 million. So, Myanmar is wary of Chinese investments and this is the reason why projects backed by India are getting a push.

As China pushes for BRI, why Myanmar is coming close to India

As per the Trafficking in Persons (TIP) Report by the US, the&nbsp;Chinese Communist Party (CCP) and the state-owned companies are making their employees work in&nbsp;&nbsp;"horrendous conditions" on Belt and Road Initiative (BRI) projects.

On Thursday, US Secretary of State Mike Pompeo, revealed that, according to the report, China is in Tier-3 category (lowest ranking).

"Our Trafficking in Persons Report calls out a group of nations with a state-sponsored pattern of forced labour. Among them is China, where the CCP and its state-owned enterprises often forcing citizens to work in horrendous conditions on Belt and Road project," he said.

<a href="https://www.wionews.com/world/us-plans-to-shift-army-to-face-chinese-threat-to-india-and-southeast-asia-mike-pompeo-308641">Also read|&nbsp;US plans to shift army to face Chinese threat to India and Southeast Asia: Mike Pompeo</a>

However, this is not the first time that China has been retained to Tier-3 category. China has been placed in Tier-3 category since 2017, as the US report believes that China&nbsp;"does not fully meet the minimum standards for the elimination of trafficking and is not making significant efforts to do so".

"Despite the lack of significant efforts, the government took some steps to address trafficking, including by prosecuting and convicting some traffickers and by continuing to cooperate with international authorities to address forced and fraudulent marriages in the PRC, a key trafficking vulnerability for foreign women and girls," the report said.

<a href="https://www.wionews.com/world/book-trouble-trumps-niece-ready-to-release-tell-all-book-about-trump-family-308659">Also read|&nbsp;Book trouble: Trump's niece ready to release tell-all book about Trump family</a>

The report claims that despite these efforts, what is more troublesome is the forced labour that has been undergoing, especially with the help of the mass detention camps where reportedly millions of&nbsp;Uyghurs, ethnic Kazakhs, ethnic Kyrgyz and other Muslims have been detained in Xinjiang.

The report has urged China to put an end to the forced labour.&nbsp;"Cease the use of harassment, threats and illegal discriminatory immigration policies as measures to coerce the return to Xinjiang and subsequent forced labor of ethnic and religious minorities living abroad," it stated.

The TIP report is divided into Tier-1, Tier-2, Tier-2 watchlist, and Tier-3. Countries whose governments fully meet the TVPA`s (Trafficking Victims Protection Act) minimum standards for the elimination of trafficking are categorised as Tier-1.

Countries categorised under Tier-3 get access to only limited resources from the US.

(With inputs from agencies)

As per the Trafficking in Persons (TIP) Report by the US, the Chinese Communist Party (CCP) and the state-owned companies are making their employees work in "horrendous conditions" on Belt and Road Initiative (BRI) projects.

As per the Trafficking in Persons (TIP) Report by the US, the Chinese Communist Party (CCP) and the state-owned companies are making their employees work in "horrendous conditions" on Belt and Road Initiative (BRI) projects. On Thursday, US Secretary of State Mike Pompeo, revealed that, according to the report, China is in Tier-3 category (lowest ranking). "Our Trafficking in Persons Report calls out a group of nations with a state-sponsored pattern of forced labour. Among them is China, where the CCP and its state-owned enterprises often forcing citizens to work in horrendous conditions on Belt and Road project," he said. Also read| US plans to shift army to face Chinese threat to India and Southeast Asia: Mike Pompeo However, this is not the first time that China has been retained to Tier-3 category. China has been placed in Tier-3 category since 2017, as the US report believes that China "does not fully meet the minimum standards for the elimination of trafficking and is not making significant efforts to do so". "Despite the lack of significant efforts, the government took some steps to address trafficking, including by prosecuting and convicting some traffickers and by continuing to cooperate with international authorities to address forced and fraudulent marriages in the PRC, a key trafficking vulnerability for foreign women and girls," the report said. Also read| Book trouble: Trump's niece ready to release tell-all book about Trump family The report claims that despite these efforts, what is more troublesome is the forced labour that has been undergoing, especially with the help of the mass detention camps where reportedly millions of Uyghurs, ethnic Kazakhs, ethnic Kyrgyz and other Muslims have been detained in Xinjiang. The report has urged China to put an end to the forced labour. "Cease the use of harassment, threats and illegal discriminatory immigration policies as measures to coerce the return to Xinjiang and subsequent forced labor of ethnic and religious minorities living abroad," it stated. The TIP report is divided into Tier-1, Tier-2, Tier-2 watchlist, and Tier-3. Countries whose governments fully meet the TVPA`s (Trafficking Victims Protection Act) minimum standards for the elimination of trafficking are categorised as Tier-1. Countries categorised under Tier-3 get access to only limited resources from the US. (With inputs from agencies)

China guilty of forced labour under 'horrendous conditions' on BRI project: US Report

China's foreign ministry said that around 20 per cent of Belt and Road Initiative (BRI) has been "seriously affected" due to the coronavirus pandemic.

Coronavirus puts China's Belt & Road Projects on hold

Coronavirus may not have been the only virus that China is responsible for. Carried through its Belt and Road Initiative (BRI), China has successfully spread the virus of debt too.

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Touted as the greatest plan in modern history to revive global trade, the BRI has been the biggest vehicle for China's chequebook diplomacy.

The loans have crippled many poor economies and now, some of them are waking up to this fact -- for instance Afghanista and Myanmar..&nbsp;

<a href="https://www.wionews.com/world/australian-sentenced-to-death-in-china-for-smuggling-meth-in-checked-flight-luggage-305567">Also read|&nbsp;Australian sentenced to death in China for smuggling meth in checked flight luggage</a>

China claims to have signed agreements with 138 countries. Estimates say the BRI projects will cost over a trillion dollars.

China is running this lending operation for access and power.

While many countries are already drowning in Chinese debt without realizing it, Afghanistan and Myanmar have taken the first step by&nbsp;rejecting Chinese loans.

China's renewed push in Afghanistan is a curious case. At first, China wanted nothing to do with this country as ridden by violence, it made no business sense.

However, Beijing sensed an opportunity as soon as Trump said he wanted to exit Afghanistan. Ever since, China has been trying to take CPEC into Afghanistan.

But Kabul sees the pitfalls. Afghanistan's national debt stand at over 1.3 billion dollars, and China wants to give more loans to Kabul. President Ashraf Ghani has declined the loan.

In Myanmar, the auditor general has cautioned the government against Chinese loans.

Myanmar is already busy paying back loans taken during decades of misgovernance under the military junta. But, Myanmar is firmly in China's grip. So, saying no to chinese loans won't be easy...

China is Myanmar's largest lender, and its biggest trading partner.

Myanmar's current national debt stands at 10 billion dollars -- 40 percent of this debt is already owed to China.

From 1988 to 2010, China gave out massive loans to Myanmar. These loans have been coming due since 2018, and&nbsp;Myanmar is paying back around 500 million dollars per year, including principal and four percent interest rate.

This is a classic example of China's preadatory lending.

The auditor general has pointed out that loans from China come at higher interest rates compared to loans from financial institutions like the world bank or the IMF. He said, "I would like to remind government ministries to be more restrained in using Chinese loans."

However, will the government listen?

In January, Chinese President Xi&nbsp;Jinping and Myanmar leader Aung San Suu Kyi agreed to speed up projects under the BRI. This resulted in 33 agreements, from mega power projects to railways.

Myanmar has already suffered once, it must not repeat the mistake again.

China's gameplan

Chinese financial institutions lend money for BRI projects. Construction contracts are awarded to mostly Chinese firms.

A Chinese company receives much of the proceeds of the loan and then projects tend to suffer delays or cancellations. There are corruption concerns, and the host country ends up with a massive pile of debt.

Coronavirus may not have been the only virus that China is responsible for. Carried through its Belt and Road Initiative (BRI), China has successfully spread the virus of debt too.

Coronavirus may not have been the only virus that China is responsible for. Carried through its Belt and Road Initiative (BRI), China has successfully spread the virus of debt too. Touted as the greatest plan in modern history to revive global trade, the BRI has been the biggest vehicle for China's chequebook diplomacy. The loans have crippled many poor economies and now, some of them are waking up to this fact -- for instance Afghanista and Myanmar.. Also read| Australian sentenced to death in China for smuggling meth in checked flight luggage China claims to have signed agreements with 138 countries. Estimates say the BRI projects will cost over a trillion dollars. China is running this lending operation for access and power. While many countries are already drowning in Chinese debt without realizing it, Afghanistan and Myanmar have taken the first step by rejecting Chinese loans. China's renewed push in Afghanistan is a curious case. At first, China wanted nothing to do with this country as ridden by violence, it made no business sense. However, Beijing sensed an opportunity as soon as Trump said he wanted to exit Afghanistan. Ever since, China has been trying to take CPEC into Afghanistan. But Kabul sees the pitfalls. Afghanistan's national debt stand at over 1.3 billion dollars, and China wants to give more loans to Kabul. President Ashraf Ghani has declined the loan. In Myanmar, the auditor general has cautioned the government against Chinese loans. Myanmar is already busy paying back loans taken during decades of misgovernance under the military junta. But, Myanmar is firmly in China's grip. So, saying no to chinese loans won't be easy... China is Myanmar's largest lender, and its biggest trading partner. Myanmar's current national debt stands at 10 billion dollars -- 40 percent of this debt is already owed to China. From 1988 to 2010, China gave out massive loans to Myanmar. These loans have been coming due since 2018, and Myanmar is paying back around 500 million dollars per year, including principal and four percent interest rate. This is a classic example of China's preadatory lending. The auditor general has pointed out that loans from China come at higher interest rates compared to loans from financial institutions like the world bank or the IMF. He said, "I would like to remind government ministries to be more restrained in using Chinese loans." However, will the government listen? In January, Chinese President Xi Jinping and Myanmar leader Aung San Suu Kyi agreed to speed up projects under the BRI. This resulted in 33 agreements, from mega power projects to railways. Myanmar has already suffered once, it must not repeat the mistake again. China's gameplan Chinese financial institutions lend money for BRI projects. Construction contracts are awarded to mostly Chinese firms. A Chinese company receives much of the proceeds of the loan and then projects tend to suffer delays or cancellations. There are corruption concerns, and the host country ends up with a massive pile of debt.

Afghanistan and Myanmar drown in China's loans; Afghanistan rejects loan

China wants Bangladesh to revive B.R.I projects in return for more medical assistance. Could Bangladesh be next to fall into China's trap after Nepal? WION's Executive Editor Palki Sharma Upadhyay tells you more.

Gravitas: After Nepal, Is China eyeing Bangladesh?

China for the first on Sunday admitted that its multi-billion dollar Belt and Road Initiative (BRI) has been affected by the coronavirus pandemic, but said that the impact is "temporary and limited".

Chinese Foreign Minister Wang Yi said that from an overall long term perspective the coronavirus will "strengthen and reenergise" BRI cooperation and open-up new possibilities.

He said the demand for public health expansion in view of the COVID-19 all over the world will give a new impetus to project expansion.

"Indeed COVID-19 has affected Belt and Road cooperation to some extent but the impact is temporary and limited," Wang told media here answering a question on the impact of the coronavirus on BRI.

Outlining the progress made by BRI, Wang said over the past seven years China has signed BRI cooperation documents with 138 countries, more than 2,000 projects have been launched and thousands of jobs have been created in partner countries.

During the same period China's trading goods with BRI partner countries has exceeded USD 7.8 trillion while direct Chinese investments have topped USD 110 billion, he said.

The BRI was launched by President Xi Jinping when he came to power in 2013. It aims to link Southeast Asia, Central Asia, the Gulf region, Africa and Europe with a network of land and sea routes.

The Trump administration has been extremely critical of the BRI, in which USD 60 billion China-Pakistan Economic Corridor (CPEC) is a flagship project, and is of the view that China's "predatory" financing is leaving smaller counties under huge debt endangering their sovereignty.

The US' top diplomat for South and Central Asia Alice Wells on Wednesday said that at a time when the world is reeling from the economic consequences of having shut parts of the economy due to the coronavirus, it is really incumbent upon China to take steps to alleviate the burden this "predatory, unsustainable and unfair" lending is going to cause to Pakistan.

India which had protested to China over the CPEC being laid through Pakistan-occupied Kashmir (PoK) has also aired concerns over the BRI financing, saying that connectivity initiatives must follow principles of financial responsibility to avoid projects that would create an unsustainable debt burden for communities.

China for the first on Sunday admitted that its multi-billion dollar Belt and Road Initiative (BRI) has been affected by the coronavirus pandemic, but said that the impact is "temporary and limited".

China for the first on Sunday admitted that its multi-billion dollar Belt and Road Initiative (BRI) has been affected by the coronavirus pandemic, but said that the impact is "temporary and limited". Chinese Foreign Minister Wang Yi said that from an overall long term perspective the coronavirus will "strengthen and reenergise" BRI cooperation and open-up new possibilities. He said the demand for public health expansion in view of the COVID-19 all over the world will give a new impetus to project expansion. "Indeed COVID-19 has affected Belt and Road cooperation to some extent but the impact is temporary and limited," Wang told media here answering a question on the impact of the coronavirus on BRI. Outlining the progress made by BRI, Wang said over the past seven years China has signed BRI cooperation documents with 138 countries, more than 2,000 projects have been launched and thousands of jobs have been created in partner countries. During the same period China's trading goods with BRI partner countries has exceeded USD 7.8 trillion while direct Chinese investments have topped USD 110 billion, he said. The BRI was launched by President Xi Jinping when he came to power in 2013. It aims to link Southeast Asia, Central Asia, the Gulf region, Africa and Europe with a network of land and sea routes. The Trump administration has been extremely critical of the BRI, in which USD 60 billion China-Pakistan Economic Corridor (CPEC) is a flagship project, and is of the view that China's "predatory" financing is leaving smaller counties under huge debt endangering their sovereignty. The US' top diplomat for South and Central Asia Alice Wells on Wednesday said that at a time when the world is reeling from the economic consequences of having shut parts of the economy due to the coronavirus, it is really incumbent upon China to take steps to alleviate the burden this "predatory, unsustainable and unfair" lending is going to cause to Pakistan. India which had protested to China over the CPEC being laid through Pakistan-occupied Kashmir (PoK) has also aired concerns over the BRI financing, saying that connectivity initiatives must follow principles of financial responsibility to avoid projects that would create an unsustainable debt burden for communities.

BRI affected by COVID-19, but impact is temporary: China

China has a border dispute with almost all its neighbours - both on land and sea - with almost blatant territorial ambitions with little regard for the sovereign rights of other nations.

Among those at the receiving end is India. China doesn't care about India's territorial integrity. In the past two days, Chinese troops provoked skirmishes with Indian soldiers at the border in Sikkim. Chinese helicopters flew close to the Line of Actual Control(LAC) with India in Ladakh.&nbsp;

Now, China is building a dam on Indian territory occupied by Pakistan. A Chinese company has signed a deal with the Pakistan government. A $5.8 billion deal to build a dam in Gilgit-Baltistan which falls in Pakistan occupied Kashmir(PoK) which is technically Indian territory but China is doing business with Pakistan, despite India's objections.

The project is called the Diamer-Bhasha dam. The contract has gone to a joint venture led by Power China which is a Chinese company. The other partner is the frontier works organization which is a subsidiary of the Pakistan Army, which in a sense is a joint venture of China and the Pakistan Army. The project is a win-win for both sides.

China gets more deals and the Pakistan army makes more money. China seems to have virtually repossessed Pakistan even as worldwide the work on the Belt and Road Initiative(BRI) has come to a grinding halt because of the Wuhan virus.

On Tuesday, Chinese President Xi Jinping spoke to his Sri Lankan counterpart Gotabaya Rajapaksa. President Xi wanted "gradual resumption" of cooperation towards BRI. &nbsp;

Pakistan newspaper Dawn reported that work on the the Diamer-Bhasha dam will begin in a couple of weeks which is a dam project on indian territory. Since 1949, China has been involved in 23 territorial disputes. Now, only six remain which serves China's strategic purpose for Beijing to needle regional rivals.

On Tuesday, the Chinese ministry of foreign affairs issued a statement on the border situation with India. The tone was far from friendly, which almost said that meet China halfway, avoid taking actions that might "complicate" the situation which is unabashed hypocrisy from China considering that all its actions complicate the situation.

The list of Beijing's provocations is long and growing. It led&nbsp;a failed attempt to internationalise India's Kashmir decision at the United Nations Security Council.

China's troops clashed with Indian soldiers in Sikkim and now, it is building a dam on territory that belongs to India. It's time for New Delhi to pay back in kind&nbsp;and India is not short of options.

It can use its own diplomatic levers to send a message to China, for instance, remove Huawei from India's 5G program over security concerns.

Already, curbs have been placed on Chinese investments in Indian companies. The government can do more. India can leverage the situation in Hong Kong and make a statement by backing the pro-Democracy protesters. All these are options that can be exercised in the coming days and weeks but, there is one thing that India can do right now - support Taiwan.

China has a border dispute with almost all its neighbours - both on land and sea - with almost blatant territorial ambitions with little regard for the sovereign rights of other nations.

China has a border dispute with almost all its neighbours - both on land and sea - with almost blatant territorial ambitions with little regard for the sovereign rights of other nations. Among those at the receiving end is India. China doesn't care about India's territorial integrity. In the past two days, Chinese troops provoked skirmishes with Indian soldiers at the border in Sikkim. Chinese helicopters flew close to the Line of Actual Control(LAC) with India in Ladakh. Now, China is building a dam on Indian territory occupied by Pakistan. A Chinese company has signed a deal with the Pakistan government. A $5.8 billion deal to build a dam in Gilgit-Baltistan which falls in Pakistan occupied Kashmir(PoK) which is technically Indian territory but China is doing business with Pakistan, despite India's objections. The project is called the Diamer-Bhasha dam. The contract has gone to a joint venture led by Power China which is a Chinese company. The other partner is the frontier works organization which is a subsidiary of the Pakistan Army, which in a sense is a joint venture of China and the Pakistan Army. The project is a win-win for both sides. China gets more deals and the Pakistan army makes more money. China seems to have virtually repossessed Pakistan even as worldwide the work on the Belt and Road Initiative(BRI) has come to a grinding halt because of the Wuhan virus. On Tuesday, Chinese President Xi Jinping spoke to his Sri Lankan counterpart Gotabaya Rajapaksa. President Xi wanted "gradual resumption" of cooperation towards BRI. Pakistan newspaper Dawn reported that work on the the Diamer-Bhasha dam will begin in a couple of weeks which is a dam project on indian territory. Since 1949, China has been involved in 23 territorial disputes. Now, only six remain which serves China's strategic purpose for Beijing to needle regional rivals. On Tuesday, the Chinese ministry of foreign affairs issued a statement on the border situation with India. The tone was far from friendly, which almost said that meet China halfway, avoid taking actions that might "complicate" the situation which is unabashed hypocrisy from China considering that all its actions complicate the situation. The list of Beijing's provocations is long and growing. It led a failed attempt to internationalise India's Kashmir decision at the United Nations Security Council. China's troops clashed with Indian soldiers in Sikkim and now, it is building a dam on territory that belongs to India. It's time for New Delhi to pay back in kind and India is not short of options. It can use its own diplomatic levers to send a message to China, for instance, remove Huawei from India's 5G program over security concerns. Already, curbs have been placed on Chinese investments in Indian companies. The government can do more. India can leverage the situation in Hong Kong and make a statement by backing the pro-Democracy protesters. All these are options that can be exercised in the coming days and weeks but, there is one thing that India can do right now - support Taiwan.

Chinese company signs deal with Pakistan to build dam in PoK

The United States faces a stark choice in the Middle East if it continues its maximum pressure campaign against Iran: confront the Islamic republic militarily or withdraw from the region.

Trita Parsi, Executive Vice President of the Quincy Institute in Washington and a former head of the National Iranian American Council, recently drew that harsh conclusion. No doubt, Parsi may be correct in the ultimate analysis. US-Iranian tensions could easily spin out of control into an all-out war that neither Iran nor the United States wants.

There are, however, lots of shades of grey that separate long-standing tit-for-tat attacks on US targets – primarily in Iraq, occasional Iranian harassment of US naval vessels in the Gulf, and sporadic US responses, from all-out war.

The United States and Iran have been engaged in tit-for-tat with varying degrees of intensity for years and so far have avoided an uncontrolled escalation despite incidents such as the 1988 downing of Iran Air flight 655, that killed 274 people, and the targeted assassination earlier this year of Iranian General Qasem Soleimani.

Leaving aside potential black and grey swans, a more likely scenario is that a US desire to reduce its commitment to Gulf states, increased Gulf doubts about US reliability as a regional security guarantor, and a new world in which Gulf and Western states struggle to come to grips with the economic fallout of the coronavirus pandemic, create an environment more conducive to a multilateral security arrangement. One that would reduce the risk of war, even if multilateralism globally seems to be on the retreat.

US President Donald Trump’s threat in early April to cut off military sales to Saudi Arabia, if the kingdom did not bury the hatchet in its oil price war with Russia – sparking the collapse of oil markets, is an inevitable epic battle for market share.

More immediately, it drove the message home in Riyadh that US security guarantees were conditional and reinforced Saudi perceptions that the United States was getting disproportionately more out of its close ties to the kingdom than Saudi Arabia.

The Trump administration, in a little-noticed sign of the times, put Saudi Arabia in late April on a priority watch list for violations of intellectual property rights because of its pirating of sports broadcasting rights owned by Qatar’s beIN television franchise. The listing threatened to complicate Saudi Arabia’s already controversial bid to acquire English soccer club Newcastle United.

It is still too early to assess the geopolitical impact of the global economic downturn. Depressed demand and pricing for oil and gas could enable China to diversify its sourcing and potentially reduce its dependence on the Middle East, a volatile region with heightened security risks. China imported 31 per cent more oil from Russia last month while its intake of Saudi crude slipped by 1.8 per cent compared to March 2019.

At the same time, low oil prices that make US production commercially less viable could temporarily increase Washington’s interest in Gulf security.

Fundamentally, and irrespective of what scenario plays out, little will change. The US will still want to reduce its exposure to the Middle East. For its part, China will still need to secure oil and gas supplies as well as its investments and significant diaspora community in the region while seeking to avoid being sucked into intractable regional conflicts.

By the same token, the gradual revival of economic life, including a probable phased revitalisation of supply chains and international travel, combined with a need to rethink migrant worker housing and create local employment, could alter Middle Eastern perspectives of China’s way of doing business.

China’s Belt-and-Road projects often have a China-wins-twice aspect to them that may have always been problematic but have become even more so in a post-pandemic economic environment. China-funded projects rely by and large on Chinese labour and materials supply rather than local sourcing.

The People’s Republic’s “China First” approach extends beyond economics and commerce. In an environment in which the United States is an irreplaceable but unreliable partner, Gulf states may look differently at Chinese hesitancy to co-shoulder responsibility for regional security with the risk of having to involve itself in multiple conflicts it has so far been able to stay aloof from.

The coronavirus pandemic constitutes a watershed that will colour Middle Eastern attitudes towards all of the region’s foremost external players: the United States, China, and Russia. Prior to the crisis, Russia, the weakest of the three, was playing a weak economic hand well, but may find that more difficult going forward.

Gulf states are likely to conclude that assertive go-it-alone policies are risky and only work in specific circumstances where big powers are either part of the ploy or look the other way. Though such were easier to pursue in a stable economic environment in which their oil and gas revenue base appeared secure.

The United Arab Emirates appears to have read the writing on the wall. It began a year ago to hedge its bets by reaching out to Iran in a bid to ensure that it would not become a theatre of war if US-Iranian tensions were to spin out of control. Still, that has not stopped its support for rebel forces in Libya led by renegade Field Marshall Khalifa Haftar in violation of an international arms embargo.

Trump’s threat of a cut-off in military sales to Saudi Arabia should have driven the point home. Yet, financially and economically weakened, less able to play big powers off against one another, and deprived of any viable alternative options, the kingdom and other Gulf states may find that a multilateral security arrangement that incorporates rather than replaces the United States’ regional defence umbrella is the only security straw they can hold on to.

Nevertheless, in eventually attempting to negotiate a new arrangement, they may also find that they no longer have the kind of leverage they had prior to a pandemic that in many ways has pulled the rug from beneath them.

&nbsp;(First published <a href="https://insidearabia.com/gulf-security-arab-gulf-states-have-no-good-options/">on Inside Arabia</a>)

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

The United States faces a stark choice in the Middle East if it continues its maximum pressure campaign against Iran: confront the Islamic republic militarily or withdraw from the region.

The United States faces a stark choice in the Middle East if it continues its maximum pressure campaign against Iran: confront the Islamic republic militarily or withdraw from the region. Trita Parsi, Executive Vice President of the Quincy Institute in Washington and a former head of the National Iranian American Council, recently drew that harsh conclusion. No doubt, Parsi may be correct in the ultimate analysis. US-Iranian tensions could easily spin out of control into an all-out war that neither Iran nor the United States wants. There are, however, lots of shades of grey that separate long-standing tit-for-tat attacks on US targets – primarily in Iraq, occasional Iranian harassment of US naval vessels in the Gulf, and sporadic US responses, from all-out war. The United States and Iran have been engaged in tit-for-tat with varying degrees of intensity for years and so far have avoided an uncontrolled escalation despite incidents such as the 1988 downing of Iran Air flight 655, that killed 274 people, and the targeted assassination earlier this year of Iranian General Qasem Soleimani. Leaving aside potential black and grey swans, a more likely scenario is that a US desire to reduce its commitment to Gulf states, increased Gulf doubts about US reliability as a regional security guarantor, and a new world in which Gulf and Western states struggle to come to grips with the economic fallout of the coronavirus pandemic, create an environment more conducive to a multilateral security arrangement. One that would reduce the risk of war, even if multilateralism globally seems to be on the retreat. US President Donald Trump’s threat in early April to cut off military sales to Saudi Arabia, if the kingdom did not bury the hatchet in its oil price war with Russia – sparking the collapse of oil markets, is an inevitable epic battle for market share. More immediately, it drove the message home in Riyadh that US security guarantees were conditional and reinforced Saudi perceptions that the United States was getting disproportionately more out of its close ties to the kingdom than Saudi Arabia. The Trump administration, in a little-noticed sign of the times, put Saudi Arabia in late April on a priority watch list for violations of intellectual property rights because of its pirating of sports broadcasting rights owned by Qatar’s beIN television franchise. The listing threatened to complicate Saudi Arabia’s already controversial bid to acquire English soccer club Newcastle United. It is still too early to assess the geopolitical impact of the global economic downturn. Depressed demand and pricing for oil and gas could enable China to diversify its sourcing and potentially reduce its dependence on the Middle East, a volatile region with heightened security risks. China imported 31 per cent more oil from Russia last month while its intake of Saudi crude slipped by 1.8 per cent compared to March 2019. At the same time, low oil prices that make US production commercially less viable could temporarily increase Washington’s interest in Gulf security. Fundamentally, and irrespective of what scenario plays out, little will change. The US will still want to reduce its exposure to the Middle East. For its part, China will still need to secure oil and gas supplies as well as its investments and significant diaspora community in the region while seeking to avoid being sucked into intractable regional conflicts. By the same token, the gradual revival of economic life, including a probable phased revitalisation of supply chains and international travel, combined with a need to rethink migrant worker housing and create local employment, could alter Middle Eastern perspectives of China’s way of doing business. China’s Belt-and-Road projects often have a China-wins-twice aspect to them that may have always been problematic but have become even more so in a post-pandemic economic environment. China-funded projects rely by and large on Chinese labour and materials supply rather than local sourcing. The People’s Republic’s “China First” approach extends beyond economics and commerce. In an environment in which the United States is an irreplaceable but unreliable partner, Gulf states may look differently at Chinese hesitancy to co-shoulder responsibility for regional security with the risk of having to involve itself in multiple conflicts it has so far been able to stay aloof from. The coronavirus pandemic constitutes a watershed that will colour Middle Eastern attitudes towards all of the region’s foremost external players: the United States, China, and Russia. Prior to the crisis, Russia, the weakest of the three, was playing a weak economic hand well, but may find that more difficult going forward. Gulf states are likely to conclude that assertive go-it-alone policies are risky and only work in specific circumstances where big powers are either part of the ploy or look the other way. Though such were easier to pursue in a stable economic environment in which their oil and gas revenue base appeared secure. The United Arab Emirates appears to have read the writing on the wall. It began a year ago to hedge its bets by reaching out to Iran in a bid to ensure that it would not become a theatre of war if US-Iranian tensions were to spin out of control. Still, that has not stopped its support for rebel forces in Libya led by renegade Field Marshall Khalifa Haftar in violation of an international arms embargo. Trump’s threat of a cut-off in military sales to Saudi Arabia should have driven the point home. Yet, financially and economically weakened, less able to play big powers off against one another, and deprived of any viable alternative options, the kingdom and other Gulf states may find that a multilateral security arrangement that incorporates rather than replaces the United States’ regional defence umbrella is the only security straw they can hold on to. Nevertheless, in eventually attempting to negotiate a new arrangement, they may also find that they no longer have the kind of leverage they had prior to a pandemic that in many ways has pulled the rug from beneath them. (First published on Inside Arabia) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Coronavirus will reshape security and political landscape of Middle East

Pakistan has resumed work on all B.R.I projects. The Pakistan govt plans to use Chinese funds to overcome economic shortcomings. What does Beijing get in return? WION's Executive Editor Palki Sharma Upadhyay gets you a report.

Gravitas: Pakistan resumes work on B.R.I projects

There is no doubt that after the second world war, COVID 19 is the most decisive development in the world, that is likely to turn upside down the relations between different countries and the way that humanity would view things in life.

China’s ambition for world dominance :

In the last few decades, China has been steadily and cleverly improving its strategic importance in the world by strengthening its industrial, technological, economic and military base, by launching schemes such as OBOR and several others, which appear to be successful to some extent, as far as China is concerned.

China has been emboldened in launching several strategies with least concern for fairness and with a high level of self-centredness, as it has remained largely unchallenged. For example, China occupied Tibet by aggressive methods several decades back, when the Tibetan dissenters were ruthlessly massacred and it drove out the protestors including the venerable the Dalai Lama.&nbsp;

With the nearby countries like Japan, Vietnam, Philippines and others, China has raised disputes in several areas such as Senkaku Island, the South China Sea where China claims sovereign power. While the affected countries have been protesting, China remains unconcerned about such protests and the world view on these disputes.

China is rapidly expanding trade and investment activities and taking over several mines in different countries and acquiring assets abroad in a well planned and systematic way to gradually increase its world dominance.

So far, rest of the world has largely remained as if it is unconcerned about China’s efforts to rapidly increase its dominance in the world arena, since China has opened its large market to the rest of the world and multinational companies, who want to exploit market potential in China, particularly since, the market in developed countries have become nearly saturated for several products. Today, no country or any multinational company want to miss the trade opportunities that China offers.

Why the concern about China’s increasing dominance?

There is nothing wrong if any country would want to strengthen itself economically and become a major power in the world. This could be a legitimate ambition for any nation.

However, this logic cannot be straightaway applied in the case of China, as China is known to have expansionist ambitions not only in terms of economy but also in terms of territory.

China has a totalitarian regime with freedom of speech heavily suppressed and personal liberty severely curtailed. Dissenters in China are known to be eliminated ruthlessly.

The concern is that if a country with a totalitarian regime and not having any concern about ethical and fair practices would happen to dominate the world, then the world would become an unsafe place.

Now, there is a rapidly developing world view that China’s increasing dominance in world affairs could upset the world balance of power and create conflicts of interest.

This is one of the primary reasons why US President Trump launched a trade war against &nbsp;China. However, the trade war has not discouraged China so far or dissuaded it from the ambition of world dominance at any cost. Now, at this juncture, many people wonder as to who would be the bigger loser in the trade war, &nbsp;whether China or the USA.

China's propaganda amid coronavirus crisis

China is the originator of COVID 19 and is accused of playing a trick on the world by not sharing with the world, 
&nbsp;information about &nbsp;COVID 19 at the right time, that has now engulfed the entire world.

In the present ongoing COVID 19 crisis, it appears that China looks like having the last laugh.

USA and West European countries, as well as Japan, which has considered themselves as the leading lights among the world countries and scientifically advanced now, stand humiliated, with the rapid spread of the virus in their regions causing huge loss of lives.

As the world is struggling to tackle the crisis and now facing distress and uncertain conditions, China claims that it has sorted out the issue and it has become free of the virus in the region. When some people were affected by the virus after China lifted the lockdown China says that it has happened only due to the overseas visitors and not due to any development within.

In this scenario, China is deliberately trying to create an impression, by launching a massive propaganda campaign that it has the capability to control the virus. This campaign obviously implies that when the other countries do not know how to go about China has wiped out the virus in its region. In the process, China is deliberately trying to create an impression around the world that China is more advanced than in other countries.

In other words, China seems to convey the view that it has the merits to claim that it is the superpower and not the USA, which has recorded the highest deaths in the world due to coronavirus.

The agony&nbsp;of affected countries:

Obviously, the USA and most European countries and Japan are seething with anger and frustration at the humiliation that they have suffered due to COVID crisis. This is more so, in view of China’s arrogant assertion that the COVID 19 did not first happen in China but elsewhere such as Italy or the USA or anywhere else.

There is a clear realisation amongst these countries that China’s ambition to dominate the world should be defeated if they were to hold their place in the world scenario. This realization would be the ultimate driving force for any possible coordinated action against China.

While there is no formal coordinated efforts between the USA, West European countries and Japan in tackling “China dragon”, the pointers are clear that they would soon discuss the strategies in a coordinated manner with a mutual interest in view.

The first step to control China has already been taken by Japan, which has said that it would fund firms of Japanese companies to shift production out of China.

Export dependent economy :

China became the world's largest exporter in 2010, and the largest trading nation in 2013

While the investments in China have gone up in a big way, too much of capacities have been built up in several areas such as steel aluminium and several others such as chemical/polymer and allied products. As a result, the capacity utilisation of industries in China has gone down to an unacceptable level in many cases, leading to losses, closures and mergers.

Since 2009, China has been trying hard to rejig its export-dependent economy to the one more dependent on domestic consumption. However, such efforts to increase domestic consumption are not making a big impact, since &nbsp;China's per capita income is below the world average.

Import dependence :

Even as China is a large exporter, it is also dependent on import in a big way for several products and services.

China is dependent on imports of crude oil to around &nbsp;70 per cent of its requirement and is the largest importer of crude oil in the world.

About 80 per cent of its microchip requirement is met by imports. It has been spending &nbsp;$260 billion every year on import of semiconductors and chips, which is more than the money spent on import of crude oil.

 
What options are available for countries wanting to combat&nbsp;China’s domination?

A large part of the investment in China has been made by multinational companies with a base in Europe, USA and Japan. They just cannot withdraw from China on any count in the immediate future in view of the investments already committed in China, technologies already shared with Chinese technologists and the fact that equipment and the infrastructure facilities built cannot just be lifted out of China at will.

Further, the market base in China is large and cannot be surrendered in a quick period by any multinational companies and regions like USA, Western Europe and Japan. Their alternate strategies to “teach China a lesson” will take time to evolve and implement.

In the event of trade and economic warfare launched by the USA, West European countries and Japan, China will not be able to hold on to its present economic strength. 
 
(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL) 
 
&nbsp;

There is no doubt that after the second world war, COVID 19 is the most decisive development in the world, that is likely to turn upside down the relations between different countries and the way that humanity would view things in life.

There is no doubt that after the second world war, COVID 19 is the most decisive development in the world, that is likely to turn upside down the relations between different countries and the way that humanity would view things in life. China’s ambition for world dominance : In the last few decades, China has been steadily and cleverly improving its strategic importance in the world by strengthening its industrial, technological, economic and military base, by launching schemes such as OBOR and several others, which appear to be successful to some extent, as far as China is concerned. China has been emboldened in launching several strategies with least concern for fairness and with a high level of self-centredness, as it has remained largely unchallenged. For example, China occupied Tibet by aggressive methods several decades back, when the Tibetan dissenters were ruthlessly massacred and it drove out the protestors including the venerable the Dalai Lama. With the nearby countries like Japan, Vietnam, Philippines and others, China has raised disputes in several areas such as Senkaku Island, the South China Sea where China claims sovereign power. While the affected countries have been protesting, China remains unconcerned about such protests and the world view on these disputes. China is rapidly expanding trade and investment activities and taking over several mines in different countries and acquiring assets abroad in a well planned and systematic way to gradually increase its world dominance. So far, rest of the world has largely remained as if it is unconcerned about China’s efforts to rapidly increase its dominance in the world arena, since China has opened its large market to the rest of the world and multinational companies, who want to exploit market potential in China, particularly since, the market in developed countries have become nearly saturated for several products. Today, no country or any multinational company want to miss the trade opportunities that China offers. Why the concern about China’s increasing dominance? There is nothing wrong if any country would want to strengthen itself economically and become a major power in the world. This could be a legitimate ambition for any nation. However, this logic cannot be straightaway applied in the case of China, as China is known to have expansionist ambitions not only in terms of economy but also in terms of territory. China has a totalitarian regime with freedom of speech heavily suppressed and personal liberty severely curtailed. Dissenters in China are known to be eliminated ruthlessly. The concern is that if a country with a totalitarian regime and not having any concern about ethical and fair practices would happen to dominate the world, then the world would become an unsafe place. Now, there is a rapidly developing world view that China’s increasing dominance in world affairs could upset the world balance of power and create conflicts of interest. This is one of the primary reasons why US President Trump launched a trade war against China. However, the trade war has not discouraged China so far or dissuaded it from the ambition of world dominance at any cost. Now, at this juncture, many people wonder as to who would be the bigger loser in the trade war, whether China or the USA. China's propaganda amid coronavirus crisis China is the originator of COVID 19 and is accused of playing a trick on the world by not sharing with the world, information about COVID 19 at the right time, that has now engulfed the entire world. In the present ongoing COVID 19 crisis, it appears that China looks like having the last laugh. USA and West European countries, as well as Japan, which has considered themselves as the leading lights among the world countries and scientifically advanced now, stand humiliated, with the rapid spread of the virus in their regions causing huge loss of lives. As the world is struggling to tackle the crisis and now facing distress and uncertain conditions, China claims that it has sorted out the issue and it has become free of the virus in the region. When some people were affected by the virus after China lifted the lockdown China says that it has happened only due to the overseas visitors and not due to any development within. In this scenario, China is deliberately trying to create an impression, by launching a massive propaganda campaign that it has the capability to control the virus. This campaign obviously implies that when the other countries do not know how to go about China has wiped out the virus in its region. In the process, China is deliberately trying to create an impression around the world that China is more advanced than in other countries. In other words, China seems to convey the view that it has the merits to claim that it is the superpower and not the USA, which has recorded the highest deaths in the world due to coronavirus. The agony of affected countries: Obviously, the USA and most European countries and Japan are seething with anger and frustration at the humiliation that they have suffered due to COVID crisis. This is more so, in view of China’s arrogant assertion that the COVID 19 did not first happen in China but elsewhere such as Italy or the USA or anywhere else. There is a clear realisation amongst these countries that China’s ambition to dominate the world should be defeated if they were to hold their place in the world scenario. This realization would be the ultimate driving force for any possible coordinated action against China. While there is no formal coordinated efforts between the USA, West European countries and Japan in tackling “China dragon”, the pointers are clear that they would soon discuss the strategies in a coordinated manner with a mutual interest in view. The first step to control China has already been taken by Japan, which has said that it would fund firms of Japanese companies to shift production out of China. Export dependent economy : China became the world's largest exporter in 2010, and the largest trading nation in 2013 While the investments in China have gone up in a big way, too much of capacities have been built up in several areas such as steel aluminium and several others such as chemical/polymer and allied products. As a result, the capacity utilisation of industries in China has gone down to an unacceptable level in many cases, leading to losses, closures and mergers. Since 2009, China has been trying hard to rejig its export-dependent economy to the one more dependent on domestic consumption. However, such efforts to increase domestic consumption are not making a big impact, since China's per capita income is below the world average. Import dependence : Even as China is a large exporter, it is also dependent on import in a big way for several products and services. China is dependent on imports of crude oil to around 70 per cent of its requirement and is the largest importer of crude oil in the world. About 80 per cent of its microchip requirement is met by imports. It has been spending $260 billion every year on import of semiconductors and chips, which is more than the money spent on import of crude oil. What options are available for countries wanting to combat China’s domination? A large part of the investment in China has been made by multinational companies with a base in Europe, USA and Japan. They just cannot withdraw from China on any count in the immediate future in view of the investments already committed in China, technologies already shared with Chinese technologists and the fact that equipment and the infrastructure facilities built cannot just be lifted out of China at will. Further, the market base in China is large and cannot be surrendered in a quick period by any multinational companies and regions like USA, Western Europe and Japan. Their alternate strategies to “teach China a lesson” will take time to evolve and implement. In the event of trade and economic warfare launched by the USA, West European countries and Japan, China will not be able to hold on to its present economic strength. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Here's how affected countries can combat China's increasing dominance

The first cases of the Wuhan Coronavirus were reported almost two months ago. Now, there are more than 17 thousand patients. At first, China denied it all, but now we could be staring at a pandemic.

China failed to contain the outbreak and countries around the world are facing the consequences.

During the SARS outbreak, China was not as well connected with the world as it is today, and therefore, this disease could spread far too quickly.

Pakistan does not have a confirmed case of the coronavirus yet, but people are afraid because the disease has spread to the neighbourhood.

Last Thursday, a Pakistani newspaper reported that Chinese projects were halted in South Punjab - 71 Chinese engineers, alongside local security personnel, were put through a screening.

Something similar happened at a train project in Lahore - the Chinese workers there were asked to remain in their compounds for three days. Reports say that they were tested for coronavirus. Pakistan cannot do much beyond this.&nbsp;

WATCH: Wuhan Virus, Is this a belt and road Pandemic?

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Chinese labourers are in all countries which are members of the Belt and Road Project (BRI), and these countries cannot bar them&nbsp;from the projects.&nbsp;

Whenever China takes up a Belt and Road assignment - it supplies everything - from raw materials to the workers. Chinese companies lead BRI projects.

Reports say that by 2018, sixty thousand Chinese expats were working in Pakistan. More than 400 Chinese companies are involved in Pakistani projects alone.

And Wuhan is at the centre of china's mega infrastructure push, serving as a key transport and trade hub. Wuhan is home to factories and operations of more than half of the fortune 500 corporations.

It is also the epicentre of the coronavirus and there is a strong chance that people travelling in and out of Wuhan may carry the virus. In the last three weeks alone, the number of cases has gone up from 50 to now more than 17 thousand.

The Wuhan virus has killed over 450 people so far. models created by experts suggest that this coronavirus can infect as many as 100 thousand people or even more.

Now is the time to act and if world leaders are serious about containing this outbreak, they must stop Chinese workers from returning to their offices.

Malaysia is already doing it. The Malaysian government has imposed a temporary travel ban, citizens from Wuhan and Hubei are not allowed to come to Malaysia for now. Other Belt and Road nations must follow suit.

Furthermore, for the future, firm regulation must be put in place to tackle risks associated with BRI.&nbsp;

The Belt and Road initiative must be put under a global regulatory mechanism, something that is in the hands of BRI nations as a whole, and not controlled by China. Because connectivity facilitates the spread of disease too. The coronavirus outbreak is a wake-up call for the world. 
 
(Disclaimer: WION Edit is the channel's take on the big events of the world) 
&nbsp;

The first cases of the Wuhan Coronavirus were reported almost two months ago. Now, there are more than 17 thousand patients. At first, China denied it all, but now we could be staring at a pandemic.

The first cases of the Wuhan Coronavirus were reported almost two months ago. Now, there are more than 17 thousand patients. At first, China denied it all, but now we could be staring at a pandemic. China failed to contain the outbreak and countries around the world are facing the consequences. During the SARS outbreak, China was not as well connected with the world as it is today, and therefore, this disease could spread far too quickly. Pakistan does not have a confirmed case of the coronavirus yet, but people are afraid because the disease has spread to the neighbourhood. Last Thursday, a Pakistani newspaper reported that Chinese projects were halted in South Punjab - 71 Chinese engineers, alongside local security personnel, were put through a screening. Something similar happened at a train project in Lahore - the Chinese workers there were asked to remain in their compounds for three days. Reports say that they were tested for coronavirus. Pakistan cannot do much beyond this. WATCH: Wuhan Virus, Is this a belt and road Pandemic? × Chinese labourers are in all countries which are members of the Belt and Road Project (BRI), and these countries cannot bar them from the projects. Whenever China takes up a Belt and Road assignment - it supplies everything - from raw materials to the workers. Chinese companies lead BRI projects. Reports say that by 2018, sixty thousand Chinese expats were working in Pakistan. More than 400 Chinese companies are involved in Pakistani projects alone. And Wuhan is at the centre of china's mega infrastructure push, serving as a key transport and trade hub. Wuhan is home to factories and operations of more than half of the fortune 500 corporations. It is also the epicentre of the coronavirus and there is a strong chance that people travelling in and out of Wuhan may carry the virus. In the last three weeks alone, the number of cases has gone up from 50 to now more than 17 thousand. The Wuhan virus has killed over 450 people so far. models created by experts suggest that this coronavirus can infect as many as 100 thousand people or even more. Now is the time to act and if world leaders are serious about containing this outbreak, they must stop Chinese workers from returning to their offices. Malaysia is already doing it. The Malaysian government has imposed a temporary travel ban, citizens from Wuhan and Hubei are not allowed to come to Malaysia for now. Other Belt and Road nations must follow suit. Furthermore, for the future, firm regulation must be put in place to tackle risks associated with BRI. The Belt and Road initiative must be put under a global regulatory mechanism, something that is in the hands of BRI nations as a whole, and not controlled by China. Because connectivity facilitates the spread of disease too. The coronavirus outbreak is a wake-up call for the world. (Disclaimer: WION Edit is the channel's take on the big events of the world)

WION Edit: Is Coronavirus a Belt and Road pandemic?

Understanding The Problems & Unintended Consequences Of The Belt & Road Project.

WION Edit: Time to bring BRI under global regulation?

How China Exports Labour Through The Belt & Road Initiative.

Gravitas: China's biggest export through BRI: Labour

From Italy in Europe to Cambodia in Southeast Asia, the Belt and Road Initiative - the long arm of China - extends everywhere.

China wants everyone on board. It wants an international network of highways and waterways.

But will it accept international regulation? Is it time for BRI to come under an international framework?

As of today, BRI is a zero-sum game. China gains, while the partner countries lose. Six years ago when China proposed the project, the World Bank conducted an independent analysis.&nbsp;

The World Bank stated that&nbsp;for many countries in the BRI net, the cost of infrastructure will outweigh the gains. There are 43 countries in the project right now. Most of them face debt issues. 12 of them have elevated debt levels. And this is just the debt, then there are environmental risks due to carbon emissions.

These countries also face social risks due to labour migration. Today, this project faces opposition both at home and abroad.&nbsp;

In China, it is seen as wasteful spending. When Mahathir Mohamed won the Malaysia election, he cancelled two expensive BRI projects signed by his predecessor. That was China's loss.

China is simply buying influence through indiscriminate lending, it works because China doesn't bother with scruples and scrutiny.

Unlike the IMF and other international lenders that follow rules, China just doles out money - it doesn't ask uncomfortable questions.&nbsp;

BRI member countries have a total population of 4.6 billion that makes 61 per cent of the world population. Their combined GDP stands at 29 trillion dollars. How can this project not attract global regulation and close scrutiny?

Already, there are reports that China is planning to deploy troops in these member countries using ports. Cambodia is the latest example.

China is building an empire through infrastructure projects, and it's not something that the world can sit and watch. It touches human lives across borders, and therefore, it must come under international rules.

The BRI is not just a simple debt trap and is leading to multiple problems. Global regulation is the only way to prevent China from weaponising these projects.&nbsp; 
 
(Disclaimer: WION Edit is the channel's take on the big events of the world)&nbsp; 
&nbsp;

From Italy in Europe to Cambodia in Southeast Asia, the Belt and Road Initiative - the long arm of China - extends everywhere. China wants everyone on board. It wants an international network of highways and waterways.

From Italy in Europe to Cambodia in Southeast Asia, the Belt and Road Initiative - the long arm of China - extends everywhere. China wants everyone on board. It wants an international network of highways and waterways. But will it accept international regulation? Is it time for BRI to come under an international framework? As of today, BRI is a zero-sum game. China gains, while the partner countries lose. Six years ago when China proposed the project, the World Bank conducted an independent analysis. The World Bank stated that for many countries in the BRI net, the cost of infrastructure will outweigh the gains. There are 43 countries in the project right now. Most of them face debt issues. 12 of them have elevated debt levels. And this is just the debt, then there are environmental risks due to carbon emissions. These countries also face social risks due to labour migration. Today, this project faces opposition both at home and abroad. In China, it is seen as wasteful spending. When Mahathir Mohamed won the Malaysia election, he cancelled two expensive BRI projects signed by his predecessor. That was China's loss. China is simply buying influence through indiscriminate lending, it works because China doesn't bother with scruples and scrutiny. Unlike the IMF and other international lenders that follow rules, China just doles out money - it doesn't ask uncomfortable questions. BRI member countries have a total population of 4.6 billion that makes 61 per cent of the world population. Their combined GDP stands at 29 trillion dollars. How can this project not attract global regulation and close scrutiny? Already, there are reports that China is planning to deploy troops in these member countries using ports. Cambodia is the latest example. China is building an empire through infrastructure projects, and it's not something that the world can sit and watch. It touches human lives across borders, and therefore, it must come under international rules. The BRI is not just a simple debt trap and is leading to multiple problems. Global regulation is the only way to prevent China from weaponising these projects. (Disclaimer: WION Edit is the channel's take on the big events of the world)

WION Edit: Time to bring BRI under global regulation

Desperate for cash, Tajikistan is about to sell yet another vital asset to China at a time that countries like Sri Lanka and the Maldives are demanding renegotiation of debt settlements that either forced them to surrender control of critical infrastructure or left them with unsustainable repayments.

The pending Chinese acquisition of &nbsp;a stake in Tajikistan’s aluminium smelter, coupled with earlier tax concessions to Chinese companies that would substantially reduce the trickle-down effect of investments for the troubled Tajik economy, suggest that China has yet to fully take account of frequent criticism of its commercial approach to Belt and Road-related projects.

The Washington-based Center for Global Development warned last year that “23 of 68 countries benefiting from Belt and Road (BRI) investments were “significantly or highly vulnerable to debt distress.”

The centre said eight countries — Tajikistan, the Maldives, Pakistan, Djibouti, Kyrgyzstan, Laos, Mongolia, and Montenegro — were particularly at risk.

“There is…concern that debt problems will create an unfavourable degree of dependency on China as a creditor. Increasing debt, and China’s role in managing bilateral debt problems has already exacerbated internal and bilateral tensions in some BRI countries,” the report said.

Progress on the construction of a road in Afghanistan’s Wakhan Corridor, a narrow strip in the east of the country that touches the Chinese border and separates Tajikistan from Pakistan and Pakistan-controlled Kashmir, may explain China’s seeming insensitivity to the concerns of beneficiaries of the People’s Republic’s largesse.

The road would link the corridor to Central Asia in the north and Pakistan’s Chinese-built Arabian Sea port of Gwadar in the south, a crown jewel in China’s infrastructure- and energy driven Belt and Road initiative.

To be sure, the road has local rather than geopolitical significance for workers building the road and the region’s shepherds as documented by anthropologists Tobias Marschall and Till Mostowlansky.

The road creates temporary employment for labourers. For shepherds, it facilitates access to mountain pastures.

For China, the stakes are geopolitical and economic.

The road would not only facilitate commerce with Central Asia as well as traffic from Gwadar but also construction of shorter pipelines as well as a fibre optic cable.

Perhaps more importantly, it would together with a military base in Tajikistan and Chinese cross border operations in the corridor itself, facilitate the movement of troops in China’s gradual projection of military power beyond its borders, particularly in regions adjacent to its troubled north-western province of Xinjiang.

The road’s potential military significance raises questions about the sustainability of a presumed division of labour between Russia and China under which Russia shoulders responsibility for security in Central Asia while China concentrates on economic development.

Ironically, if the examples of Sri Lanka, the Maldives, Pakistan and Malaysia coupled with anti-Chinese sentiment in Central Asia, fuelled in part by the brutal crackdown on Turkic Muslims in Xinjiang, are anything to go by, China’s approach to Belt and Road-related development could turn out to be a threat to its broader geopolitical ambitions and regional security policy.

Sri Lanka recently demanded that China return control of Hambantota port.

Sri Lanka became the poster child of allegations that China was pursuing debt trap diplomacy when it two years ago surrendered to China control of the port as part of a deal to reduce the country’s debt payments.

China lent Sri Lanka US$5 billion between 2010 and 2015 for infrastructure projects that included development of Hambantota at interest rates of up to 6.3 percent.

By comparison, World Bank and Asian Development Bank rates on soft loans range from 0.25 to three percent.

“The perfect circumstance is a return to the norm. We pay back the loan in due course in the way that we had originally agreed without any disturbance at all,” said newly appointed Sri Lankan prime minister Ajith Nivard Cabraal.

Similarly, the foreign ministry of the Maldives said earlier this month that it was seeking to restructure its Chinese debt.

“Borrowings by the previous government were unreasonable and put us in difficulty. But we can solve this mess through diplomatic means,” said foreign minister Abdulla Shahid.

Last month, former president Abdulla Yameen was jailed for five years and fined US$5 million for corruption during his term that ended late last year. Mr. Shahid’s government has accused China of land grabs during Mr. Yameen’s reign.

In a rare success, Malaysia earlier this year negotiated a one-third reduction in the cost of a $15.7 billion Belt and Road-related rail project. &nbsp;In a further concession, China agreed that 70 per cent of the workforce would be Malaysian and that Malaysian contractors would get 40 per cent&nbsp;of the civil works.

China has repeatedly been accused of employing Chinese rather than local labour for Chinese-funded projects along the Belt and Road and importing materials from China rather than sourcing them locally.

The government of Pakistani prime minister Imran Khan has been less successful than its Malaysian counterpart.

It recently bowed to Chinese pressure to revive hundreds of projects initially suspended after it came to office in 2018.

The appointment of a retired lieutenant general as head of a new authority overseeing the China Pakistan Economic Corridor (CPEC) that groups Belt and Road-related projects reflected China’s wariness towards messy Pakistani politics and preference for dealing with the country’s military.

With Sri Lanka as the anti-thesis, analysts suggest that China is determined to make Pakistan a success story.

“The big battle at the moment is about CPEC’s reputation, and Beijing cares about salvaging that. They need to show BRI has been a success, that it hasn’t put Pakistan’s economy in trouble and that there isn’t a backlash. If they can’t do it in a context like this, it suggests that there is something flawed in the model,” said Pakistan and China scholar Andrew Small. 
 
(Views expressed above are the personal views of the author and do not reflect the views of ZMCL)&nbsp; 
&nbsp;

Desperate for cash, Tajikistan is about to sell yet another vital asset to China at a time that countries like Sri Lanka and the Maldives are demanding renegotiation of debt settlements that either forced them to surrender control of critical infrastructure or left them with unsustainable repayments.

Desperate for cash, Tajikistan is about to sell yet another vital asset to China at a time that countries like Sri Lanka and the Maldives are demanding renegotiation of debt settlements that either forced them to surrender control of critical infrastructure or left them with unsustainable repayments. The pending Chinese acquisition of a stake in Tajikistan’s aluminium smelter, coupled with earlier tax concessions to Chinese companies that would substantially reduce the trickle-down effect of investments for the troubled Tajik economy, suggest that China has yet to fully take account of frequent criticism of its commercial approach to Belt and Road-related projects. The Washington-based Center for Global Development warned last year that “23 of 68 countries benefiting from Belt and Road (BRI) investments were “significantly or highly vulnerable to debt distress.” The centre said eight countries — Tajikistan, the Maldives, Pakistan, Djibouti, Kyrgyzstan, Laos, Mongolia, and Montenegro — were particularly at risk. “There is…concern that debt problems will create an unfavourable degree of dependency on China as a creditor. Increasing debt, and China’s role in managing bilateral debt problems has already exacerbated internal and bilateral tensions in some BRI countries,” the report said. Progress on the construction of a road in Afghanistan’s Wakhan Corridor, a narrow strip in the east of the country that touches the Chinese border and separates Tajikistan from Pakistan and Pakistan-controlled Kashmir, may explain China’s seeming insensitivity to the concerns of beneficiaries of the People’s Republic’s largesse. The road would link the corridor to Central Asia in the north and Pakistan’s Chinese-built Arabian Sea port of Gwadar in the south, a crown jewel in China’s infrastructure- and energy driven Belt and Road initiative. To be sure, the road has local rather than geopolitical significance for workers building the road and the region’s shepherds as documented by anthropologists Tobias Marschall and Till Mostowlansky. The road creates temporary employment for labourers. For shepherds, it facilitates access to mountain pastures. For China, the stakes are geopolitical and economic. The road would not only facilitate commerce with Central Asia as well as traffic from Gwadar but also construction of shorter pipelines as well as a fibre optic cable. Perhaps more importantly, it would together with a military base in Tajikistan and Chinese cross border operations in the corridor itself, facilitate the movement of troops in China’s gradual projection of military power beyond its borders, particularly in regions adjacent to its troubled north-western province of Xinjiang. The road’s potential military significance raises questions about the sustainability of a presumed division of labour between Russia and China under which Russia shoulders responsibility for security in Central Asia while China concentrates on economic development. Ironically, if the examples of Sri Lanka, the Maldives, Pakistan and Malaysia coupled with anti-Chinese sentiment in Central Asia, fuelled in part by the brutal crackdown on Turkic Muslims in Xinjiang, are anything to go by, China’s approach to Belt and Road-related development could turn out to be a threat to its broader geopolitical ambitions and regional security policy. Sri Lanka recently demanded that China return control of Hambantota port. Sri Lanka became the poster child of allegations that China was pursuing debt trap diplomacy when it two years ago surrendered to China control of the port as part of a deal to reduce the country’s debt payments. China lent Sri Lanka US$5 billion between 2010 and 2015 for infrastructure projects that included development of Hambantota at interest rates of up to 6.3 percent. By comparison, World Bank and Asian Development Bank rates on soft loans range from 0.25 to three percent. “The perfect circumstance is a return to the norm. We pay back the loan in due course in the way that we had originally agreed without any disturbance at all,” said newly appointed Sri Lankan prime minister Ajith Nivard Cabraal. Similarly, the foreign ministry of the Maldives said earlier this month that it was seeking to restructure its Chinese debt. “Borrowings by the previous government were unreasonable and put us in difficulty. But we can solve this mess through diplomatic means,” said foreign minister Abdulla Shahid. Last month, former president Abdulla Yameen was jailed for five years and fined US$5 million for corruption during his term that ended late last year. Mr. Shahid’s government has accused China of land grabs during Mr. Yameen’s reign. In a rare success, Malaysia earlier this year negotiated a one-third reduction in the cost of a $15.7 billion Belt and Road-related rail project. In a further concession, China agreed that 70 per cent of the workforce would be Malaysian and that Malaysian contractors would get 40 per cent of the civil works. China has repeatedly been accused of employing Chinese rather than local labour for Chinese-funded projects along the Belt and Road and importing materials from China rather than sourcing them locally. The government of Pakistani prime minister Imran Khan has been less successful than its Malaysian counterpart. It recently bowed to Chinese pressure to revive hundreds of projects initially suspended after it came to office in 2018. The appointment of a retired lieutenant general as head of a new authority overseeing the China Pakistan Economic Corridor (CPEC) that groups Belt and Road-related projects reflected China’s wariness towards messy Pakistani politics and preference for dealing with the country’s military. With Sri Lanka as the anti-thesis, analysts suggest that China is determined to make Pakistan a success story. “The big battle at the moment is about CPEC’s reputation, and Beijing cares about salvaging that. They need to show BRI has been a success, that it hasn’t put Pakistan’s economy in trouble and that there isn’t a backlash. If they can’t do it in a context like this, it suggests that there is something flawed in the model,” said Pakistan and China scholar Andrew Small. (Views expressed above are the personal views of the author and do not reflect the views of ZMCL)

China struggles to fend off allegations of debt trap diplomacy

The story of CPEC is not binary. CPEC gives China huge opportunities to tap into markets that are hitherto-inaccessible. But for Pakistan, it's a debt trap.&nbsp;

The CPEC is the premier project of the Belt and Road Initiative - the much-hyped BRI. It will give China influence in the Indian ocean and the Arabian sea through the Gwadar port.

It will give china a reliable path to expand its trade activities. It's a win-win for China, but what about Pakistan?

On WION Edit, that's the question we'll answer.

In December 2015, the State Bank of Pakistan said it had no idea how much money that the Chinese were committing on CPEC on debt as well as equity.

Then in 2018, that was the last year Pakistan's federal cabinet said the same, they admitted they had no idea on Chinese debt and equity. If CPEC is really the game-changer, then Pakistan doesn't know the rules of the game.

Their problem is quite simple, Pakistan is broke. Broke well before the CPEC projects have started to yield results. And make no mistake, China is not a country that indulges in charity. Whether Pakistan likes it or not, the financial gap will widen.

This burden will be bigger once CPEC payments start in the next four to six years. And that's why Pakistan wants to rope in other countries like Saudi Arabia and Iran to share the burden.

Here, I want to delve into the comments made by US Assistant Secretary of State for South Asia - Alice Wells. A few days ago, she said that CPEC is not China's aid or grant, but debt.

And the project entirely relies on China's raw materials and labour, not Pakistan's. Islamabad is just a happy host, unaware of the perils that this behemoth of a project brings.

Wells also confirmed some of Pakistan's worst fears. Even if China gives Pakistan a long leash to repay the loan, the debt burden will remain. 
it will limit Pakistan's ability to spend on development or welfare.

If they ever think about those things, that is. So basically, China is holding Pakistan by the scruff of its neck. Yes, CPEC may help Pakistan address its energy shortage.

But at what cost? Even the Pakistanis don't know. They've clearly bitten more than they can chew. And countries across the world, which joined the BRI bandwagon are watching this nervously. Sri Lanka, Montenegro, Maldives, Djibouti - all sinking in Chinese debt. India is having the last laugh.

It refused to get on board despite immense pressure from China. India saw BRU for what it was and rightly called CPEC a violation of Indian sovereignty.

The China-Pakistan Economic Corridor runs through Gilgit-Baltistan - that's Pakistan occupied Kashmir - technically Indian territory.

And China must know this - connectivity cannot be a reason to undermine another country's sovereignty.

India has also raised concerns over china's military installations at the Gwadar port. CPEC is basically the Chinese version of the British East India Company - the first move of a coloniser.

 
China says, "If Pakistan is in need, China would never ask it to repay loans in time, unlike the IMF which is strict in its repayment system." This dragon has a forked tongue. We all know what china does when loans aren't paid on time - it occupies territory.

Hambantota in Sri Lanka. Djibouti in Africa. 
 
(Disclaimer: WION Edit is the channel's take on the big events of the world)

The story of CPEC is not binary. CPEC gives China huge opportunities to tap into markets that are hitherto-inaccessible. But for Pakistan, it's a debt trap. The CPEC is the premier project of the Belt and Road Initiative - the much-hyped BRI.

The story of CPEC is not binary. CPEC gives China huge opportunities to tap into markets that are hitherto-inaccessible. But for Pakistan, it's a debt trap. The CPEC is the premier project of the Belt and Road Initiative - the much-hyped BRI. It will give China influence in the Indian ocean and the Arabian sea through the Gwadar port. It will give china a reliable path to expand its trade activities. It's a win-win for China, but what about Pakistan? On WION Edit, that's the question we'll answer. In December 2015, the State Bank of Pakistan said it had no idea how much money that the Chinese were committing on CPEC on debt as well as equity. Then in 2018, that was the last year Pakistan's federal cabinet said the same, they admitted they had no idea on Chinese debt and equity. If CPEC is really the game-changer, then Pakistan doesn't know the rules of the game. Their problem is quite simple, Pakistan is broke. Broke well before the CPEC projects have started to yield results. And make no mistake, China is not a country that indulges in charity. Whether Pakistan likes it or not, the financial gap will widen. This burden will be bigger once CPEC payments start in the next four to six years. And that's why Pakistan wants to rope in other countries like Saudi Arabia and Iran to share the burden. Here, I want to delve into the comments made by US Assistant Secretary of State for South Asia - Alice Wells. A few days ago, she said that CPEC is not China's aid or grant, but debt. And the project entirely relies on China's raw materials and labour, not Pakistan's. Islamabad is just a happy host, unaware of the perils that this behemoth of a project brings. Wells also confirmed some of Pakistan's worst fears. Even if China gives Pakistan a long leash to repay the loan, the debt burden will remain. it will limit Pakistan's ability to spend on development or welfare. If they ever think about those things, that is. So basically, China is holding Pakistan by the scruff of its neck. Yes, CPEC may help Pakistan address its energy shortage. But at what cost? Even the Pakistanis don't know. They've clearly bitten more than they can chew. And countries across the world, which joined the BRI bandwagon are watching this nervously. Sri Lanka, Montenegro, Maldives, Djibouti - all sinking in Chinese debt. India is having the last laugh. It refused to get on board despite immense pressure from China. India saw BRU for what it was and rightly called CPEC a violation of Indian sovereignty. The China-Pakistan Economic Corridor runs through Gilgit-Baltistan - that's Pakistan occupied Kashmir - technically Indian territory. And China must know this - connectivity cannot be a reason to undermine another country's sovereignty. India has also raised concerns over china's military installations at the Gwadar port. CPEC is basically the Chinese version of the British East India Company - the first move of a coloniser. China says, "If Pakistan is in need, China would never ask it to repay loans in time, unlike the IMF which is strict in its repayment system." This dragon has a forked tongue. We all know what china does when loans aren't paid on time - it occupies territory. Hambantota in Sri Lanka. Djibouti in Africa. (Disclaimer: WION Edit is the channel's take on the big events of the world)

WION Edit: Will CPEC inflict debt burden on Pakistan?

By Amitrajeet A Batabyal&nbsp;

Inspired by the ancient Silk Road, China is investing in a massive set of international development projects that are raising concerns about how the country is expanding its power around the world.

Initially announced in 2013 by Chinese President Xi Jinping, the so-called “Belt and Road Initiative” has China planning to invest in economic development and transportation in more than 130 countries and 30 international organisations. Projects range across Asia, but also include places in Africa, the Caribbean, Europe and South America.

With a projected cost of more than $1 trillion, it may be the most ambitious infrastructure project undertaken in human history. The country hopes it will all be completed by 2049, the 100th anniversary of the founding of the People’s Republic of China. My research in international economics with particular reference to China shows that Beijing has both economic and political plans for how these investments will pay off.

Economic effects 
 
A rapidly growing China needs reliable access to energy. The Belt and Road Initiative includes pipeline construction and other building projects in oil- and gas-rich central Asia.

China also has an ambitious goal to dominate global production of electric cars – as well as other high-tech equipment – for which it needs reliable supplies of cobalt, a key ingredient in high-capacity batteries. More than half of the world’s supply comes from the Democratic Republic of Congo. China’s investment there has helped secure much of that crucial element for Chinese production.

Analysts and scholars have criticized these and other moves for economic dominance, arguing that taking the country’s money is like drinking from a “poisoned chalice” – a brief refreshment leading to certain death.

Sri Lanka, for instance, defaulted on debts it owed China for development at the port of Hambantota – and was forced to give the Chinese government control of the port for 99 years.

Chinese investments in the Pakistani port of Gwadar have set Pakistan up to owe China more than $10 billion.

Political payoffs

As these countries get more closely tied to the Chinese economy, they also shift into the range of its political efforts, sparking several concerns about the country’s motivations. Navy analysts have called China’s growing control of ports in Asia – including Hambantota, Sri Lanka; and Gwadar, Pakistan – an effort to assemble a “string of pearls” with which it can dominate much of Asia.

Malaysian Prime Minister Mahathir Mohamad warned that China may be turning into a new colonial power.

The US&nbsp;sees Chinese expansion as a security concern and has urged India to serve as a strong example that a Western-style democracy and society can succeed in Asia. In addition, the US&nbsp;has proposed working with Australia, India and Japan on a massive development effort to rival China’s power.

The European Union is also unsure about China’s political intentions. Some of its members have joined individually, but others have expressed concerns that Chinese plans often overlook environmental and social sustainability – and that its bidding process is not sufficiently open to the public. There is some general European concern that China is seeking to divide Europe politically.

Recent reports suggest that Chinese investment in the Belt and Road Initiative – and international interest in Chinese funding – is slowing. In part that may be because, predictions and analysis aside, nobody knows for certain what China is aiming for – except to boost its own side in its rivalry with the US.

 
(Amitrajeet A Batabyal &nbsp;is Arthur J. Gosnell Professor of Economics, Rochester Institute of Technology)

(This article was originally published on The Conversation. Read the <a href="https://theconversation.com/chinas-worldwide-investment-project-is-a-push-for-more-economic-and-political-power-125190">original article</a>)

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL) &nbsp;

 
&nbsp;

By Amitrajeet A Batabyal Inspired by the ancient Silk Road, China is investing in a massive set of international development projects that are raising concerns about how the country is expanding its power around the world.

By Amitrajeet A Batabyal Inspired by the ancient Silk Road, China is investing in a massive set of international development projects that are raising concerns about how the country is expanding its power around the world. Initially announced in 2013 by Chinese President Xi Jinping, the so-called “Belt and Road Initiative” has China planning to invest in economic development and transportation in more than 130 countries and 30 international organisations. Projects range across Asia, but also include places in Africa, the Caribbean, Europe and South America. With a projected cost of more than $1 trillion, it may be the most ambitious infrastructure project undertaken in human history. The country hopes it will all be completed by 2049, the 100th anniversary of the founding of the People’s Republic of China. My research in international economics with particular reference to China shows that Beijing has both economic and political plans for how these investments will pay off. Economic effects A rapidly growing China needs reliable access to energy. The Belt and Road Initiative includes pipeline construction and other building projects in oil- and gas-rich central Asia. China also has an ambitious goal to dominate global production of electric cars – as well as other high-tech equipment – for which it needs reliable supplies of cobalt, a key ingredient in high-capacity batteries. More than half of the world’s supply comes from the Democratic Republic of Congo. China’s investment there has helped secure much of that crucial element for Chinese production. Analysts and scholars have criticized these and other moves for economic dominance, arguing that taking the country’s money is like drinking from a “poisoned chalice” – a brief refreshment leading to certain death. Sri Lanka, for instance, defaulted on debts it owed China for development at the port of Hambantota – and was forced to give the Chinese government control of the port for 99 years. Chinese investments in the Pakistani port of Gwadar have set Pakistan up to owe China more than $10 billion. Political payoffs As these countries get more closely tied to the Chinese economy, they also shift into the range of its political efforts, sparking several concerns about the country’s motivations. Navy analysts have called China’s growing control of ports in Asia – including Hambantota, Sri Lanka; and Gwadar, Pakistan – an effort to assemble a “string of pearls” with which it can dominate much of Asia. Malaysian Prime Minister Mahathir Mohamad warned that China may be turning into a new colonial power. The US sees Chinese expansion as a security concern and has urged India to serve as a strong example that a Western-style democracy and society can succeed in Asia. In addition, the US has proposed working with Australia, India and Japan on a massive development effort to rival China’s power. The European Union is also unsure about China’s political intentions. Some of its members have joined individually, but others have expressed concerns that Chinese plans often overlook environmental and social sustainability – and that its bidding process is not sufficiently open to the public. There is some general European concern that China is seeking to divide Europe politically. Recent reports suggest that Chinese investment in the Belt and Road Initiative – and international interest in Chinese funding – is slowing. In part that may be because, predictions and analysis aside, nobody knows for certain what China is aiming for – except to boost its own side in its rivalry with the US. (Amitrajeet A Batabyal is Arthur J. Gosnell Professor of Economics, Rochester Institute of Technology) (This article was originally published on The Conversation. Read the original article) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

China’s worldwide investment project is a push for more economic and political power

China’s infrastructure and energy-driven $1 trillion Belt and Road initiative involves risky bets across a swath of land populated by often illiberal or autocratic governments exercising power without independent checks and balances.

Seeking to reduce risk, China is bumping up against the limits of its own long-standing foreign and defence policy principles, foremost among which its insistence on non-interference in the domestic affairs of others, the equivalent of the United States' preference for stability rather than political change.

If popular revolts in Algeria and Sudan as well as smaller, issues-oriented protests elsewhere in the Middle East and North Africa are anything to go by, China appears to be betting against the odds.

Anti-corruption sentiment fuelled the 2011 popular Arab revolts that toppled the leaders of Tunisia, Egypt, Libya and Yemen and are at the root of current anti-government protests across the globe in countries as far-flung as Brazil, Haiti, Jamaica, Puerto Rico, Russia, Zambia, the Czech Republic, Albania and Romania

China’s risks were evident in the wake of the fall in 2011 of Col. Muammar Gaddafi when the post-revolt Libyan authorities advised China that it would be low on the totem pole as a result of its support of the ancien regime.

The risks are also evident with Baloch militants targeting Chinese assets and personnel in Pakistan.

To minimise the risk and expand its aggressive domestic anti-graft campaign, China’s top anti-corruption body, the Communist party’s Central Commission for Discipline Inspection (CCDI), is embedding inspectors in Belt and Road projects, who will be based in recipient countries.

The move helps China counter allegations that it exploits corruption in recipient Belt and Road countries to further its objectives.

Anti-corruption is a signature policy of President Xi Jinping and has allowed him to purge senior Chinese leaders as well as tens of thousands of low-level bureaucrats.

The CCDI is building on the success of a pilot project in Laos where it embedded in late 2017 inspectors in a $6 billion railway project being built by state-owned China Railway Group. The anti-graft officials, working with the Chinese company, established a joint inspection team with their Laotian counterpart.

The question is whether the anti-corruption effort in countries like Laos or Central Asian nations that consistently rank in the bottom half of Transparency International’s corruption index will bump up against China’s non-interference principle.

Or in other words, can China successfully guard against corruption in Belt and Road projects without pressuring recipient countries to adopt broader transparency and anti-corruption measures?

“How can you strike hard on corruption here at home and give a free hand to Chinese people and business groups [that are] reckless abroad?” CCDI’s director-general for international co-operation La Yifan asked in a Financial Times interview.

La said China had organised seminars with more than 30 countries to link up anti-corruption regulators. “That is my dream, that we create a network of law enforcement of all these Belt and Road countries,” he said.

Imposing transparency and anti-corruption in Belt and Road partners would be the equivalent of all kinds of environmental, safety and human rights criteria that the United States haphazardly and opportunistically maintains in dealings with foreign countries that have been severely criticized by China.

China has long prided itself on what it terms win-win economic situations in which it imposes commercial terms that often primarily benefit the People’s Republic.

The terms, coupled with the clampdown on Turkic Muslims in China’s province of Xinjiang, has fuelled anti-Chinese sentiment in Turkey and Central Asia with their close ethnic and cultural ties to the troubled Chinese region.

Turkish officials highlighted these sensitivities by denying Chinese media reports that President Recep Tayyip Erdogan had praised the success of Beijing’s brutal approach in Xinjiang during a recent visit to China.

Muslim nations have largely remained silent about the clampdown that amounts to the most frontal assault on faith in recent history or in some instances even tacitly endorsed it.

In the absence of democracy, “Governments can manage their pro-Beijing stance without informing their public, but a pro-Beijing policy over the Uyghur issue can barely be sustained in Turkey. Turkey is still a functioning democracy and total control of the public is not possible. Besides, there is a very strong Uyghur lobby and public sentiment towards the Uyghurs in Turkey,” said Turkish Centre for Asia-Pacific Studies director Selcuk Colakoglu.

Taking its anti-corruption campaign global raises the broader question of whether it would threaten a pillar of autocracy that China’s non-interference principle has de facto sought to perpetuate.

Political scientists Alexander Cooley and John Heathershaw argue that what they call the instruments of global authoritarianism -- an army of largely Western bankers, lawyers, brokers and intermediaries that park illicitly gained monies in off-shore accounts and manage the investment of those funds – help keep autocrats in power.

The success of the globalisation of China’s anti-corruption effort as well as its campaign to significantly reduce graft at home, would establish autocrats’ ability to satisfactorily deliver public goods and services alongside brute power as the cornerstone of their sustainability.

In doing so, it would give greater meaning to China’s assertion that it does not want to fundamentally alter the established multi-lateral world order but rather make it more equitable and more a reflection of a world that is multi- not unipolar.

It would also cement China’s model of economic reform and state capitalism without political liberalisation as the example autocratic and authoritarian regimes want to emulate even if the jury is out on whether autocrats can remain relatively clean without a system of independent checks and balances. 
 
(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)&nbsp; 
&nbsp;

China’s infrastructure and energy-driven $1 trillion Belt and Road initiative involves risky bets across a swath of land populated by often illiberal or autocratic governments exercising power without independent checks and balances.

China’s infrastructure and energy-driven $1 trillion Belt and Road initiative involves risky bets across a swath of land populated by often illiberal or autocratic governments exercising power without independent checks and balances. Seeking to reduce risk, China is bumping up against the limits of its own long-standing foreign and defence policy principles, foremost among which its insistence on non-interference in the domestic affairs of others, the equivalent of the United States' preference for stability rather than political change. If popular revolts in Algeria and Sudan as well as smaller, issues-oriented protests elsewhere in the Middle East and North Africa are anything to go by, China appears to be betting against the odds. Anti-corruption sentiment fuelled the 2011 popular Arab revolts that toppled the leaders of Tunisia, Egypt, Libya and Yemen and are at the root of current anti-government protests across the globe in countries as far-flung as Brazil, Haiti, Jamaica, Puerto Rico, Russia, Zambia, the Czech Republic, Albania and Romania China’s risks were evident in the wake of the fall in 2011 of Col. Muammar Gaddafi when the post-revolt Libyan authorities advised China that it would be low on the totem pole as a result of its support of the ancien regime. The risks are also evident with Baloch militants targeting Chinese assets and personnel in Pakistan. To minimise the risk and expand its aggressive domestic anti-graft campaign, China’s top anti-corruption body, the Communist party’s Central Commission for Discipline Inspection (CCDI), is embedding inspectors in Belt and Road projects, who will be based in recipient countries. The move helps China counter allegations that it exploits corruption in recipient Belt and Road countries to further its objectives. Anti-corruption is a signature policy of President Xi Jinping and has allowed him to purge senior Chinese leaders as well as tens of thousands of low-level bureaucrats. The CCDI is building on the success of a pilot project in Laos where it embedded in late 2017 inspectors in a $6 billion railway project being built by state-owned China Railway Group. The anti-graft officials, working with the Chinese company, established a joint inspection team with their Laotian counterpart. The question is whether the anti-corruption effort in countries like Laos or Central Asian nations that consistently rank in the bottom half of Transparency International’s corruption index will bump up against China’s non-interference principle. Or in other words, can China successfully guard against corruption in Belt and Road projects without pressuring recipient countries to adopt broader transparency and anti-corruption measures? “How can you strike hard on corruption here at home and give a free hand to Chinese people and business groups [that are] reckless abroad?” CCDI’s director-general for international co-operation La Yifan asked in a Financial Times interview. La said China had organised seminars with more than 30 countries to link up anti-corruption regulators. “That is my dream, that we create a network of law enforcement of all these Belt and Road countries,” he said. Imposing transparency and anti-corruption in Belt and Road partners would be the equivalent of all kinds of environmental, safety and human rights criteria that the United States haphazardly and opportunistically maintains in dealings with foreign countries that have been severely criticized by China. China has long prided itself on what it terms win-win economic situations in which it imposes commercial terms that often primarily benefit the People’s Republic. The terms, coupled with the clampdown on Turkic Muslims in China’s province of Xinjiang, has fuelled anti-Chinese sentiment in Turkey and Central Asia with their close ethnic and cultural ties to the troubled Chinese region. Turkish officials highlighted these sensitivities by denying Chinese media reports that President Recep Tayyip Erdogan had praised the success of Beijing’s brutal approach in Xinjiang during a recent visit to China. Muslim nations have largely remained silent about the clampdown that amounts to the most frontal assault on faith in recent history or in some instances even tacitly endorsed it. In the absence of democracy, “Governments can manage their pro-Beijing stance without informing their public, but a pro-Beijing policy over the Uyghur issue can barely be sustained in Turkey. Turkey is still a functioning democracy and total control of the public is not possible. Besides, there is a very strong Uyghur lobby and public sentiment towards the Uyghurs in Turkey,” said Turkish Centre for Asia-Pacific Studies director Selcuk Colakoglu. Taking its anti-corruption campaign global raises the broader question of whether it would threaten a pillar of autocracy that China’s non-interference principle has de facto sought to perpetuate. Political scientists Alexander Cooley and John Heathershaw argue that what they call the instruments of global authoritarianism -- an army of largely Western bankers, lawyers, brokers and intermediaries that park illicitly gained monies in off-shore accounts and manage the investment of those funds – help keep autocrats in power. The success of the globalisation of China’s anti-corruption effort as well as its campaign to significantly reduce graft at home, would establish autocrats’ ability to satisfactorily deliver public goods and services alongside brute power as the cornerstone of their sustainability. In doing so, it would give greater meaning to China’s assertion that it does not want to fundamentally alter the established multi-lateral world order but rather make it more equitable and more a reflection of a world that is multi- not unipolar. It would also cement China’s model of economic reform and state capitalism without political liberalisation as the example autocratic and authoritarian regimes want to emulate even if the jury is out on whether autocrats can remain relatively clean without a system of independent checks and balances. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)

Belt and Road project: China expands its anti-corruption campaign

Rebalancing is the new mantra of statecraft and reset is the new form of global rapprochement. 
 
Therefore, Prime Minister Narendra Modi pitched for as many as 20 meetings, including nine bilaterals and eight pull-aside engagements, with his global counterparts. On the sidelines of the G20 summit at Osaka, Japan, were varied groupings: Russia-India-China, Japan-US-India and Brazil-Russia-India-China-South Africa. It offered, once again, good optics for the creation of a multilateral system of partnerships with various countries and international organisations.

All great powers realise that the era of super-power domination is over, and with the emergence of new power centres like China, India and Japan, new rules of the game and new terms of engagement need to be chalked out. Forums like G20 are critical for constructing a multi-polar and democratic order, which would guarantee each country — large or small — peace, security, justice and development in order to address challenges like climate change, corruption, pollution, terrorism, technology sharing and data flow management, among others.

In the wake of the financial woes of the West and its increasingly protectionist tendencies of late — Brexit in the UK and the triumphalism of Donald Trump — one can notice a common trend that arises out of part distrust and part national interest. No more prominent example of global rebalancing may be cited than China’s Belt and Road Initiative (BRI) against the backdrop of the US’s ‘Pivot to Asia’ that Beijing intuitively believes to be especially devised to contain its rise.

How is the rebalancing working out? US allies in Asia, connected to and militarily aligned with the pivot, are absolutely okay with engaging economically with China, a phenomenon that seeks to strike a balance between the regional and global geo-economic and geostrategic priorities. The hegemonic struggle between the US and China to stake control over Asia and the world notwithstanding, nations are trying hard to hold on to their values and diplomats are honing their skills on economic statecraft.

Is rebalancing, then, the other name of strategic promiscuity? In a way, it is. Because being close to another country does not necessarily mean hostilities against a third country. Rebalancing, therefore, is more akin to focusing on areas of respective and mutual convergence. That’s where it syncs with national interest. While the reasons for US foreign policy to focus on Brazil, India, Indonesia and Turkey is ascribed to their fluid and open approach to the international order than those of China or Russia, the real factor could be to reduce China’s global clout by fostering partnerships with existing and rising great powers.

Russia, in turn, has been trying to counterbalance the USA’s global leadership by cooperating with China on issues relating to state sovereignty, strengthening the UN Security Council, and pitching for a multi-polar world order wherein no single state assumes a paramount position vis-à-vis the others in world affairs. Despite paeans sung on the merits of multilateralism, it is natural that a leader in power would pursue policy based on his/her perception of national interest. 
 
Napoleon justified his campaign against Russia, and later his act to launch the desperate battle at Waterloo, on the plea that he was acting in the interest of France; Hitler was said to be acting in Germany’s national interest on grounds of which he justified his expansionist policies, including annexation of Austria and the breakup of Czechoslovakia (1938). British Prime Minister Neville Chamberlain justified his act of currying favour with Hitler and Mussolini on the pretext that such appeasement was in Britain’s national interest. Prime Minister Narendra Modi recently justified demonetisation as a move taken in “national interest” and not for “political gains”, arguing that it was a step to fight black money.

It is par for the course, then, that during a recent extensive bilateral meeting in New Delhi, India’s external affairs minister S Jaishankar reconfirmed to his American counterpart, Mike Pompeo, about the Indian imperative to act in its national interest and nurture the time-tested, history-honoured relationships with many countries, including Russia and Iran. India is also engaging more actively with Japan, while taking care not to antagonise China, which is another deft exercise of rebalancing. 
 
(This article was originally published on The DNA. Read the <a href="https://www.dnaindia.com/analysis/column-rebalancing-is-trademark-in-a-multi-polar-diplomatic-world-2770634">original article)</a>

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)&nbsp; 
&nbsp;

Rebalancing is the new mantra of statecraft and reset is the new form of global rapprochement. Therefore, Prime Minister Narendra Modi pitched for as many as 20 meetings, including nine bilaterals and eight pull-aside engagements, with his global counterparts.

Rebalancing is the new mantra of statecraft and reset is the new form of global rapprochement. Therefore, Prime Minister Narendra Modi pitched for as many as 20 meetings, including nine bilaterals and eight pull-aside engagements, with his global counterparts. On the sidelines of the G20 summit at Osaka, Japan, were varied groupings: Russia-India-China, Japan-US-India and Brazil-Russia-India-China-South Africa. It offered, once again, good optics for the creation of a multilateral system of partnerships with various countries and international organisations. All great powers realise that the era of super-power domination is over, and with the emergence of new power centres like China, India and Japan, new rules of the game and new terms of engagement need to be chalked out. Forums like G20 are critical for constructing a multi-polar and democratic order, which would guarantee each country — large or small — peace, security, justice and development in order to address challenges like climate change, corruption, pollution, terrorism, technology sharing and data flow management, among others. In the wake of the financial woes of the West and its increasingly protectionist tendencies of late — Brexit in the UK and the triumphalism of Donald Trump — one can notice a common trend that arises out of part distrust and part national interest. No more prominent example of global rebalancing may be cited than China’s Belt and Road Initiative (BRI) against the backdrop of the US’s ‘Pivot to Asia’ that Beijing intuitively believes to be especially devised to contain its rise. How is the rebalancing working out? US allies in Asia, connected to and militarily aligned with the pivot, are absolutely okay with engaging economically with China, a phenomenon that seeks to strike a balance between the regional and global geo-economic and geostrategic priorities. The hegemonic struggle between the US and China to stake control over Asia and the world notwithstanding, nations are trying hard to hold on to their values and diplomats are honing their skills on economic statecraft. Is rebalancing, then, the other name of strategic promiscuity? In a way, it is. Because being close to another country does not necessarily mean hostilities against a third country. Rebalancing, therefore, is more akin to focusing on areas of respective and mutual convergence. That’s where it syncs with national interest. While the reasons for US foreign policy to focus on Brazil, India, Indonesia and Turkey is ascribed to their fluid and open approach to the international order than those of China or Russia, the real factor could be to reduce China’s global clout by fostering partnerships with existing and rising great powers. Russia, in turn, has been trying to counterbalance the USA’s global leadership by cooperating with China on issues relating to state sovereignty, strengthening the UN Security Council, and pitching for a multi-polar world order wherein no single state assumes a paramount position vis-à-vis the others in world affairs. Despite paeans sung on the merits of multilateralism, it is natural that a leader in power would pursue policy based on his/her perception of national interest. Napoleon justified his campaign against Russia, and later his act to launch the desperate battle at Waterloo, on the plea that he was acting in the interest of France; Hitler was said to be acting in Germany’s national interest on grounds of which he justified his expansionist policies, including annexation of Austria and the breakup of Czechoslovakia (1938). British Prime Minister Neville Chamberlain justified his act of currying favour with Hitler and Mussolini on the pretext that such appeasement was in Britain’s national interest. Prime Minister Narendra Modi recently justified demonetisation as a move taken in “national interest” and not for “political gains”, arguing that it was a step to fight black money. It is par for the course, then, that during a recent extensive bilateral meeting in New Delhi, India’s external affairs minister S Jaishankar reconfirmed to his American counterpart, Mike Pompeo, about the Indian imperative to act in its national interest and nurture the time-tested, history-honoured relationships with many countries, including Russia and Iran. India is also engaging more actively with Japan, while taking care not to antagonise China, which is another deft exercise of rebalancing. (This article was originally published on The DNA. Read the original article) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)

Rebalancing is trademark in a multi-polar diplomatic world

India refuses to endorse China's connectivity programme. Bishkek declaration mentions only 6 members backing BRI. BRI is China's infrastructural Belt & Road Initiative. CPEC passes through Pakistan occupied Kashmir.

SCO Summit 2019: India has refused to endorse China's BRI

China held the second conference on the Belt Road Initiative (BRI) in Beijing on April 25-26, 2019, wherein 40 heads of states, delegates from 150 countries and 90 international organisations from different parts of the world participated.

These included the likes of Russian President Vladimir Putin, President Ueli Maurer of Switzerland, Malaysian Prime Minister Mahathir Mohammad, UN General Secretary Antonio Guterres, Pakistani Prime Minister Imran Khan, Nepali President Bindiya Bhandari and state Counselor Aung San Su-Kyi of Myanmar.

With the presence of about 5,000 delegates, the second Belt Road Forum provided an opportunity for China to take stock of the BRI and plan the next course of action for the success of this global project.

Ever since the One Belt One Road (OBOR) Initiative (now known as the BRI) was launched in 2013, it has become the most ambitious project of the Chinese government to reshape the regional and global order.&nbsp;

While the BRI is generally viewed in terms of a plan to build infrastructure projects, its other elements include strengthening regional political cooperation, unimpeded trade, financial integration and people-to-people exchanges.&nbsp;

The BRI, covering 76 countries from Asia, Africa, and Europe, accounts for half the world’s population and a quarter of global GDP.&nbsp;

In fact, the Xi Jinping government has focussed on mobilising the country’s political, diplomatic, intellectual, economic, and financial resources to establish China as the unquestionable regional and global power.&nbsp;

While the BRI is expected to cost more than $11 trillion, President Xi Jinping has said that the total trade volume between China and Belt and Road participating countries exceeded $6 trillion from 2013 to 2018, while China has so far chalked up $80 billion in direct foreign investment in these countries. Xi also announced that projects worth $64 billion and 283 deliverables were signed at the forum.&nbsp;

But, it is equally true that apprehensions about the BRI as trap diplomacy by China have also increased, symbolised by cases of the China-Pakistan Economic Corridor (CPEC), the Hambantota Port and others.&nbsp;

In fact, Malaysia had put on hold the Chinese rail project until the original cost was cut by 30 per cent. &nbsp;

Realising this negative image, President Xi focussed on engaging with other countries, saying that the “Belt and Road Initiative is not only for China, but open to other nations’ participation.”&nbsp;

India, a major emerging economic and military power in Asia, has refused to join BRI on the ground that the CPEC violates its sovereignty because it passes through the part of the Pakistan-occupied Kashmir that belongs to India.&nbsp;

Unlike in the past, this time, the US also did not send its representative for this summit. In fact, New Delhi and Washington have a shared understanding of the possible strategic and security threats emerging from the BRI.&nbsp;

New Delhi and Washington have taken several measures to effectively challenge Xi Jinping’s pet project. In doing so, while India has focused on enhancing its engagement with Southeast Asian countries under the Act East Policy, it also sees a point in Trump’s Indo-Pacific strategy to maintain and promote peace and security in the region.&nbsp;

US secretary of state Mike Pompeo has announced that “Indo-Pacific Economic Vision” will increase the financial support that the US government provides to countries in the region through a proposed agency, the US International Development Finance Corporation (USIDFC).&nbsp;

The rival Quadrilateral Security Dialogue between the US, Japan, Australia and India last year is also attributed to the intention of these countries to check China’s rise.&nbsp;

At the same time, India is focused on working with Japan in developing an Asia-Africa Growth Corridor (AAGC), which will help create a “free and open Indo-Pacific region” by rediscovering ancient sea-routes and creating new sea corridors that will link the African continent with India and countries in South-Asia and South-East Asia.&nbsp;

It has to be seen whether the BRI 2.0 really promotes multilateralism in Asia and beyond or it further amplifies the concerns about China’s perceived efforts to dominate the regional global power structure.&nbsp; 
 
&nbsp;(This article was originally published on The DNA. Read the <a href="https://www.dnaindia.com/analysis/column-india-keeps-off-bri-has-us-and-japan-in-the-loop-2751354">original article</a>)

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)&nbsp; 
&nbsp;

China held the second conference on the Belt Road Initiative (BRI) in Beijing on April 25-26, 2019, wherein 40 heads of states, delegates from 150 countries and 90 international organisations from different parts of the world participated.

China held the second conference on the Belt Road Initiative (BRI) in Beijing on April 25-26, 2019, wherein 40 heads of states, delegates from 150 countries and 90 international organisations from different parts of the world participated. These included the likes of Russian President Vladimir Putin, President Ueli Maurer of Switzerland, Malaysian Prime Minister Mahathir Mohammad, UN General Secretary Antonio Guterres, Pakistani Prime Minister Imran Khan, Nepali President Bindiya Bhandari and state Counselor Aung San Su-Kyi of Myanmar. With the presence of about 5,000 delegates, the second Belt Road Forum provided an opportunity for China to take stock of the BRI and plan the next course of action for the success of this global project. Ever since the One Belt One Road (OBOR) Initiative (now known as the BRI) was launched in 2013, it has become the most ambitious project of the Chinese government to reshape the regional and global order. While the BRI is generally viewed in terms of a plan to build infrastructure projects, its other elements include strengthening regional political cooperation, unimpeded trade, financial integration and people-to-people exchanges. The BRI, covering 76 countries from Asia, Africa, and Europe, accounts for half the world’s population and a quarter of global GDP. In fact, the Xi Jinping government has focussed on mobilising the country’s political, diplomatic, intellectual, economic, and financial resources to establish China as the unquestionable regional and global power. While the BRI is expected to cost more than $11 trillion, President Xi Jinping has said that the total trade volume between China and Belt and Road participating countries exceeded $6 trillion from 2013 to 2018, while China has so far chalked up $80 billion in direct foreign investment in these countries. Xi also announced that projects worth $64 billion and 283 deliverables were signed at the forum. But, it is equally true that apprehensions about the BRI as trap diplomacy by China have also increased, symbolised by cases of the China-Pakistan Economic Corridor (CPEC), the Hambantota Port and others. In fact, Malaysia had put on hold the Chinese rail project until the original cost was cut by 30 per cent. Realising this negative image, President Xi focussed on engaging with other countries, saying that the “Belt and Road Initiative is not only for China, but open to other nations’ participation.” India, a major emerging economic and military power in Asia, has refused to join BRI on the ground that the CPEC violates its sovereignty because it passes through the part of the Pakistan-occupied Kashmir that belongs to India. Unlike in the past, this time, the US also did not send its representative for this summit. In fact, New Delhi and Washington have a shared understanding of the possible strategic and security threats emerging from the BRI. New Delhi and Washington have taken several measures to effectively challenge Xi Jinping’s pet project. In doing so, while India has focused on enhancing its engagement with Southeast Asian countries under the Act East Policy, it also sees a point in Trump’s Indo-Pacific strategy to maintain and promote peace and security in the region. US secretary of state Mike Pompeo has announced that “Indo-Pacific Economic Vision” will increase the financial support that the US government provides to countries in the region through a proposed agency, the US International Development Finance Corporation (USIDFC). The rival Quadrilateral Security Dialogue between the US, Japan, Australia and India last year is also attributed to the intention of these countries to check China’s rise. At the same time, India is focused on working with Japan in developing an Asia-Africa Growth Corridor (AAGC), which will help create a “free and open Indo-Pacific region” by rediscovering ancient sea-routes and creating new sea corridors that will link the African continent with India and countries in South-Asia and South-East Asia. It has to be seen whether the BRI 2.0 really promotes multilateralism in Asia and beyond or it further amplifies the concerns about China’s perceived efforts to dominate the regional global power structure. (This article was originally published on The DNA. Read the original article) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)

India keeps off BRI, has US and Japan in the loop

India's decision to not join <a href="https://www.wionews.com/world/xi-jinping-says-more-nations-joining-belt-and-road-64-billion-in-deals-signed-at-summit-213907">China's Belt and Road Initiative</a> over sovereignty concerns related to the CPEC has not affected the bilateral trade ties which have seen an "exponential growth", India's Ambassador to China Vikram Misri has said.

India skipped China's 2nd Belt and Road Forum (BRF) held from April 25 to 27 aimed at showcasing its trillion-dollar Belt and Road Initiative (BRI) over its objection to $60 billion China-Pakistan Economic Corridor (CPEC) which passes through Pakistan-occupied Kashmir (PoK).

India had also boycotted the first BRF held in 2017. New Delhi's reluctance to join the BRI has become a major irritant in the relations between the two countries.

"We feel that the infrastructure connectivity should be aligned with national priorities and should respect and follow certain well respected or broadly accepted (norms) in the world, which include the elements of transparency openness, level playing field, social, environmental and financial sustainability," Misri said.

"These are the principles we follow in our own initiatives. The most important thing is that (they) must be aligned with national priorities. That is one basket. The other basket is that these initiatives can be sustainable and successful only in so far as they respect issues related to sovereignty and territorial integrity," he said in an interview to China's state-run CGTN.

In an interview to the state-run Global Times in March, Misri signalled India's plans to stay out the conference which was attended by 37 heads of state and governments, including Pakistan Prime Minister Imran Khan.

Though the latest interview was recorded well ahead of the 2nd BRF meet, parts of it were telecast on May 1, according to a post on the CGTN website.

In the full interview accessed by PTI, Misri said India had its own infrastructure connectivity projects in the neighbourhood and New Delhi's view is that all such projects should be aligned with national priorities.

"With regard to trade and BRI, despite the fact that we are not part of the BRI, there has been no impact on the bilateral trade between India and China. We have seen exponential growth in bilateral trade with China," he said.

"So, we don't necessarily need to look at India-China trade, or indeed the larger economic and commercial relationship through the prism of BRI. I think we can very well progress on that front," Misri said.

The bilateral trade has grown to about $95.5 billion, inching towards the $100 billion mark, a target set by Chinese President Xi Jinping and Prime Minister Narendra Modi to be achieved by 2020.&nbsp;

Misri said India has had its concerns over the way the BRI has been put out and New Delhi's views are not unknown or a secret.

"These have been made known to the Chinese authorities and we have had conversations with regard to this and I am quite sure that the Chinese authorities understand our position and our point of view," he said.

"I would also say that with the point of view we have had with regard to especially with the issue related to sovereignty and territorial integrity is not a new point of view. It is a very long-held point of view by us. I would imagine that our partners and our neighbours are well aware of our positions," he said.

Misri also pointed to how China-sponsored Asia Infrastructure Investment Bank (AIIB), in which India is the second largest shareholder after China, helped financing projects in the region without any problems.

With an authorised capital of $100 billion, China is the largest shareholder with 26.06 per cent voting shares. India is the second largest shareholder in AIIB with 7.5 per cent followed by Russia 5.93 per cent and Germany with 4.5 per cent.

"That just goes to prove my point that the fact we are in AIIB and AIIB is funding a number of countries in the region. Each project is assessed based on certain parameters.

"It follows very high international standards. I think India is probably the largest client of the AIIB, every project is subjected to a study and if it passes those tests they are approved," Misri said.

"We have no problem with it. If we are in agreement about the parameters we would have no objection in going forward with any of the partnership initiatives. But as I said with regard to the BRI there are other elements related to sovereignty and territorial integrity and those issues have not been addressed in the context," he said.

Misri said the last year's Wuhan summit between Prime Minister Narendra Modi and Chinese President Xi Jinping was a major gain.

"That is a major gain in our relationship and I think they share a special relationship, they have also provided a compass to the bilateral relationship that helps to guide the officials," he said.

He said both India and China regard their bilateral ties as an important relationship.

"There are large elements of cooperation in this relationship and in a relationship as large as this there will be elements of competition. In the last few years, we have seen elements of cooperation triumphing the elements of competition," he said.

He said both countries have about 36 bilateral forums for official level dialogue on different issues.

"We have today very good understanding in a number of bilateral political forums. We are working very hard to expand the trade and economic relations and people to people relationship which is a very important aspect of it," he said.

India's decision to not join China's Belt and Road Initiative over sovereignty concerns related to the CPEC has not affected the bilateral trade ties which have seen an "exponential growth", India's Ambassador to China Vikram Misri has said.

India's decision to not join China's Belt and Road Initiative over sovereignty concerns related to the CPEC has not affected the bilateral trade ties which have seen an "exponential growth", India's Ambassador to China Vikram Misri has said. India skipped China's 2nd Belt and Road Forum (BRF) held from April 25 to 27 aimed at showcasing its trillion-dollar Belt and Road Initiative (BRI) over its objection to $60 billion China-Pakistan Economic Corridor (CPEC) which passes through Pakistan-occupied Kashmir (PoK). India had also boycotted the first BRF held in 2017. New Delhi's reluctance to join the BRI has become a major irritant in the relations between the two countries. "We feel that the infrastructure connectivity should be aligned with national priorities and should respect and follow certain well respected or broadly accepted (norms) in the world, which include the elements of transparency openness, level playing field, social, environmental and financial sustainability," Misri said. "These are the principles we follow in our own initiatives. The most important thing is that (they) must be aligned with national priorities. That is one basket. The other basket is that these initiatives can be sustainable and successful only in so far as they respect issues related to sovereignty and territorial integrity," he said in an interview to China's state-run CGTN. In an interview to the state-run Global Times in March, Misri signalled India's plans to stay out the conference which was attended by 37 heads of state and governments, including Pakistan Prime Minister Imran Khan. Though the latest interview was recorded well ahead of the 2nd BRF meet, parts of it were telecast on May 1, according to a post on the CGTN website. In the full interview accessed by PTI, Misri said India had its own infrastructure connectivity projects in the neighbourhood and New Delhi's view is that all such projects should be aligned with national priorities. "With regard to trade and BRI, despite the fact that we are not part of the BRI, there has been no impact on the bilateral trade between India and China. We have seen exponential growth in bilateral trade with China," he said. "So, we don't necessarily need to look at India-China trade, or indeed the larger economic and commercial relationship through the prism of BRI. I think we can very well progress on that front," Misri said. The bilateral trade has grown to about $95.5 billion, inching towards the $100 billion mark, a target set by Chinese President Xi Jinping and Prime Minister Narendra Modi to be achieved by 2020. Misri said India has had its concerns over the way the BRI has been put out and New Delhi's views are not unknown or a secret. "These have been made known to the Chinese authorities and we have had conversations with regard to this and I am quite sure that the Chinese authorities understand our position and our point of view," he said. "I would also say that with the point of view we have had with regard to especially with the issue related to sovereignty and territorial integrity is not a new point of view. It is a very long-held point of view by us. I would imagine that our partners and our neighbours are well aware of our positions," he said. Misri also pointed to how China-sponsored Asia Infrastructure Investment Bank (AIIB), in which India is the second largest shareholder after China, helped financing projects in the region without any problems. With an authorised capital of $100 billion, China is the largest shareholder with 26.06 per cent voting shares. India is the second largest shareholder in AIIB with 7.5 per cent followed by Russia 5.93 per cent and Germany with 4.5 per cent. "That just goes to prove my point that the fact we are in AIIB and AIIB is funding a number of countries in the region. Each project is assessed based on certain parameters. "It follows very high international standards. I think India is probably the largest client of the AIIB, every project is subjected to a study and if it passes those tests they are approved," Misri said. "We have no problem with it. If we are in agreement about the parameters we would have no objection in going forward with any of the partnership initiatives. But as I said with regard to the BRI there are other elements related to sovereignty and territorial integrity and those issues have not been addressed in the context," he said. Misri said the last year's Wuhan summit between Prime Minister Narendra Modi and Chinese President Xi Jinping was a major gain. "That is a major gain in our relationship and I think they share a special relationship, they have also provided a compass to the bilateral relationship that helps to guide the officials," he said. He said both India and China regard their bilateral ties as an important relationship. "There are large elements of cooperation in this relationship and in a relationship as large as this there will be elements of competition. In the last few years, we have seen elements of cooperation triumphing the elements of competition," he said. He said both countries have about 36 bilateral forums for official level dialogue on different issues. "We have today very good understanding in a number of bilateral political forums. We are working very hard to expand the trade and economic relations and people to people relationship which is a very important aspect of it," he said.

Boycott of Belt and Road Initiative not to affect trade ties with China: Indian envoy 

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