China’s Billion-Dollar Gateway To The Subcontinent: Pakistan May Be Opening A Door It Cannot Close

CPECBy Mahwish Chowdhary

Despite decades of mismanagement and a feeble socioeconomic infrastructure, one thing Pakistan benefits from is a strategic location—and China is taking notice.

More than 70% of China’s trade and energy imports travel through the Indian Ocean and the pirate-swarmed Strait of Malacca, both patrolled by the United States and Indian navies. But this possible chokepoint is a security issue for China, particularly in terms of oil (40% of its general consumption passes through the strait). Any sort of conflict could cut off the country’s energy supply, and ships would need to travel an extra 500 miles to avoid the strait, currently the fastest route from the Indian Ocean to the Pacific. China, aware of this vulnerability, is looking to Pakistan to provide a shorter and safer alternative.

The China-Pakistan Economic Corridor (CPEC), first proposed in 2013, is a massive project of rail links, special economic zones, dry ports and other infrastructure projects across Pakistan allowing for direct access to the Indian Ocean. It would connect Gwadar to Kashgar, a major trading hub in China, and abbreviate the current route to the Persian Gulf by more than 10,000 kilometers. Instead of 45 days, it would take China a mere 10 days to get its imports—all while avoiding any potentially contested channels near Taiwan, Vietnam, the Philippines, Indonesia and India, and eventually lowering shipping costs.

The CPEC would also provide China with an entry point to the Arabian Gulf, thus widening its geopolitical influence and possibly its military presence in the region. (Some Indian intellectuals suspect the Gwadar port will serve as a Chinese naval facility.) And it only comes at a cost of about $40 billion.

This isn’t the only investment China has planned in Pakistan. In fact, the money going to the country is double what Pakistan has received in foreign direct investment since 2008, and larger than any shape of assistance from the U.S. The list below (including CPEC) is just a snapshot of upcoming projects, likely funded by the Bank of China, the Export-Import Bank of China and the proposed Asian Infrastructure Development Bank:

  • $3.7 billion for a Karachi-Lahore-Peshawar rail line
  • $2.8 billion for developing four coal-fired stations with a capacity of 1,980 megawatts in Thar (Sindh)
  • $2.2 billion for two coal-mining blocks in Thar (Sindh)
  • $2 billion to build a natural gas pipeline between Gwadar and Nawabshah, then connecting to Iran
  • $2 billion to develop coal-fired generation plants at Port Qasim Karachi
  • $1.6 billion for a hydropower project in Karot
  • $1.2 billion for a solar power park in Bahawalpur
  • $930 million to link the Karakoram highway to Islamabad and Havelien
  • $260 million for a 100 megawatt wind farm in Jhimpir
  • $230 million to build the Gwadar International Airport

It is all part of China’s quest for influence throughout the continent via aid and investment. After decades of shying away from aggressive foreign policy moves, China now wants to play a much bigger regional role and is pushing plans for interconnected infrastructure networks to better link its economy with rest of Asia, the Middle East, Africa and Europe. Think of it as the new Silk Road.

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China launches Yaogan-27 remote sensing satellite

By Xinhua

A Long March-4C rocket carrying the Yaogan-27 remote sensing satellite blasts off from the launch pad at the Taiyuan Satellite Launch Center in Taiyuan, capital of north China’s Shanxi Province, Aug. 27, 2015. The satellite will mainly be used for experiments, land surveys, crop yield estimates and disaster prevention. (Xinhua/Yan Yan)

TAIYUAN, Aug. 27 (Xinhua) — China’s Yaogan-27 remote sensing satellite was sent into space on Thursday at 10:31 a.m. Beijing Time, from Taiyuan launch site in Shanxi Province, north China.

The satellite will mainly be used for experiments, land surveys, crop yield estimates and disaster prevention.

Yaogan-27 was carried by a Long March-4C rocket, the 207th mission for the Long March rocket family.

China launched the first “Yaogan” series satellite, Yaogan-1, in 2006.

News courtesy: People’s Daily
Read more » http://en.people.cn/n/2015/0827/c90000-8942511.html

China finally wins Thailand railway project

(Photo/Xinhua)

By Kong Defang (People’s Daily Online)

After many ups and downs, China has finally won the railway cooperation project with Thailand. Zhu Xijun, general manager of the Southeast Asia Company of China Railway Construction Corporation (CRCC), said on Aug. 26 that after six rounds of negotiation,both sides plans to sign the inter-governmental framework agreement on the China-Thailand Railway project in early September, and the commencement ceremony of the project is expected to be held in the end of October, Xinhua reported.

This year marks the 40th anniversary of China-Thailand diplomatic ties and the first yearof implementation of the “One Belt and One Road”initiative proposed by China. The China-Thailand Railway, which has a historical significance, has attracted tremendous attention.

According to Zhu Xijun, the project, which will be completed in 3 years, will bring actual benefits to the socioeconomic development of Thailand. After the railway puts into use,people will enjoy a much more convenient and cheaper transportation between China and Thailand. The price of a railway passenger ticket between Kunming and Bangkok will be about 3600 Thai Baht or 700 yuan, which is about a half or a third of an airline ticket, and the railway freight cost is only one ninth of the air freight.

The railway is estimated to add 2 million more Chinese tourists to Thailand every year andwill provide further convenience to its agricultural product export. With this railway,Thailand will be a new transportation hub of ASEAN countries.

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Pakistan-China railway to extend Beijing’s influence, says scholar

raily routeChina should give its full effort to develop the China-Pakistan railway to extend China’s economic and political influence in the region and even to Africa, China’s state-owned Reference News cites an expert as saying.

China pledged US$4 billion to upgrade Pakistan’s rail network during President Xi Jinping’s visit to the country last week. A railway project that connects Kashgar in northwestern China’s Xinjiang region to the Pakistan port of Gwadar is also underway and is expected to play a major role in the economic corridor that the two nations have agreed to establish.

Gao Bai, a professor of sociology at Duke University in the United States and director of the National Research Center on Strategic Development of High-Speed Rail at Southwest Jiaotong University in Chengdu, has been a keen advocate of the China-Pakistan railway. In a 2013 article, Gao suggested that the railway could be a pillar for the expansion of China’s influence over land and could fundamentally impact the economic and political development of the region.

Gwadar Port, constructed by a Chinese firm, is now operated by a state-run Chinese company under contract for 40 years. The port sits on the western end of the Balochistan coast on the opposite end of the Gulf of Oman which is an important route for oil tankers from the Persian Gulf. It is also an important point that handles goods flowing out from western China and Central Asia to the Middle East, Europe and Africa.

The Gwadar-Kashgar railway is thus strategically significant as a shortcut for China to the Indian Ocean, said Gao, who believes that its construction may lead to the establishment of the Kashgar-Andijon railway via Kyrgyzstan and further facilitate the connection between Central Asian countries and India and the Indian Ocean.

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Global shares nosedive on China woes

FTSE 100 and European markets rattled by losses in China

Stock markets in London, Paris and Frankfurt have fallen sharply as fears of a Chinese economic slowdown continue to haunt investors.

London’s FTSE 100 index was down by 4% in early afternoon trade, with major markets in France and Germany down by 4.6% and 4.4% respectively.

Shares in Asia were hit overnight, with the Shanghai Composite in China closing down 8.5%, its worst close since 2007.

Global investors worry about growth in the world’s second largest economy.

China’s central bank devalued the country’s currency, the yuan, two weeks ago, raising fresh concerns that a slowdown in the country’s economy was worse than originally feared.

Currencies and commodities are also falling sharply, because those markets rely heavily on strong demand from China.

Read more » BBC
See more » http://www.bbc.com/news/business-34038147

China to Build Pipeline From Iran to Pakistan

Iranian workers weld two pipes together in 2013, at the start of construction on a pipeline to transfer natural gas from Iran to Pakistan in Chabahar, Iran. PHOTO: VAHID SALEMI/ASSOCIATED PRESS

Iranian workers weld two pipes together in 2013, at the start of construction on a pipeline to transfer natural gas from Iran to Pakistan in Chabahar, Iran. PHOTO: VAHID SALEMI/ASSOCIATED PRESS

Long-thwarted project gets go-ahead as Islamabad anticipates lifting of sanctions on Iran

By SAEED SHAH

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

Read more » THE WALL STREET JOURNAL
Learn more » http://www.wsj.com/articles/china-to-build-pipeline-from-iran-to-pakistan-1428515277

Asian shares continue global downward trend

Asian stocks saw sharp falls on Friday as mounting concerns over China’s slowing economy continued to affect global markets.

It follows big falls in US and European markets on Thursday, with the Dow Jones dropping more than 2%.

China’s Shanghai Composite index closed down 4.27% at 3,507.74 points.

Data released on Friday morning showed Chinese factory activity falling to its lowest level in more than six years.

The private Caixin/Markit manufacturing purchasing managers’ index (PMI) dropped to 47.1 from 47.8 in July. A figure below 50 shows contraction in the sector and one above means growth.

As domestic and export demand dwindle, Friday’s data is likely to add to global worries that the Chinese economy is set for a continued slowdown.

In Hong Kong, the Hang Seng index followed the mainland’s trend and was 1.53% lower at 22,409.62 points.

Global market woes

Asia’s largest stock market, Japan’s Nikkei 225 index, dropped sharply, finishing 2.98% down at 19,435.83 points.

Read more » BBC
See more » http://www.bbc.com/news/business-34013405

Russia, China and Pakistan: An Emerging New ‘alliance’?

Russia, China and Pakistan: An Emerging New Axis?

Regional realities are shifting fast, with some significant ramifications for India.

By Joy Mitra

In geopolitics, strategic realities can change with surprising speed, and even before countries realize it decisive shifts occur that shape the future for the years to come. That seems to be the case with traditional Cold War rivals Russia and Pakistan, which have of late seen a gradual warming of ties. Traditionally an ally of India and hitherto supportive of India’s stance on Kashmir, Russia has shown clear signs of cozying up to Pakistan.

Having earlier lifted its self-imposed arms embargo on Pakistan, in November 2014 Russia signed a landmark“military cooperation” agreement with Pakistan, which spoke about “exchanging information on politico-military issues, strengthening collaboration in the defense and counter-terrorism sectors, sharing similar views on developments in Afghanistan and doing business with each other.” There have been reports that Pakistan may purchase Mi-35 combat helicopters apart from directly importing the Klimov RD-93 engines from Russiarather than via China for its JF-17 multi-role fighters. This could also mean a significant role for Russian equipment and spares in future development of the fighter. In addition, Russian state-owned firm Rostekh Corporation is planning to build a 680 mile gas pipeline in Pakistan in 2017 at an estimated cost of $2.5 billion.

The mutual overtures between Russia and Pakistan are part of a greater shift in international relations. In Europe, Russia is embroiled in a showdown with the West over Ukraine, with Moscow’s military adventure in Crimea being followed by Western sanctions. In the Asia-Pacific, China’s encroachments in the South China Seahas inflamed tensions with other Asia-Pacific countries allied with the U.S. These developments have forced Russia and China to look for allies, which explains the bonhomie between the two powers of late. Some analysts question whether a partnership motivated by external factors could lead to an alliance of countries that formerly distrusted each other. But the old adage “the enemy of my enemy is my friend” fits perfectly well here; the single most important factor that overrides all others is their concurrent perception of the U.S. and its “policy of containment” towards them. China needs allies to change the world order and it begins with Asia.

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Pak-China to cooperate in space as part of Karamay declaration

By APP

PESHAWAR: The Chinese government has agreed to a proposal by the Federal Minister for Planning and Development Ahsan Iqbal, initiating the collaboration between Pakistan and China in space technology as part of the Karamay declaration under China-Pakistan Economic Corridor (CPEC).

At the Pakistan-China forum meeting held in Karamay-Xinjiang last week, Ahsan Iqbal, proposed space technology collaboration between China and Pakistan, an official of the forum told APP.

His proposal was approved and made a part of the Karamay-Xinjiang Declaration. The declaration was later approved unanimously after the two-day meeting.

At the concluding session, Ahsan Iqbal said that bilateral collaboration on space technology would take Pakistan-China relations to new heights. He stressed upon a joint launch of space missions which would consist of astronauts from both countries.

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China devalues the yuan, cutting rates by 1.9%

China Rattles Markets With Yuan Devaluation

China devalued the yuan in a move that rippled through global markets, as policy makers stepped up efforts to support exporters and boost the role of market pricing in Asia’s largest economy.

The central bank cut its daily reference rate by 1.9 percent, triggering the yuan’s biggest one-day drop since China ended a dual-currency system in January 1994. The People’s Bank of China called the change a one-time adjustment and said its fixing will become more aligned with supply and demand.

Read more » Bloomberg
See more » http://www.bloomberg.com/news/articles/2015-08-11/china-weakens-yuan-reference-rate-by-record-1-9-amid-slowdown

After Greece & China, the next domino to fall: Latin America

The next domino to fall: Latin America

Greece needs a bailout and China’s stock market is in meltdown mode. But the global economy has another rising red flag: Latin America.

  @CNNMoney

Every major Latin American economy is slowing down or shrinking. The World Bank predicts this will be Latin America’s worst year of growth since the financial crisis. As if that’s not dire enough, the world’s two worst performing stock markets are in the region as well.

And things could get even uglier later this year for Latin America, a region which is double the economic size of India.

“The weakness in Latin America is reflecting the weaker global outlook,” says Win Thin, senior economist at Brown Brothers Harriman.

The ‘most vulnerable’: After years of checkered progress, Latin America is the “most vulnerable” region to China’s sputtering economy and market meltdown, experts say. It’s become a trade battleground area between the United States and China.

China is the biggest trade partner to many Latin countries, but the U.S. has tried to reassert its presence in recent months. Still, China’s sluggish growth is pulling Latin America down with it.

“We’re expecting very, very weak growth,” says Eugenio Aleman, senior economist at Wells Fargo Securities. “Brazil is in bad shape. Argentina isn’t much better. Chile has slowed down to a trickle…Peru is slowing down considerably.”

That’s just the beginning. Venezuela is arguably the world’s worst economy with sky-high inflation. Next door, Colombia has the world’s worst stock market this year. Its index is down 13% so far this year. The second worst is Peru, down 12.5%. By comparison, America’s S&P 500 is flat this year. (Argentina has the world’s best stock market, but that’s more a reflection of politics than economics).

While many are focused on Greece right now, “a deeper downturn in China remains the key external risk for Latin America,” says Neil Shearing, chief emerging market economist at Capital Economics.

The big problem: The three “C’s” are weighing down Latin America: China, commodities, and currency.

Read more » CNN
Learn more » http://money.cnn.com/2015/07/09/news/economy/warning-sign-latin-america-economy/index.html

China shares fall more than 8% on growth concerns

Shares in mainland China have recorded their biggest one-day fall for more than eight years following a sell-off towards the end of the trading day.

The Shanghai Composite closed down 8.5% at 3,725.56 after more weak economic data raised concerns about the health of the world’s second largest economy.

Profit at China’s industrial firms dropped 0.3% in June from a year ago.

That followed data on Friday indicating that factory activity in July saw its worse performance for 15 months.

Bernard Aw, market strategist at trading firm IG, said the surprisingly weak manufacturing data “added to worries that there could be further weakness in the Chinese economy, after the patch of recent economic data showed signs of stability”.

The Shanghai market’s fall was the biggest one-day loss since February 2007.

Read more » BBC
See more » http://www.bbc.com/news/business-33671459

With China, for China – As China arrives, Pakistan cleans house

By Wajahat S. Khan

The Sino-Pak axis has matured. The decades old ‘Cheen-Pak Bhai Bhai’ narrative is fast moving beyond pan-Karakoram fraternal rhetoric complemented by scenically exotic highways, shared rocket designs and muted nuclear deals to morph into optically sound, fundamentally critical, even mutually loud and proud policy, infrastructure and defense initiatives on the ground. China – and not just its submarines – is coming to Pakistan, and Pakistan is getting ready to receive the People’s Republic. The ‘Bhai’ in Beijing, as the mood in Islamabad indicates, is now a BFF – Best Friend Forever – even a Friend With Benefits.

The comprehensive Chinese assistance package – hinged on the 3000 kilometer-long China-Pak Economic Corridor, an aggressive energy build-up and military modernization – is the largest planned foreign investment program for any country, ever, touching almost crossing over $100 billion in the next decade and a half, and is being seen as the next, and perhaps the last, big thing that war-weary Pakistan must grab on to, at any cost.

The Peking Promise

The plan is simple: The deep-sea port of Gwadar is going to drive Chinese imports, largely oil and gas, into western China, which is relatively underdeveloped versus the rest of the PRC and prone to militancy. The levies, infrastructure and traffic will tone up the CPEC network to create jobs, roads and even entire towns along the way from Pakistani Balochistan, through all of the Islamic Republic’s other provinces, to Chinese Kashgar in Xinjiang. Add the potential of Chinese naval presence in Gwadar that will let it over see Hormuz and neighboring ports and the reality of Pakistan’s newly formed and purpose-built 34th Infantry Division to protect Chinese assets and personnel, and there is a single-minded confidence that the corridor must be secured and will be secured. After all, the Pakistanis have given their word to Beijing.

“China is Pakistan’s only strategic friend…not even the Saudis get to have that privilege any longer” said a senior intelligence officer last month when China’s deputy intelligence chief, Dong Haizhou was promised “no hurdles for CPEC” by army chief General Raheel Sharif during a visit to GHQ, according to the military spokesperson’s office.

So, fuelled by the blank political cheque presented to the civilian and military security apparatus by popular support after the terrible Peshawar Army Public School massacre last December – which has granted the military, police and federal investigators unprecedented constitutional powers to clean house – whoever gets in the way of a CPEC-oriented Pakistan must move aside, or be pushed out. The purge is here, and the reasoning is to satisfy China.

Housekeeping

But this isn’t just the regular arrests and assassinations purge, the type that Pakistanis are used to. It’s more of a wide-ranging political rethink, a housekeeping exercise that runs from the south to the north, just like the corridor it is meant to pave. In Karachi and Sindh, the drive against ‘corrupt’ political parties like former president Asif Ali Zardari’s Pakistan Peoples Party has begun, which has forced him to take some respite and exit the country; also, that’s where the ‘violent’ wings of Karachi’s all-powerful Muttahida Qaumi Movement are being clipped, with some help from the BBC (which claims that India’s Research and Analysis Wing funded and trained the party’s militants) and British authorities (who are investigating the MQM’s leadership in London for murder and money laundering). Karachi, too violent and complicated to tackle alone, needed a pincer move to control it, and the Pakistanis have managed to find a partner here in the UK.

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Putin: Let’s trade in BRICS currencies

President Vladimir Putin says Russia is interested in using national currencies with other BRICS members after agreeing on such an arrangement with China.

He made the announcement after meeting leaders of Brazil, Russia, India, China and South Africa in Ufa in the Urals for a summit of BRICS nations.

“I think that such development with India, Brazil and South Africa would be interesting and could no doubt lift the level of trade turnover,” Putin said.

The BRICS accounts for almost half the world’s population and about one-fifth of global economic output. Member states have established the New Development Bank with an initial capital of $100 billion and an additional pool of $100 billion currency reserves.

“A pool of nominal currency reserves, with capital of $100 billion, will give us an opportunity to react to financial market fluctuations in a timely and appropriate manner,” Putin said.

The Russian leader said the new development bank will begin financing energy projects next year.

“The New Development Bank will be financing large-scale transport and energy projects and industrial development,” he said.

Economists see the new bank as a challenge to the domination of the World Bank and the International Monetary Fund which are under the US influence.

Putin said BRICS nations will work out a roadmap for investment cooperation by the end of the year when the first projects will be launched.

Read more » Press Tv
See more » http://www.presstv.ir/Detail/2015/07/10/419593/brics-summit-putin-russia-sco-currency

Chinese chaos worse than Greece

WHILE the world worries about Greece, there’s an even bigger problem closer to home: China.
A stock market crash there has seen $3.2 trillion wiped from the value of Chinese shares in just three weeks, triggering an emergency response from the government and warnings of “monstrous” public disorder.

And the effects for Australia could be serious, affecting our key commodity exports and sparking the beginning of a period of recession-like conditions.

“State-owned newspapers have used their strongest language yet, telling people ‘not to lose their minds’ and ‘not to bury themselves in horror and anxiety’. [Our] positive measures will take time to produce results,” writes IG Markets.

“If China does not find support today, the disorder could be monstrous.”

In an extraordinary move, the People’s Bank of China has begun lending money to investors to buy shares in the flailing market. The Wall Street Journal reports this “liquidity assistance” will be provided to the regulator-owned China Securities Finance Corp, which will lend the money to brokerages, which will in turn lend to investors.

The dramatic intervention marks the first time funds from the central bank have been directed anywhere other than the banks, signalling serious concern from authorities about the crisis.

At the same time, Chinese authorities are putting a halt to any new stock listings. The market regulator announced on Friday it would limit initial public offerings — which disrupt the rest of the market — in an attempt to curb plunging share prices.

Read more » News.com
See more » http://www.news.com.au/finance/economy/chinese-chaos-worse-than-greece/story-fnu2pycd-1227430761673

China offers $50 billion for hydroelectric projects in Pakistan

By PTI

ISLAMABAD: China’s state-run power company, Three Gorges Corporation (CTG), is keen to participate in a financing consortium to fund up to $50 billion of hydroelectric power projects in Pakistan, a media report said.

This disclosure was made at the meeting of the Cabinet Committee on Energy on June 18. The CTG expressed interest in financing projects in Pakistan in conjunction with the International Finance Corporation, a World Bank subsidiary, the Express Tribune .

Learn more » The Economic Times

Read more » http://economictimes.indiatimes.com/news/international/business/china-offers-50-billion-for-hydroelectric-projects-in-pakistan/articleshow/47924601.cms

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Russia, OPEC Jostle to Meet China Oil Demand

Glut of Crude Fuels Rivalry Between the Major Producers

By BRIAN SPEGELE

BEIJING—Warming ties between China and Russia are giving a big boost to Chinese imports of Russian oil, to the chagrin of OPEC nations jockeying for a slice of China’s market.

Faced with falling prices and lower demand from the U.S., oil-exporting nations are increasingly putting their hopes in China’s still-robust demand for crude. But Saudi Arabia and other big producers like Venezuela have seen such sales drop as Moscow’s isolation from the West over Ukraine prompts it to turn to Beijing.

Read more » The Wall Street Journal
See more » http://www.wsj.com/articles/russia-opec-jostle-to-meet-china-oil-demand-1421987738

First Silk Road rail cargo enters Iran

The first cargo carried on the Silk Road railway has entered Iran from the Central Asian nation of Kazakhstan, local officials said.

The cargo, including 45 freight wagons, crossed the Incha-Burun border with Turkmenistan into Iran, local officials in the Golestan province said.

It followed the signing of a document for cooperation between Iranian and Kazakh railway officials, head of the Northeast Railway 2 Mohammad Reza Qorbani said.

In their joint session, the mode of cooperation between Iran, Turkmenistan and Kazakhstan and other countries for transit and rail transportation was discussed.

“At the session, existing infrastructures and potentials of the Islamic Republic of Iran Railways and neighboring countries, Iran’s development plans and active transit corridors passing through Iran were discussed,” Qorbani said.

They also decided to work on developing the Incha-Burun-Bandar Abbas line as the new Silk Road route, he said.

The railway linking Iran to Turkmenistan and Kazakhstan at a length of 926 kilometers was inaugurated last year.

Iran and Central Asian nations have stepped up work on establishing an integrated freight railway network to link Asia to the Persian Gulf, Europe and Africa.

It is part of an ambitious Chinese plan to revive the Silk Road which would require building of a network of roads, railways, ports and airports.

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China’s Xinjiang launches cargo train service to Moscow

URUMQI, June 10 (Xinhua) — Railway authorities in China’s far western Xinjiang region on Wednesday launched a cargo train service linking its regional capital of Urumqi with Moscow.

The one more cargo train service westward can help boost the development of the northwestern autonomous region, a “core area” of the Silk Road economic belt, said Liu Jianxin, vice governor of Xinjiang, at the launch ceremony.

Since March 2014, Xinjiang has opened cargo train service to Kazakhstan, Georgia, Iran, Turkey and also Chelyabinsk of Russia.

The first train, loaded with 1,300 tonnes of PVC, left Urumqi at 6:15 p.m. and is scheduled to reach Moscow more than 4,000 km away in about ten days. It will return with wood pulp from Russia.

Wang Hongxin, chairman of Xinjiang Zhongtai Chemical Co., Ltd., said the cargo service can help drive the company’s annual sales of PVC by 10 percent.

By the second half of the year, more than three cargo trains will run between Xinjiang and the destinations in Russia and also central and western Asia per week.

The trains can then transport 50 billion yuan (8.1 billion U.S. dollars) of cargo a year, Liu said.

Editor: yan

News courtesy: Xinhuanet
Read more » http://news.xinhuanet.com/english/2015-06/10/c_134315616.htm

China warns India about taking up Vietnam’s offer for oil exploration in disputed South China Sea

india chinaBy 

BEIJING: China on Tuesday warned India against meddling in its dispute with Vietnam over islands in the South China Sea. It also opposed the latest move by the Vietnamese government inviting India to carry out oil exploration in South China Sea.

“With regard to the Vietnamese prime minister’s call for India to support the peaceful resolution of the South China Sea, I want to point out that the dispute should be resolved through dialogue and consultations by countries directly involved on the basis of respecting historical facts and international law,” Hong Lei, Chinese foreign ministry spokesman said.

He was reacting to an offer by Vietnamese Prime Minister Nguyen Tan Dung asking India to launch exploration in two oil fields for exploration in the South China Sea.

News courtesy: THE TIMES OF INDIA
Read more » http://timesofindia.indiatimes.com/india/China-warns-India-about-taking-up-Vietnams-offer-for-oil-exploration-in-disputed-South-China-Sea/articleshow/44960780.cms

PM Modi told China, Pakistan economic corridor unacceptable: Sushma Swaraj

New Delhi: Prime Minister Narendra Modi raised “very strongly” the issue of the China-Pakistan economic corridor during his visit to Beijing and told them that it is “unacceptable”, External Affairs Minister Sushma Swaraj said here on Sunday.

Answering queries at a press conference, she said the government had summoned the Chinese envoy over the $46 billion economic corridor that is to run through Pakistani Kashmir.

She said the Indian envoy in Beijing had also raised the issue. Chinese President Xi Jinping had announced the ambitious 3,000 km-long China-Pakistan Economic Corridor (CPEC) during his visit to Pakistan in April.

“Prime minster during his visit took up the issue very firmly and spoke very strongly that the CPEC going through PoK (Pakistan-occupied Kashmir) is unacceptable,” she said. – – IANS

News courtesy: Zee News
Read more » http://zeenews.india.com/news/india/pm-modi-told-china-pakistan-economic-corridor-unacceptable-sushma-swaraj_1605173.html

India will clock 7.5 per cent growth in 2015-16, overtake China: IMF

Washington: India will overtake China as the fastest growing emerging economy in 2015-16 by clocking a growth rate of 7.5 per cent on the back of recent policy initiatives, pick-up in investments and lower oil prices, the International Monetary Fund (IMF) said on Tuesday.

“India’s growth is expected to strengthen from 7.2 per cent in 2014 to 7.5 per cent in 2015. Growth will benefit from recent policy reforms, a consequent pick-up in investment, and lower oil prices,” the IMF said in its latest World Economic Outlook.

Read more » IBNLive
See more » http://www.ibnlive.com/news/business/india-will-clock-7-5-per-cent-growth-in-2015-16-overtake-china-imf-981893.html

Russia, China agree to integrate Eurasian Union, Silk Road, sign deals

Russia and China have signed a number of energy, trade and finance deals on Friday aimed at strengthening economic ties. The two countries have multiple mutual projects which “achieved a unity of views on a wide range of issues.”

Russian President Vladimir Putin and Chinese leader Xi Jinping have signed a decree on cooperation in tying the development of the Eurasian Economic Union with the “Silk Road” economic project.

“The integration of the Eurasian Economic Union and Silk Road projects means reaching a new level of partnership and actually implies a common economic space on the continent,” Putin said after the meeting with his Chinese counterpart. President Xi Jinping arrived in Moscow on Friday for the 70th anniversary celebration of the defeat of Nazi Germany in World War II.

China will also invest $5.8 billion in the construction of the Moscow-Kazan High Speed Railway, the Russian President said. The railway is to be extended to China, connecting the two countries through Kazakhstan. It can become part of the route of the new Silk Road project, which is aimed at tying China with European and Middle Eastern markets. The total cost of the Moscow-Kazan high speed railroad project is $21.4 billion.

Russia’s largest gas producer Gazprom and China’s National Petroleum Corporation (CNPC) signed an agreement on the basic conditions of gas supplies from Russia to China through the Western route. The two companies decided to extend a strategic partnership agreement for five years, according to Gazprom’s CEO Aleksey Miller. The agreement provides for the construction of the first, second and third Altai pipelines.

Sberbank – Russia’s biggest lender – has signed a facility agreement with China’s Development Bank in the amount of $966 million. They also agreed on financing an industrial project by Sberbank to the tune of $256.4 million.

Read more » http://rt.com/business/256877-russia-china-deals-cooperation/#.VU02RKPqB40.facebook

Putin ratifies BRICS $100bn currency pool deal

Russian President Vladimir Putin has ratified a deal to establish a $100 billion foreign currency reserve pool for the BRICS group. The pool’s purpose is to protect national currencies from volatility in global markets.

The document was “to ratify the treaty on the establishment of a pool of foreign exchange reserves of the BRICS.”

On Wednesday the deal was ratified by Russia’s upper house of Parliament, the Federation Council. According to the deputy head of the Federal Council Committee for Budget and Financial Markets, Sergey Ivanov, the currency pool will primarily support the balance of payments of the BRICS member states.

“Realization of the agreement will also contribute to the effective protection of the national currencies against the volatility in the world currency markets,” Ivanov said.

The goal of the pool is so that BRICS member states can urgently replenish their liquidity from it in different proportions to resolve problems with their balance of payments.

China will make the biggest contribution to the pool – $41 billion. Russia, Brazil and India will donate $18 billion each, while South Africa’s investment will be $5 billion.

The fund is expected to be maintained by a managing council, a permanent committee and a coordinator who will be from the country of the current president.

In July Russia, Brazil, India, China and South Africa signed the document to a reserve currency pool worth over $100bn as well as $100bn BRICS Development Bank

BRICS represents 42 percent of the world’s population and roughly 20 percent of the world’s economy based on GDP, and 30 percent of the world’s GDP based on PPP, a more accurate reading of the real economy. Total trade between the countries is $6.14 trillion, or nearly 17 percent of the world’s total.

News courtesy: http://rt.com/business/255141-putin-brics-pool-currency/

Pakistan: Work on 2,400 MW power plant is underway at Thar

Karachi – Work on twenty-four hundred megawatt coal based power plant is underway at Thar Coal Field at a cost of two billion dollars. Our Karachi correspondent Altaf Pirzado reports that the project is a joint venture of Sindh Engro Coal Company and the Sindh government and has also been brought under the umbrella of Pak-China economic corridor. The project is expected to become operational by 2017.

Read more » Radio Pakistan
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ee more » http://radio.gov.pk/newsdetail/76207/1

India to sign deal with Iran on Chabahar port project soon

India is moving closer to finalizing a crucial plan to invest in Iran’s southern Chabahar port – a project that would open a new economic corridor rival to what China plans to do in Pakistan’s Gwadar port. 

India’s Union Shipping Minister Nitin Gadkari is expected in Tehran within the next few days to formalize a deal for the project, the New Delhi-based Business Standard newspaper reported.

India is also likely to engage in discussions with the US to secure a waiver of sanctions on activities at Chabahar, the report added.

“Talks about the proposed speed and manner in which the US government plans to free up the sanctions might also be on the cards, so that India does not run the risk of attracting punitive sanctions,” it said.

Read more » Press Tv
See more » http://www.presstv.ir/Detail/2015/04/25/408007/Iran-India-Chabahar-Corridor-Trade-economy-sanctions-washington-zarif-kerry

Punjab: Did you hear what the Chinese president said?

BY MUSHTAQ SOOFI

Would the prime minister, the cabinet ministers, the members of the National Assembly, the senators and other power wielders pause for a moment and ponder over what the president of the People’s Republic of China said in the beginning of his address to the joint session of Parliament held this week in Islamabad.

He described Pakistan as a country ‘young and ancient’. In the euphoria created by a huge pile of MOUs (which definitely would have economic bearings on our future) no one would care to understand the implied suggestion this apparently simple statement carried. But anyone who knows how Chinese are subtle in the matters of statecraft, politics and diplomacy will not miss how significant is the unsaid in what he said.

We all know we are a young country. The president reminded us that though a young country we have been a product of a brilliant ancient society spanned over thousands of years. What prompted him to iterate that is obvious? Our attitude towards the past and what it offers! Our past and what it offers constitutes ‘ancient’.

It’s precisely this very ‘historical mess’ that we abhor and are scared of, thus exposing an unbridgeable gulf between our being ‘young’ and ‘ancient’. So far we have tried though not successfully to build everything around the fact of our being young in search of ideology driven utopia that has landed us in a grey zone of historical dis-orientation.

With the emergence of Pakistan in 1947 our ruling elite strengthened the faith-based narrative, exclusive and monolithic, which was and is still being touted as a raison deter of the new state. Such an unnatural and a historical thinking caused an almost complete rupture with our long past especially the shared one spread over at least five thousand years.

In our world of make-belief we thought as if we came into being out of thin air of abstraction forgetting that we are what we have been and what we have been belongs to the irretrievable, the past. One can interpret and re-interpret the past but cannot change it.

It does not in way mean that humans are mere prisoners of history. On the one hand they are product of history and on the other they are capable of making history. However it is to be remembered that though ‘men make their own history they do not make it as they please. They do not make it under the circumstances chosen by themselves but under the circumstances existing already, given and transmitted from the past’. Our elders made history by creating a new state but they did this under the circumstances created by history itself which made the peaceful co-existence of Hindu and Muslim communities a distant dream cherished by many.

The new state while endeavouring to realize a different and secure future for its citizens suffered from a fatal fallacy. That is that the past can be declared an alien territory having no presence in the collective conscious and subconscious of people and hence one can have absolutely clean break with it.

The past, to the dismay of ideologues, is not something completely solid that can be demolished and buried under the debris of intellectual claptrap. What is most tangible about the past is its ever present intangibility as submerged experience at subterranean level that refuses to fade out from the psychic space.

Pakistani state and the elite with a deep sense of insecurity have been trying to build an exclusive national identity based on the denial of the past that we shared and still share with India.

The irony is that what is conceived as Indian and debunked is the cultural and intellectual manifestation of our ancient culture. What is the Indian civilization san Indus valley?

Can you imagine Indian civilization without Harappa and Mohenjo Daro, Rig-Veda (composed by Rishis at the banks of river Ravi), Gandhara and Taxila? Can you write the history the political science ignoring the Chanakya Kautilya’s Arthshastra, the first book on statecraft and art of politics?

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Investing with confidence: Chinese say their money is safe in Pakistan

By Shahram Haq

ISLAMABAD: Chinese businessmen have said investments they are putting in Pakistan are safe as both the countries enjoy excellent relations at government and public level.

“The global investments we make in any country depend on the nature of relationships between China and the particular country,” said Orient Evertrust Capital Group’s Chairman Jiang Xue Ming, while talking with The Express Tribune.

“Since Pakistan and China have excellent relationships, so we feel our investments in this country are completely safe,” he added.

A group of Chinese investors is currently in Islamabad as the Chinese president is arriving in Pakistan today (Monday) to sign some 50 different accords worth $46 billion, majority of which are energy based.

Read more » The Express Tribune
See more » http://tribune.com.pk/story/872766/investing-with-confidence-chinese-say-their-money-is-safe-in-pakistan/

China Readies $46 Billion for Pakistan Trade Route

Beijing plans to pour $46 billion into infrastructure projects, open new trade routes

By SAEED SHAH in Islamabad and JEREMY PAGE in Beijing

Chinese President Xi Jinping is set to unveil a $46 billion infrastructure spending plan in Pakistan that is a centerpiece of Beijing’s ambitions to open new trade and transport routes across Asia and challenge the U.S. as the dominant regional power.

The plan, known as the China Pakistan Economic Corridor, draws on a newly expansive Chinese foreign policy and pressing economic and security concerns at home for Mr. Xi, who is expected to arrive in Pakistan on Monday. Many details had yet to be announced publicly.

“This is going to be a game-changer for Pakistan,” said Ahsan Iqbal, Pakistan’s planning minister, who said his country could link China with markets in Central Asia and South Asia.

“If we become the bridge between these three engines of growth, we will be able to carve out a large economic bloc of about 3 billion living in this part of the world…nearly half the planet.”

Read more » THE WALL STREET JOURNAL
See more » http://www.wsj.com/articles/china-to-unveil-billions-of-dollars-in-pakistan-investment-1429214705?mod=e2fb

China to build Pakistan-Iran gas pipeline: report

ISLAMABAD: In an attempt to curtail Pakistan’s severe energy shortage, China has agreed to build a pipeline bringing natural gas from Iran to Pakistan. The final deal is to be signed during the long-sought visit of the Chinese President Xi Jinping to Islamabad in April, Pakistani officials said.

Read more » The Express Tribune
See more » http://tribune.com.pk/story/866893/china-to-build-pakistan-iran-gas-pipeline-report/

Chinese president to visit Pakistan, hammer out $46-billion deal

By REUTERS | MATEEN HAIDER

ISLAMABAD: Chinese President Xi Jinping will launch energy and infrastructure projects worth $46 billion on a visit to Pakistan next week as China cements links with its old ally and generates opportunities for firms hit by slack growth at home.

Also being finalised is a long-discussed plan to sell Pakistan eight Chinese submarines. The deal, worth between $4 billion and $5 billion, according to media reports, may be among those signed on the trip.

Know more: Pakistan to buy eight submarines from China.

Xi will visit next Monday and Tuesday, Pakistan’s foreign office said.

“China treats us as a friend, an ally, a partner and above all an equal – not how the Americans and others do,” said Mushahid Hussain Syed, chairman of the parliament’s defence committee.

Pakistan and China often boast of being “iron brothers” and two-way trade grew to $10 billion last year from $4 billion in 2007, Pakistani data shows.

Xi’s trip is expected to focus on a Pakistan-China Economic Corridor, a planned $46-billion network of roads, railways and energy projects linking Pakistan’s deepwater Gwadar port on the Arabian Sea with China’s far-western Xinjiang region.

It would shorten the route for China’s energy imports, bypassing the Straits of Malacca between Malaysia and Indonesia, a bottleneck at risk of blockade in wartime.

If the submarine deal is signed, China may also offer Pakistan concessions on building a refuelling and mechanical station in Gwadar, a defence analyst said.

China’s own submarines could use the station to extend their range in the Indian Ocean.

“China is thinking in terms of a maritime silk road now, something to connect the Indian Ocean and Pacific Ocean,” said a Pakistani defence official, who declined to be identified.

For Pakistan, the corridor is a cheap way to develop its violence-plagued and poverty-stricken Balochistan province, home to Gwadar.

China has promised to invest about $34 billion in energy projects and nearly $12 billion in infrastructure.

Xi is also likely to raise fears that Muslim separatists from Xinjiang are linking up with Pakistani militants, and he could also push for closer efforts for a more stable Afghanistan.

Earlier, the Foreign Office (FO) on Thursday announced that Chinese President Xi Jinping will be visiting Pakistan from April 20 to April 21 on a two-day state visit.

“I can confirm that the Chinese president will be visiting Pakistan from April 20 to 21,” FO spokesperson Tasneem Aslam said during a weekly media briefing in Pakistan.

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