Xi, Putin meet with a parallel view on the Gaza war

As the two sides'” no limits” collaboration is put to a new high-stakes test, the leaders of Russia and China may meet in Beijing later currently( October 18 ) to explore political issues, including the Israel-Hamas battle. & nbsp,

Following their meeting in Beijing on February 5, 2022, just days before Russian forces invaded Ukraine, it will be the second encounter between Russian President Vladimir Putin and Chinese President Xi Jinping. They had face-to-face encounters in Moscow in March of this year and Uzbekistan in September of last year. & nbsp,

Following a terrorist attack by Hamas in Israel on October 7 that resulted in the deaths of about 1,400 people, Jewish attacks in retaliation have claimed the lives of 2,750 people. & nbsp,

Russia and China have both so much refrained from denouncing Hamas, but they have urged Israel to hold its ground and consult with all parties involved, including Iran, a friend of the two powers and one of his supporters. Joe Biden, the president of the United States, may travel to Israel on Wednesday.

Putin arrived in Beijing on Tuesday night for the start of the Belt and Road Summit in China. China claimed that 4, 000 persons from 140 different nations attended.

The best leaders of China and Russia may meet, according to Mao Ning, a spokesman for the Chinese Foreign Ministry, to discuss diplomatic relations and other matters of common interest.

Foreign commentators asserted that a closer economic partnership may be advantageous for both parties and stated that China and Russia will not attempt to form retaliatory military alliances at the meeting. & nbsp,

No grievances from Russia or China. On July 19, 2023, Israeli soldiers from the military aircraft of Hamas participate in a military parade to commemorate the anniversary of the 2014 conflict with Israel close to the Gaza Strip’s borders. The Jerusalem Post / Twitter Photo

A Russian solution that denounced the rising crime in the Middle East but did not specifically target Hamas was rejected by the UN Security Council on Monday.

Russia, China, the United Arab Emirates, Gabon, and Mozambique voted in favor of it, while the US, United Kingdom, France, Japan and other countries cast their votes against it. The Council’s remaining six people abstained. The Council required at least nine seats to pass this quality, nbsp. & nbsp,

The US led its allies to vote down the Russian resolution, according to a Chinese commentator using the pen name” Zhongnan Lunjian ,” demonstrating that it does not want to de-escalate the Middle East situation. & nbsp,

In stark contrast to China’s Belt and Road initiative, which aims to help many developing nations, he claimed that the US doesn’t give a damn about the life of the tens of thousands of residents in Gaza. & nbsp,

Israel’s deeds have gone beyond self-defense, according to Wang Yi, the best minister for China, who spoke with Faisal bin Farhan Al Saud in Saudi Arabia on Sunday. The Middle East region won’t experience peace until Palestinians may create their nation, he claimed. & nbsp,

In a phone call on Monday, Putin stated to Israeli Prime Minister Benjamin Netanyahu that Moscow is ready to operate toward” ending the Palestinian-Israeli conflict and achieving peace through political and diplomatic implies.”

According to Hamas, Russia has” indefatigable initiatives aimed at stopping Israel’s anger” against it.

The US has increase its regular troops, fortify alliances, and improve its nuclear weapons development program in order to prepare for potential simultaneous wars with Russia and China, according to a report released on October 12 by the US Congressional Commission on Strategic Posture.

Putin declared on Sunday that while suggestions that the US does get ready for war with China and Russia were absurd, Russia and China were no forming a military alliance.

Zhang Hong, a scientist at the Chinese Academy of Social Sciences’ Institute of Russian, Eastern European, and Central Asian Studies, said in an interview to iFeng.com that the rumor that China and Russia may forge an alliance is merely” a smear campaign of the European countries that want to advertise their China risk idea.”

” China and Russia’s cooperation is open and transparent, with the goal of achieving common rewards.” According to Zhang, it serves as a role model for international relationships based on mutual respect. The two sides also work well together as China diversifies its energy sources and Russia explores electricity markets in the Asia-Pacific.

According to him, as the United States seeks to polarize the earth with its definitions of philosophy, politicians, and security, the global situation has gotten more complex.

Prime Minister Benjamin Netanyahu ( R) and US Secretary of State Antony Blinken ( L ) meet in Tel Aviv on October 12, 2023, as a sign of support. Twitter Screengrab, Haim Zach, and GPO

He claimed that in order to find global cooperation for both itself and the Eurasian Economic Union, Russia must turn to the East as a result of sanctions imposed by the West. He claimed that by taking part in China’s Belt and Road Initiative, Russia may accomplish its objective.

The US has been using a fantastic strength game strategy to keep its hegemony. But according to Chinese martial reviewer Song Zhongping, this approach actually results in a world conflict. Such a tactic revealed the evil purposes of the US.

The US cannot combat two war at once, particularly when it does so against powerful countries like China and Russia, he claimed. ” It will keep treating China and Russia as its main competitors and devote more military sources to fighting them.”

He claimed that the US Congress’s anti-China and Russia views met the political requirements of the Biden administration. & nbsp,

Read: Power prices punctuated the” no-limit” agreement between China and Russia.

At & nbsp, @ jeffpao3 is Jeff Pao’s Twitter account.

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How should Uzbekistan develop its debt market?

President Shavkat Mirziyoyev has called for a significant economic transformation, as stated in Uzbekistan’s New Development Strategy 2022 – 2026. Uzbekistan is well on its way to achieving its socio-economic development goals, based on recent press coverage and on-the-ground images. & nbsp,

All of that is good information, but Uzbekistan is capable of more. & nbsp,

It is past time for Uzbekistan to begin creating a robust long-term loan funds market in ens, the nation’s official currency. A well-developed local debt market may benefit Uzbekistan’s lenders and borrowers more than the current structure of its debt markets, and over time it would also benefit foreign investors, to hasten the process of economic transformation. & nbsp,

Box 1 demonstrates why a portion of the som debt market isn’t appealing to borrowers under the current conditions. This is the main reason why the SOM-denominated bond market remains undeveloped. Loans in SOm are costly due to inflation. & nbsp,

Box 1: In Uzbekistan, who can afford a 16 % mortgage?

Consider the home loan industry in Uzbekistan to describe the purpose of this article. You can obtain a som mortgage loan at presently 16 % interest from the lender if you want to purchase real estate. A 20-year linear mortgage with a 5 % redemption rate implies that the borrower pays 21 % of the original amount in the first year. Who has the money for that?

This explains why the regular mortgage in Uzbekistan only accounts for 25 % of the property’s value. & nbsp, Banks seems to have poor vision. & nbsp,

An inflation-linked loan is a much better product for the lenders. Assume the bank wants to make a 4 % margin and that inflation will be 12 % the following year. The borrower would have to spend what? The loan would only need to consent to prices plus 4 % interest.

In general, the borrower will pay the 4 % interest plus 5 % redemption, which equals 9 %, plus inflation over this sum, or 1.12 times the 10 %, in the first year. Consequently. The bank only charges the borrower 10 % in the first year as opposed to the original 21 %. The cost of the mortgage is now double as low!

To put it another way, a person can use half as much with an inflation-linked loan. As a result, the average mortgage in Uzbekistan could now easily increase from 25 % to 50 % of the home’s market value.


The development of solely inflation-protected debt instruments is the answer to the comparative unaffordability of the sole loan industry. The creditor may now only give a chance premium of, say, 4 % annually after accounting for inflation, as opposed to the nominal rate, which would have been 16 %. In our example, the customer may spend half of the loan’s cash flow in the first year as opposed to the amount that is currently owed. & nbsp,

There is no magic in this situation because as a borrower’s payments rise in nominal terms over time due to inflation, you end up paying the same as you would under an old ( non-indexed ) contract. The money flows are, in actual words, better distributed over time, which is the difference. & nbsp,

The confusion of Uzbekistan’s potential inflation is taken into account when pricing inflation-indexed equipment. Also long-term maturities of 20 or 30 years ought to be feasible.

Due to the lower risks, it is anticipated that this type of debt will lower the cost of borrowing in Uzbekistan, which will benefit both the housing market( see Box 2 ) and the government’s budget. & nbsp,

Box 2: According to economic theory, an inflation-linked relationship offsets currency risk by ensuring that the native stock’s buying power at maturity is constant across all markets. In other words, the transfer rate between two nations is essentially balanced. & nbsp,

Because the purchasing power of principal and interest at any given time is supposed to be the same across industry, inflation-linked bonds are made to make costs and inflation useless. For instance, it makes no difference if an asset costs US$ 1, 000 or$ 10,000 in six months because you will always receive the appropriate number, regardless of its nominal charge. In addition, & nbsp,


Long-term ties in regional money

Consider Uzbekistan’s federal loans needs as stated by its Ministry of Investments, Industry, and Trade as another illustration of the value of developing a native bond market. & nbsp,

It is obvious that Uzbekistan needs long-term funding because there are numerous infrastructure projects with long shelf lives, including the ambitious Trans-Afghan Railway and its planned free economic zones and public private partnerships( PPPs ) across the nation.

It takes a while to repay these jobs because they require so much cash. Such words should not be used to finance a railroad’s borrowing costs because they cannot be” earned up” in just three years. & nbsp,

If Uzbekistan wants to fund its long-term agreements with debt tools that must be refinanced every three years, a debt crisis may be on the horizon. Borrowing foreign money over the long term has related limitations because exchange rates are outside of Uzbekistan’s control. & nbsp,

Additionally, because these jobs are in Uzbekistan, local currency is the best form of financing.

Treasury Inflation – Protected Securities ( TIPS ) of the Uzbek Republic

The Uzbekistan Treasury Inflation-Protested Securities ( U – TIPS ), inflation-linked local currency debt instruments, or the tip-protected securities market should all be developed in order to finance these projects.

U-tips, like US TIPS, may be indexed to a trustworthy inflation and nbsp measure to shield investors and investors from an increase in their money’s purchasing power. The primary value of a TIPS increases as inflation rises, which causes the discount payments to change proportionately. & nbsp,

Interestingly, Uzbek TIPS would enable owners to concentrate on the credit risk in the investment structure and, as a result, more closely align the ties with credit default swaps. Credit default swaps are tools that, in theory, ignore other dangers like prices and just charge the costs associated with default. In addition, & nbsp,

For instance, Turkey recently issued a 10-year bond at 27 % annually when its credit risk was only 7 %. Turkey should have been able to issue a TIPS in the range of just 7 %, which means investors receive an annual return of 3 %, each year adjusted for inflation, as opposed to issuing an interest-bearing bond of 27 %. & nbsp,

Additionally, an inflation-linked bond is preferable to a fixed-rate long-term bond for the reasons listed below: & nbsp,

  1. Lower risks: greater certainty regarding the actual income and cost of debt for both the lender and the borrower.
  2. Lower saving costs as a result of lower risk premiums due to walled prices risk.
  3. Due to inflation hedge, nearby currency risk was mostly avoided. This will be more accurate the longer the saving phrase( see Box 2 ) & nbsp,
  4. Risks involving foreign exchange were avoided, such as prices in the eu or imbalances on the EU single market. & nbsp,
  5. No risks associated with international politics, such as restrictions on dollar payments to second nations.

Other benefits that come with creating a strong local currency government bond market include the following: & nbsp,

  1. Companies can raise long-term funding from domestic sources thanks to a more secure financial system under Uzbekistan’s control( better allocation of saving ).
  2. Government finances should be better managed and planned to reduce the need for selling proper assets, increase taxes, or overstuff the balance sheet of the central bank. & nbsp,
  3. establishes a benchmark rate for home financial markets and government risk. & nbsp,
  4. provides opportunities for local pension funds and insurance firms to invest while fostering native private capital markets.

Mirziyoyev might think about asking his economic team to put together a plan to develop the mechanism to issue inflation-indexed local currency debt instruments with 10 year tenors, and perhaps longer. This mechanism would include dependable and independent methodologies to determine inflation. & nbsp,

In this way, Uzbekistan would become the only other Asian nation to challenge 10-year inflation-indexed ties, joining Japan, South Korea, and a select few people.

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US to deepen chokehold on China’s AI chip access

A new set of regulations that aim to stop Chinese businesses from sourcing American-made high-end artificial intelligence ( AI ) chips through various channels are expected to be announced by the United States.

Washington plans to introduce fresh regulations that may limit some superior AI cards to China, according to an unnamed US official who spoke with Reuters. According to the report, the US is considering whether to forbid exports of the H800 scrap from Nvidia to China. & nbsp,

According to Bloomberg, the US will step up its efforts to see if any Chinese companies are getting around export restrictions by sending shipments through various countries. Additionally, it will demand that foreign manufacturers obtain a US permit before placing orders with Taiwanese chip design companies. According to the information, the new regulations will be released early this year.

According to Wang Wenbin, a spokeswoman for the Chinese Foreign Ministry,” China opposes US politicizing, instrumentalizing, and weaponizing commerce and technology problems.

The principles of marketplace economy and fair competition are violated by arbitrarily putting curbs in place or violently seeking decoupling to further social agenda, the global economic and trading order is undermined, global commercial and supply chains are disrupted and destabilized, and ultimately the interests of the entire world are harmed, he claimed. & nbsp,

China, according to Wang, did closely monitor advances and steadfastly protect its legal rights and interests.

Interchip data rates

The Biden administration ordered US chip manufacturers to stop sending 600 gigabytes per second interchip graphics chips to China and Russia in August of last year. This new law applies to AMD’s MI250 device as well as Nvidia and H100 chips.

Later, Nvidia unveiled the 400 and 300 gigabytes per second A800 and H800 computers, between, for Chinese areas. Both chips meet the export standards set forth by the US government.

With US device bans in thinking, Nvidia’s A800 computer was designed for export to China. Photo: Facebook

Although it has not yet announced the regulations, press reports in June of this year claimed that the Biden presidency would soon forbid the import of the A800 and H800 to China.

A US official recently informed Reuters that a” performance density” factor will take the place of the bandwidth factor to help avoid further workarounds. & nbsp,

Just AI cards with performance criteria that fall within the export ban guidelines can be shipped to China. & nbsp,

Chinese tech behemoths BAT( Baidu, Alibaba, and Tencent) and ByteDance just ordered US$ 5 billion worth of A800 bits from Nvidia, according to a report by The Financial Times on August 9.

According to the report, 100 000 A800 chips worth$ 1 billion are expected to arrive this year, with the remaining ones arriving in 2024. & nbsp,

According to tech experts, the A800 now performs at 70 % of an A100. It’s unclear if the new regulations will forbid the delivery of the A800 and H800 to China.

A Beijing-based journalist claimed in an article published on Monday by the systems news website AI era that the H800 is now a slower version of H100 but that it may still be prohibited from being shipped to China. The upcoming US limits may hinder Chinese businesses’ ability to develop their Intelligence technologies, according to nbsp.

trade solutions

According to a Reuters report from June, some shops in Shenzhen’s Huaqiangbei area were discovered to have purchased small quantities of A100 cards at prices twice as high as usual, costing$ 20,000 each. & nbsp,

The Chinese People’s Liberation Army( PLA) frequently purchases commercial off-the-shelf AI systems from Chinese academic institutions and private companies, which are not easily blocked by US restrictions on military end-users, according to a research report published in June of last year by the Washington-based think tank Center for Security and Emerging Technology( CSET ). & nbsp,

The CSET stated that it would be difficult for US authorities to launch a targeted assault on the PLA’s intermediate device suppliers due to the challenges associated with tracking AI cards and the variety of potential vendors. & nbsp,

Nearly all of the 97 AI cards the CSET was able to identify from public Army acquire records were created by Nvidia, Xilinx( today AMD ), Intel, or Microsemi. The CSET added that the PLA is placing orders for AI cards created by US companies and produced in Taiwan and South Korea. & nbsp,

Huawei is evading US device regulations. Photo: Twitter

As the 7nm AI computer uses the company’s self-developed Da Vinci structures, sanctioned Chinese technology huge Huawei Technologies can also transfer the production of its Ascend 910 device to Taiwanese TSMC.

More than 20 Chinese towns have used Ascend cards in their AI services, according to a CITIC Securties studies document that was released in July, and Huawei currently holds the 79 % market share for AI technology centers in China. & nbsp,

Zhang Dixuan, CEO of Huawei’s Atlas Data Center Business, announced on July 6 that the company may increase the number of Ascend 910 tickets in its Altas 900 Supercluster from 4, 000 to 16, 000 after this month.

An That writer named Yao Yue claims that such a grouping is sufficient to teach an equal chatbot to GPT3.0.

Read: Shanghai’s plans to develop an AI hotspot may be derailed by the microprocessor war.

What’s behind Samsung and SK Hynix device war discounts, you ask?

@ jeffpao3 Follow Jeff Pao on Twitter at & nbsp.

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Singapore’s key exports in September decline for 12th straight month

Singapore’s non-oil domestic exports( NODX ) contracted for the twelfth consecutive month in September, falling & nbsp, 13.2 %, with both electronics and nonsemics experiencing a decline.

This comes after a revised & nbsp of 22.5 percent decrease in August and 20.3 percent decline in July.

Data from Enterprise Singapore ( EnterpriseSG ) released on Tuesday, October 17, shows that after contracting by 21.1 % the month before, electronics decreased at a slower rate of 11.6 percent year over year in September.

The most significant contributors to this were integrated circuits, personal computers, and components of personal machines, which decreased by 16.2 percent, 33.2 %, or 38.9 %, respectively.

Exports of non-electronic products also decreased, falling 13.6 % in September as opposed to 22.9 % in the previous month.

The biggest declines were seen in non-monetary gold, pharmaceuticals, and food preparations; they decreased by 59.6 %, 31.2 percent, or 40 %, respectively.

While NODX increased in China, Hong Kong, and the US, it decreased overall for the best areas. & nbsp,

The three countries that contributed the most to the decline in September exports were Taiwan( 34.9 %), Indonesia( 45.2 %), and Malaysia( 19.8 %).

On a year-over-year basis, total trade decreased by 12.3 % in September, down from the 15.5 % decline the previous month.

Exports and imports both decreased, by 12.7 percent and 11.8 percent, both.

But, seasonally adjusted complete trade increased throughout the month. It increased by 4.2 % in September, which is an improvement over the 1.1 % gain in August. & nbsp,

Singapore’s development projection for 2023 was reduced in August and nbsp.

According to the Ministry of Trade and Industry( MTI ), the nation’s gross domestic product for the year is anticipated to range from 0.5 to 1.5 percent, narrowing from the previous range of 0.5 % to 2.5 percent.

The Monetary Authority of Singapore( MAS ) declared last week that it would maintain its monetary policy based on exchange rates.

Additionally, it stated that Singapore’s economic growth is anticipated to gradually increase over the course of 2024, though it issued a warning that, given the unpredictability of the worldwide economic perspective, recovery may be slower than anticipated.

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Chinese tourists lose confidence

Chinese tourists lose confidence
At Wat Phra That Doi Suthep in Chiang Mai, visitors circle the temple three times while holding flower fragrance lamps as a form of worship. Varuth Hirunyatheb( picture )

After the shooting incident at the Siam Paragon buying mall on October 3 damaged Chinese travelers’ trust in Thailand, hotels and hospitality business owners in Chiang Mai are urging the government to tighten weapon controls to ensure protection for the tourism industry.

Following the Siam Paragon firing, which left three deceased, including one Chinese tourists, and four injured, around 60 000 visitors from the nation have canceled their trips to Thailand. According to statistics from Thailand’s flights, the number of Chinese visitors has decreased by 9.2 % from 650, 000 to 590,000 since the event.

Prior to the crisis, China was Thailand’s largest foreign tourist destination, with about 11 million Chinese visitors in 2019.

However, less than half that number — roughly 5 million — are anticipated to travel to the nation this year, according to tourism officials.

A holiday snaps a picture of her companion at the Kew Mae Pan viewpoint in the Chom Thong neighborhood of Chiang Mai’s Inthanon mountains. Varuth Hirunyatheb is shown in the image.

The majority of Chinese tourists are welcomed in Chiang Mai, so much so that five Chinese airlines have established flights to the state.

They are Air China, Sichuan Airlines, Juneyao Air, and Spring Airlines for China Eastern Airlines.

In order to assess the situation in the northeastern province following the shooting and solicit suggestions on how the government can ensure the safety of visitors from around the world, The Bangkok Post spoke with hotels, hospitality business owners, and hospitality officials in Chiang Mai.

effect of a shopping center shooting

Chutidech: Optimistic but still

The Bangkok Post reported that the death of a Chinese person during the shooting rampage had partially lower tourists’ confidence. Chutidech Promkaewngarm is an assistant manager at Standard Tour Co Ltd, one of the largest tour companies in the northern area.

He claimed that some Chinese tour companies had postponed their trips to Thailand even though not all of their doubts had been canceled.

He claimed that some Chinese internet users declared that they would never travel to a place where possessing firearms is not prohibited, and that on the Chinese social media site Weibo, onlookers at the scene shared their experiences, saying that their first trip to Thailand would also be their past.

According to Mr. Chutidech,” the number of Chinese visitors is now less than 50 % of that in 2019 or before Covid – 19.

In 2019, Standard Tour, he claimed, operated 100 % of Chinese tour groups, with an average of 20,000 participants per month. His company now brings between 8,000 and 9,000 Chinese tourists these each month, with more than 70 % of them coming from families.

Mr. Chutidech claimed that in addition to the firing in Bangkok, other factors may have contributed to a decline in Chinese tourists given that China is currently experiencing financial difficulties of its own.

” Some Chinese companies have not completely recovered.” If Chinese visitors are to return, we need to be on the lookout during the busy time and significant festivals like Loy Krathong, New Year’s Day, and Songkran, he said.

But, Mr. Chutidech expressed optimism and thought the North’s hospitality sector should maintain a positive outlook.

Chiang Mai Airport may be available around-the-clock in November, maximizing its ability to accommodate more airlines.

weapon handles that are tougher

” Publicimage takes hit ,” says Somrit.

The firing was not a common event that would have affected tourists’ trust, according to Somrit Haikum, managing director of Pacific World Chiangmai and sin president of the Chinese Mai Chamber of Commerce, who reported to the Bangkok Post.

However, in order to prevent a repeat, the government has take preventive action, such as intensifying firearms control measures.

In order to lessen its reliance on foreign tourists, Thailand, according to Mr. Somrit, may also improve its popularity and explore new markets in Europe, the Middle East, and East Asia.

He asserted that as more tourists then pay attention to things like carbon-neutral travel, tourist accommodations in the northwestern region may also transition to an environmentally friendly design.

The Chiang Mai Chamber of Commerce is keeping a close eye on the circumstance. Thailand and the North will reduce tourism profit if the shooting event has a significant, long-term impact. If commerce is negatively impacted, we will have to wait and see for a few months, according to Mr. Somrit.

Paisarn:” Laws enforcement essential.”

The event has alarmed tour operators and business owners whose jobs depend on tourism, according to Paisarn Sukcharoen, chairman of the Northern Thai Hotel Association.

Even though there may not be any indications of long-term harm to the nation’s hospitality, he said that more than 30 % of resort reservations had been postponed right away, and the number of Chinese tourists arriving during high season needs to be reevaluated.

According to Mr. Paisarn, hotel occupancy did undoubtedly decrease between October and November.

In addition to the fact that the number of Chinese tourists has decreased below 2019 levels, tour operators in the South have also revealed that Malay tourists have canceled their travel to Thailand.

” Gun control measures will restore some confidence, but what matters is how [ the government ] puts them into practice.”

The government recently amended the Building Control Act, which enables little hotel companies to list their properties as licensed hotels. Associations of tour operators and business sectors argue that incentives should be provided to increase tourism.

The world’s tourism industry will suffer if tourists’ confidence is never restored, according to Mr. Paisarn, as it is still recovering from the pandemics’ effects on commerce and the economy.

Visa entry is free

Patthara – Anong:” Forecast to high.”

The government’s visa exemption, which is available until February of next year or during the high season, is continuing to draw more visitors from China and Kazakhstan, according to Patthara – anong Na Chiang Mai, director of the Tourism Authority of Thailand ( TAT ) Northern Region. ”

Nevertheless, she claimed that the TAT’s estimate of five million Chinese visitors was accurate.

The data indicates that there may be more than 4.2 million Taiwanese tourists overall in 2023.

A total of 1.8 million Taiwanese tourists spent between 30 000 and 100 000 baht per person during the second quarter, staying in Thailand for 4 to 10 days on average.

According to Ms. Patthara-anong, between January and September, 156,102 Taiwanese tourists flew straight from China, while 62,626 came from Taiwan, 38,457 from Hong Kong, and 37,000 from Malaysia.

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Belt and Road Initiative: Is China’s trillion-dollar gamble to transform the world working?

Chinese President Xi Jinping makes a toast at the beginning of the welcoming banquet at the Great Hall of the People during the first day of the Belt and Road Forum in Beijing, China, May 14, 2017.shabby graphics

China is hosting a sizable party this week to commemorate its Belt and Road Initiative( BRI ), one of its most significant global engagement initiatives.

In Beijing, authorities and influential people from all over the world will take part in a high-level conference honoring the 10th anniversary of the BRI. From Vladimir Putin to the Taliban, members are anticipated to attend. The BRI’s accomplishments are widely covered in Chinese media, including a six-part video on state television.

The BRI, President Xi Jinping’s personal initiative, aims to use investments and infrastructure projects to bring China closer to the rest of the world. China boasts that it has changed the world with an unprecedented abundance of cash pumped into roughly 150 countries, and it is not bad.

Beijing’s enormous spend, however, hasn’t exactly turned out the way it had hoped. Was it worthwhile?

A” win-win” in terms of financial success?

It was obvious that China had expansive interests from the moment the BRI was unveiled in 2013 and compared to the historic Silk Road.

While” Road” denotes a maritime network connecting China to significant ports through Asia to Africa and Europe,” Belt” refers to overland routes linking China with Europe through Central Asia, as well as to South Asia and South East Asia.

Large state-driven investment in challenging infrastructure abroad was the beginning of it. Energy and transportation projects like power plants and railroads have received the majority of the estimated$ 1tn($ 820 billion ).

Chinese workers stand at the construction site of Standard Gauge Railway (SGR) during the presidential inspection of the SGR Nairobi-Naivasha Phase 2A project in Nairobi, Kenya, on June 23, 2018.

YASUYOSHI CHIBA

Beijing hailed this as a win-win for the business and assured different nations that these investments would spur development, while at home it sold the BRI to support Chinese businesses, strengthen the local economy, and improve the reputation of the nation.

It had some success in achieving some objectives, like internationalizing the renminbi and addressing the overcapacity of Taiwanese businesses.

However, China benefited greatly economically from business. Access to more resources, including oil, gas, and vitamins, increased as a result of numerous agreements, particularly as the BRI’s concentrate expanded to include the Middle East, South America, or Africa. In the previous ten years, China and BRI nations traded about$ 19.1 trillion worth of goods.

According to senior scientist Jacob Gunter at the Mercator Institute for China Studies,” it’s about Chinese state-owned companies going internationally… to help promote the flow of tools that China needs.” ” As solutions to the progressive developed world, it’s also about growing and developing trade markets.”

At a time when China is more at odds with the West and its supporters, this growth has become essential.

Consider soy as an illustration. The US used to be a major source of products for China, the nation’s largest supplier. However, Beijing was forced to rely on North American sources, particularly Brazil, which is thought to be the state’s top BRI receiver, as a result of the tariff dispute with Washington.

According to the International Institute for Strategic Studies( IISS ), China’s dependence on Japan, South Korea, and the US has decreased as a result of gas pipelines from Central Asia and Russia, as well as imports of oil from countries like China, Iraq, Brazil and Oman.

Belt and Road map

Bill capture diplomacy

China is now the largest international bank in the world thanks to the BRI, which has made it the lender of last resort for some small – or middle-income nations.

Due to the fact that many of the loan contracts are shrouded in secrecy, it is unknown what the true scope of loan is, which is estimated to be at least hundreds of billions of dollars.

Countries are currently struggling with BRI debts, including Sri Lanka, the Maldives, Laos, and Kenya. The Taiwanese government is now in a precarious situation.

A” debt bomb” has already been created domestically due to a real estate crisis and local governments’ generous loans; it is thought to be worth trillions of dollars. History youth unemployment and a weak post-Covid market haven’t helped.

In order to assist consumers in making timely payments, China has restructured BRI loans, extended dates, and allocated an estimated$ 240 billion. However, it has declined to pay off the debt.

According to Christoph Nedopil, the founding director of the Green Finance and Development Center( GFDC ), which monitors BRI spending,” For China to simultaneously engage in debt write-downs abroad while domestic economic issues are not fully resolved- it will be politically challenging internally to promote that.”

Beijing’s status has been damaged by this. Some critics charge China with using” debt trap politics” to persuade less wealthy nations to participate in costly projects so that Beijing can ultimately acquire control of the assets pledged as collateral. This was a charge brought by the US against Sri Lanka’s contentious Hambantota slot job.

Although there isn’t much evidence for this, some experts claim that Beijing is using the BRI to destroy other people’s independence.

China has also come under fire for its so-called” hidden debts”; governments are unaware of how exposed their loans institutions are, making it challenging for nations to weigh the advantages and disadvantages of the BRI.

Infographic showing Chinese BRI investment and construction in different sectors

BRI projects have also been charged with producing inefficient” white elephants ,” fostering local corruption, escalating environmental issues, exploiting staff, and breaking promises to create jobs and prosperity in nearby communities over the years.

According to a recent study by the study test Aid Data, these issues affect more than one-third of tasks. Some nations, including Malaysia and Tanzania, have been forced by a growing reaction to revoke BRI agreements.

Presentational grey line

Read more of the content in our line commemorating 10 years of BRI here:

Presentational grey line

According to the Council on Foreign Relations, Chinese lenders and businesses are partially to blame for” poor risk control and a lack of attention to detail and coherency.”

However, other observers point out that saving nations are also at fault, as in the Hambantota circumstance, which was partially brought on by Sri Lanka’s individual poor financial management.

Additionally, they claim that China offers solutions with fewer restrictions, making them less arduous than offers from foreign lenders or the West.

According to Mr. Gunter,” China exhibits a” one-stop shop” mentality.” These are our banks and companies, and we do everything from start to finish ,” and if you sign now, we will conclude that railroad and it will be finished in time just as you run for your next election ,” he said.

The fact that you can complete it in one to three times with minimal documents is a major selling point. Your railway may be finished, even if it’s a little dirty and there are labor rights violations.

a triumph in diplomacy

However, China has succeeded in achieving one of its main objectives — expanding its influence.

China has not only built relationships through railroads and bridges. Beijing invests in soft power and establishes itself as a world leader by funding thousands of Chinese college scholarships, cultural change initiatives, and Confucius Institutes. China has also been credited with the growth of the Brics buying union.

According to Pew Research, numerous middle-income nations, including Mexico, Argentina, South Africa, Kenya, and Nigeria, have developed more favorable sentiments toward China over the past ten years.

In this photograph taken on November 13, 2016, trucks are seen parked at the Gwadar port, some 700 kms west of Karachi, during the opening ceremony of a pilot trade programme between Pakistan and China.

AFP

Mr. Gunter observed that more and more nations in the Global South do not want to take factors in their conflict with China. China hasn’t changed some nations from a Western perspective, but the fact that it has moved the needle to the middle ground has already resulted in significant diplomatic success for Beijing, he said.

However, observers have even raised worries about potential monetary coercion, wherein foreign governments feel compelled to support Beijing’s policies or run the risk of China ceasing to invest.

Deal clauses that” probably allow the lenders to control debtors’ domestic and foreign policies” were discovered in a One Aid Data study of loans made by Chinese state-owned entities to foreign governments.

According to the IISS, China has” corralled additional states into momentary partnerships” at the UN to oppose measures essential of Beijing, and participation in the BRI has prompted some EU members to obstruct or weaken China-critical plans.

The BRI, according to the think tank, has evolved into one of China’s” key tools” for isolating Taiwan diplomatically. It noted that BRI cash has been given to numerous countries that have switched their recognition from Taiwan to China over the past ten years.

While Laos and Thailand have drawn criticism for detaining or permitting the violence of Chinese activists sought by Beijing, Cambodia has consistently resisted conviction of China’s activities in the South China Sea.

” Minor and lovely.”

China then understands that some points must alter.

Beijing promotes the idea of” small and beautiful ,” and the BRI can be more relevant through low-investment, high-yield projects.

State media cite programs for bamboo and bamboo knitting in Liberia, gas technologies projects in Tonga and Samoan, and the promotion of mushroom-growing technology in Fiji, Papua New Guinea and Rwanda as examples.

China has also unveiled a brand-new” modern silk road” that focuses on connectivity and modern facilities. According to experts, this would lessen the effects of European bans on Chinese 5G products and provide Chinese businesses with a more stable stream of earnings.

China has reduced borrowing with this new approach. According to a GFDC analysis, it has placed restrictions on Chinese banks’ ability to lend money abroad, and investment deals are now almost 50 % smaller than they were five years ago. Additionally, it has established a program where other nations can contribute money rather than being the sole borrower in the BRI.

Beijing, which now claims that the BRI is the cornerstone of” the global community of shared future ,” has even grander plans for it.

Beijing claimed in two white papers published this month that its approach to globalization would be more equitable, inclusive, and less judgmental than the” hegemonic” Western powers’ pursuit of a” zero-sum game.”

It stated that the BRI is a common road that is accessible to everyone and not merely the secret journey owned by one party. China asserted that it is” helping people to achieve while seeking our own achievements ,” far from seeking dominance as critics claim.

China’s perspective is that” globalization is currently in risk.” According to Wang Yiwei, a professor who teaches the BRI at Renmin University of China, the West is actually” de-China – risking” in the name of” risking.” How can the BRI establish common connection and prevent a new Cold War is the main challenge.

The trillion dollars test in Beijing has produced a potent instrument for influencing people. But the real issue is whether the rest of the world wants a Chinese-led purchase.

Further information provided by BBC Monitoring.

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Setting the table for when Putin meets Xi

On October 17, Vladimir Putin is scheduled to visit China’s Xi Jinping for the first time in 20 times outside the edges of the former Soviet Union.

If the attend takes place, it is likely to strengthen a partnership in which Russia has emerged as an important tool in China’s larger strategy to increase its impact in Europe and the Americas.

Putin’s likely visit to Beijing coincides with the Belt and Road Initiative( BRI ), a bold Chinese initiative to broaden international trade routes with other countries and improve transportation and infrastructure ties.

On October 17 and 18, China’s leader Xi may host ambassadors from about 130 nations in Beijing to commemorate this occasion.

Putin is probably going to be the main attraction. Putin reportedly accepted Xi’s proposal in September, according to Russian options, though Beijing has declined to confirm this.

There is no doubt that the two leaders may have a lot to talk about. The world has undergone a significant change since they declared their” no-limits” agreement in February 2022, just before Russia invaded Ukraine on full-scale.

There is no sign of an ending to the ongoing conflict in Ukraine. Twitter picture

The South Caucasus and the Middle East, both regions where Russia and China have interests at stake, are engulfed in unrest.

However, their unrestricted relationship has evolved into a much more one-sided affair. Russia today likely aligns its policies to serve Chinese interests, whereas Moscow and Beijing may have once coordinated their strategies.

At least temporarily, the Ukraine war has weakened Russia and reduced its effect not only in the Middle East and the South Caucasus but also in northern Asia. As a result, China has been able to establish its dominance it and strengthen its ties to the area.

Putin, who is now obviously Xi’s junior partner, also suggests that Russia and China have a common goal in mind when it comes to putting an end to the Western-dominated global order and limiting US and European influence in what they both see as their privileged interest zones across Eurasia.

Russia continues to emphasize its ties to China, in part because it has some other options besides Iran and North Korea, which are considered to be global pariah states.

Trade along the New Eurasian Land Bridge, an inland road connection between China and Europe that was once a significant transportation route for Chinese exports to European markets, has been significantly reduced by American sanctions against Russia in response to Moscow’s warfare against Ukraine.

Instead, transportation roads avoiding Russia have become more significant, such as the Middle Corridor, which connects China to the EU via Central Asia, the Caspian Sea, and the South Caucasus. Additionally, this has dashed Russian expectations for the BRI and Moscow’s Eurasian Economic Union ( EAEU ), a post-Soviet economic integration initiative.

It is significant that Putin was invited to visit Beijing by Xi, but it is also noticeable that this is not just a intergovernmental matter. Putin’s trip to Moscow does, at best, give the Russian president the chance to speak with Xi in the margins of a summit intended to enjoy the BRI, an initiative that is closely related to him personally.

In its international relations, China also has and pursues different options. At the APEC summit in San Francisco in November, US President Joe Biden and President Xi may also cross paths. Josep Borrell, the head of the EU’s international policy, also traveled to China, perhaps to get ready for an EU-China summit that will take place later this year.

On November 14, 2022, Chinese President Xi Jinping and US President Joe Biden watched the G20 height from Bali, Indonesia. Photo: Pool

What Xi hopes to accomplish

None of this suggests that Xi will soon stop supporting Putin.

The key issue is how Xi will strike a balance between his support for Putin and his desire to prevent widespread European” de-risking ,” which would restrict Chinese technology exports to China, scrutinize Chinese investment, and reduce China’s reliance on China-only supply chains and further restrict access to EU markets for Chinese goods, services and capital.

Xi is unlikely to renounce Putin given the growing signs of discord fatigue among Ukraine’s American allies and the possible advantages Putin will receive from the current harsh escalation in the Middle East.

Nevertheless, he might see an opportunity to facilitate a settlement more on Russian terms than on Ukrainian terms, which would give Putin the advantage of the doubt and allow him to declare victory while maintaining some degree of stability in an area that is still vital for the BRI’s long-term success and, ultimately, for Chinese superpower ambitions.

If Xi were to succeed in doing this, it would also solidify China’s position in a potential safety get involving the Euro-Atlantic and European Union.

This might also be Putin’s best chance to spare himself the humiliation of a never-ending war, even though it would instantly turn Russia into an conceivable permanent second-order power in the shadow of China.

But, that possibility is still very much a possibility, particularly if China and the West continue to support Russia and Ukraine at their existing levels, which provides just enough support for each side to avoid defeat.

Professor of International Security at the University of Birmingham, Stefan Wolff

Under a Creative Commons license, this essay has been republished from The Conversation. Read the article in its entirety.

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Summers’ horror reminds that history rhymes at Harvard

We are hopeful that, as a community committed to learning, we may take steps that will bring on our shared humanity and values in order to tone rather than intensify the deeply ingrained divisions and animosities so painfully evident in the wider world.” We have no illusion that Harvard alone may easily bridge the extensively diverse views of the Israeli-Palestinian conflict ,” the school’s leadership said.

This statement came after Lawrence Summers, the past president of Harvard, issued harsh criticism of the university for continuing to exist in a letter that was signed but whose authors and signatories were unknown. & nbsp, true bravery. In addition, & nbsp,

After Putin’s war and the determination to sail the Ukraine symbol over Harvard Yard, Bacow made a strong statement of support for Ukraine, which Summers noted. However, 48 hours later, there is still no official Harvard speech at this time of social evaluation. & nbsp,

Otherwise, the ethically repugnant speech made by student groups blaming all the assault on Israel is how Harvard is defined. & nbsp, I feel ill. I find it incomprehensible why the administration did not remove the university and denounce this assertion.

Is the Harvard Leadership’s revised declaration, which was made a few days later, any better when it refers to” common humanity”? They certainly forgot Confucius’ statement that men have similar natures. Andnbsp, what separates them so drastically is their behavior. Subsequent occurrences demonstrate just how far.

However, it is unclear why Harvard’s faculty and students may surprise Summers or anyone else. & nbsp, Harvard’s history has been characterized by a similar mindset for many years.

On April 11, 1968, the later Harvard scholar Alexander Gerschenkron, who was born in Russia, gave a lecture there. & nbsp,

Two days prior, hundreds of students and professional activists yelled” Sieg heil,”” demanded the elimination of the Reserve Officers’ Training Corps ( ROTC ),” occupied University Hall and renamed it Che Guevara Hall ,” and” shoved faculty and administrators down stairs while shouting expletives.”

These incidents led to an urgent meeting of the Harvard staff, where Gerschenkron gave his speech that was broadcast unrestrictedly on the television. & nbsp,

I hear a lot of speak about the imperial war machine, but any man with fair authority must realize that this is all nonsense and low-level social talk. .. …

Additionally, this faculty is not the appropriate defender of intellectual freedom. ….. Senator Joe McCarthy claimed that sixteen, 17 years back, when scientific freedoms were cruelly and violently threatened, it was not the faculty that resisted the threat. The staff was intimidated and subdued. & nbsp, Let’s take a moment to look honestly at this faculty and ourselves.

Some people are preoccupied with their studies and have no interest in the outside world. Then,” there are the middle-aged popularity kids who have seriously harmed the university ,” according to nbsp. They fear disapproval in addition to seeking fame, particularly” in the surroundings of terror- worry of boycotts, of decrease in election in their courses.”

The Most Incredible Thing & nbsp, a story by Hans Christian Andersen that surprisingly foreshadowed both 1968 and current events, served as the introduction to the most devastating part of his speech. & nbsp,

A king is said to have promised that anyone who performs an extraordinary deed did receive his daughter’s hand in marriage and third of his realm. The judges of the competition quickly concur that a fresh, honorable entrepreneur created the clock with 12 various performances, one for each hours, and won the prize.

From Moses’ commandments to Christianity and the fundamental pleasures of daily life— that elusive” common humanity ,” the 12 performances served as a reminder to the audience of the myths and roots of Western civilization.

A fresh young man shows up as the award is about to be given out, swinging an ax and slamming the clock. He asserts that by doing this, he has accomplished the most extraordinary thing. As is the case with the press and universities today, the courts and the populace concur and give the cretin the princess and half of the land.

The fantasy, however, has a happy end. The clock, which resembles a Phoenix, reappears as fresh on the ceremony day. The lump is rendered incomprehensible by the personalities in the 12 shows. The great, creative young man is rewarded. Andersen favorably comes to the conclusion that a work of art does not perish. Although its spirit may be broken, its good incarnation may become shattered.

The story ends with an assessment about what made the story’s conclusion really unbelievable( that Gerschenkron omitted mentioning ), despite the guests at the bridal claiming to have lived to witness the most remarkable issue. & nbsp, No one in the audience was envious of the” start-up” young man who built the clock and wed the princess, which is not the current way of thinking for many people, especially in academia.

Then Gerschenkron came to the conclusion that” the spirits of the staff will have to climb and destroy all this fugitive nonsense that is going around in this land.” He continued by saying that just as one cretin destroyed the clock in Andersen’s tale, the university is a precarious creation that fools may damage. & nbsp,

Maybe a storybook is needed to remind us of how frail civilization’s façade is, how delicate the institutions that support it are, and how simple it is to lose sight of the type of culture and character that can keep them going. & nbsp,

Reuven Brenner’s” How the 2008 Financial Crisis Did Not Change the World” by American Affairs, Spring 2019, is referenced in this article, which was recently published at Real Clear Markets.

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Commentary: Xi and Putin’s no-limits partnership is becoming a one-sided affair

A JUNIOR-XI-JINPING PARTNER

Putin, who is now obviously Xi’s junior partner, is also expected to visit Beijing, indicating that Russia and China have a common goal in mind when it comes to putting an end to the western-dominated international order and limiting US and Western influence in what they both see as their wealthy interest zones across Eurasia.

Russia continues to emphasize its ties to China, in part because it has some other options besides countries that are considered to be international pariahs like North Korea and Iran.

Trade along the New Eurasian Land Bridge, an inland road connection between China and Europe that was once a significant transportation route for Chinese exports to European markets, has been significantly reduced by American sanctions against Russia in response to Moscow’s warfare against Ukraine.

Instead, transportation roads avoiding Russia have become more significant, such as the Middle Corridor, which connects China with the EU via central Asia, the Caspian Sea, and the South Caucasus. Soviet hopes for closer ties between the BRI and Moscow’s post-Soviet financial consolidation program, the Eurasian Economic Union, have also been dashed by this.

It is significant that Putin was invited to visit Beijing by Xi, but it is also noticeable that this is not just a intergovernmental matter. Putin’s trip to Moscow does, at best, give the Russian president a chance to speak with Xi in the margins of the summit intended to commemorate the BRI— a project that is closely related to him personally— in contrast to his trip there in March.

China also has and pursues different alternatives in its international relations. At the APEC conference in San Francisco in November, there is still a chance that US President Joe Biden and Xi will cross paths. Josep Borrell, the head of the EU’s foreign plan, also traveled to China, perhaps to get ready for an EU-China summit later this year.

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