Iran, Russia, China To Run War Drills in Latin America


by Adam Kredo on July 5, 2022 4:55 am with Chan Kai Yee’s comments

Image Xi, Putin

Chinese president Xi Jinping and Russian president Vladimir Putin / Wikipedia CommonsAdam Kredo • July 5, 2022 4:55 am

(This reblogger’s note: Interesting smile. Do you know why they smiled so knowingly?)

Iran, Russia, and China are gearing up to run a series of major war drills in Latin America in a show of force meant to signal how these militaries can reach the United States. (This reblogger’s note: Exaggeration! The Russia-China-Iran iron triangle may be strong in Asia but not so significant in remote Western Hemisphere. However, it at least shows the triangle’s attempt to expand its influence in Latin America and the Caribbean to weaken US influence there.)

Venezuela, under the leadership of anti-U.S. socialist president Nicolás Maduro, is scheduled to host the war games in mid-August, according to a report by the Center for a Secure Free Society, a think tank that tracks malign regimes. Along with 10 other nations, Russia, China, and Iran will move their militaries into the Western Hemisphere for war drills that will “preposition forward-deployed military assets in Latin America and the Caribbean.”

The war games, known as the Sniper Frontier competition, show that these malign regime from across the globe are uniting and “getting ready to make a loud statement that the region is ready to embrace the multipolar force,” according to the think-tank report, which focuses on Latin America’s embrace of authoritarian regimes. A key portion of Russia’s “military is prepping to bring, for the first time, some of these military games to the Western Hemisphere”—even as Moscow is bogged down with war in Ukraine.

(This reblogger’s note: Moscow is involved but not bogged down with war in Ukraine, otherwise, how can its military has been able to engage in naval and air moves near Japan in Asia or war games in Latin America.)

The war drills are one of the starkest signs to date that Latin America’s coalition of anti-U.S. regimes is working to boost relations with Russia, China, and Iran. Maduro recently wrapped up a diplomatic tour of the Middle East in which he inked a 20-year strategic deal with Iran that laid the groundwork for an Iranian oil tanker to dock in Venezuela and offload Tehran’s illicit crude. “The strategic deal between Iran and Venezuela is meant to mirror similar strategic agreements that the Islamic Republic signed with China and Russia in recent years,” according to the think-tank report. Latin American regimes also are inking military pacts with Russia.

“Russia and its allies Iran and China are about to make a major show of force with the army games competition in August in Venezuela. But it’s important to understand that this force is molded by cyber-enabled, digital disinformation that is at the heart of how this kind of joint military exercise is used to legitimize authoritarian states and delegitimize democracies in the Western Hemisphere, ” Joseph Humire, a national security analyst and executive director of the think tank, told the Washington Free Beacon. “By normalizing military movements of U.S. adversaries in the Caribbean, we run the risk of weakening the moral legitimacy of democracies in Latin America.”

(This reblogger’s note: Democracy means rule by the people, but unable to rule directly, people have to elect their representatives to run the country. Both Russian and Iranian presidents are representatives elected by people. What they differ from the leaders of liberal democracies such as the ones in the US and Germany are the people in Russia and Iran granted centralized power to their presidents while the people in US and German liberal democracies do not trust their leaders so much as to grant them centralized power, instead have prioritized limiting their leaders’ power to prevent their leaders from becoming dictators.. Liberal democracy has the advantage of preventing autocracy, but the weak points of lacking continuity and efficiency. Such weak points are especially conspicuous in US liberal democracy.)

There are also signs that Iran’s Islamic Revolutionary Guards Corps (IRGC), the country’s paramilitary fighting force, is boosting its presence in Latin America.

In early June, a Venezuela cargo plane flying in the region “was discovered to have members of the Qods Force, the elite unit of Iran’s revolutionary guards, on board,” according to the think-tank report. “Gholamreza Ghasemi, a known weapons trafficker for the IRGC and manager of Qeshm Fars Air, was piloting the Boeing 747-300M that returned to Buenos Aires along with 4 other Iranian nationals and 14 Venezuelans.”

After the plane was grounded, “documents, personnel effects, and electronics were seized by Argentine authorities who discovered images of tanks, missiles, and other pro-IRGC paraphernalia on one of the mobile devices,” hinting at a larger Iranian-backed plot unfolding in the region.

Ghasemi reportedly made at least 13 trips from Iran to Venezuela in the past year and a half, raising red flags with the FBI and the Israeli government.

As Iran and Venezuela increase their military and economic ties, Nicaraguan president Daniel Ortega—an ally of Venezuela’s Maduro—renewed a military pact with Russia “authorizing Russian troops, planes, and ships to patrol the Central American country’s borders and conduct joint military training exercises,” according to the report. The military agreement was signed amid Russia’s war with Ukraine, indicating that a presence in Latin America remains a priority for Moscow even as it faces pressure on its own borders.

Russia has been waging covert espionage operations in Latin America. An accused Russian GRU military intelligence agent was recently caught trying to obtain an internship at the International Criminal Court. The spy “had been cultivating his cover as a Brazilian national for years and may not have been working alone,” according to the think-tank report.

China also has been active in the region, though these efforts have received little media attention.

Chinese foreign minister Wang Yi last month inked several economic deals in Latin America, making calls to Uruguay, Nicaragua, and Ecuador. China’s Belt and Road Initiative, a program to increase the Chinese Communist Party’s global footprint, has made its way into Argentina, where it is working to build infrastructure projects.

(This reblogger’s note: Belt and Road initiative (BRI) is China’s initiative for win-win cooperation with less developed countries to help them build infrastructures in order to facilitate their economic growth. It is an economic program instead of a political one, but it may result in enhancing China’s global footprint. However, that is not China’s goal. China’s goals are to benefit from the projects and expand Chinese goods’ market there resulting from the countries’ economic growth due to the infrastructures built under BRI. Those will be real benefits. Global footprint may be what US pursues as part of its pursuit of world hegemony but what is its use for China that does not pursue such hegemony.)

“As Russia attempts to delegitimize the international financial system,” the think tank noted, “China has signed an agreement with a Switzerland-based bank to establish a reserve of yuan currency together with Indonesia, Malaysia, Hong Kong, Singapore, and Chile to counter the U.S. dollar.”

Source: Washington Free Beacon “Iran, Russia, China To Run War Drills in Latin America”

Note: This is Washington Free Beacon’s article I post here for readers’ information. It does not mean whether I agree or disagree with the article’s views. Some of my comments can be found in this reblogger’s notes.


US, EU Unable to Compete with China’s BRI


China’s Silk Road economic belt and 21st century Silk Road initiative (BRI) aims at having win-win cooperation with countries that need construction of infrastructures of roads, railways, power plants, etc. to facilitate their economic growth and connections with China for benefit from each other’s market. As a result both China and the country involved have been benefited. It does not aim at enhancing China’s geopolitical influence but it may in fact enhance China’s geopolitical influence there.

That seems to worry not only the US but also EU. Their officials and media try to make BRI unpopular by the lies that BRI is China’s evil debt traps to control countries concerned with excessive debts that the borrowing countries are unable to repay. The lie they have kept repeated is the so-called China’s excessive loans to Sri Lanka for the construction of Hambantota port, resulting in forcing Sri Lanka to repay the debt with the port. However, facts proved that a Chinese company paid about $1 billion for 85% of the shares in two Sri Lanka companies that have the right to operate the port.

Through years of efforts, BRI has become increasingly popular as its projects do have benefited both China and the countries concerned. It it were a debt trap, China would suffer by not being able to recover what it has had lent and the borrowers would have suffer the humility in having had their sovereigty hurt. How could such initiative be popular and able to sustain.

Finding all their lies have been broken by fact, now according to Reuters’ report “G7 aims to raise $600 billion to counter China’s Belt and Road” on June 26, they now want to raise funds to compete with China’s BRI. We may ask why the US and EU did not provide funds for poor countries’ construction of infrastructures when China was much poorer than them. They now do not compete with China in win-win cooperation to benefit poor countries but want better geopolitical influence than China.

However, unlike China they do not have surplus funds for their infrastructure projects. As a result, unlike China they, whether government or private inverters, want quick decent return to their investment. As in the past 8 years, BRI has almost got all projects with quick or decent returns there are few projects left for the US and EU. Under such circumstances it is impossible for the US and EU to raise the funds they have promised. Even if they had been able to, they would not be able to find enough projects to compete with China.

Moreover, as they lack the political stability, they cannot be sure that their governments remain committed to the plan after any of their recent governments have not been reelected. The US, especially, cannot be sure the next administration will be led by Biden or another Democratic president to remain committed to the plan. In fact, even if the next president is a Democrat, there is no guarantee that he/she will keep on implementing Biden’s plan.

The fact now is that the US cannot fix or rebuild its own poor and dangerous old roads, railways, airports and bridges or transform its poor old power plants and grids that have often suffered outage for days due to severe storm.

Comment by Chan Kai Yee on Reuters’ report, full text of which can be viewed at https://www.reuters.com/world/refile-us-aims-raise-200-bln-part-g7-rival-chinas-belt-road-2022-06-26/.


US, EU Unable to Compete with China’s BRI


China’s Silk Road economic belt and 21st century Silk Road initiative (BRI) aims at having win-win cooperation with countries that need construction of infrastructures of roads, railways, power plants, etc. to facilitate their economic growth and connections with China for benefit from each other’s market. As a result both China and the country concerned have been benefited. It does not aim at enhancing China’s geopolitical influence but it may in fact enhance China’s geopolitical influence there.

That seems to worry not only the US but also EU. Their officials and media try to make BRI unpopular by the lies that BRI is China’s evil debt traps to control countries concerned with excessive debts that the borrowing countries are unable to repay. The lie they have kept repeated is China’s excessive loans to Sri Lanka for the construction of Hambantota port and thus forced Sri Lanka to repay the debt with the port. However, facts proved that a Chinese company paid about $1 billion for 85% of the shares in two Sri Lanka companies that have the right to operate the port.

Through years of efforts, BRI has become increasingly popular as its projects do have benefited both China and the countries concerned.

Finding all their lies have been broken by fact, now according to Reuters’ report “G7 aims to raise $600 billion to counter China’s Belt and Road” yesterday, they now want to raise funds to compete with China’s BRI. We may ask why the US and EU did not provide funds for poor countries’ construction of infrastructures when China was much poorer than them. They do not compete with China in win-win cooperation to benefit poor countries but want better geopolitical influence than China.

However, unlike China they do not have surplus funds for their infrastructure projects. As a result, unlike China they, whether government or private inverters want quick substantial return to their investment. As in the past 8 years, BRI has almost got all projects with quick or substantial returns there are few projects left for the US and EU. Under such circumstances it is impossible for the US and EU to raise the funds they have promised. Even if they had been able to, they would not be able to find enough projects to compete with China.

Moreover, as they lack the political stability, they cannot be sure that their government remain committed to the plan for five years. The US, especially, cannot be sure the next administration will be led by Biden or another Democratic president to remain committed to the plan. In fact, even if the next president is a Democrat, there is no guarantee that he/she will keep on implementing Biden’s plan.

The fact now is that the US cannot fix or rebuild its own poor and dangerous old roads, railways, airports and bridges or transform its poor old power plants and grids that have often suffered outage for days due to severe storm.

Comment by Chan Kai Yee on Reuters’ report, full text of which can be viewed at https://www.reuters.com/world/refile-us-aims-raise-200-bln-part-g7-rival-chinas-belt-road-2022-06-26/.


No US-China Competition in Pacific Island Nations


We say there is no competition in Pacific island nations as the US is simply not there. The facts are reflected in New York Times’ May-31 article “Why China Is Miles Ahead in a Pacific Race for Influence”.

The article begins by saying, “To many observers, the South Pacific today reveals what American decline looks like. Even as Washington tries to step up its game, it is still far behind, mistaking speeches for impact and interest for influence.”

The article reflects US neglect of the areas and describes US leaving to decay the airports, hospitals, etc. built by it there during World War II. For example, the US built Suva-Nausori Airport in 1942 but has not upgraded or even satisfactorily fixed it in the eight decades since then.

Poor America, it neglects those nations perhaps as it puts America first.

Comment by Chan Kai Yee on New York Times’ article, full text of which can be viewed at https://www.nytimes.com/2022/05/31/world/australia/china-united-states-pacific.html.


US Hegemonic Mindset and Lies


Time’s article “China’s Foreign Minister Wang Yi Is Visiting the South Pacific This Week. Here’s What’s at Stake” is a typical article with US hegemonic mindset. It says, “The U.S. has traditionally been the area’s major power, but China has been pursuing inroads,” so that China’s Foreign Minister Wang Yi’s visit of the South Pacific with a 20-person delegation this week is a display of Beijing’s growing military and diplomatic presence in the region.

Military? China is but extending its Belt & Road initiative (BRI) to the Pacific in order to set up a maritime silk road through the Pacific to the continents of America. BRI is an initiative seeking peaceful win-win cooperation with other countries. There is nothing military in it. However, with its hegemonic mindset that prioritizes military presence and strength, the US regards China’s BRI diplomacy as pursuit of military presence. However, for years China’s BRI projects are all peaceful projects of infrastructure construction.

Though irrelevant to the theme of US hegemonic mindset, since the article tells the lies that China’s BRI projects have caused the debt problems in Pakistan and Sri Lanka, we have to refute the lies and tell the truth that the debt issues have been caused by the two countries’ borrowing for other purposes and have nothing to do with China’s BRI projects there. China’s loans to Pakistan for the projects are long-term low-interest ones and can be repaid by the income from the projects when completed. As for Sri Lanka, the Chinese company concerned paid cash for shares in Sri Lanka’s companies that have the right to Hambantota port. The cash Sri Lanka got eased its debt burdens.

True, China needs to protect its trade lifelines through the Pacific but setting up military bases in other countries are an outdated way as few countries welcome others to set up military bases in them. The kicking away of US military bases in the Philippines, a long-term US allies, is a typical example.

Since the US is so particular about freedom of navigation, China shall set up floating islands protected by conventional aircraft carriers for both military purposes and civilian purposes of fishery, fish farming, exploitation of natural resources and tourism.

With its large shipbuilding capacity, China can build five floating islands accompanied with two carriers each within a decade.

The islands are cost efficient as they can bring income from fishing, resource exploitation and tourism.

China’s friendly ties with Pacific island nations will facilitate the establishment of floating artificial islands in the Pacific.

Moreover, China can help them develop fishery, fish farming and tourism. That is why China’s BRI is so attractive to them.

Comment by Chan Kai Yee on Time’s article, full text of which can be viewed at https://time.com/6181793/china-south-pacific-visit/.


US Debt Traps v. China’s BRI Win-Win Cooperation


As Pakistan is a poor country, the US controls it with financial aids but is unwilling to help it grow rich for fear that if Pakistan has become rich, the US will not be able to control it financially. Therefore, provision of funds and loans are US financial weapons to control those who have received funds and loans from it. Such loans are true debt traps. As such aids and loans are not aimed at improving borrowers’ economy, the US incurs costs in doing so; therefore, such funds and loans gradually become its heavy financial burdens.

With its Belt & Road initiative (BRI) China provides loans to help poor countries build infrastructures such as ports, railways and power plants. As the countries involved are poor and cannot afford the construction of the infrastructures, China provides them with loans and investment in the infrastructures. Such infrastructures, when completed, will enable the borrowers to make money from them and grow rich while China will be able to get repayment of the loans and returns to its investment.

As the US usually provides funds and loans to poor countries in order to control them, it believe China has similar goals in providing loans and investment for BRI projects. Therefore, the US has been making every efforts to spread the lies about China’s loans being debt traps.

However, facts have refuted the lies as when the BRI projects are completed, the borrowers of the loans do have been benefited. For example the China-Laos Railway. Laos is very poor and entirely lacks the funds for the construction of such an ambitious project. However, the railway is an important part of the Pan-Asian railway network Southeast Asian people have long dreamed of for better connection. Therefore it is a BRI project. In order to build the railway, China has provide 40-year long-term loan for 30% of the project at very low interest rate and made investment for 70% of the project. US and Western media spared no efforts to make people believe their lie that the railway is a debt trap but now the railway has been finished and opened to traffic. It enables Laos to increase export of its products and attract tourists through the railway and thus become much better off. China is able not only to get repayment of its loan and return to its investment but also increase its exports to Laos. That is the true meaning of win-win cooperation. It is what China can do now as it has become rich. The US is rich long before China does so that it has been able to do for a long time, but due to its intention to control others instead of help others become rich, it has made poor countries poorer.

That gives China the opportunity of win-win cooperation to make poor countries rich and itself richer. However will the US learn from China’s example to help poor countries become rich? No. The US pursues world hegemony so that it wants to control other countries while China pursues economic growth in order to be able to improve its people’s livelihood.

That is why China is rich while the US, though a much bigger economy than China, is hard up.

Article by Chan Kai Yee


GT Voice: CPEC to enhance Pakistan’s manufacturing industry


By Global Times

Published: Feb 07, 2022 07:48 PM

A view of the Gwadar port of Pakistan Photo: VCG

Top leaders of China and Pakistan reaffirmed their support for the high-quality development of the China-Pakistan Economic Corridor (CPEC), agreeing that CPEC has significantly contributed to Pakistan’s economic and social progress, according to a joint statement released by the two countries in Beijing on Sunday.

The CPEC construction went through an extraordinary year in 2021 as the COVID-19 pandemic posed great uncertainty to the economic development of most countries and regions around the world. Nevertheless, the economic and social cooperation between China and Pakistan, represented by the CPEC, has been advancing in an orderly manner, playing a significant role in supporting and ensuring Pakistan’s economic and social development.

Take textiles, one of Pakistan’s pillar industries, as an example. Despite the impact of the pandemic, the South Asian nation has registered a robust performance in its textile exports. During the second half of 2021, Pakistan’s textile and garment exports surged 26 percent year-on-year to reach $9.38 billion, according to the latest data from the Pakistan Bureau of Statistics.

The stronger export capacity in Pakistan’s textile industry is primarily due to its government’s enhanced efforts to attract foreign investment despite the pandemic. Moreover, increased investment Chinese textile companies made in Pakistan as well as the improved connectivity brought by the Belt and Road Initiative (BRI) construction have also contributed to the development of the local textile industry.

To a certain extent, the rapid development of Pakistan’s textile industry is a microcosm of China’s efforts to boost local economy and manufacturing through the CPEC.

For a long time, poor transportation conditions and energy shortage were the two major bottlenecks restricting Pakistan’s economic development and societal progress. The CPEC construction has greatly improved the transportation, power supply, road communication and other infrastructure along the BRI route.

Since 2015, the CPEC has directly created more than 75,000 jobs in Pakistan. In the meantime, China has also invested heavily in various projects in the country. It is conceivable that once the CPEC construction is fully completed, more investment will be drawn to the country, which will be greatly conducive to improving Pakistan’s manufacturing base.

By comparison, it is undeniable that India has a number of advantages to become a manufacturing power, but it also lacks some fundamental basis for long-term manufacturing development. Some of its most apparent weaknesses such as poor infrastructure, undereducated labor force and trade and investment protectionism will likely be a drag on the long-term growth of Indian manufacturing industry.

Of course, some may argue that there is still a considerable gap between India and Pakistan in terms of manufacturing strength, but with the improved BRI connectivity as well as the steadily growing investments by Chinese companies in Pakistan, the South Asian nation is well poised for a rapid facelift. And this could pose a new challenge for India as it is likely to face rising competition from Pakistan in sectors including auto parts and textiles in the near future.

Note: This is Global Times’ report I post here for readers’ information. It does not mean whether I agree or disagree with the report’s views.


Dragon At US’ Backyard: How China Plans To ‘Seize’ The Americas While Washington Gets Busy In Indo-Pacific


By Sakshi Tiwari- January 5, 2022

China has been on an economic and military expansion beyond Asia for a while now. The massive capital that it possesses has allowed it to make forays from Asia to Africa. The Chinese Belt and Road Initiative (BRI) has been one tool that Beijing has used to further its ambition of assuming the role of world power.

However, there is one region where the United States has enjoyed leverage against its arch-rival China despite the latter’s effort to expand its presence. However, China has now boosted its prospects in a big way.

China has signed a new agreement with Latin American and Caribbean leaders to strengthen relations across practically all aspects of life, in what one expert described as a scheme to ‘take over the region, according to the Daily Mail.

Beijing has agreed to supply the region with ‘civilian’ nuclear technology, to assist in the development of ‘peaceful’ space programs, to build 5G networks of the type that Washington fears will be used to spy on people, and to pump in cheaper loans and financing for “elaborate development plans”, as part of the agreement.

China has also promised to create schools and sponsor classes teaching the Chinese language and ‘culture,’ despite the fact that such institutions have been criticized in the past for spreading state propaganda and restricting academic independence.

It follows decades of Chinese investment and development in Latin America and the Caribbean, with hundreds of billions of dollars poured into the region to build critical infrastructure like ports, roads, and power plants in what many see as an attempt to buy power and influence in America’s backyard.

“It is absolutely ambitions for China to become the dominant influence in Latin America,” Mateo Haydar, a researcher at the Heritage Foundation said in response to the latest slew of deals.

Courtesy: Daily Mail

“The challenge is comprehensive, and there’s a security and military interest there. That threat is growing, and it’s a different kind of threat than what we saw with the Soviets,” he told the Washington Examiner.

Professor Evan Ellis, of the US Army War College, added, “The Chinese don’t say, We want to take over Latin America, but they clearly set out a multidimensional engagement strategy, which, if successful, would significantly expand their leverage and produce enormous intelligence concerns for the United States.”

Between 2005 and 2009, Chinese investment in all-new projects in Latin America increased from 4% to 6.8% over a five-year period ending in 2019, according to the database FDI markets. According to Jorge Heine, a former Chilean ambassador to China, Beijing began investing in Chile just five years ago and is now the South American country’s leading source of foreign cash, said a previous report of Voa News.

In 2017, China extended its Belt and Road Initiative (BRI) to Latin America and the Caribbean, signaling a growing interest in the region. Despite the fact that Latin America and the Caribbean were among the last regions to join the program, 19 of the 24 countries from these regions that recognize China have signed on as of 2021 in the hopes of attracting Chinese investment.

A Game-Changing Deal?

The agreement, formally known as the ‘Joint Action Plan for Cooperation in Key Areas,’ was signed last month by China and CELAC, an alliance of Latin American and Caribbean states, including major players like Brazil, Argentina, Colombia, Venezuela, Uruguay, and Chile, said the Daily Mail.

While lacking in specifics, it lays out a broad framework for China’s relations with the area through 2024, pledging them to strengthen links between governments, banks, businesses, and educational institutions.

Courtesy: Daily Mail

The majority of the commitments appear commonplace-pledges to protect the environment, develop green technology, and promote equality and sustainability, for example – but a few could give the Pentagon a cause for worry.

The first is a pledge to share nuclear technology and encourage “important practical projects”, such as scientists’ training, in order to “put into action the advantages given by nuclear technology and nuclear energy”.

The agreement stipulates that this will be ‘peaceful,’ and elsewhere commits the parties to achieve ‘nuclear disarmament’, yet the technology used to enrich nuclear fuel may be recycled to manufacture weapons-grade material for use in bombs.

In recent months, Washington has issued more frequent warnings about Chinese enterprises assisting the military, and it is likely to be concerned that any civilian nuclear firms that establish themselves in South America are being exploited for a dual purpose.

To put things into perspective, the Chinese government in recent years has implemented financial and technological incentives to stimulate nuclear power exports and propel its nuclear sector into other markets, including legislation that assists nuclear exports financially and technologically.

China’s nuclear business benefits from the same advantage that propelled Russia to global dominance: state ownership, which helps the country weather budget challenges, mitigate disastrous public damage, and provide security and diplomatic support, says a previous article of Atlantic Council.

Similarly, China’s commitment to assist in the development of space programs for the ‘peaceful exploration of space’ is certain to raise eyebrows.

Beijing has tried to pass off surveillance satellite launches as “communication” satellites in the past, and it recently refuted charges that it had tested a hypersonic orbital vehicle by claiming that it was actually a civilian spacecraft aimed for “peaceful exploration of space”.

There has been an intense space race going on between China and the United States with the former improving its capabilities and carrying out sophisticated test launches in the year gone by. Even Russia is collaborating with China for its launches. Now, the Chinese space cooperation with countries that the US considers its backyard could cause further friction.

The agreement also promises more cooperation in the areas of “digital infrastructure, telecommunications equipment and 5G”.

Since it became clear that Beijing was edging ahead in the race to develop the world’s new communication networks, the US has been embroiled in a proxy war with China over the rollout of 5G technology.

Former US Secretary of State Mike Pompeo lobbied hard in the final years of Trump’s presidency to persuade western nations and US allies to abandon the technology, saying that it might be used to spy on users.

The US has since made sure that its allies ban China from 5G trials and has itself sanctioned the Chinese telecom giant Huawei that it considers to have links with the Chinese military.

It has also had diplomatic tensions with countries like the UAE that have refused to sanction the company and have essentially given an entry to China for cooperation on 5G, a precedent that it considers detrimental to its security and that of its allies. Thus, this is another potential area of concern for the US.

China and Latin American countries have also agreed to establish direct military cooperation, reportedly to combat terrorism and dismantle organized criminal networks.

In dealing with the dangers, the two sides stated that they will share knowledge, policies, technology, and experiences, implying some level of collaboration and intelligence sharing between their troops and police forces.

The presence of Chinese troops so close to home in any capacity could be one area that America draws the red lines. It is also indicative of the reverse action on the Chinese part. Like the US has a presence in the Asia-Pacific in the Chinese neighborhood, China seems to be expanding near the United States.

Other pledges appear to be a continuation of infrastructure projects already underway in the region, many of which are being built as part of China’s multibillion-dollar Belt and Road Initiative.

Deepening trade and financial connections, including investment and financing for “elaborate development plans”, and assisting with the “transition to green energy” by constructing new power plants are among them.

China has also offered assistance with oil, gas, and mining development, claiming that green initiatives will take precedence over fossil fuels.

Even though Latin America and the Caribbean region have traditionally been the bastions of the United States, China has been making swift inroads into the region with its massive economic capital and Xi Jinping’s flagship project, BRI.

File Image: Chinese Space Station

Of late, many countries in the region that were earlier averse to China have warmed up to it seeking trade, investment and the aid that the Chinese are capable of providing. This has certainly made the region another area of intense rivalry between the US and China.

However, the United States has begun to retaliate. Biden dispatched diplomatic teams to South America in September last year with the goal of expanding his ‘Build Back Better’ project, which originated as a plan to reconstruct the US after the Covid-19 pandemic.

The ‘listening tours’ were intended to find projects in which the United States could participate, thereby outperforming China with higher-quality products and a better track record of delivery.

So the contest between the two mega powers is expected to grow in the face of China’s ambitious expansion and the American push-back in the face of it. This brings the role of the Latin American and Caribbean states at the forefront.

Source: EurAsian Times “Dragon At US’ Backyard: How China Plans To ‘Seize’ The Americas While Washington Gets Busy In Indo-Pacific”

Note: This is EurAsian Times’ article I post here for readers’ information. It does not mean whether I agree or disagree with the article’s views.


B3W, a Wonderful Idea to Deal with China’s Belt and Road


China conducts win-win cooperation with developing countries in building infrastructures under its Belt and Road initiative (BRI) not for geopolitical influence but for facilitating its investment and expanding its market there.

Now the US tries to start its Build Back Better World (B3W) initiative to counter China’s BRI but lacks the funds for it. It wants to draw in private capital for the initiative. But private capital usually focuses on making profits while developing countries fail to build the infrastructures they need because they lack funds and are unable to attract private investment as the infrastructures are unable or slow to bring satisfactory return to the investment.

First, how can such infrastructures attract US and European private capital in the first place?

Second, geopolitical influence is not determined merely by investment as it is well-known that investment, especially private one, aims making profit. If the investment is made fore beneficial purposes; therefore, even if the investment is profitable, the receiving parties may be upset as they believe that they have been exploited.

BRI does not pursue profit. It is successful if its investment facilitates the development of receiving parties even though the capital invested cannot be recovered. When the receiving countries have developed their economies, China will have more investment opportunities there and its market there will be expanded as the receiving countries have become richer through the development of infrastructures.

The US does not produce cheap goods for those poor countries; therefore, its success in building infrastructures there will expand China’s market when the receiving countries have become richer through the investment. China is clever to open its BRI to other countries because in the final analysis, China will be benefited by the infrastructure built by others.

B3W’s investment in developing countries’ infrastructures will provide investment opportunities and expand market for China. China does not care whether the investing countries will enhance their geopolitical influence there. US private capital has made lots of investment in China, including in infrastructure, but has the US enhanced its geopolitical influence in China?

B3W is a wonderful idea to benefit China.

Article by Chan Kai Yee


Asia has wary welcome for G7′s answer to Belt and Road


Aradhana Aravindan, Bernadette Christina

June 17, 2021 3:17 PM HKT Last Updated 2 hours ago

JAKARTA/SINGAPORE, June 17 (Reuters) – A plan by the Group of Seven nations to counter Beijing’s Belt and Road Initiative has been welcomed by countries in China’s immediate orbit of influence but will need to overcome doubts about Western commitment to emerging market projects.

The Build Back Better World initiative, or (B3W), was promoted at last week’s G7 summit in the UK but remains light on details and is not expected to become a reality for some years.

The push, however, is seen as a challenge by the world’s richest democracies to China’s growing influence in developing economies, using infrastructure investment.

While Asian governments say they are open to working with developed nations to meet their growing infrastructure needs, a challenge for B3W will be matching the speed at which China has been able to engage developing economies in the region.

Choi Shing Kwok, director of the ISEAS-Yusof Ishak Institute in Singapore, said Southeast Asian nations are wary of overdependence on China, creating a potential opening for B3W when it eventually arrives.

At the same time, B3W’s multilateral nature would make it a more complex and potentially slower moving initiative than BRI.

“Southeast Asian countries that have hosted BRI projects, they often did so because of the ease with which such deals have been struck in the past,” Choi said. “It isn’t because of any ideological or geopolitical reasons.”

The B3W plan involves the G7 and its allies using the initiative to mobilise private-sector capital in areas such as climate, health and health security, digital technology, and gender equity and equality.

Indonesian Deputy Foreign Minister Mahendra Siregar told Reuters the country has several projects that would be open to co-investment and was ready to intensify engagement with developed nations.

However, the country’s co-ordinating ministry for maritime affairs and investment, Indonesia’s main point of contact for BRI projects, said developed nations would need to shake off their past reluctance to commit to local development.

“We welcome the (B3W) initiative, but of course we hope this time they put their money where their mouth is,” Jodi Mahardi, a spokesperson for the ministry, told Reuters.

While China is among Indonesia’s biggest investors, the country has mostly opted for Chinese finance delivered on a business-to-business basis, rather than state-backed investment or through BRI initiatives.

The most high profile BRI project in Southeast Asia’s largest economy is the Jakarta-Bandung high speed railway that is facing cost overruns.

More than 100 countries have signed agreements with China to cooperate in more than 2,600 BRI projects worth $3.7 trillion, according to a Refinitiv database.

INVESTMENT NOT POLITICS

Beijing said last year that about 20% of BRI projects had been affected by the pandemic. China has also scaled back some plans after several countries sought to review, cancel or reduce commitments, citing concerns over costs, erosion of sovereignty, and corruption.

But despite international concerns about China’s growing influence, analysts and policymakers expect Asia’s long-term development needs to trump politics.

The Asian Development Bank in 2017 estimated developing economies in the region would need to spend $1.7 trillion a year on infrastructure through to 2030 to sustain growth.

Philippines Economic Planning Secretary Karl Chua said his country remained open to engaging a range of partners that have good infrastructure experience, including Japan, China, South Korea, Europe and the United States.

“The fact is we have a big gap in infrastructure which we have started to fill up vigorously in the past five years and we will continue to do so,” Chua said.

A Bangladeshi foreign ministry official, speaking on condition of anonymity, told Reuters Dhaka remained committed to its BRI partnerships.

Roland Rajah, an economist at the Sydney-based Lowy Institute think-tank, said while countries would in most cases be able to choose between Chinese or Western support without major political repercussions, certain sectors could be more problematic.

“For sensitive infrastructure such as telecoms and strategically located ports, however, it will continue to be either/or and they’ll be under pressure to make the ‘right’ choice.”

Additional reporting by Ruma Paul in Dhaka, Gayatri Suroyo in Jakarta and Karen Lema in Manila; Writing by Sam Holmes; Editing by Kim Coghill

Note: This is Reuters’ report I post here for readers’ information. It does not mean whether I agree or disagree with the report’s views.