China, Russia, Mongolia ink economic corridor plan – Xinhua


China, Russia and Mongolia signed a development plan on Thursday to build an economic corridor that will boost transport links and economic cooperation among the three neighbours, the official Xinhua news agency reported.

The plan comes after Chinese President Xi Jinping said Chinese companies invested nearly $15 billion in countries participating in Beijing’s new Silk Road initiative last year, up one-fifth from 2014.

The plan was signed by Xi, Russian President Vladimir Putin and Mongolian President Tsakhiagiin Elbegdorj in the Uzbekistan capital of Tashkent.

Xi called on the three countries to build the economic corridor, strengthen cooperation in transportation infrastructure connectivity, port construction, industrial capacity, investment, trade and economy, cultural exchanges and environmental protection in an effort to expedite results, Xinhua said late Thursday.

“We three sides should actively engage in the discussion of building cross-border economic cooperation zones, enhance industrial tie-in, boost sub-regional cooperation in our adjacent areas, and promote the common development of our adjacent areas,” Xinhua reported Xi saying.

(Reporting by Engen Tham; Editing by Sam Holmes)

Source: Reuters “China, Russia, Mongolia ink economic corridor plan – Xinhua”


Chinese, Polish presidents highlight improved railway links


Polish President Andrzej Duda and visiting Chinese President Xi Jinping attending the ceremony at Warsaw of the arrival of the first China-Europe regular container train with unified brand

Polish President Andrzej Duda and visiting Chinese President Xi Jinping attending the ceremony at Warsaw of the arrival of the first China-Europe regular container train with unified brand

WARSAW, June 20, 2016 (Xinhua) — Combo photo shows Chinese President Xi Jinping and his Polish counterpart, Andrzej Duda (R), waving towards the first CHINA RAILWAY Express freight train as it arrives at the platform in Warsaw, Poland, on June 20, 2016. (Xinhua/Xie Huanchi, Lan Hongguang)

WARSAW, June 20 (Xinhua) — Chinese President Xi Jinping and his Polish counterpart, Andrzej Duda, on Monday attended an arrival ceremony of a CHINA RAILWAY Express freight train, which signaled increasing railway links between the two countries.

The freight train carrying dozens of containers pulled into a cargo terminal in the Polish capital on Monday afternoon after travelling over 12 days from China.

Xi and Duda congratulated each other on the historic moment for the arrival of the first China-Europe freight train under the family brand CHINA RAILWAY Express.

The trans-continent train service began in 2011 before starting to use the family brand earlier this month. At present, there are 39 cargo train routes connecting the two continents of Eurasia.

Xi, who is on a state visit to Poland, has said he expects that cooperation projects like the China-Europe freight train service could play a pilot role in promoting the construction of the Belt and Road and China-Poland cooperation in inter-connectivity and industrial capacity.

“The great Belt and Road Initiative fully complies with Poland’s development strategy of transportation and trade, and plays a pivotal role in cementing bilateral ties,” said Polish Infrastructure Minister Andrzej Adamczyk at the arrival ceremony.

Proposed by Xi in 2013, the Belt and Road Initiative refers to the Silk Road Economic Belt that links China with Europe through Central and Western Asia by inland routes and the 21st Century Maritime Silk Road connecting China with other Asian countries, Africa and Europe by sea routes.

Source: Xinhua “Chinese, Polish presidents highlight improved railway links”


Cooperation with China, Russia’s Priority: Russian Foreign Minister


Russian Foreign Minister Lavrov

Russian Foreign Minister Lavrov

Mil.eastday.com says in its report late May that according to Russian Sputnik news, when Russian Foreign Minister Sergey Viktorovich Lavrov met his Chinese counterpart Wang YI, he said, “We believe development of cooperation with the People’s Republic of China is our country’s important diplomatic priority.”

He pointed out that China was Russia’s important trade partner. China and Russia have consensus in which measures to adopt to further facilitate improvement of the quality of their economic and trade cooperation. In addition, the two countries’ coordination in international affairs is playing increasingly great role in world politics. Now, the two countries see the direction of their cooperation with good prospects, which, he means, is the beginning of the dialogues for linking up Eurasian Economic Union and China’s Silk Road economic belt.

Source: mil.eastday.com “Russian foreign minister: Development of cooperation with China is Russia’s key priority” (summary by Chan Kai Yee based on the report in Chinese)


China’s World Biggest Oil Import Problems


A super oil tanker. credit: FRANS CASPERS/Flickr

A super oil tanker. credit: FRANS CASPERS/Flickr

Foreign Policy publishes Keith Johnson’s article titled “China Tops U.S. as Biggest Oil Importer” on May 11 that points out with insight China’s reliance on supply of oil from the Middle East, which makes it vulnerable to regional instability there and worry about the security of its oil transport through the sea.

Mr. Johnson knows well that the problem has long existed and made Chinese President Xi Jinping’s predecessor Hu Jintao worry over it.

He says in the article, “Former Chinese President Hu Jintao first fully articulated in 2003 what has become known as the ‘Malacca Dilemma’ That laid out Chinese fears that some unnamed power — such as the United States — could use its dominance at sea to blockade the narrow-but-critical sea lane in the Strait of Malacca near Singapore, through which about three-quarters of Chinese oil imports pass.”

In 2003 when China was far from the no. one ranking in oil import, Chinese leader worried over the problem; therefore, what matters is not the no. one position but the importance of the import for China, the amount of import and the availability of secure alternative supply and transport route. The number one ranking is but the factor that makes the issue sensational.

Judging by security of supply and transport, neither Africa nor Latin America is good oil source. The problems China encounters in South Sudan and the worrisome political situation in Venezuela prove that.

Even if the situation in Africa and South America were stable, the problem of shipping route security would remain.

True, Hu Jintao began to build up a navy strong enough to deal with China’s neighbors in maritime territorial disputes, but it takes decades for Chinese navy to become a match to US navy so as to be able to defend its oil shipping lifelines.

Xi is wise to launch his Silk Road economic belt and 21st century maritime Silk Road (One Belt And One Road) initiatives for secure alternative energy sources in and transport route by land from Russia and Central Asia.

The best part of the initiatives is his China-Pakistan economic corridor through which the route on land through Pakistan, China’s all-weather friend, will be connected to the sea route along Iranian coast where the US navy has to be defensive instead of offensive if Iran gets coast-based anti-ship weapons from Russia and China.

If as proposed by Iran, oil and gas pipelines are built to connect those in Pakistan to send oil and gas to China’s Xinjiang and hopefully to connect those to be built in Iraq, then the security of oil and gas supply and transport for China will be ensured.

The article quotes Bruce Jones, director of the Foreign Policy program at the Brookings Institution and author of The Risk Pivot as saying “China will remain heavily dependent on Middle Eastern oil and gas for 30 or 40 years at least.” Even if Bruce Jones’ prediction proves true in the future, China will be able to depend on the oil and gas from Iran, a quite stable democracy in the Middle East.

The chaos in Iraq and Syria will perhaps be the past when the pipelines in Iran have been built. A relatively stable political situation may emerge there. Even if it does not emerge, the route to China for Iranian oil is safer than other routes and Iran has big enough oil and gas reserves to satisfy China’s demand.

Such pipelines will only take years to build.

As a result, China needs not “ramp up its diplomatic and military engagement” in Africa, the Indian Ocean or the broader Middle East, nor can the United States “escape that morass” or “complete its own pivot to Asia”. “(T)hat might not be such” welcome news for the US.

Source: Foreign Policy “China Tops U.S. as Biggest Oil Importer”

Full text of the Foreign Policy article can be viewed at http://foreignpolicy.com/2015/05/11/china-tops-u-s-as-biggest-oil-importer-middle-east-opec-sloc/?utm_source=Sailthru&utm_medium=email&utm_term=%2AEditors%20Picks&utm_campaign=2015_EditorsPicks_German_EmbassyRS5%2F11


China Finds Solution for Its Problems but US Doesn’t


Chinese economy is slowing down though there have not yet been problems of unemployment or financial shortage. US economy has begun a real recovery from doldrums, but is unable to achieve an economic growth rate comparable to China’s slow growth rate now.

In addition to further economic reforms, China’s leader Xi Jinping finds two new ways for further economic growth to resolve China’s problem of economic slowdown: the Free Trade Area Asian Pacific (FTAAP) and the Silk Road economic belt and the 21st century maritime Silk Road (One Belt And One Road).

US leader, however, has found no solution for US economic problems. US President Obama’s Trans-Pacific Partnership (TPP) is quite a good initiative, but he is unable to make it a win-win partnership as he is unable to obtain Congress approval even if he is willing to make the concessions potential members aspire for.

What the US has been trying hard is but to hinder China’s FTAAP and One Belt And One Road but hitherto without success. APEC members showed their great interest in FTAPP in spite of US opposition. China has instead succeeded in its efforts to set up free trade areas with South Korea and Australia on the background of APEC summit last year.

The One Belt And One Road is the most important part of China’s initiatives of economic expansion abroad. Learning from the lessons of the failures of Western colonialism and the successes of overseas Chinese in Southeast Asia, China stresses win-win cooperation and harmony in such expansion by the provision of funds, equipment and technology to help the countries involved develop and prosper.

In that way, Xi finds an outlet for China’s surplus funds and industrial capacities and goods and sources of abundant energy and other natural resources from other countries. The poor countries and regions along the proposed Silk Roads will provide huge markets for Chinese goods when they have prospered with Chinese assistance while China will also open its huge market to those countries to get cheap goods from them.

That is the win-win prospects that attract them.

It has already been proved by China’s success in its establishment of a free trade area with ASEAN (FTA). The trade between China and ASEAN has shot up in the very short period since the establishment of the FTA.

Obama simply has no way to Counter Xi’s initiatives. US failure in its attempt to prevent its allies from joining the Asian Infrastructure Investment Bank (AIIB) initiated by China showed how helpless the US was.

US Defense News publishes an article on China’s One Belt And One Road strategy and admits that it is entirely an economic strategy. However, it seems US experts do not worry that the strategy will enable China to surpass the US economically sooner but focus on the indirect military consequence of the strategy. It reflects US military mentality.

Like Obama, they believe that as long as the US remains the strongest militarily, the US will keep its world leadership. They forget that military strength is based on economic strength. When China has surpassed the US in economy, it is not difficult for China to surpass the US in military strength, especially when China is able to allocate more funds and invest more wisely in developing its military.

China has now achieved its strategic goal of acquiring the capabilities of wiping out US force near its coast. US experts admit that.

For example, American military expert Dave Majumdar says in his article “Nuclear Submarines: America’s New Aircraft Carriers?” on US National Interest magazine’s website, “Instead of being able to push in close to shore during the initial stages of a major war, the Navy’s multi-billion dollar floating airfields and their escorting warships might be forced to maintain station as far as a thousand nautical miles offshore to remain outside the range of enemy attack. Further compounding the problem is the fact that the current carrier air wing does not have the necessary reach or ability to penetrate into ever more capable enemy air defenses. Even the belated introduction of the Lockheed Martin F-35C Joint Strike Fighter around 2019 will not solve that problem.”

He suggested using US attack nuclear submarines to attack Chinese homeland with cruise missiles (refer to my post “US Homeland in Danger of China’s Nuke Subs’ Conventional Attack” on April 12).

Therefore, I point out in my book that it is the end of aircraft carrier era now. The US needs carriers as it wants to dominate the oceans. China, however, has no ambition to dominate the oceans. It only wants to protect its trade lifelines; therefore, I believe that China had better build less especially no nuclear aircraft carriers.

As pointed out in my book Space Era Strategy: The Way China Beats The U.S., China now has the capabilities to wipe out US aircraft carrier battle groups near its cost. What it fears is that its trade lifelines may be cut by US navy that dominates the oceans.

China’s strategy now is to develop the integrated space and air capabilities for both attack and defense to prevent its trade lifelines from being cut by US navy.

I said in my book developing aerospace bomber capable to destroy an aircraft carrier battle group in minutes will be a faster and cheaper way than developing enough aircraft carriers to counter US superiority in aircraft carriers.

Even the training of a large number of pilots for carrier-based aircrafts is difficult enough.

However, China is building its homegrown aircraft carriers due to Obama’s stupid strategy of transfer 60% of US military to Asia near Chinese coast.

If 60% of US navy is wiped out by China’s land-based missiles, aircrafts and navy, the 40% US navy left will have difficulty in cutting China’s trade lifelines when China has only built four aircraft carrier battle groups.

On the other hand, if the US maintains all instead of 40% of its aircraft carrier battle groups at high sea, China has to have at least 10 aircraft carrier battle groups to defend its trade lifelines. That will require much greater investment and it is not impossible to train such a large number of pilots in the foreseeable future.

Since US military strategists like Mr. Majardar are so fond of attacking Chinese homeland, I have to point out another scenario that they have never dreamed of: When the remnant 40% US navy is busy cutting Chinese trade lifelines at high sea, as an alternative strategy, instead of sanding Chinese navy to deal with US navy, Chinese attack submarines will conduct conventional attack at US homeland to destroy major US assets. They will be followed by the air raids by aircrafts from China’s four aircraft carriers.

As US military has been obsessed in invading other countries without making preparations for other countries’ attack at US homeland, the US will suffer bitterly from Chinese troops surprise attack.

That is the strategy to attack where the enemy is weak, a military common sense.

Those US experts may argue that China has no such strength now. However, when China has achieved the strategic goal of establishing the capabilities to defend its trade lifelines, it will strive for the next strategic goal of acquiring the capabilities of counterattack at enemy’s homeland when its enemy attacks China’s homeland.

If China has surpassed the US in economy, China will have the financial resources for developing enough navy and airborne troops for counterattack at US homeland. As China has no ambition of world dominance, it can concentrate its resourced on the development of such counterattack capabilities.

The US, however, has to concentrate its resources on maintaining world dominance so that it cannot allocate as much resources for its homeland defense as China does for counterattack at US homeland.

If China persists in its peaceful rise, such development will be the best for China as it will have the deterrence to prevent both nuclear and conventional attack at its homeland.

Source: Chan Kai Yee Space Era Strategy: The Way China Defeats The U.S.

Source: Defense News “China’s ‘One Belt, One Road’ Strategy”

Full text of the Defense News article can be found at http://www.defensenews.com/story/defense/2015/04/11/taiwan-china-one-belt-one-road-strategy/25353561/