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Beijing Agrees to Operate a Key Port, Pakistan Says
BEIJING—Pakistan’s defense minister said China has agreed to take over operation of the strategically positioned but underused port of Gwadar, and that Islamabad would like the Chinese to build a base there for the Pakistani navy.
Ahmad Mukhtar gave no clear timetable on the possible change at Gwadar, on Pakistan’s western coast, which is currently managed by a Singaporean government company. But his statement Saturday is the latest illustration of how Pakistan is portraying China as a powerful alternative ally and aid source if the U.S. scales down military assistance for Islamabad in the aftermath of Osama bin Laden’s killing.
China is eager to expand its influence in Pakistan over the long term, but is wary of the country’s chronic instability, which was highlighted late Sunday when a Pakistani naval base was attacked in the western port of Karachi, about 300 miles southeast of Gwadar.
Mr. Mukhtar made the announcement after accompanying Prime Minister Yusuf Raza Gilani on a visit to China last week. During that visit, Pakistani officials say, Beijing agreed to expedite delivery of a second batch of 50 jointly developed JF-17 fighter jets to Pakistan, possibly within six months.
The fighter agreement prompted India’s defense minister, A.K. Antony, to express serious concern in a meeting with reporters late Friday about the growing defense ties between China and Pakistan, and to assert that India’s only possible response was to build up its own military arsenal.
Attempts on Sunday to contact Mr. Antony and other Indian officials for comment about Gwadar were unsuccessful. In the past, Indian officials have expressed concern Read more…
China to expedite delivery of 50 fighter jets to Pakistan: WSJ
Pakistan’s Prime Minister Yusuf Raza Gilani (L) speaks to China’s Premier Wen Jiabao after a singing ceremony at the Great Hall of the People in Beijing, May 18, 2011.
Credit: Reuters/Jason Lee
Pakistan’s already strained ties with its ally and major donor were battered after U.S. forces on May 2 killed al Qaeda leader Osama bin Laden in a garrison town near Islamabad.
The fact that bin Laden was found in Abbottabad, and had been living there for years, has prompted many in Washington to call for a review of the billions of U.S. civilian and military aid that Read more…
China Central Bank: New IMF Leadership Should Reflect New World Order
There’s a funny thing about the New World Order: it eventually gets too big and bites the hand the feeds it. Enter the PBoC: “The new IMF leadership needs to reflect changes in the world economic order and be more representative of emerging market economies, Chinese central bank governor Zhou Xiaochuan said Thursday in his first public comments since the arrest of Dominique Strauss-Kahn. “The senior management team of the IMF should better reflect changes in world economic patterns and should be more representative of emerging market economies.” Translation – no more European of American cronies. It is also probably safe to say that Lagarde’s odds of pulling the white smoke out of the conclave bag have just plunged. It is also safe to say that with China now unofficially Europe’s backstopper (and there were those wondering why China is buying all those Spanish and Portuguese bonds), what China wants, China gets.
From Market News:
Zhou also said he regretted Strauss-Kahn’s decision to resign as the Managing Director of IMF.
“The current world economy is recovering slowly from the financial crisis and the European sovereign debt crisis is at a key stage. A powerful IMF support is needed to overcome current difficulties facing Europe and ensure world economic developments are on a robust, sustainable and balanced track,” Zhou added.
German Chancellor Angela Merkel reiterated earlier today that the next head of the International Monetary Fund should be a European again.
And so the stage is set for the next big geopolitical theater: Germany vs China over the largely symbolic issue of who gets to scare the Sofitel maids next.
China acknowledges Three Gorges dam ‘problems’
The Three Gorges is the world’s largest damChina has admitted that the Three Gorges Dam has created a range of major problems that need solving quickly.
Top leaders say the project has led to environmental problems and issues involving relocating 1.3m people.
The Three Gorges is the world’s largest dam and could have cost up to $40bn. This appears to be the first time that central government leaders have admitted to problems with the project.
The admission came in a statement from top government body, the State Council.
The statement initially praised the scheme’s achievements, saying it had helped alleviate flooding, improve navigation and generate electricity.
But it went on: “There are urgent problems that need to be addressed, such as stabilising and improving living conditions for relocated people, protecting the environment, and preventing geological disasters.”
‘Catastrophe’
China’s revolutionary leader Mao Zedong dreamed of building the Three Gorges Dam. Construction started in 1994.
Pakistan’s Gilani visits ally Beijing amid US rift
BEIJING (AP) — Pakistani Prime Minister Yousuf Raza Gilani begins a visit to Beijing on Tuesday with old ally China looking more attractive after the U.S. killing of Osama bin Laden further strained Islamabad’s ties with Washington.
The sentiment is mutual, with China now in the process of shoring up its relations with Islamabad, Afghanistan and several other Central Asia states in step with an expected diminished U.S. presence as it winds down military operations in Afghanistan.
For Pakistan, Beijing represents an uncritical friend ready to provide aid, investment and military assistance. To the leaders in Beijing, ties with Pakistan and other countries in its neighborhood offer a bigger diplomatic footprint, better access to resources and a larger stable of allies to challenge U.S. supremacy.
Although Gilani’s four-day visit starting Tuesday was planned well in advance, it comes at a critical time for his country’s relations with the U.S., which have been thrown into crisis over the American raid that killed bin Laden in the northern Pakistani city of Abbottabad on May 2. Pakistan has called it a violation of its sovereignty and threatened to retaliate if there are any similar operations in future.
While American politicians served up withering criticisms over Pakistan’s failure to find bin Laden’s hide-out – or the possibility that officials were protecting him – China offered welcome Read more…
Chinese space plans cause military jitters
China has announced plans to put its own space station in orbit by 2020. The 60-tonne construction will be one-seventh the weight of the ISS and will focus on scientific experiments. However, military involvement with the project is causing concern.
Beijing’s Space City research center is opening its doors to the media, as China has announced its intention to build a rival to the International Space Station.
While some see Chinese advances in space travel as a potential threat, the country’s officials are keen to stress the spirit of co-operation, which they say is behind China’s space program.
“We are looking forward to co-operating with other countries in the field of space exploration,” said Yang Liwei, Vice Director of Manned Space Engineering Bureau. “We are also looking forward to having more countries join this club, so we can promote the common goals of mankind.”
For the moment though, the Chinese space program is doing very well on its own.
Since becoming only the third country in the world to send a person in to space, in 2003, the Chinese also carried out a space walk in 2008 and the Read more…
China’s Yangtze river closed to ships by severe drought
The Yangtze river, the longest waterway in Asia and China’s most important shipping route, has been closed by the worst drought in 50 years that has left cargo ships stranded and 400,000 people without drinking water.
Water-levels have sunk as low as 10ft in the main thoroughfare of the 3,900-mile long river that stretches from the glaciers of the Tibetan plateau to the coastal city of Shanghai.
The Yangtze river basin is home to one-third of China’s population and is responsible for 40 per cent of the country’s economic growth.
Emergency teams have been sent to the river’s middle reaches around Wuhan in the central province of Hubei, to rescue two ships Read more…
Is our debt to China a national security risk?
China is the largest foreign holder of U.S. debt (with estimated holdings of $1.16 trillion) — and, according to a newly proposed U.S. military spending bill, this constitutes a national security concern for America.
The 2012 Defense Authorization Bill proposed Monday by Rep. Howard McKeon, the California Republican who chairs the House Armed Services Committee, includes a section on China. Why would China feature in a 2012 military budget? The answer is leverage. As the AFP noted, the question the bill poses is whether “Beijing could draw a military advantage from its status as a major U.S. creditor.”
There is some precedent for this concern. In early 2010, as Reuters reported, senior Chinese military officials urged that China sell some U.S. government bonds as a punishment of sorts for Washington having sold arms to Taiwan (although the threat was not Read more…
China’s yuan at record ahead of Washington talks
HONG KONG (MarketWatch) — China’s yuan rose to a fresh record against the U.S. dollar on Monday, edging up a fraction from its close in the previous trading session ahead of senior-level talks between Chinese and U.S. officials, slated for later Monday in Washington. China’s central bank set the official central parity rate for the U.S. dollar at 6.4988 yuan, compared to Friday’s setting of 6.5003 yuan. The level represented a record high against the dollar, according to the state-run Xinhua news agency. The U.S. dollar dropped below the 6.50-level for the first time on April 29, and was at 6.4955 around midday in East Asia on Monday, according to FactSet data.
Russian resources fuel China’s economic growth
China has increased high tech exports to Russia 300% in the past five years, while its imports from Russia are dominated by commodities, the Economic Development Ministry said.
China accounted for the bulk of Russia’s bilateral trade, which reached $60 billion in 2010. Russia has increased equipment exports by only 30% since 2005, according to a ministry report on economic relations with China.
No government documents pertaining to Russia’s relations with economic partners are ever published. There is a confidential part to Russia’s foreign economic strategy through 2020, which gives a detailed description of goals and risks related to contacts with each of Russia’s economic partners. Based on this strategy, two years ago the Economic Development Ministry worked out very specific country plans through 2012.
The 2010 report on the China plan progress is addressed to Deputy Prime Minister Alexander Zhukov, who chairs the Russian-Chinese Commission.
In 2009 Zhukov said shortly before Prime Minister Vladimir Putin’s visit to China: “Unfortunately, the share of machinery and equipment in our exports to China is sparse. Our plan is to increase exports of products with a high level of processing.”
However, the ministry report indicates that the progress has been unimpressive so far. Russia’s imports from China are $19bn Read more…
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