China's 'Silk Road' project runs into debt jam

Agencies
September 2, 2018

Beijing, Sept 2: China's massive and expanding "Belt and Road" trade infrastructure project is running into speed bumps as some countries begin to grumble about being buried under Chinese debt.

First announced in 2013 by President Xi Jinping, the initiative also known as the "new Silk Road" envisions the construction of railways, roads and ports across the globe, with Beijing providing billions of dollars in loans to many countries.

Five years on, Xi has found himself defending his treasured idea as concerns grow that China is setting up debt traps in countries which may lack the means to pay back the Asian giant.

"It is not a China club," Xi said in a speech on Monday to mark the project's anniversary, describing Belt and Road as an "open and inclusive" project.

Xi said China's trade with Belt and Road countries had exceeded $5 trillion, with outward direct investment surpassing $60 billion.

But some are starting to wonder if it is worth the cost.

During a visit to Beijing in August, Malaysia's Prime Minister Mahathir Mohamad said his country would shelve three China-backed projects, including a $20 billion railway.

The party of Pakistan's new prime minister, Imran Khan, has vowed more transparency amid fears about the country's ability to repay Chinese loans related to the multi-billion-dollar China-Pakistan Economic Corridor.

Meanwhile, the exiled leader of the opposition in the Maldives, Mohamed Nasheed, has said China's actions in the Indian Ocean archipelago amounted to a "land grab" and "colonialism", with 80% of its debt held by Beijing.

Sri Lanka has already paid a heavy price for being highly indebted to China.

Last year, the island nation had to grant a 99-year lease on a strategic port to Beijing over its inability to repay loans for the $1.4-billion project.

"China does not have a very competent international bureaucracy in foreign aid, in expansion of soft power," Anne Stevenson-Yang, co-founder and research director at J Capital Research, told.

"So not surprisingly they're not very good at it, and it brought up political issues like Malaysia that nobody anticipated," she said.

"As the RMB (yuan) becomes weaker, and China is perceived internationally as a more ambiguous partner, it's more likely that the countries will take a more jaundiced eye on these projects."

The huge endeavour brings much-needed infrastructure improvements to developing countries while giving China destinations to unload its industrial overcapacity and facilities to stock up on raw materials.

But a study by the Center for Global Development, a US think-tank, found "serious concerns" about the sustainability of the sovereign debt in eight countries receiving Silk Road funds.

Those were Pakistan, Djibouti, Maldives, Mongolia, Laos, Montenegro, Tajikistan and Kyrgyzstan.

The cost of a China-Laos railway project -- $6.7 billion -- represents almost half of the Southeast Asian country's GDP, according to the study.

In Djibouti, the IMF has warned that the Horn of Africa country faces a "high risk of debt distress" as its public debt jumped from 50%of GDP in 2014 to 85% in 2016.

Africa has long embraced Chinese investment, helping make Beijing the continent's largest trading partner for the past decade.

On Monday, a number of African leaders will gather in Beijing for a summit focused on economic ties which will include talks on the "Belt and Road" programme.

China bristles at criticism

At a daily press briefing on Friday, foreign ministry spokeswoman Hua Chunying denied that Beijing was saddling its partners with onerous debt, saying that its loans to Sri Lanka and Pakistan were only a small part of those countries' overall foreign debt.

"It's unreasonable that money coming out of Western countries is praised as good and sweet while coming out of China it's sinister and a trap," she said.

Stevenson-Yang said China's loans are quoted in dollar terms, "but in reality, they're lending in terms of tractors, shipments of coal, engineering services and things like that, and they ask for repayment in hard currency."

Standard & Poor's said Beijing structures the infrastructure projects as long-term concessions, with a Chinese firm operating the facility for a period of 20 to 30 years while splitting the proceeds with the local counterpart or government.

The head of the International Monetary Fund, Christine Lagarde, raised concerns about potential debt problems in April and advocated greater transparency.

"It's not a free lunch, it's something where everybody chips in," she said.

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Agencies
June 12,2020

Kabul, Jun 12: A blast in a mosque during Friday prayers in the western part of capital Kabul has killed at least four people and wounded many more, Afghanistan's interior ministry said.

"Explosives placed inside the Sher Shah Suri Mosque exploded during Friday prayers," said a statement issued by the ministry, which added that the mosque's prayer leader Mofleh Frotan was among those killed.

Interior ministry spokesman Tariq Arian said police have cordoned off the area and helped move the wounded to ambulances and nearby hospitals.

No group immediately claimed responsibility for the attack but a mosque attack earlier this month was claimed by an ISIL (or ISIS) group affiliate, headquartered in eastern Afghanistan's Nangarhar province.

"Interestingly, every time you have the peace process gaining some momentum and pace, you have these kinds of attacks in the country," Habib Wardak, a national security analyst based in Kabul, told Al Jazeera.

"The Islamic State group claimed responsibility for the attack that happened last week on a mosque in Kabul, so despite the fact that you have these news and press conference from the government that they have eliminated ISIL, how can they conduct such sophisticated operations?"

Friday's blast had parallels to one earlier this month, when an explosion tore apart a famous Kabul mosque and led to the death of renowned Afghan cleric Maulvi Ayaz Niazi.

"In this attack, the imam seems to be the target, not the rest of the crowd. These are the imams who have supported the peace process with the Taliban movement," Wardak said.

"The other political aspect for these kinds of attacks is that there are peace spoilers trying to convey a message that peace with the Taliban will not eradicate violence in the country because you have ISIL."

Violence has spiked in recent weeks in Afghanistan with most of the attacks claimed by the ISIL affiliate.

The United States blamed the armed group for a horrific attack last month on a maternity hospital in the capital that killed 24 people, including two infants and several new mothers.

The ISIL affiliate also took responsibility for an attack on a bus carrying journalists in Kabul on May 30, killing two.

It also claimed credit for an attack on the funeral of a strongman loyal to the government last month that killed 35 people.

Meanwhile, the US is attempting to broker peace talks between the Afghan government and the Taliban to end 18 years of war.

Washington's peace envoy Zalmay Khalilzad was in the region earlier this week trying to resuscitate a US peace deal with the Taliban.

The peace deal signed in February calls for the withdrawal of the US and NATO troops from Afghanistan in return for a commitment by the Taliban to not launch attacks on the US or its allies.

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Agencies
July 2,2020

Ramallah, Jul 2: Several world countries renew a call for Israel to halt contentious plans to annex parts of the occupied Palestinian territory after the regime delayed the implementation of the land garb bid in the face of a series of stumbling blocks, including internal rifts, global criticisms and the US’s failure to give Tel Aviv the go-ahead for the move.

Israel's ruling coalition, led by Prime Minister Benjamin Netanyahu, had announced July 1 as the date to begin moving forward with the plan to impose Tel Aviv’s “sovereignty” over about a third of the West Bank, including settlements and the fertile Jordan Valley.

Without clarifications, the regime, however, failed to launch the scheme on the set date amid widening differences between Netanyahu and his coalition partner, minister of military affairs Benny Gantz.

Meanwhile, there are signs that the administration of US President Donald Trump, a staunch Israel supporter, has cooled its backing for the Israeli move amid what is believed to be troubles at home and fears that it might hurt the president’s chances of re-election besides international pressure.

On Wednesday, Netanyahu's office said in a statement that he would continue to discuss a possible West bank annexation with the US administration.

“In the coming days there will be additional discussions,” the statement said.

Labor, Social Affairs and Social Services Minister Ofir Akunis said the Israel would annex portions of the West Bank in July but only after the US president issued a declaration on the matter.

The annexation “will only happen after a declaration by Trump,” he told Israeli Army Radio.

Trump had already given Tel Aviv the green light for the land grab in his self-proclaimed “deal of the century,” which was unveiled in January with the aim of re-drawing the Middle East map.

However, the Trump administration has so far refrained from offering official support for the annexation sought by Netanyahu and his right-wing allies.

Unlike the US, several countries, including some of Israel’s allies, have expressed their opposition to Israel’s planned push to consolidate its occupation of Palestine.

Germany passes anti-annexation resolution

On Wednesday, the German parliament approved a resolution calling on the government to dissuade Israel from annexing the West Bank.

The motion, which was brought in the German legislature by the three parties in Chancellor Angela Merkel's coalition, was approved without opposing votes. 

Berlin should use its “special relations and contacts [with Tel Aviv] to express to the Israeli government our concerns and our urgent demand to refrain from an annexation of parts of the West Bank and from the continued expansion of settlements, both of which contradict international law,” read the resolution.

Speaking at the parliamentary debate before the vote, German Foreign Minister Heiko Maas said, “We reject unilateral changes of borders, and we won’t recognize them.”

He also stressed that peace “cannot be achieved through unilateral steps but only through serious negotiations.”

France warns of consequences

Similarly, French Foreign Minister, Jean-Yves Le Drian warned that any Israeli annexation would be a violation of international law and would bring about consequences.

“Annexation of Palestinian territories, whatever the perimeters, would seriously throw into question the parameters to resolve the conflict,” he told a parliamentary hearing. 

The top diplomat added, “An annexation decision could not be left without consequences and we are examining different options at a national level and also in coordination with our main European partners.”

Australia raises concerns

Additionally, Australian Foreign Minister Marise Payne voiced worries about the Israeli scheme, saying she had directly expressed this view to Israeli Foreign Minister Gabi Ashkenazi.

“We are following with concern possible moves towards the unilateral annexation or change in status of territory on the West Bank,” she said in a statement.

“The focus needs to be on a return to direct and genuine negotiations between Israel and the Palestinians for a durable and resilient peace arrangement, as soon as possible,” Payne added.

Vatican summons US, Israeli envoys

Meanwhile, the Vatican announced on Wednesday that it had summoned the American and Israeli ambassadors to protest Israel’s annexation bid.

In separate meetings, Vatican Secretary of State Cardinal Pietro Parolin told Israeli Ambassador Oren David and US Ambassador Callista Gingrich of concerns “regarding possible unilateral actions that may further jeopardize the search for peace between Israelis and Palestinians, as well as the delicate situation in the Middle East,”

“As already declared … the Holy See reiterates that ... Israel and the State of Palestine have the right to exist and to live in peace and security, within internationally recognized borders,” the Vatican said in a statement.

“It thus appeals to the parties to do everything possible to reopen the process of direct negotiation, on the basis of the relevant Resolutions of the United Nations,” it added.

Amnesty urges firm action

Amnesty International called on the international community to take firm action against Israel’s annexation plan and its “law of the jungle” mentality.

“Members of the international community must enforce international law and restate that annexation of any part of the occupied West Bank is null and void,” said Saleh Higazi, deputy regional director for Amnesty Middle East and North Africa.

“They must also work to immediately stop the construction or expansion of illegal Israeli settlements and related infrastructure in the Occupied Palestinian Territories as a first step towards removing Israeli civilians living in such settlements,” he added.

Palestinians mark ‘Day of Rage'

Also on Wednesday, Palestinians held “Day of Rage” rallies both in the West Bank and the Gaza Strip against the Israeli expansionism.

In Gaza city, several thousand protesters gathered, some brandishing Palestinian national flags and placards condemning Trump.

Some demonstrators carried signs in English reading, “We Can’t Breathe Since 1948” and “Palestinian Lives Matter,” in reference to the American Black Lives Matter movement.

“The occupation has killed us and killed our children and deprived us of a good life. May God grant the Resistance victory,” a protester told the al-Aqsa TV.

“The resistance must be revived,” Gaza protester Rafeeq Inaiah told media persons. “Israel is afraid of force.”

Similar demonstrations also took place in the West Bank cities of Ramallah and Jericho.

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News Network
June 10,2020

Islamabad, Jun 10: The World Health Organization has told Pakistan it should implement "intermittent" lockdowns to counter a surge in coronavirus infections that has come as the country loosens restrictions, officials said.

Since the start of Pakistan's outbreak in March, Prime Minister Imran Khan opposed a nationwide lockdown of the sort seen elsewhere, arguing the impoverished country could not afford it.

Instead, Pakistan's four provinces ordered a patchwork of closures, but last week Khan said most of these restrictions would be lifted.

Health officials on Wednesday declared a record number of new cases in the past 24 hours. The country has now confirmed a total of more than 113,000 cases and 2,200 deaths -- though with testing still limited, real rates are thought to be much higher.

"As of today, Pakistan does not meet any of the pre-requisite conditions for opening the lockdown", the WHO said in a letter confirmed by Pakistan officials on Tuesday.

Many people have not adopted behavioural changes such as social distancing and frequent hand-washing, meaning "difficult" decisions will be required including "intermittent lockdowns" in targeted areas, the letter states.

Some 25 percent of tests in Pakistan come back positive for COVID-19, the WHO said, indicating high levels of infection in the general population.

The health body recommended an intermittent lockdown cycle of two weeks on, two weeks off.

Responding to the WHO's letter, Zafar Mirza, the prime minister's special advisor for health, said the country had "consciously but gradually" eased lockdowns while enforcing guidelines in shops, mosques and public transport.

"We have to make tough policy choices to strike a balance between lives and livelihoods," Mirza said Wednesday.

Punjab's provincial health minister Yasmin Rashid, who received the WHO's letter, said the provincial government had already given "orders to take strict action against those violating" virus guidelines.

Hospitals across Pakistan say they are at or near capacity, and some are turning COVID-19 patients away.

WHO Director-General Tedros Adhanom Ghebreyesus said Monday that 136,000 cases had been reported in the previous 24 hours, "the most in a single day so far", with the majority of them in South Asia and the Americas.

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