A strategy through investments? Why China's ‘Silk Road' plan has spelt unease for India, US, Russia

May 12, 2017

Beijing, May 12: In a mountain valley in Kashmir, plans are underway for Chinese engineers guarded by Pakistani forces to expand the lofty Karakoram Highway in a project that is stirring diplomatic friction with India.

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The work is part of a sprawling Chinese initiative to build a “new Silk Road” of ports, railways and roads to expand trade in a vast arc of countries across Asia, Africa and Europe. The Asian Development Bank says the region, home to 60%?of the world's people, needs more than $26 trillion of such investment by 2030 to keep economies growing.

The initiative is in many ways natural for China, the world's biggest trader. But governments from Washington to Moscow to New Delhi worry Beijing also is trying to build its own political influence and erode theirs.

Others worry China might undermine human rights, environmental and other standards for lending or leave poor countries burdened with debt.

India is unhappy that Chinese state-owned companies are working in the Pakistani-occupied Kashmir. Indian leaders see that as an endorsement of Pakistani control.

“We have some serious reservations about it, because of sovereignty issues,” said India's finance and defence minister, Arun Jaitley, at an Asian Development Bank meeting this month in Yokohama, Japan. China has tried previously to mollify Indian anxiety by saying in January its highway work “targets no third country.”

China's new Silk Road initiative is ramping up as President Donald Trump focuses on domestic issues, downplaying foreign affairs.

American officials say Washington wants to work with China on infrastructure. But some diplomats and political analysts say Beijing is trying to create a political and economic network centered on China, push the United States out of the region and rewrite rules on trade and security.

At a Senate hearing in Washington on Thursday on global threats, Dan Coats, the US director of national intelligence, identified the Silk Road strategy as part of a pattern of “aggressive” Chinese investments and other actions around the world.

“They clearly have a strategy, through their investments,” Coats said. “You name a part of the world, the Chinese are probably there, looking to put investments in.” The Silk Road process, he said, is “a different way to address nations that they've had difficulty connecting with.”

William A Callahan, an international relations specialist at the London School of Economics, said China is trying to change the way the political structure of the region works.

“We will have to see whether it can achieve this,” he said.

Trump's decision to pull out of the proposed 12-nation Trans-Pacific Partnership deprives China's neighbours of a tool they hoped would counter its rising influence, said Max Baucus, the US ambassador to Beijing until January. Baucus called the move a “large geopolitical mistake.”

“Southeast Asian countries would tell me ‘We want you, we want the TPP, then we can balance China with the United States. But when you're not there, there is a void that China's going to fill,'“ Baucus told The Associated Press.

Dubbed “One Belt, One Road” after ancient trade routes through the Indian Ocean and Central Asia, the initiative is Chinese President Xi Jinping's signature project.

Details such as financing are vague. But since Xi announced it in 2013, Beijing has launched dozens of projects from railways in Tajikistan, Thailand and Kenya to power plants in Vietnam and Kyrgyzstan, financed mostly by Chinese loans.

Countries including Pakistan and Afghanistan welcome it as a path out of poverty. India, Indonesia and others want investment but are wary of Chinese strategic ambitions, especially after Beijing started building artificial islands to enforce its claim to most of the South China Sea, a busy trade route.

Indonesia's political elite have a “fear of regional hegemony” by China, said Christine Tjhin, senior researcher at the Center for Strategic and International Studies in Jakarta.

Moscow worries Beijing is diluting Russian influence in Central Asia by linking Uzbekistan and other countries more closely to China's more dynamic economy.

Russian President Vladimir Putin responded last June by proposing a “Great Eurasia Project,” with Beijing leading on economics and Moscow on politics and security.

“This vision enables the Kremlin to maintain an appearance that it retains the political initiative in its neighbourhood,” Marcin Kaczmarski and Witold Rodkiewicz said in a report for the Center for Eastern Studies, a Warsaw think tank.

Perhaps trying to defuse unease, China has invited governments to a two-day forum starting Sunday and led by Xi to “brainstorm on interconnected development.”

Leaders from 28 countries including Putin are due to attend, but none from major Western countries.

“One Belt, One Road” is the biggest of a series of initiatives launched by Beijing in the past decade in pursuit of global influence to match its economic success.

Starting in 2004, the communist government opened Confucius Institutes with universities in Asia, Europe and the Americas to teach Chinese language and culture. After the 2008 global crisis, Beijing lobbied successfully for more voting rights in the US- and European-dominated World Bank and International Monetary Fund.

Chinese officials reject suggestions “One Belt, One Road” is a power play by Beijing.

“The Chinese government has never wished to control any other country's government,” a cabinet official, Ou Xiaoli, told The AP. “We feel in contacts between countries, we need to talk about studying benefits, studying mutual profit.”

The bulk of Chinese financing is to be loans, which Ou said will be mostly on commercial terms based on “market principles.” That might add to debt burdens in countries where dealing with Beijing can be politically sensitive.

Sri Lanka's former president suffered a surprise election defeat in 2015 after his challenger criticised him for running up an estimated $5 billion in debt to China. Villagers protesting a $1.2 billion Chinese port project there violently clashed with government supporters as recently as January.

China often is the only entity willing to finance big projects in poor countries. That gives Beijing leverage to require use of Chinese builders and technology.

The state-run China Development Bank announced in 2015 it had set aside $890 billion for more than 900 “One Belt, One Road” projects across 60 countries in gas, minerals, power, telecoms, infrastructure and farming. This year, the government's Export-Import Bank of China said it would finance 1,000 projects in 49 countries.

Beijing will provide only part of the financing and wants projects to attract private investors, Ou said.

“We must consider economic viability,” he said.

China is far from alone in promoting infrastructure investment.

Japan has given Southeast Asian governments tens of billions of dollars in grants or low-interest loans. The Asian Development Bank lent $32 billion last year.

South Korea launched its “Eurasia Initiative” in 2013 to develop rail, trade and energy links across the two Koreas and Russia to Europe. That stalled last year due to trade sanctions imposed on North Korea over its nuclear weapons development.

US allies Britain, South Korea and Australia signed on as founding members of the Chinese-led Asian Infrastructure Investment Bank, launched in 2015 to finance roads, ports and other projects. The US and Japan have so far stayed away.

Ou said AIIB will operate separately from “One Belt, One Road” and any loans made by the bank will be decided independently.

In Pakistan, the proposed $1.3 billion effort to expand the Karakoram Highway is part of the China-Pakistan Economic Corridor, which involves dozens of projects including power plants, roads and railways spanning the length of the country. It links China's far western region of Xinjiang with the Chinese-built port of Gwadar on the Indian Ocean.

“It threatens no one. It benefits all, most of all the common man who shall see a boom in jobs and businesses,” Pakistani Prime Minister Nawaz Sharif said in April.

TRADE CONCERNS

“One Belt, One Road” could help China's exporters by encouraging countries to adopt its industrial standards for railways and other products, locking buyers into sticking with them for repairs or additional technologies. China's premier has cited the promoting of Chinese standards abroad as one of Beijing's goals.

This has some countries in the region concerned about China's dominance, Baucus said. “‘We're going to have to bow to their standards and if they're Chinese standards, then Chinese companies are going to have an advantage over our companies in our country,'“ the former US ambassador described officials as telling him. “They're very concerned.”

Chinese rail technology is poised to make inroads into the European Union with a plan for state-owned companies to build a high-speed line from Budapest, capital of EU member Hungary, to Belgrade in neighboring Serbia.

The $2.9 billion project, financed by Beijing, faces obstacles after EU officials said they will look into whether Hungary broke trade bloc rules by agreeing to the Chinese deal without competitive bidding.

In Pakistan, officials say much of the Chinese money for power projects is investment, not loans. They have given few details, raising questions about whether other projects can pay for themselves.

“China is giving most contracts for energy projects to its own companies without even consulting Pakistan,” said Azeem Khalid, a lecturer at the Commission on Science and Technology for Sustainable Development in the South, a non-government group in Islamabad. “I feel that our several generations will have to repay these Chinese loans for decades.”

In Indonesia, the Chinese effort could fit with President Joko “Jokowi” Widodo's “Maritime Axis Policy” to transform the country into a sea power. China muscled aside Japan in 2015 to win a contract to build a $5.2 billion high-speed rail line from the capital, Jakarta, to the city of Bandung.

But Indonesian leaders also are wary of a backlash in a country where resentment of ethnic Chinese billionaires simmers.

“The Jokowi government must balance its desire for capital and expertise with a need to guard against a populist, anti-Chinese backlash,” said Hugo Brennan, an analyst at political risk firm Verisk Maplecroft.

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News Network
January 23,2020

Jan 23: Hundreds of Central Americans trying to reach the United States were stuck at the Mexico-Guatemala border on Wednesday after the Mexican government beefed up security to meet US demands to contain migrant flows.

Under sustained pressure from President Donald Trump, Mexico's government has adopted tougher measures to reduce the number of people heading towards the U.S. border.

Migrants in Tecun Uman, on the Guatemalan side of the border, were taken by surprise.

"We thought we'd be allowed through just like with the October caravan when they reached Tijuana," said Honduran migrant Ritzy Anabel, who did not give her surname.

"People from Mexico and Guatemala treated them well. But now it's changed because Mexicans don't want (us) to enter."

Many Central Americans migrants heading north are fleeing economic hardship and violence at home. A large caravan of migrants crossed into Mexico and went north in October 2018. Migrants crossing into Mexico earlier this week faced tear gas from security forces, who delivered a firmer response than in previous mass movements at the border.

Even so, about 1,000 migrants, most of them from Honduras, managed to reach Mexican soil on Tuesday. Mexican Foreign Minister Marcelo Ebrard said several hundred of the new arrivals were immediately deported on planes and buses.

On Wednesday, Mexican authorities said that 460 Honduran migrants were deported throughout the day. Other migrants from the group, including families traveling with children, were pondering their next moves.

Honduran Carlos Amador said that while some of his compatriots were returning home, others were hoping for positive news.

Trump has repeatedly threatened to punish Mexico and Central American countries if they fail to clamp down on the migrant flows. That has resulted in a series of agreements aimed at delivering on Trump's campaign promises to curb immigration.

Department of Homeland Security Acting Secretary Chad Wolf called the measures put in place by the Mexican National Guard "effective", adding that dozens of his personnel was on the ground in Central America assisting local immigration and security officials. Trump tweeted: "Sorry, if you come you will be immediately sent back!"

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News Network
March 28,2020

London: Italy on Friday recorded the most daily deaths of any country since the start of the coronavirus pandemic and Spain had its deadliest day, as British Prime Minister Boris Johnson became the first major world leader to test positive.

Italy reported 969 new deaths, Spain 769 and France 299 as Europe reeled from a crisis that has put millions at risk around the world and threatened a global economic meltdown.

In other grim milestones, AFP tallies showed a total of 300,000 cases now recorded in Europe with more than 26,000 deaths worldwide, and the United States overtook China as the country with the most infections.

Italy showed infection rates continuing a downward trend and Spain said its rate of new infections appeared to be slowing, but other countries were bracing to feel the full impact of the virus's spread.

The World Health Organization's regional director for Africa warned the continent faced a "dramatic evolution" of the pandemic, as South Africa became the latest nation to start life under lockdown and reported its first COVID-19 deaths.

Johnson, whose country has seen more than 14,000 declared coronavirus cases and 759 deaths, said he had developed mild symptoms over the previous 24 hours and was self-isolating after testing positive.

Britain's Health Secretary Matt Hancock also tested positive with mild symptoms.

Europe has suffered the brunt of the coronavirus crisis in recent weeks, with millions across the continent on lockdown and the streets of Paris, Rome and Madrid eerily empty.

In France — where nearly 2,000 people have died -- the government announced it was extending its stay-at-home order until at least April 15. While severe, the 299 new deaths it recorded on Friday was lower than the 365 reported the previous day.

The death of a 16-year-old girl from the virus has particularly shaken France, and shattered the belief of many young people that they are immune.

The girl's mother Sabine told AFP that Julie "just had a cough" at first but deteriorated quickly. She died on Wednesday, less than a week after showing her first symptoms.

"It's unbearable," Sabine said. "We were supposed to have a normal life."

Focus was also turning to the United States, where the number of known infections jumped by 18,000 on Friday, reaching more than 97,000 -- higher than both China and Italy. The US also recorded 345 deaths over the past 24 hours, with a total toll of 1,478.

In New York City, health workers are battling a surging toll of dead and infected at the US epicentre of the crisis, including an increasing number of younger patients.

"Now it's 50-year-olds, 40-year-olds, 30-year-olds," said one respiratory therapist at the Jewish Medical Center in Queens.

They "didn't listen about not going out or protecting themselves and washing their hands", he said.

- 'Afraid and lost' -

The coronavirus first emerged in China late last year before spreading globally, with more than half a million declared cases in 183 countries and territories.

Over the last six days, as many new cases have been diagnosed around the world as in the previous 80 days.

Beijing managed to contain its spread with lockdowns and quarantines and its epicentre Wuhan is in the process of easing severe movement restrictions in place for two months.

Three billion people around the world have been told to stay indoors.

In a historic first, Pope Francis performed the rarely recited "Urbi et Orbi" blessing to an empty Saint Peter's Square.

"Thick darkness has gathered over our squares, our streets and our cities; it has taken over our lives, filling everything with a deafening silence and a distressing void, that stops everything as it passes by," he said.

"We find ourselves afraid and lost," he said, describing the coronavirus as a "tempest".

Health care systems even in the most developed nations are stretched to breaking point and medical workers have been having to make difficult choices.

"If I've got five patients and only one bed, I have to choose who gets it," Sara Chinchilla, a paediatrician at a hospital near Madrid, told AFP.

The WHO's chief Tedros Adhanom Ghebreyesus said the dire lack of protective gear for frontline health workers was one of the most pressing problems in the fight to prevent deaths.

"The chronic global shortage of personal protective equipment is now one of the most urgent threats to our collective ability to save lives," he told a virtual news conference in Geneva.

Lockdowns and other measures are wreaking havoc on the global economy, with fears of a downturn worse than the Great Depression of the 1930s.

"It is clear that we have entered a recession" that will be worse than in 2009 following the global financial crisis, International Monetary Fund chief Kristalina Georgieva said Friday.

Unprecedented stimulus measures have helped markets bounce back after a brutal month, but people around the world are bracing for economic hardship.

The United States reported that 3.3 million people applied for unemployment benefits last week -- by far the highest number ever recorded.

Retail workers in particular have suffered as many countries shutter non-essential business, while airlines and the global tourism industry have been dealt devastating blows.

The fashion industry was the latest hit on Friday, with Paris men's fashion week and haute couture shows cancelled along with Milan men's fashion week.

- Armies of volunteers -

The World Tourism Organization said Friday it expected tourist arrivals to fall by 20-30 percent this year, with losses of $300 billion-450 billion in international tourism receipts.

But there have been rays of hope in the midst of the crisis.

Armed groups in Cameroon, the Philippines and Yemen have moved in recent days to reduce violence after UN Secretary General Antonio Guterres issued an appeal for ceasefires.

And armies of volunteers have emerged in many countries to bring help to the needy, with food deliveries for the elderly, free taxi rides, accommodation for health workers, and even home-sewn face masks.

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Agencies
June 10,2020

Houston, Jun 10: George Floyd was fondly remembered Tuesday as “Big Floyd” — a father and brother, athlete and neighborhood mentor, and now a catalyst for change — at a funeral for the black man whose death has sparked a global reckoning over police brutality and racial prejudice.

More than 500 mourners wearing masks against the coronavirus packed a Houston church a little more than two weeks after Floyd was pinned to the pavement by a white Minneapolis police officer who put a knee on his neck for what prosecutors said was 8 minutes and 46 seconds.

Cellphone video of the encounter, including Floyd’s pleas of “I can’t breathe,” ignited protests and scattered violence across the U.S. and around the world, turning the 46-year-old Floyd — a man who in life was little known beyond the public housing project where he was raised in Houston’s Third Ward — into a worldwide symbol of injustice.

“Third Ward, Cuney Homes, that’s where he was born at,” Floyd’s brother, Rodney, told mourners at the Fountain of Praise church. “But everybody is going to remember him around the world. He is going to change the world.”

The funeral capped six days of mourning for Floyd in three cities: Raeford, North Carolina, near where he was born; Houston, where he grew up; and Minneapolis, where he died. The memorials have drawn the families of other black victims whose names have become familiar in the debate over race and justice — among them, Eric Garner, Michael Brown, Ahmaud Arbery and Trayvon Martin.

After the service, Floyd’s golden casket was taken by hearse to the cemetery in the Houston suburb of Pearland to be entombed next to his mother, for whom he cried out as he lay dying. A mile from the graveyard, the casket was transferred to a glass-sided carriage drawn by a pair of white horses. A brass band played as his casket was taken inside the mausoleum.

Hundreds of people, some chanting, “Say his name, George Floyd,” gathered along the procession route and outside the cemetery entrance in the mid-90s heat.

“I don’t want to see any black man, any man, but most definitely not a black man sitting on the ground in the hands of bad police,” said Marcus Brooks, 47, who set up a tent with other graduates of Jack Yates High School, Floyd’s alma mater.

In the past two weeks, amid the furor over Floyd’s death, sweeping and previously unthinkable things have taken place: Confederate statues have been toppled, and many cities are debating overhauling, dismantling or cutting funding for police departments. Authorities in some places have barred police from using chokeholds or are otherwise rethinking policies on the use of force.

Dozens of Floyd’s family members, most dressed in white, took part in the four-hour service. Grammy-winning singer Ne-Yo was among those who sang.

The mourners included actors Jamie Foxx and Channing Tatum, J.J. Watt of the NFL’s Houston Texans, rapper Trae tha Truth, Rep. Sheila Jackson Lee, Houston Police Chief Art Acevedo and Houston Mayor Sylvester Turner, who brought the crowd to its feet when he announced he will sign an executive order banning chokeholds in the city.

“I know you have a lot of questions that no child should have to ask, questions that too many black children have had to ask for generations: Why? Why is Daddy gone?” former Vice President Joe Biden, the Democratic presidential candidate, said, addressing Floyd’s 6-year-old daughter in a video eulogy played at the service. “Now is the time for racial justice. That’s the answer we must give to our children when they ask why.”

Biden made no mention of his opponent in November. But other speakers took swipes at President Donald Trump, who has ignored demands to address racial bias and has called on authorities to crack down hard on lawlessness.

“The president talks about bringing in the military, but he did not say one word about 8 minutes and 46 seconds of police murder of George Floyd,” said the Rev. Al Sharpton, the civil rights activist. “He challenged China on human rights. But what about the human right of George Floyd?”

Most of the pews were full, with relatively little space between people.

“So much for social distancing today,” the Rev. Remus Wright told mourners, gently but firmly instructing those attending to wear face masks.

Texas has no limit on how many people can gather in places of worship during the pandemic, though Republican Gov. Greg Abbott has encouraged churches to follow federal health guidelines.

Although the church service was private, at least 50 people gathered outside to pay their respects.

“There’s a real big change going on, and everybody, especially black, right now should be a part of that,” said Kersey Biagase, who traveled more than three hours from Port Barre, Louisiana, with his girlfriend, Brandy Pickney. They wore T-shirts printed with Floyd’s name and “I Can’t Breathe.”

Floyd served nearly five years in prison for robbery with a deadly weapon before becoming a mentor and a church outreach volunteer in Houston. He moved to Minnesota several years ago through a program that tried to change men’s lives by helping them find work in new settings.

At the time of his death, Floyd was out of work as a bouncer at a Minneapolis club that had closed because of the coronavirus outbreak. He was seized by police after being accused of passing a counterfeit $20 bill at a convenience store.

Four Minneapolis officers were arrested in his death: Derek Chauvin, 44, was charged with second-degree murder. J. Alexander Kueng, Thomas Lane and Tou Thao were charged with aiding and abetting. All four could get up to 40 years in prison.

Some of the mostly peaceful demonstrations that erupted after Floyd’s death were marked by bursts of arson, assaults, vandalism and smash-and-grab raids on businesses, with more than 10,000 people arrested. But protests in recent days have been overwhelmingly peaceful.

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