#belt and road initiative

[argyrocratie]

"When I first went to Jamaica in 2012 as a graduate student studying the environmental politics of the Maroons, an Afro-Indigenous community who freed themselves from enslavement in the 18th century and established an autonomous society in the mountainous interior of the island, Chinese overseas development policy seemed irrelevant to my work. Yet as my field research progressed over the following eight years, first as a doctoral student in African diaspora studies and then as a post-doctoral researcher, the impact of Chinese infrastructural development and extractive industry on the Jamaican people and environment became increasingly apparent.

The timing of my field work overlapped with an unprecedented surge in Chinese economic and diplomatic engagement with Jamaica and the Caribbean as a whole.

(...)

It is beyond the scope of this article to detail the political economic dynamics and immense social impact of debt in Jamaica over the last 40 years.4 Suffice it to say that the island became a byword for structural adjustment during this period, with every new loan from the World Bank, or default on payments thereof, coming with International Monetary Fund-mandated austerity.

Health and education were notable casualties of this socio-economic assault. By the start of my field research, Jamaican child mortality had almost doubled over the span of a single decade while completion of primary school dropped from 97% to 73% in the same period. This despite the fact that Jamaica had already repaid more money than it had been lent, with continuing debt servicing accounting for a 106% debt-to-GDP ratio according to the latest World Bank figures.

All this is only a small snapshot of the catastrophic outcomes of debt wielded as a tool of neocolonialism.

With the island’s status as one of the most indebted countries on the planet, Chinese infrastructural development was received with fanfare from Jamaican elites, a possible economic lifeline out of the debt trap.

(...)

Jamaican elites may appreciate that they can pay back debts with land, and that China does not directly require broad policy changes like the structural adjustment conditions of IMF and World Bank loans.

However, even with the above and the fact that the Jamaican debt to China is small compared to that claimed by Western IFIs and private firms, Jamaican politicians are growing increasingly wary of the costs of doing business with China. In November 2019, Prime Minister Andrew Holness announced that Jamaica would no longer borrow from China, a scant seven months after formally joining the BRI.

As usual, most Jamaicans are not privy to the inter-governmental discussions and deals driving these decisions, but their government’s newfound reticence in engaging with China reflects deeper concerns among BRI partners that the initiative is a debt trap.

(...)

Almost two decades of Chinese loans and infrastructure-led development have left Jamaican workers and farmers as precarious and dispossessed as ever. The hard-fought and generational struggle for Jamaican workers’ power (trade unions were instrumental to Jamaica’s independence struggle) has been curtailed and rolled back by China’s transposed sovereignty.

Furthermore, Chinese mining interests appear poised to pick up where their Western counterparts left off in terms of irreversible ecological destruction and threats to indigenous survival. Certainly, Jamaica cannot bear another 50 years of capitalist exploitation and extractive industry.

If there is any hope in turning this dire situation into revolutionary momentum, it will be in Jamaicans making common cause with the Chinese laborers imported to the country. According to China Labor Watch, Chinese workers on overseas BRI projects are often subject to “deceptive job ads, passport retention, wage withholding, physical violence and lack of contracts” to the extent of constituting forced labor and human trafficking.

In fact, at least one Chinese worker in Jamaica has already blown the whistle on such conditions. Unfortunately, as of the time of writing this article, there appears to be no organized effort to make solidaristic alliances among Jamaican workers, Chinese workers, and Maroons. The Maroons are organized as an indigenous community seeking land and sovereign rights, rather than workers seeking class emancipation, and remain locked in a fractious political battle with the Jamaican state toward those ends.

Furthermore, the cultural and language barriers between Jamaicans and imported Chinese workers are significant. Yet both countries have rich revolutionary traditions. If Jamaican labor militancy and Maroon struggle were able to reconcile and align their interests, while cultivating strategic allies among the heavily exploited Chinese workers, a powerful relationship of international solidarity from below could be forged."

...

[mapsontheweb]

China's Massive Belt and Road Initiative

[workersolidarity]

Photo: CRRC

🇮🇩🇨🇳 INDONESIA LAUNCHES FIRST HIGH-SPEED RAIL IN SOUTHEAST ASIA FUNDED BY CHINA: PART OF BELT & ROAD INITIATIVE (BRI)

Indonesia unveiled the first high-speed railway in Southeast Asia Saturday, a joint-project between Indonesia and China funded at 75% by the Chinese State-owned China Development Bank and the remaining 25% was funded by Private Equity from Indonesian and Chinese shareholders. The Project is part of China's increasingly popular Belt & Road Initiative (BRI).

Though the initial project was projected to cost $6 Billion, some cost overruns mostly from land compensation costs raised the bill by another $1.2 Billion. Though by American and European standards, this would be a relatively small overrun.

The new high-speed railway connects Jakarta, a city of more than 10 million, with Bandung, an educational and technology of 2.5 million, with four stops: Halim, Karawang, Padalarang, Tegalluar.

The train four times daily, with a maximum capacity of 600 passengers and travels at speeds in excess of 350kmh (218mph), and covering a total of 142km (88mi).

The new train cuts the travel time between Jakarta's Halim station and Bandung's Padalarang from roughly 3 hours to just over 30 minutes, a truly stunning improvement for these rapidly growing and developing cities.

The high-speed train's cars are equipped with modern amenities including spacious seating, power outlets, and LCD screens while the ride is smooth, with few bumps.

Though a Western media blitz intended to deligitimize the project in recent weeks, actual Indonesian people's excitement about the project is evident.

“We feel very comfortable on the train. We can see how fast it is going,” said Muhammad Risman, a 48-year-old private employee from Jakarta who was taking the test ride with his wife.

"The seats are nice and spacious. The screens are also easy to see and show us what the route looks like.”

While Indonesian President Joko “Jokowi” Widodo, who also rode on the train for the first time last week, expressed his admiration for the project.

“I had visited the high-speed train project site four times before, but this was the first time I actually rode on it. It was very comfortable, and I didn’t feel the speed of 350 km [per hour] at all, whether I was sitting or walking around,” Jokowi said.

“This is what civilization looks like."

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[theculturedmarxist]

The principal news items on Russian state television this evening were the reception Vladimir Putin was given by Chinese President Xi Jinping in Beijing and the succession of meetings that he had with other heads of state who are participating in the 10th anniversary celebrations of China’s Belt and Road Initiative.

You won’t find a word about the Russian President’s visit to Beijing in this evening’s online New York Times, but the paper’s editorial board is slow to post news about Putin, probably waiting for the State Department to suggest the proper ‘spin.’ However, The Financial Times online gives Putin ‘front page’ coverage in two articles: one is an overview of his scheduled meetings and the other focuses on his talks with one leader in particular, prime minister Viktor Orban of Hungary.

Let us stop for a moment to consider what the FT wants us to know about Putin in Beijing.  And after that we can come back to the Russian coverage, which not only casts a different light on what you read in FT but provides a good deal more factual information to take in.

                                                                 *****

In keeping with its regular propagandistic journalism, the FT cannot print an article about Putin without reminding its readers what a pariah he is, a man pursued by international courts, a man who is isolated and weak. The title itself already sets the tone: “Vladimir Putin visits Beijing for first time since Russia’s invasion of Ukraine.”

Yes, they concede in the first paragraph that he arrived in China “for a high-level meeting with Chinese leader Xi Jinping,” but then take the air out of that by saying it was the Kremlin which described Putin as the ‘main guest’ at the event, not their own reporter on the ground in Beijing.

Two lines down we read: “The Russian leader cut back his foreign travel after the war in Ukraine began and until last week had not left the country since a war crimes indictment from the International Criminal Court in March.”  We are reminded that Putin skipped the G20 meetings in Indonesia and in India in September.

Thus, almost half the article is spent telling us about where Putin has not traveled to and nothing about this visit to Beijing.

Moving on, the authors speak about how “Russia had become increasingly dependent on China as an economic lifeline” ever since the launch of its Special Military Operation and imposition of sanctions by the West. This is a quote from a former political adviser at the European parliament who is now with a university in Taiwan. The same expert completes the downgrading of Russia by explaining that it is the ‘junior partner’ in the relationship with China.

After kicking the tires of the Belt and Road Initiative in general for having to renegotiate or write off $79 billion in bad loans, the authors give us four lines at the end that actually contain some news, of which I quote two below:

“Putin met Hungary’s prime minister Viktor Orban and Vietnamese president Vo Van Thuong on Tuesday, ahead of further meetings with Thai, Mongolian and Laotian leaders.”

The space allotted to the close-up photo of Putin and Xi smiling complacently to one another at the head of the article is six times bigger than the actual news in the text of the article.

The separate article “Orban meets Putin in bid to ‘save everything possible’ in bilateral relations” might be said to be marginally better journalism though the same Max Seddon in Riga is a co-author of both. The editors have done their best to spoil everything by giving it the subtitle “European head is first western leader to meet Russian president since issue of war crimes warrant for his arrest.” Once again the big photo of Orban and Putin, clasping hands at their meeting, tells more than the text.

There are some of the same general reminders here of Putin’s alleged isolation and pariah status, but they are given more force by a quotation from the U.S. ambassador to Hungary condemning the meeting: “…Orban chooses to stand with a man whose forces are responsible for crimes against humanity in Ukraine…” 

The only neutral remarks in the article catalog the common business interests of Russia and Hungary, including natural gas supply and a nuclear power plant under construction by Rosatom.

                                                                 *****

Russian television news support the view that Putin is the main guest at the BRI gathering in Beijing by videos showing the entry of the participants to the state banquet this evening:  the procession is led by Putin and Xi side by side. Just behind them is Xi’s wife and Kazakhstan president Tokaev. The several dozen others follow behind.  Similarly in the video of all the leaders lined up for their group photo, Putin and Xi are together in the very center chatting to one another.  Questions anyone about who is who, and what is what?

Perhaps the Russians go overboard in stressing the great demand of other participants for one-on-one time with Putin at the large residence which the Chinese made available for holding these tête-à-têtes in discrete luxury. Pavel Zarubin, the host of the Sunday evening program Moskva, Kremlin, Putin is a master at showing off details like the line of limousines of leaders waiting outside for their time in the sun with Putin.

Aside from footage from the meeting with Orban, Russian television presented to viewers the public part of Putin’s meeting with the president of Laos, who opened the conversation speaking passable if heavily accented Russian. As we learned, he was studying at Leningrad University during the same years as Putin, though in a different department.  The Vietnamese president also made reference to studies in the Soviet Union in their opening remarks for the cameras.  His talks with Putin were likely about energy first of all since Gazprom is fairly active in the country. Gazprom chairman Alexei Miller is in the Russian delegation.  As for the meeting that Putin had with the interim president of Pakistan, who is an English speaker, we know that they discussed energy projects and deliveries of more than a million tons of Russian grain to Pakistan, presumably paid for in yuan. With the Mongolian president, Vesti tells us they discussed a new gas pipeline which apparently is intended to supply Mongolia itself and not only serve as a transit route to China.

However, from the Russian perspective these side meetings with other BRI Forum participants are small beer. What they are awaiting with great anticipation is the several hours tomorrow that Putin and Xi will spend one-on-one and then are joined by their respective delegations. We know that the situation in the Middle East is at the top of their agenda, with a secondary focus on the Ukraine war and remaining time devoted to further development of economic ties.

The one tantalizing tidbit that Russian news (Sixty Minutes) threw out to viewers is that whereas Putin returns to Moscow tomorrow evening, Foreign Minister Lavrov flies to North Korea for a meeting with Kim.

©Gilbert Doctorow, 2023

[kneedeepincynade]

The belt and road initiative has brought prosperity to many nations and it the future it will bring it to many more!

The post is machine translated

Translation is at the bottom

The collective is on telegram

😘 CELEBRARE GLI OBIETTIVI RAGGIUNTI, PIANTARE NUOVI SEMI PER LA CRESCITA DEL FUTURO 🥰

🇨🇳 Il Compagno Chen Wenjun, Direttore dell'Iniziativa di Pubblicazione del Libro Bianco "La Belt and Road Initiative: un Pilastro-Chiave di una Comunità dal Futuro Condiviso per l'Umanità", ha dichiarato - durante una conferenza stampa, che l'Opera mira a fornire alla Comunità Internazionale una migliore comprensione del valore di questa iniziativa e del Concetto di Cooperazione a Mutuo Vantaggio (合作共赢):

💬 «Il Libro Bianco, guidato dal Pensiero di Xi Jinping sul Socialismo con Caratteristiche Cinesi per una Nuova Era, ha esposto sistematicamente l'Origine Storica, la Mentalità, la Visione, l'approccio per la realizzazione e i risultati pragmatici della Cooperazione tramite la Nuova Via della Seta» 😍

👉 Statistiche sulla BRI rilasciate dalla Compagna Guo Tingting - Vice-Ministro del Commercio ⭐️

📊 10 anni dopo la Presentazione della BRI, sono stati organizzati 3000 progetti di cooperazione, investiti quasi 1 Trilione di Dollari e sono stati creati 420.000 posti di lavoro per i Paesi che hanno partecipato al Progetto 😍

🇨🇳 Come prossimo passo, il Ministero del Commercio della Repubblica Popolare Cinese si concentrerà su quattro aspetti per promuovere ulteriormente la Cooperazione a Mutuo Vantaggio:

一 Rafforzare l'Apertura verso il Mondo, espandendo e facilitando l'importazione e l'esportazione di beni di alta qualità, organizzando sempre più eventi, fiere e mostre per approfondire la Cooperazione Commerciale con i Paesi interessati 😍

二 Rafforzare la Cooperazione nelle catene di produzione e approvvigionamento, migliorando ulteriormente l'efficienza dei trasporti e accelerando la formazione di nuovi corridoi commerciali tramite la costruzione di infrastrutture di alta qualità 😍

三 Piantare i semi, annaffiare e far germogliare nuovi progetti atti a promuovere ulteriormente la crescita economica, pianificando progetti infrastrutturali e costruendo nuove Zone di Cooperazione 🤝

四 Promuovere l'adesione all'Accordo Globale e Progressivo del Partenariato Trans-Pacifico e sostenere le imprese della Regioni Amministrative Speciali di Hong Kong e Macao, dove vige il Principio 一国两制 - Un Paese, Due Sistemi, affinché partecipino alla Costruzione della Nuova Via della Seta 💕

🌸 Iscriviti 👉 @collettivoshaoshan 😘

😘 CELEBRATING WHAT HAS BEEN ACHIEVED, PLANTING NEW SEEDS FOR THE GROWTH OF THE FUTURE 🥰

🇨🇳 Comrade Chen Wenjun, Director of the White Paper Publishing Initiative "The Belt and Road Initiative: a Key Pillar of a Community with a Shared Future for Humanity", declared - during a press conference, that the Opera aims to provide the International Community with a better understanding of the value of this initiative and the Concept of Cooperation for Mutual Benefit (合作共赢):

💬 «The White Paper, guided by Xi Jinping Thought of Socialism with Chinese Characteristics for a New Era, systematically laid out the Historical Origin, Mindset, Vision, approach to implementation and pragmatic results of Cooperation through the New Silk Road" 😍

👉 BRI Statistics Released by Comrade Guo Tingting - Vice-Minister of Commerce ⭐️

📊 10 years after the Presentation of the BRI, 3000 cooperation projects have been organized, almost 1 Trillion Dollars have been invested and 420,000 jobs have been created for the countries that participated in the Project 😍

🇨🇳 As the next step, the Ministry of Commerce of the People's Republic of China will focus on four aspects to further promote Mutual Benefit Cooperation:

一 Strengthen Openness to the World, expanding and facilitating the import and export of high quality goods, organizing more and more events, fairs and exhibitions to deepen Commercial Cooperation with interested countries 😍

二 Strengthen Cooperation in production and supply chains, further improving transportation efficiency and accelerating the formation of new trade corridors through the construction of high-quality infrastructure 😍

三 Planting seeds, watering and sprouting new projects to further promote economic growth, planning infrastructure projects and building new Cooperation Zones 🤝

四 Promote adherence to the Comprehensive and Progressive Agreement of the Trans-Pacific Partnership and support enterprises in the Special Administrative Regions of Hong Kong and Macao, where the 一国两制 Principle - One Country, Two Systems applies, to participate in the Construction of the New Way of Silk 💕

🌸 Subscribe 👉 @collectivoshaoshan 😘

[kramlabs]

:

Commentary

[dnt123456]

Shanghai is building "Silk Road E-Commerce" Cooperation Pilot Zone

"Silk Road E-commerce" is an important measure to actively promote international e-commerce cooperation in accordance with the Belt and Road Initiative (B&R), give full play to the advantages of China's e-commerce technology application, model innovation and market size. Silk Road e-commerce is a new platform for international cooperation created to promote the "B&R" economic and trade cooperation. The cooperation has expanded new space for economic and trade cooperation, explored the construction of international rules system for digital economy, promoted the construction of a new development pattern, and injected new connotations into the ancient Silk Road.

Recently, The State Council approved the plan to create the "Silk Road e-commerce" cooperation pilot zone in Shanghai, which highlights the system opening first, the main body cultivation first and the mechanism cooperation first, focusing on expanding the opening of the e-commerce field, creating a pilot environment, and vigorously promoting international and regional exchanges and cooperation in 3 aspects, a total of 19 tasks.

Shanghai will form a number of exemplary and leading institutional opening results, gather a number of internationally competitive e-commerce operators, create a number of regional carriers with their own characteristics, and build a number of public service platforms to promote the common development of Silk Road e-commerce partner countries, e-commerce transactions and international cooperation and exchanges will be more active, and comprehensive service functions will be significantly enhanced. Provide results support and practical experience for the development of "Silk Road e-commerce". At the same time, Shanghai will promote cross-border e-commerce public service platforms in the Yangtze River Delta region to strengthen cooperation in cargo customs clearance, logistics tracking, enterprise consulting and other aspects. In addition, the plan clearly will optimize and improve the scope of key institutions for the introduction of talents in the field of e-commerce, and give outstanding foreign e-commerce talents early pilot measures such as the convenience of applying for multi-year work permits and work-type residence documents.

[warningsine]

BEIJING (AP) — China and Syria announced the formation of a strategic partnership on Friday as Chinese leader Xi Jinping kicked off a series of diplomatic meetings ahead of the upcoming Asian Games.

Xi met Syrian President Bashar Assad in the southern Chinese city of Hangzhou, which is hosting the 15-day sports competition.

“In the face of the unstable and uncertain international situation, China is willing to work with Syria to firmly support each other ... and jointly safeguard international fairness and justice,” Xi said in a video clip posted online by state broadcaster CCTV.

Assad’s visit parallels in some ways that of Russian President Vladimir Putin last year for the opening ceremony of the Beijing Winter Olympics. Both leaders are virtual pariahs in the West but welcomed by China as it tries to expand its global influence and promote an alternative to the U.S.-led international order.

The Syrian leader will attend the Asian Games opening ceremony on Saturday night along with the king of Cambodia, the crown prince of Kuwait and the prime ministers of Nepal, East Timor and South Korea, China’s Foreign Ministry has said.

Xi also met Kuwaiti Crown Prince Sheikh Meshal Al Ahmed Al Jaber Al Sabah on Friday and said he would work with him to take bilateral relations to a new level, CCTV reported.

Both meetings took place at a state guest house at West Lake, a scenic tourist destination in Hangzhou that has inspired Chinese painters for centuries.

Cambodian King Norodom Sihamoni arrived Friday at the airport in Hangzhou. CCTV video posted online showed him walking down the stairs from his plane to the tarmac for a red carpet welcome that included the Asian Games mascots.

Assad, who is making a rare trip abroad, is looking for ways to emerge from the international isolation brought on by a brutal war at home that shows no sign of ending after 12 years. He was expected to discuss economic assistance from China, which could play a major role in Syria’s future reconstruction.

Syrian state TV quoted Assad as thanking Xi and his government for standing on the side of the Syrian people “during the crisis and suffering.” China has backed Assad, using its veto on the U.N. Security Council eight times to block resolutions against his government.

Xi told Assad that China supports Syria in opposing external interference and unilateral bullying and promoting a political solution that is led and owned by Syrians, China’s CCTV said.

Assad expressed hope that the meeting would be the basis for “wide-ranging and long-term strategic cooperation in all fields” between China and Syria.

The Asian Games, which have more participants than the Olympics, also sparked a diplomatic row between India and China. Three Indian athletes from Arunachal Pradesh, which China claims as its territory, refused to accept their visas and stayed home after they were given visas stapled to their passports — different from those given to the rest of the team.

The Asian Games were scheduled for last year but postponed because of China’s then-strict pandemic restrictions. China eased its restrictions in December of last year.

[uboat53]

Well that was interesting. I knew that China had extended a ton of "loans" over the last decade and I knew a lot of them were pretty predatory, but I didn't realize the sheer extent of it. Yikes.

[kaydub80]

Watch "Zambia: Front Line of the US Crusade Against China in Africa" on YouTube

And, Washington is officially desperate.

[rivage-seulm]

Why the U.S. Cannot Compete with China in Africa or Anywhere Else

Why the U.S. Cannot Compete with China in Africa or Anywhere Else

Last week, Joe Biden summoned 49 African presidents to D.C. for an international conference. In doing so, the administration offered assurances (through National Security spokesperson, Jake Sullivan) that in contrast to previous gatherings, it would not scold or lecture Africa’s leaders about not obeying U.S. demands, e.g., in the United Nations. (There, by the way, just recently African leaders…

[techniche]

The Ugly Truth of Pierre Teilhard de Chardin, Transhumanism and Canadian History talk with William Ramsey and Mathew Ehret (1 Oct 2022)

In this discussion between investigative journalist and podcast host William Ramsey and the Canadian Patriot Review's Matt Ehret, we discuss the continuous evolution of evil ideas from Hobbs to Malthus to Darwin to Galton and thence to Chardin's Transhumanism as well as the suppressed stories of some forgotten Canadian heroes who risked everything for the idea of a free and independent Canada.

[workersolidarity]

🇨🇳🇷🇺 RUSSIAN PRESIDENT VLADIMIR PUTIN MEETS WITH CHINESE PRESIDENT XI JINPING AT THIRD BELT AND ROAD INITIATIVE FORUM

Russian President Vladimir Putin met with Chinese President Xi Jinping Wednesday for the third Belt and Road Forum for International Cooperation held in Beijing.

As the host country, Republic of China President Xi Jinping spoke first, thanking the Russian President and pointing to the implementation of the agreements and celebrating record trade between the two countries, which is approaching $200 Billion this year.

"Mr President, during the ten years since 2013, the two of us have held 42 meetings and established good business-like relations and a strong personal friendship" President Xi said.

"Mutual trust in our political relations is steadily growing. Close and effective strategic collaboration is being maintained. Bilateral trade has achieved historic records and is approaching the target of $200 billion we have set."

After the opening ceremony of the forum, President Xi Jinping introduced Russian President Vladimir Putin, who spoke at the Belt & Road Forum.

The Russian President thanked President Xi for his invitation and congratulated the Chinese President on the 74th Anniversary of the establishment of the People's Republic of China.

"Next year will be an anniversary year for both your country and the diplomatic relations between our countries. On October 2, 1949, the next day after the establishment of the PRC, the USSR was the first to recognise the new China" President Putin said to the Chinese President in his speech.

President Putin pointed to the Chinese President's visit in March, saying this was a special sign indicating the close "level and nature" of relations between the People's Republic of China and the Russian Federation.

"One and a half years after my last visit, all of us, our large delegation, are in Beijing again. We can see that the city is developing and prospering, and we are very glad for our Chinese friends," President Putin told the Chinese leader.

"Your idea of promoting wide-ranging cooperation between the countries of the historical Silk Road, which was put forward ten years ago, has gained momentum."

President Putin further told President Xi that although plans are being designed and implemented, the nations involved may be unsure how a project will turn out, however China, under the leadership of President Xi Jinping, is always highly successful in its endeavors, and he thanked the Chinese President for their collaboration, saying all parties gain from the arrangement.

President Putin went on to promote the initiatives of the Belt and Road programme, pointing to the Chinese President's ideas, which Putin described as intended to benefit the whole of mankind and wished the Chinese President success in this noble undertaking.

"Under the difficult present-day conditions, it is particularly relevant to maintain close foreign policy coordination, something we are doing now. Today, we will discuss all of this, including, and primarily, our bilateral relations."

President Putin finished by saying, "You have just mentioned our bar – our objective of reaching $200 billion in trade this year. If we look at the year-on-year figures – we analysed this yesterday evening – the 200-billion target was reached between this day a year ago and today, and this bar will certainly be exceeded by the end of the calendar year. Therefore, we are advancing very confidently on the bilateral plane as well."

The Russian President then thanked his Chinese counterpart before the official Forum began, after which the Russian President spoke at length about cooperation between the two powers.

During his remarks at the Forum, President Putin told the audience that the essence of the Belt and Road Initiative is to "promote creative and constructive interaction" throughout the international community.

"We pointed out on numerous occasions that Russia and China, just as the majority of other countries, share the striving for equal and mutually beneficial cooperation towards universal, sustainable and lasting economic progress and social welfare based on respect for the civilisational diversity and the right of every state to its own development model," President Putin said in his speech.

President Putin went on, "The Belt and Road initiative is based on these fundamental principles and fits in very well with the integration processes that are ongoing in many regions. It also corresponds to the Russian ideas of creating an integration contour that will ensure the freedom of trade, investment and employment and will be complemented with interconnected infrastructure."

President Putin said the Belt and Road programme meshes well with the Russian idea of creating greater Eurasian partnership, expanding cooperation and interaction between like-minded nations and the integration of multilateral organizations like the Shanghai Cooperation Organisation (SCO), the Association of Southeast Asian Nations (ASEAN) and the Eurasian Economic Union (EAEU), which Russia is successfully developing with its post-Soviet partners.

President Putin further emphasized new agreements between the Russian Federation and the People's Republic of China on the development of the EAEU and Belt and Road programme, along with a non-preferential agreement on trade and economic cooperation between the EAEU and China. To this end, a joint commission was established to "align our efforts to implement this agreement."

"In February 2023, we adopted an expanded roadmap, which provides, in part, for the development of relations between the EAEU and China in trade policy and the digitisation of transport corridors," President Putin said.

The Russian leader further noted the importance of the initiatives, saying they were an, "integral part of Russia’s national development strategy, the strengthening of our economic, technological and financial sovereignty, as well as the modernisation and expansion of infrastructure."

The Russian President told audiences he believes the Belt and Road Initiatives were very important to participating countries and pointed to the expansive Russian territories for enhancing the connectivity between the Russian Federation and its partners.

The Russian President mentioned the various infrastructure projects being implemented through the Belt and Road, telling the audience that, taken together, the projects will allow participants to create an "integral transport and logistics network" and to "diversify freight traffic through more effective, reliable and safe" transportation.

"For example, we are building the North-South international corridor in European Russia, which President Xi has mentioned. It will connect Russian ports on the Baltic and Arctic seas to ports in the Persian Gulf and the Indian Ocean. Seamless rail connectivity, as professionals say, will be ensured throughout this route, from Murmansk in the north of Russia to Bandar Abbas in Iran," President Putin said.

"Another north-south transport artery will run via the Urals region and Siberia. Its main elements are the modernisation of the central part of the Trans-Siberian Railway, including the West-Siberian Railway line running across several regions of Siberia, namely the Omsk, Novosibirsk, Kemerovo and Tomsk regions and the Altai Territory. The other elements are the construction of the Northern Latitudinal Railway, as we call it, towards the ports on the Arctic Ocean and the Yamal Peninsula in the north of the Krasnoyarsk Territory, and a new North Siberian Railway from the Khanty-Mansi Autonomous Area towards our largest railway network comprising the Trans-Siberian Railway and Baikal-Amur Mainline."

After the initial speeches and meetings, President Xi Jinping of China and Russian President Vladimir Putin will meet on the sidelines to further discuss trade, economic cooperation, as well as the global and regional situation. The Russian delegation included a large number of senior officials, including the Vice Premier, representatives of the Foreign Ministry, Economic Development agencies, as well as representatives from the Transportation and Finance departments.

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@WorkerSolidarityNews

[theculturedmarxist]

In their February paper, “US Dollar Primacy in an Age of Economic Warfare,” presented at the West Point Symposium on “Order, Counter-Order, Disorder” Michael Kao and Michael St. Pierre argue for using a stronger US dollar as geopolitical leverage:

Not only are the effects of interest rates hikes magnified in other countries due to a myriad of structural and idiosyncratic economic fragilities previously discussed, the confluence of wide USD adoption with cyclical USD strength … make the USD a potent geopolitical lever masquerading as a domestic fight against inflation. National Power lends the USD dominance in adoption, while an opportunistic fight against inflation lends the USD cyclical strength for geopolitical leverage.

The US and US-led institutions are already trying to sideline China in countries struggling to make debt payments. And these efforts are likely to continue as interest rates rise and more countries in the Global South are unable to repay loans. A recent UNDP paper stated that 52 developing countries are suffering from severe debt problems.

China is the world’s largest bilateral creditor, and this is especially true for countries that are part of Beijing’s Belt and Road Initiative and/or for countries that possess strategically important natural resources. Washington estimates that Chinese lending ranges from $350 billion to a trillion dollars.

In recent years, western officials and media have ratcheted up criticism of China’s lending practices, claiming Beijing is putting its boot on the neck of countries, holding back their development, and is seizing assets offered as collateral.

Deborah Bräutigam, the Director of the China Africa Research Initiative at the Paul H. Nitze School of Advanced International Studies, has written that this is “ a lie, and a powerful one.” She wrote, “our research shows that Chinese banks are willing to restructure the terms of existing loans and have never actually seized an asset from any country.”

Even researchers at Chatham House admit there’s nothing nefarious about China’s lending, explaining that it has instead created a debt trap for China. That is becoming more evident as nations are unable to repay, largely due to the economic fallout from the pandemic, the Nato proxy war against Russia in Ukraine, inflation, and rising interest rates.

These confluence of events hitting developing countries are entangling China  in multilateral talks that include US-backed institutions like the IMF. Beijing’s preference has always been to try and tackle debt repayment issues at a bilateral level, typically by extending maturities rather than accepting write-downs on loans.

But US Treasury Secretary Janet Yellen and company continue to parrot the talking point that China’s lending is harming countries, and in countries unable to repay their international debts, the West and China are increasingly at odds.

Back in 2020, the G-20 countries created the Common Framework for Debt Treatments to provide relief to indebted countries, which included “fair burden sharing” among all creditors. Beijing’s reluctance to agree to such burden sharing is illustrated by the case of Zambia.

Zambia became the first African country to default on some of its dollar-denominated bonds during the Covid-19 pandemic when it failed to make a $42.5 million bond payment in November 2020.

More than a third of the country’s $17 billion in debt is owed to Chinese lenders. Zambia worked out a deal with the IMF for a $1.3 billion bailout package but can’t access the relief until its underlying debt is restructured – including Chinese debts. But the IMF prescription for Zambia is a blow to Beijing. Here are some details of the arrangement from The Diplomat:

Zambia will shift its spending priorities from investment in public infrastructure – typically financed by Chinese stakeholders – to recurrent expenditures. Specifically, Zambia has announced it will totally cancel 12 planned projects, half of which were due to be financed by China EXIM Bank, alongside one by ICBC for a university and another by Jiangxi Corporation for a dual highway from the capital. The government has also canceled 20 undistributed loan balances – some of which were for the new projects but others for existing projects. While such cancellations are not unusual on Zambia’s part, Chinese partners account for the main bulk of these loans…

While some of these cancellations may have been initiated by Chinese lenders themselves, especially those in arrears, Zambia may not have needed to cancel so many projects. Since 2000, China has canceled more of Zambia’s bilateral debt than any sovereign creditor, standing at $259 million to date.

Nevertheless, the IMF team justified the shift because they – and presumably Zambia’s government – believe that spending on public infrastructure in Zambia has not returned sufficient economic growth or fiscal revenues. However, no evidence is presented for this in the IMF’s report.

Zambia will also cut fuel and agriculture subsidies. So instead of infrastructure investment and social spending, the country gets austerity. The IMF deal also relegates China to the backseat, as it allows for 62 concessional loan projects to continue, only two of which will involve China. The vast majority of the projects will be administered by multilateral institutions and involve recurrent expenditure rather than infrastructure-focused projects.

Despite all the evidence to the contrary, Yellen on a trip to Zambia in February warned that Chinese lending “can leave countries with a legacy of debt, diverted resources, and environmental destruction” and called out Beijing for being a “barrier” to ending the major copper producer’s debt crisis and noted that it had “taken far too long already to resolve.”

The US effort to sideline China in Zambia comes at the same time that Washington is trying to tighten control over resources in the region. Note that back in December the US signed deals with the Democratic Republic of Congo and Zambia (the world’s sixth-largest copper producer and second-largest cobalt producer in Africa) that will see the US support the two countries in developing an electric vehicle value chain.

Beijing is insisting that multilateral lenders also accept haircuts on loans rather than just China being expected to do so. This is a position that most debtor nations agree with. On the other side, the IMF and its partners are worried that its bailout money would merely go to Chinese creditors – many of which are state banks that are increasingly troubled by bad debts.

Gong Chen, founder of Beijing-based think tank Anbound, says that if countries are unwilling or unable to repay their debts to China, it would be devastating:

Widespread debt evasion and avoidance would have a significant impact on China’s financial stability,” he said, “and we are concerned that some countries may try to avoid paying back their debt by utilizing geopolitics and the ideological competition between East and West.

Yellen and company tried to apply more pressure on Beijing at the recent G20 meeting of finance officials in India, but that fell flat on its face much like the West’s efforts to hijack the meeting and turn it into a roundtable on Russian sanctions.

Meanwhile, Zambia has halted work on several Chinese-funded infrastructure projects, including the Lusaka-Ndola road, and canceled undisbursed loans in line with the IMF prescription for its debt problem.

Chinese companies are now attempting to work around these roadblocks by shifting more toward public-private partnerships. For example, a Chinese consortium is now planning to build a $650 million toll road from the Zambian capital to the mineral-rich Copperbelt province and the border with the Democratic Republic of the Congo.

The situation in Zambia does not bode well for other nations needing debt relief, as the delays while the West and China clash mean more pressure on government finances, companies and populations.

And if the West’s primary goal in offering debt relief is to sideline Beijing, as it appeared in Zambia, then that will mean a drastic scaling back of infrastructure projects replaced by austerity. From Sovdebt Oddities:

More broadly, as noted by Mark Sobel, the current international financial architecture is ill-equiped to deal with a major recalcitrant creditor benefiting from outsized (geo)political leverage. While it remains illusional to insulate sovereign restructurings from geopolitical considerations, there is a risk that they would turn into a game of chicken between China on the one hand and the IMF and Paris Club on the other hand. The problem being that if none of the players yields, it will just mean more economic and social hardship for the debtor country stuck in the middle.

Sure enough, the same situation is playing out in two nations that are key points on China’s Belt and Road project: Pakistan and Sri Lanka.

Here is Islamabad’s debt situation, courtesy of Pakistani economist Murtaza Syed at The International News:

For each of the next five years, Pakistan owes the world $25 billion in principal repayments. It will also need at least $10 billion to finance the current account deficit, bringing total external financing needs to $35 billion a year between now and 2027. We have foreign exchange reserves of just $3 billion. For each of the next five years, the government needs to pay 5 percent of GDP to service the debt it owes to residents and foreigners. Our total tax take is only 10 percent of GDP.

Around fourth-fifths of this external debt is owed to the official sector, split roughly evenly between multilaterals (like the IMF, World Bank and ADB) and bilaterals (countries like China, Saudi Arabia and the United States). The remaining one-fifth is commercial, again roughly evenly split between Eurobond/Sukuk issuances and borrowing from Chinese and Middle Eastern banks. By region, we owe roughly one-third of our external debt to China and 10 percent to the old-boys network of the Paris Club, which includes Europe and the US.

Additionally, last year, the Pakistan rupee plunged nearly 30 percent compared to the US dollar. All indications are that the IMF is using bailout negotiations to pressure Pakistan to move away from China and revive its partnership with the US. Some background from WSWS:

Former prime minister Imran Khan’s government was promptly removed in April 2022 after he reversed IMF-demanded subsidy cuts in the face of country-wide protests. Khan had previously implemented two rounds of some of the toughest austerity in the country’s history. In the final year of his government, Khan shifted the country’s foreign policy towards a closer alliance with Russia and deepened ties with China, prompting concern and anger in Washington.

Sharif’s Muslim League (PML-N) and the People’s Party (PPP) assumed power in a coalition with the approval of the military, long the most powerful political actor in the country and the linchpin of the alliance between the Pakistani bourgeoisie and US imperialism. The express aim of the new government was to implement IMF austerity, which it has done.

The IMF-prescribed austerity imposed by Pakistani elites also targets Beijing.  China is Pakistan’s largest single creditor as the country is perhaps the most important country in China’s Belt and Road plans because it would provide China with a potential corridor to the seaport at Gwadar on the Indian Ocean. The supply line would reduce the distance between China and the Middle East by thousands of miles via insecure sea lanes to a shorter and more secure distance by land. Beijing’s spending in Pakistan reflects this, as the $53 billion China has spent on the Belt and Road Initiative (BRI) in the country is tops of all BRI countries.

Yet many of the BRI plans are unrealized, and Pakistan’s current economic situation makes it unlikely they’ll be finished anytime soon. China has dramatically scaled back investment, which fits with its more cautious approach to BRI projects. Meanwhile, decades-high inflation, economic mismanagement, and last year’s biblical floods have led to Islamabad burning through its foreign exchange reserves in order to make debt payments. The US blames China.

“We have been very clear about our concerns not just here in Pakistan, but elsewhere all around the world about Chinese debt, or debt owed to China,” US State Department Counselor Derek Chollet told journalists at the US Embassy in Islamabad after he met with Pakistani officials in February.

Additionally, Cholett said Washington is warning Islamabad about the “perils” of a closer relationship with Beijing.

According to the Times of India, many Pakistani officials have come around to the US way of thinking and are also blaming the China-Pakistan Economic Corridor Project (CPEC), a $65 billion network of roads, railways, pipelines, and ports connecting China to the Arabian Sea,  for worsening the country’s debt crisis. From Indian Express:

Pakistan expanded its electricity generation capacity under the China-Pakistan Economic Corridor Programme (CPEC) but the expansion came at a high cost both in terms of high returns guaranteed to the Chinese independent power producers (IPPs) and the expensive foreign currency debt. Pakistan has been unable to make the capacity payments to IPPs under the long-term power purchase agreements with the electricity sector debt rising to a staggering $ 8.5 billion.

Last December, the government agreed to repay this debt in installments. However, this may have displeased the IMF, which had expected the government, in August 2022, to renegotiate the purchase power agreements. Pakistan tried to renegotiate but the Chinese refused.

The IMF extended the current program on the condition that it would not go to the Chinese IPPs. More from Nikkei Asia:

Observers say Pakistan’s handling of the electricity issue is likely to irk China, noting that Sharif’s government committed to the IMF to reopen power contracts without taking the Chinese companies into confidence. Pakistan has also reneged on a promise to set up an escrow account to ensure smooth payments to Chinese IPPs.

The IMF is demanding that Pakistan rationalize payments to the Chinese IPPs in line with earlier concessions extracted from local private power producers…

The IMF now wants Pakistan to negotiate an increase in the duration of bank loans from 10 years to 20 years, or to reduce the markup on arrears owed to Chinese IPPs from 4.5% to 2%.

Notably, the IMF appears to have been less willing to make concessions than the previous 22 times Pakistan has sought its support since 1959. Oddly enough Beijing is pushing for a deal between Islamabad and the IMF, and China recently extended a $2 billion loan to Pakistan. From the Middle East Institute:

It is interesting to note, for example, that Chinese officials reportedly urged Islamabad to repair ties with the IMF — if true, an indication that Beijing regards resumption of the Fund’s lending program as key to mitigating Pakistan’s risk of default.

It is also revealing that Pakistan seems keener to take on new financing from China than China may be to furnish it. Even as the economy wobbles under a heavy debt burden and other acute challenges, Pakistani officials have sought support from China to upgrade the Main Line 1 (ML-1) railroad, a project which, if not undertaken, they claim could result in the breakdown of the entire railway system.Yet, the IMF wants Pakistan to rein in CPEC activity. And China’s own domestic economic challenges and priorities might make it hesitant to respond to Islamabad’s appeals. On the other hand, the ML-1 project might meet Beijing’s more exacting standards and increasing emphasis on “high quality” BRI infrastructure projects.

The recent rapprochement between Iran and Saudi Arabia could leave Pakistan out in the cold and even more reliant upon the US. From Andrew Korybko:

With the Kingdom likely to focus more on mutually beneficial Iranian investments than on dumping billions into seemingly never-ending Pakistani bailouts that haven’t ever brought it anything in return, Islamabad will predictably become more dependent on the US-controlled IMF. China will always provide the bare minimum required to keep Pakistan afloat in the worst-case scenario, but even it seems to be getting cold feet nowadays for a variety of reasons, thus meaning that US influence might further grow.

About that, last year’s post-modern coup restored American suzerainty over Pakistan to a large degree, which now makes that country a regional anomaly in the geopolitical sense considering the broader region’s drift away from that declining unipolar hegemon. The very fact that previously US-aligned Saudi Arabia patched up its seemingly irreconcilable problems with Iran as a result of Chinese mediation reinforces this factual observation. Pakistan now stands alone as the broader region’s only US vassal.

Pakistan is not only the most highly indebted to China of its BRI partners, but along with Sri Lanka, is also among the largest recipients of Chinese rescue lending. The ruling elite Pakistan is increasingly concerned that the social crisis could spiral out of control and result in something similar to what happened in Sri Lanka last year when a popular uprising toppled the government.

Due to haggling between the West and China, Sri Lanka has been waiting since September to finalize a bailout after a $2.9 billion September staff level IMF deal. And yet many of the recommendations in the agreement have already been implemented—to disastrous effect.

The country is dealing with its worst economic crisis since independence in 1948, including a shortage of reserves and essential items. In February, the IMF said Sri Lanka’s bailout package was set to be approved as soon as the country obtained adequate assurances from bilateral creditors, i.e., China.

Beijing now appears ready to meet more of the IMF’s demands, although details have yet to be released. In a letter in January, the Export-Import Bank of China offered a two-year debt moratorium, but the IMF said that wasn’t enough. According to Reuters, total Sri Lankan debt to Chinese lenders totals roughly 20 percent of the country’s total debt.

Sri Lanka is another focal point of the BRI due to its geographical position in the middle of the Indian Ocean. China’s goal was to transform the country into a transportation hub as much of its energy imports from the Middle East and mineral imports from Africa pass through Sri Lanka. Beijing has already achieved much of these goals. For example, in 2017 a 70 percent stake of the Hambantota port was leased to China Merchants Port Holdings Company Limited for 99 years for $1.12 billion.

The West blames China’s BRI initiative in Sri Lanka for saddling the country with unsustainable debt, but is that really the case? Political economists Devaka Gunawardena , Niyanthini Kadirgamar, and Ahilan Kadirgamar write at Phenomenal World:

The problems associated with the IMF’s policy package have been caught in geopolitical rhetoric. The US alleges that Sri Lanka is the victim of a Chinese debt trap. In fact, Sri Lanka is in an IMF trap. The structural consequences of over four decades of neoliberal policies have exploded into view with the receding welfare state, a ballooning import bill, and investment in infrastructure without returns, all of which relied on inflows of speculative capital. Framing Sri Lanka’s crisis within a narrative of geopolitical competition obscures the core dilemmas of the global economy. Will the evident breakdown force a reckoning with the present order, or will it be used as an excuse to inflict more suffering?

Thus far, it looks like the latter.

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