China Helps Ghana Industrialize. First Ever Russia-Africa Summit

June 23, 2019

You will read below the continued cooperation of Russia and China with Africa in promoting economic growth on the continent. In this respect, the US is largely absent in Africa. President Trump would be wise to correct this flawed US policy, and join Russia and China in engaging in the development of African nations. 

Ghanaweb.com

Help Ghana industrialize – Business Development Minister tells China

 

Ibrahim Mohammed Awal 750x406
Ghana’s Minister for Business Development, Dr Ibrahim Mohammed Awal

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Minister for Business Development, Dr Ibrahim Mohammed Awal, has appealed to China not to be a mere trading partner but to also support Ghana’s efforts to become a manufacturing hub in West Africa.

He said while Ghana appreciated and looked forward to growth in the trade relations between the two countries, it was critical for China to prioritize manufacturing in Ghana as well.

Opening the third China Trade Week in Accra yesterday, Dr Awal said his appeal was premised on the government’s industrialization drive as one of the major pillars to Ghana’s accelerated, all-inclusive and sustainable development.

The three-day event was organised by MIE Events, a global event organizer, as a business to business trade show featuring over 100 Chinese manufacturers looking to develop direct trading partnerships and links with local businesses.

It was also a platform for the local business community to explore business opportunities in China to enhance trade cooperation between the two countries.

It is a platform for both Ghanaian and Chinese businesses and brands to increase their visibility, find vendor partners and distributors in each other’s country.

Organizing for First-Ever Russia-Africa Summit in October Underway

The Kremlin announced officially on May 28 that the first-ever Russia-Africa Summit will be held on Oct. 24, 2019, in Sochi. It will be co-chaired by President Vladimir Putin and current chair of the African Union, Egyptian President Abdel Fattah el-Sisi. All the heads of state of Africa are invited to attend, as well as leaders of major sub-regional associations and organizations. An economic forum will be held for Russian and African officials and businessmen the day before (Oct. 23), which some 3,000 African businessmen are expected to attend.

President Putin first proposed the idea of such a summit at the 2018 BRICS summit in South Africa, and his aide, Yury Ushakov, is now chairing the summit Organizing Committee. Russian organizers describe the summit as “of unprecedented scale” for Russia, whose intent is to provide “a strategically important step towards creating the most favorable conditions to develop trade and economic relations and diversity the forms and areas of Russian-African cooperation.”

Preparatory meetings are already being held, including a Russia-Africa Business Dialogue organized as part of the St. Petersburg Forum; a Russia-Africa Economic Forum being held in Moscow yesterday and today, along with the 26th annual shareholders meeting of the African Export-Import Bank, which is being held in Moscow for the first time; and a Russia-Africa Parliamentary Conference on July 1-3. Work started in April on drafting a document to be titled “Russia-Africa: Shared Vision 2030,” involving people from the African continent and Russians.

China’s Belt-Road Initiative Advancing Growth in Africa and Germany. Will the US join?

June 20, 2019

Everyday, nations around the world are experiencing economic growth by participating in China’s Belt and Road Initiative-BRI. For a truly global transformation, the United States must join this new paradigm of development. The most productive way to enhance relations with China, is for President Trump, at next week’s G-20 meeting, to discuss with President Xi Jinping, the US joining the BRI. This would create an unprecedented level of economic growth throughout the world. It would also be a brilliant flank against those voices in the US, and internationally, who are demonizing China, and trying two divide our two great nations. 

{Independent}: Belt and Road Contributing to Prosperity in Africa

A feature today in the South African {Independent Online Business Report} publication reviews the benefits of the Belt and Road Initiative for Africa, saying that Liberia, Morocco, and Tunisia have benefited from African development projects, as has Ethiopia from the Addis Ababa Light Rail, which cut travel time to and from the city. Through the BRI, China has also built a light-rail system in Abuja, Nigeria, the first to be built in Western Africa. Chinese construction companies have further assisted Angola in rebuilding its Benguela Railway, which had been destroyed in the civil war. The country can now transport goods from Angola’s western coastline to the border of the Democratic Republic of Congo.

Chinese-funded projects have also led to the construction of the Isimba and Karuma hydroelectric power stations, two new sources of electricity to Uganda, which will ultimately aid development. In Rwanda, road construction projects have brought young citizens into construction through their employment. This ultimately improved their welfare and provided labor skills. In the spirit of BRI’s trade ambitions, Egypt now looks to make the idea of the Cape-to-Cairo road a reality. Since taking the reins as 2019-2020 chairperson of the African Union, Abdel Fattah el-Sisi of Egypt plans to construct a superhighway through multiple African nations, eventually ending in Cape Town, to open
countries to trading in the Cape’s ports and in Cairo, Egypt’s gateway to the European Union.

German Mittelstand Supports New Silk Road

China’s proposed Belt and Road Initiative (BRI) has been creating opportunities for German enterprises, said Hans von Helldorff, chairman of the board of the Federal Association of German Silk Road Initiative (BVDSI), in an interview with Xinhua on June 17.

“The future markets and the new markets, for example, are in Asia, Africa, as well as Eastern and Southern Europe. They are not so well-connected. China has been providing the connections, thus it will generate great opportunities,” said von Helldorff, stating that new markets are needed by Germany’s Mittelstand firms.

Von Helldorff said that, thanks to the inter-connectivity, businesses have already been on the rise in some German cities, such as Hamburg and Duisburg. Many small and medium-sized companies in Germany got contracts with seaborne and logistics enterprises from China and other countries for local registration, legal, accounting, and tax services, von Helldorff stated.

“The infrastructure projects along the Belt and Road countries also need a lot of know-how. Harbor-related, road-related, train-related, etc. We have to open our eyes and participate in them,” von Helldorff said, declaring that the strengths of German businesses can contribute as an “innovation and investment engine.”

Speaking about prevailing doubts and worries about the BRI, allegations that the initiative might be politically motivated and harm local industries, von Helldorff said that some of them are simply clichés and that some are unfounded.

“The BVDSI sees China as a fast-growing economy that follows a plan. We need to sit and make eye-to-eye contacts and negotiations. Only cooperation in the sense of fair competition is for the benefit of humanity,” von Helldorff said. The BVDSI, founded in March 2019, is a business association serving as a platform for the interests of small- and medium-sized German companies. The BVDSI plans to organize a
forum later this year in Germany on the BRI for partners to establish project-related contacts.

 

President Trump’s Harmful Huawei Sanctions Against China, the US, and the World

June 16, 2019

President Trump’s foolish sanctions against Huawei display a poor understanding of the history of human development on this planet, as we know it. As William Jones points in his article below, it is the US economy and American citizens, more than China, that could suffer from these ill thought out sanctions. The beauty of human beings is our continued ability over millions of years to make discoveries of new physical principles of the universes, due to our inherent capacity for creative thought. Although this quality of human thought is less valued in American culture these days, this is not so in China. China will continue to make scientific advances, as should all nations. We should all rejoice when new discoveries are made, resulting in new advances in applied technologies, which benefits all of mankind. Who will create the next technological platform with “6G?” This is the essence of human progress and it should be celebrated. As I have repeated many times on this website, if The Trump administration and US Congress had any brains, they would enthusiastically join China’s Belt and Road Initiative, and collaborate with China in industrializing the Moon as a stepping stone to colonizing Mars. These joint endeavors would produce a new platform of economic growth across the globe that would benefit humanity for decades to come.

Africa should not be bullied into rejecting Huawei’s 5G technology

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The U.S. Could Be Shooting Itself in the Foot with Huawei Sanctions

2019-06-12 China Today

Author:WILLIAM JONES

The near-hysteria in Washington over the expansion of Huawei worldwide and its development of 5G technology has provided some much sought ammunition for politicians here in Washington with a dearth of ideas for resolving America’s economic woes, and may have some short-sighted benefit for them among a populace fearful that the direction of American society is on a downward spiral. Finding a scapegoat for the country’s dilemma apart from the powers in Washington that actually determine the fate of the nation, is always a welcome relief for those power-brokers who hold themselves above scrutiny. And preventing a competing nation from becoming an integral contributor to the vital communications networks on which the world increasingly depends is an added boon. And yet the attempt to undermine Huawei from becoming a bigger player in the world’s communications systems may in fact sabotage the growth of U.S. companies engaged in the same field

Read US Sanctions Against Huawei

African Union Deepening Relationship With Huawei

Africa should not be beholden to US anti-China policy from President Trump’s administration. China and Africa have formed a closed relationship, collaborating to build vitally necessary infrastructure projects that the US and the West have refused to build over many decades. African nations have the right to have the most advanced technologies to realize their full economic potential on a continent rich with people and resources.

 

Huawei’s vice-president for the Northern African region Philippe Wang (on the left) and the deputy chair of the African Union, H.E. Kwesi Quartey

June 2, 2019

Huawei announced on May 31 that they had signed a three-year MOU to “improve the technical expertise of the African Union (AU) and to cooperate on key issues related to information and communication technologies,” according to Quartz Africa. Huawei and the AU will partner to strengthen sectors including the internet, cloud computing, broadband, 5G networks, artificial intelligence, and cyber-security, while also providing training for young people.

Since an MOU signed in 2015, people from across the AU have been hosted on tours to Huawei training centers in China.    While the China-bashers in the U.S. are warning countries against Huawei spying on people, China is “trying to improve its competitive advantage in the continent,” Quartz Africa reports.

“The company is already one of the biggest phone brands operating in Africa, coming just behind China’s Transsion and South Korea’s Samsung in the smartphone space. Since starting its operations in Kenya in 1998, it has used a blend of pricing, customer service, brand awareness, and a vision to bridge the digital divide to penetrate the African market. Huawei has also reportedly built about 70% of Africa’s 4G networks, vastly outpacing competitors in the demand not just for internet but for improved and faster connectivity.”

“Huawei’s deal with the AU could also be seen in the context of trying to improve its competitive advantage in the continent. The company is already one of the biggest phone brands operating in Africa, coming just behind China’s Transsion and South Korea’s Samsung in the smartphone space. Since starting its operations in Kenya in 1998, it has used a blend of pricing, customer service, brand awareness, and a vision to bridge the digital divide to penetrate the African market.

“Huawei has also reportedly built about 70% of Africa’s 4G networks, vastly outpacing competitors in the demand not just for internet but for improved and faster connectivity.

“Under this agreement, we are pleased to consolidate our existing partnership with Huawei, a leading group in the fields of innovation and technological research,” Thomas Kwesi Quartey, the deputy chairperson of the AU said. “It is essential that we work closely with our partners to meet the digital transformation challenges of Africa.”

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In Africa, the Belt and Road Is Generally Spurring Socio-EconomicDevelopment

Lamu Port-South Sudan-Ethiopia-Transport (LAPSSET) Corridor project, also known as Lamu corridor is a transport and infrastructure project in Kenya that, when complete, will be the country’s second transport corridor

May 12, 2019

The Belt and Road strategy of international cooperation already up and running and phenomenally redrawing the global development map. With outlaying economic corridors and tremendous added value it is also putting Africa in the front-line of emerging global economic hubs, wrote Charles Onunaiju, Director Center for China Studies, Utako, Abuja, in his article, “Africa and China’s Belt and Road Strategy,” that appeared in {The Sun} of Nigeria on May 8.

Elaborating the contribution of the Belt and Road Initiative in Africa, Onunaiju wrote: “Since the action plan of the Belt and Road strategy was rolled out, key infrastructure projects have sprung up in Africa taking shape from its concessional funding support and inspirations of facility connectivity. In respect of overland construction, Chinese companies through concessional financial support have built the Addis Ababa-Djibouti Railway in Ethiopia, which is the first electrified railway in Africa, the Mombasa-Nairobi Railway in Kenya, the Abuja-Kaduna Railway in Nigeria, Benguela railway in Angola, and many others, including the Lagos-Ibadan-Kano-Abuja [railroad] under construction.

“With regards to the maritime component of Belt and Road Initiative, Africa features eminently in the key infrastructure projects. So far, Chinese companies have constructed the port of Bagamoyo in Tanzania, the No. 19 berth of the port of Mombasa and three berths of port Lamu, all in Kenya, the New port of Pointe-Noire in the Republic of Congo or Congo Brazzaville, the Lekki Deep Seaport in Nigeria, the Kribi Deep seaport in Cameroon, and the port of Tamatave in Madagascar.

“Under the framework of the Belt and Road strategy of international cooperation, the port of Cherchell in Algeria has been built and is in operation, while the Port of Luanda in Angola is under construction. The distinct feature of each of these ports is that they either have access to major road connections or sit near the sites of industrial parks, thereby having significant impacts on economic development of the coastal areas of Africa.”

Read the entire article below.

Africa and China’s Belt and Road strategy

Belt-Road Initiative and Belt-Road Forum: A New Model of Global Development

May 9, 2019

Belt-Road Initiative is Now Second Largest Trade Bloc

{Global Times} reports today that the BRI has become the second-largest trade bloc in the world, surpassing NAFTA, now second only to the EU. The BRI countries account for 13.4% of world trade, while the EU is about 20%.

In terms of investment, {Global Times} reports, the BRI countries have become the most important destinations for foreign capital inflows in the world, accounting for 31.6 percent of the total in 2017, exceeding the 23-percent share of NAFTA and the 21.2-percent share of the EU.

Chinese President Xi Jinping talks to United Nations Secretary General Antonio Guterres (not pictured) during the bilateral meeting of the Second Belt and Road Forum at the Great Hall of the People on 25 April 2019 in Beijing, China. (Credit: Getty Images/Getty Images News/Andrea Verdelli / Stringer)

Vladimir Yakunin: BRI is “A Future Model of Global Development-in-Solidarity”

Vladimir Yakunin, the former president of Russian Railways and the initiator of the Dialogue of Civilizations (DOC — the Rhodes Conference), has posted an article on the DOC Research Institute website titled: “The Belt and Road Initiative as a new model for global inclusive development and solidarity.”

Yakunin writes that the Second Belt and Road Forum “should be seen to represent significant global development amidst uncertain times.” He reviews the decay of the world economy that led to the 2008 financial crisis, where investments in infrastructure were drastically curtailed, while “the world economy became `financialized;’ i.e., the financial sector increasingly dominated the real sector. This uncontrolled imbalance eventually led to the financial crisis and later to the global systemic crisis.”

The DOC, founded in 2012, took on an effort to develop “a new approach to under-standing the role of infrastructure projects in global development,” which was published as: “Trans-Eurasian Belt Development: RAZVITIE project,” and presented at a specially organized conference in Milan in November 2012.

The developments at the Second Belt and Road Conference this past week, Yakunin writes, “showed an increasingly widespread unders-tanding that economic egotism and arrogance is giving way to rational collectivism and an orientation towards a new type of globalization, based on principles of equality, sovereignty, and mutual development.”

Yakunin notes that some Western officials are worried that the BRI, together with the new financial institutions like the AIIB, the BRICS’s NDB, and the Silk Road Fund, are challenging their “long-time dominant positions,” but notes that “the traditional international development institutions did not provide the necessary weight for developing countries to participate in the global financial system.”

He reviews the huge growth in the BRI, such as the 73% increase in China-Europe freight trains in 2018 over 2017, with 6,363 trips in 2018, connecting 59 Chinese cities and 49 cities in 15 European countries.”

His conclusion: “[T]he key idea of the Belt and Road initiative — equal and mutually beneficial cooperation without imposing any political conditions — clearly contradicts the currently dominant thesis in contemporary world politics. The new approaches could change the very essence of geopolitics and geo-economics by altering the outdated Cold War mentality of the past. Geopolitical theory has always been articulated through a lens of conflict, dividing the world into `us’ and `them’…. “The Belt and Road Initiative could be the source of a future model of global development-in- solidarity. The key here is the inability to return to the concept of a uni-polar or bipolar world, which can be seen today in global trends towards development of a truly multilateral world.”

Excerpts below:

“SEARCHING FOR A NEW PARADIGM OF SOCIO-ECONOMIC DEVELOPMENT”

“Numerous studies conducted after the crisis demonstrated a positive correlation between investment in infrastructure and economic growth. Importantly, it was also shown that infrastructure projects play a positive role in short-term outcomes as well, due to their creation of new jobs and their development of local enterprises, which increase long-term regional development levels.[1] Another conclusion voiced by many prominent economists over the last ten years has been the necessity of developing a new economic model to replace the existing neo-liberal system because neo-liberalism no longer meets requirements. Such statements were difficult to imagine before the crisis, but now seem obvious”

“CHALLENGES ON THE PATH TO IMPLEMENTATION”

“Taking into account the scale of the Belt and Road Initiative and the amount of investment China put into it through the newly founded multilateral financial institutions like the Asian Infrastructure Investment Bank, the New Development Bank, and the Silk Road Fund, it is not surprising that major powers including the European Union and the US are expressing significant concerns.”

Read entire article

 

Second Belt & Road Forum: Infrastructure is the Bedrock of Development

April 30, 2019

2nd Belt & Road Forum-April 25-27, 2019 (courtesy TheNews.com)

Xi Jinping’s Keynote to Belt and Road Forum Emphasized Goals of the BRI

Chinese President Xi Jinping’s speech to the opening ceremony of the Second Belt and Road Forum on April 26, “Working Together To Deliver a Brighter Future For Belt and Road Cooperation,” broadly laid out the BRF approach and prospects for the future.

“Together, we will create an even brighter future for Beltand Road cooperation…. The joint pursuit of the BRI aims to enhance connectivity and practical cooperation. It is about jointly meeting various challenges and risks confronting mankind and delivering win-win outcomes and common development…. A large number of cooperation projects have been launched, and the decisions of the first BRF have been smoothly implemented. More than 150 countries and international organizations have signed agreements on Belt and Road cooperation with China….
“Infrastructure is the bedrock of connectivity, while the lack of infrastructure has held up the development of many countries. High-quality, sustainable, resilient, affordable, inclusive and accessible infrastructure projects can help countries fully leverage their resource endowment, better integrate into the global supply, industrial and value chains, and realize inter-connected development. To this end, China will continue to work with other parties to build a connectivity network centering on economic corridors such as the New Eurasian Land Bridge….

“Innovation boosts productivity; it makes companies competitive and countries strong…. China will continue to carry out the Belt and Road Science, Technology and Innovation Cooperation Action Plan and Technology Transfer.”

President Xi also used his speech to present a list of a half-dozen major policy steps China has undertaken as part of its Opening Up strategy:
“First, we will expand market access for foreign investment in more areas….
“Second, we will intensify efforts to enhance international cooperation in intellectual property protection….
“Third, we will increase the import of goods and services on an even larger scale. China has a vast potential for increasing
consumption….
“Fourth, we will more effectively engage in international macro-economic policy coordination. A globalized economy calls for global governance. China will strengthen macro policy coordination with other major economies and keep the RMB exchange rate basically stable….
“Fifth, we will work harder to ensure the implementation of opening-up related policies.”

President Xi Jinping Chairs Roundtable at 2nd BRI Forum– ‘Boosting Connectivity for New Sources of Growth’

The concluding day of the 2nd Belt and Road Forum for International Cooperation in Beijing, President Xi Jinping chaired the Roundtable discussion among the 39 guests–37 heads of state plus the leaders of the IMF and United Nations. A joint communiqué has been issued (see separate slug,) and the Chinese Foreign Ministry has also posted a summary of the “Deliverables” from the Forum.

After a day of presentations, as well as sideline bilateral meetings, Xi and his wife Peng Liyuan hosted a welcome banquet for the national leaders. The cordial, but high-level tone of the deliberations April 25-27, was set in Xi’s keynote opening yesterday, when he happily welcomed everyone, “Good morning! As a line of a classical Chinese poem goes, ‘Spring and autumn are lovely seasons in which friends
together to climb up mountains and write poems.’ On this beautiful spring day, it gives me great pleasure to have you with us here at the Second Belt and Road Forum for International Cooperation (BRF).”

Read President Xi’s Key Note address

Second Belt & Road Forum Joint Communiqué States Development Commitments; Lists 35 Specific Economic Corridors–Including “The New Eurasian Land-Bridge”

The 37 national leaders were listed in the very first point of the Communiqué, and the following points identified the role of the “ancient Silk Road” to “the strengthening of the connectivity and the expansion of the world economy in the spirit of promoting peace and cooperation, openness, inclusiveness, equality, mutual learning and mutual benefit” and the role for today’s “Belt and Road cooperation” to do the same thing for the future. The remaining points were grouped under these headings: “Strengthening Development Policy Synergy”; and “Boosting
Infrastructure Connectivity”; and “Promoting Sustainable Development”; and “Strengthening Practical Cooperation”; and “Advancing People-to-People Exchanges”; concluding with, “Way Forward,” which stated, “We envisage the Belt and Road Forum on regular basis with possible follow-up events…[looking forward] to the 3rd Forum.”

Here is the full list of “Economic corridors” identified in the Communiqué:

(1) Addis Ababa-Djibouti economic corridor, including the
development of industrial parks along the economic corridor
(2) Agua Negra Pass International Tunnel
(3) Baku-Tbilisi-Kars new railway line and Alyat free
economic zone in Baku
(4) Brunei-Guangxi economic corridor
(5) China-Central Asia-West Asia economic corridor
(6) China-Europe Land-Sea Express Line
(7) China-Indochina Peninsula economic corridor, including
Laos-China economic corridor
(8) China-Kyrgyzstan-Uzbekistan International Highway
(9) China-Laos-Thailand Railway Cooperation
(10) China-Malaysia Qinzhou Industrial Park
(11) China-Mongolia-Russia economic corridor
(12) China-Myanmar economic corridor
(13) China-Pakistan economic corridor
(14) Eastern Economic Corridor in Thailand
(15) Economic corridor in Greater Mekong Subregion
(16) the EU Trans-European Transport Networks
(17) Europe-Caucasus-Asia International Transport corridor
and Trans-Caspian International Transport Route
(18) the Industrial Park “Great Stone”
(19) International North-South Transport Corridor (INSTC)
(20) the Lake Victoria-Mediterranean Sea Navigation
Line-Linkage Project (VICMED)
(21) the Lamu Port-South Sudan-Ethiopia Transport corridor
(22) Malaysia-China Kuantan Industrial Park
(23) the Nepal-China Trans-Himalayan Multi-dimensional
Connectivity Network, including Nepal-China cross-border railway
(24) New Eurasian Land Bridge
(25) the New International Land-Sea Trade Corridor of the
China- Singapore (Chongqing) Demonstration Initiative on
Strategic Connectivity
(26) Northern Corridor Trade Route in Africa linking the
maritime port of Mombasa to countries of the Great Lakes region
of Africa and Trans-Africa Highway
(27) North-South Passage Cairo-Capetown Pass-way
(28) the Port of Piraeus
(29) Port Sudan-Ethiopia Railway Connectivity
(30) Regional Comprehensive economic corridors in Indonesia
(31) the Suez Canal Economic Zone
(32) Transcontinental shipment of cargo using the capacities
of the Northern Sea Route
(33) Transoceanic fiber optic cable
(34) “Two Corridors and One Belt” Framework
(35) Uzbekistan-Tajikistan-China International Highway

Read entire communique of Belt-Road Forum

Belt and Road Is Unstoppable: `Critics’ Are Strong Supporters

The extraordinary attendance of governments, heads of state and government, and thousands of businesses at the Second Belt and Road Forum, comparing with the largest international meetings in history, was already proof that the Belt and Road Initiative (BRI) has expanded greatly since the first BRF in 2017 and is now  an unstoppable new paradigm of economy. After the Second BRF, certain myths of “backfire” and “criticism” in Asia also fell away.

Malaysian Prime Minister Mahathir Mohamed gave interviews in which he expressed full confidence in the BRI and surprise at its scope. Speaking to Bernama News Agency April 28, he said: “We feel that the [One Belt, One Road] OBOR initiative is not a domination plan by China, which would end up being controlled by China. Instead, it is a policy developed by all the countries, and not only focused on China. Previously … including the Trans-Pacific Partnership, developed countries made the proposals and asked us to accept them. This is not like that; the forum attendees are from small countries and they are sitting with China…They sit together at the same level, and talk about how to develop infrastructure projects.”

In an interview with China’s TV network CGTN, Dr. Mahathir said he had thought the Belt and Road was an infrastructure project for Asia.

“Now it is quite clear that it is, practially, a worldwide project …to improve connectivity and infrastructure development all over the world…I’m very glad I’m here, because now I understand better the character of the project. China has a lot of new technologies, and we need these new technologies.” He forecast large-scale Chinese investment and exports into Malaysia.

Indonesia’s investment minister, Harvard graduate Tom Lembong, who had been critical of China’s rail investments, told {South China Morning Post} that Indonesia has “found China’s openness to its feedback on improving the Belt and Road Initiative highly encouraging…. I believe in the next 5 to 10 years, BRI will stimulate additional investment in probably tens of billions of dollars [in Indonesia],” Lembong said.

In Europe, Italy and Austria are joining Portugal in planning issuance of “Panda Bonds” — infrastructure bonds issued by other countries in yuan, to be issued into China’s bond market. Even Germany Economics Minister Peter Altmaier found the Beijing forum “better than expected,” and is headed back with a Mittelstand delegation.

$50 Billion to Recharge Lake Chad; Pres Trump Should be at China’s Belt-Road Forum

April 25, 2019

Nigerian President, Muhammadu Buhari-left and UN General Secretary  Antonio Guterres-right  (courtesy LEADERSHIP)

UN Promises To Help Raise $50 Billion for Lake Chad Water Transfer

Nigerian President Muhammadu Buhari enrolled UN Secretary-General Antonio Guterres in the effort to raise the $50 billion needed to finance the construction of the Transaqua project to refill Lake Chad, Nigerian media report. That figure was proposed at the International Conference on Lake Chad in February 2018. Here is one such report from the Nigerian daily {Leadership}. Transaqua is an “inter-basin water transfer” project that I have advocated for over 20 years and discussed with President Buhari shortly after he was elected in March 2015. True to his word, President Buhari has remained committed to this inter-basin water transfer project, which would transform the living conditions for over 30 million Africans trying to survive in Lake chad Basin.

“There is a glimmer of hope for the revival of the shrinking Lake Chad after the United Nations yesterday agreed to help in efforts to raise $50 billion for its recharge.” President Muhammadu Buhari revealed yesterday that  UN Secretary-General, Antonio Guterres, had accepted to co-chair a special fundraising session to raise $50 billion (or £38.65 billion) for a project to help revive the drought stricken Lake Chad.”

{Leadership} reports that President Buhari had written to the UN scribe to co-chair the fundraising session with him, which the UN chief accepted. The response of the UN Secretary-General was presented to President Buhari by Dr. Akinwumi Adesina, president of the African Development Bank-(AfDB), at the State House, Abuja yesterday.

In a statement by his press spokes person, Garba Shehu, Buhari  said such a special forum was necessary in view of the size of capital required for the project, which was unavailable to the Lake Chad Basin countries. “President Muhammadu Buhari has welcomed the acceptance of the United Nations Secretary-General, Antonio Guterres to co-chair a Special Session to raise $50 billion to fund the inter-basin water transfer from Central Africa to revive Lake Chad,” Buhari said in the statement.

{Leadership} reports that the Lake, which borders Nigeria, Niger, Chad and Cameroon, has lost 90% of its size due mainly to climate change, leading to fear of famine and throwing the economic life of the 30 million population around it into jeopardy. The shrinking Lake is part of the reason why insurgency and terrorist activities thrive in the region, with militant groups including Islamic State in West Africa (ISWA) and Boko Haram having their strongholds there….”

Read the full article

China Ambassador: `Why U.S. Shouldn’t Sit Out the Belt and Road’

Under the headline above, China’s Ambassador in Washington Cui Tiankai wrote a column in {Fortune} magazine on the eve of the Second Belt and Road Forum in Beijing. “Don’t miss all the winning” involved in the Belt and Road, Cui admonishes, perhaps referring to one of President Donald Trump’s favorite phrases.

The ambassador starts with a very direct challenge: “Imagine the potential of China and the United States, the world’s two largest, most vibrant economies, collaborating on the most ambitious development project in history. The scenario is no fantasy: China’s Belt and Road Initiative (BRI), which kicked off almost six years ago, will eventually connect a vast swath of the world, creating huge yields in economic activity, and wiring the world together as never before. However, the United States remains on the sidelines, and this has implications not only in terms of missed opportunities for growth in the U.S., but for the cause of global development, which needs the ingenuity of US industry.”

Cui gives many arguments for the BRI which reflect those of Xi Jinping. He cites total benefits to the 126 countries now in relationship to it: $6 trillion in total trade, $80 billion in direct investment by China; 300,000 new “local jobs” in those countries; Kazakhstan’s first-ever access to the Pacific Ocean; 6,000 new jobs in Europe’s largest inland port, Duisburg; Kenya’s beginning of economic development and industrial-ization; and so on, with citations from national leaders.

“So where is the U.S. amid all of this winning?” he concludes. “There are countless opportunities to U.S. corporations available through BRI projects. Honeywell International is already working with partners to further oil and gas development along the Belt and Road. General Electric has signed a number of deals with partners of the BRI which will help to provide reliable power and energy to critical regions throughout the world. Caterpillar is working with China’s initiative to help solve Pakistan’s severe power shortages. Meanwhile, Citibank is actively providing financing for projects through the markets along the Belt and Road. We certainly welcome more taking part…. My suggestion is that the U.S. embrace this opportunity.”

China, Belt & Road: Eliminate Poverty, Not “Debt-Trap”

April 21, 2019

President Xi Jinping Hands-on Drive to Eliminate Poverty

As part of his government’s plan to entirely eliminate poverty from China by the end of 2020, President Xi Jinping carried out “an inspection tour to southwest China’s Chongqing Municipality” earlier this week, Xinhua reported, in which he pledged to address the issue like “a hammer driving a nail.” Xi first flew to Chongqing, China’s fourth largest city, and then spent another three hours, first by train and then by road, to reach Huaxi Village, where 302 people living in 85 households are registered as living below the poverty line.

Xinhua added: “Huaxi Village is a typical case of China’s impoverished regions. The basic needs for food and clothing have been met, but more efforts are needed for compulsory education, basic medical care and safe housing.”

It is to be noted that China’s criteria for poverty reduction are not strictly monetary, but include key physical-economic parameters such as education, health, and housing. As of 2018 there were still 16.6 million rural residents living in poverty in China. The government plans to lift about 10 million of those out of poverty during 2019. Xinhua then quoted Xi during his tour:

“The battle against poverty has entered a decisive and critical stage. We must press ahead with our full strength and strongest resolve and never stop until we secure a complete victory. After visiting the village, I feel reassured. We may have about 6 million impoverished people and 60 impoverished counties left at the beginning of 2020. If we make sure this year’s work is well-implemented and push ahead next year, we will eliminate poverty. We are confident about accomplishing the mission.

“Less than two years are left before fulfilling the objective of poverty alleviation. This year is particularly crucial,” Xi said at a symposium held Tuesday afternoon in Chongqing. “The most important thing at this stage is to prevent laxity and backsliding.” Xinhua’s account emphasized the top-down involvement of government officials in achieving this national goal. “Throughout the years, more than three million officials from governments above the county level, state-owned enterprises and public institutions have stayed in impoverished villages to offer assistance.

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FOCAC Summit 2018 (courtesy africa.cgtn.com)
I am posting the following article even though it is from last year, because the author accurately disproves the “debt-trap” propaganda being used by western institutions against China-Africa cooperation.

“2018 FOCAC: Africa in the New Reality of Reduced Chinese Lending”

August 31, 2018

W. Gyude Moore is a visiting fellow at the Center for Global Development. He previously served as Liberia’s Minister of Public Works with oversight over the construction and maintenance of public infrastructure from December 2014 to January 2018.

Debt Trap or Much-Needed Investment?

The debt trap diplomacy case, however, has never been convincingly argued and its application in Africa is, at best, tenuous. The reality of Africa’s debt to China is not particularly remarkable when taken against the sources of continent’s external debt stock (see figure below). A number of African countries’ (Djibouti, Kenya, and Angola) debt obligations to China are alarming—as they would be regardless of creditor. China’s $115 billion credit to Africa between 2000 and 2016 is still less than 2 percent of the total $6.9 trillion of low and middle income countries’ debt stock. Recent studies have shown that China is not a driver of debt distress in Africa—yet. The language of debt trap diplomacy resonates more in Western countries, especially the United States, and is rooted in anxiety about China’s rise as a global power rather than in the reality of Africa.

A column chart of external government debt for Sub-Saharan Africa by official, private, and Chinese creditors

Continue reading entire article

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China’s Belt And Road Forum to Gather 37 World Leaders, and Representatives from Five Continents

There will be no less than 37 heads of state and government attending China’s Second Belt and Road forum in Beijing next week, Chinese Foreign Minister Wang Yi said on Friday. In addition there will be 360 attendees at ministerial level, 100 leaders of international organizations and 5,000 participants. 4,000 reporters will also be attending the Forum, whose theme is “Belt and Road Cooperation, Shaping a Brighter Shared Future.”

“The second Belt and Road Forum will be held in Beijing on April 25-27. It will become China’s largest international event this year. Thirty-seven leaders of state and government will participate in the forum,” Wang told a press conference.  This will include the leaders of Austria, Egypt, Hungary, Italy, Russia, the United Arab Emirates and others. “Senior representatives” of France, Germany, Britain, Spain, Japan, the Republic of Korea and the European Union will also participate; other diplomatic representatives of the United States and North Korea will also be there. International Monetary Fund Managing Director, Christine Lagarde, and Antonio Guterres, the UN secretary- general, are also expected to participate, according to Wang.

This is the highest level event for cooperation on the Belt and Road Initiative, Minister Wang said. He said this year’s event will be characterized by a clear direction, a solid foundation, a warm response from participants, a program of practical cooperation and clearly defined results. A Leaders’ Round-Table Summit will issue a Joint Communique to show the political consensus of the leaders in building the Belt and Road.

The long-term effects of the Initiative will be to strengthen multilateralism, to enrich the principles of cooperation, to build a network of partnership and to build a strong support system for continued development. Wang Yi also underlined the connection between the BRI and China’s new phase of “opening up.” The new phase of  China’s “reform and opening up” will “bring more opportunities for promoting the ‘Belt and Road Initiative’ and the common development of all countries,” he said. “I believe that the forum will inject stronger impetus into the world economy, open even broader horizon for the development of the countries, and contribute to the building of a community with a shared future for humanity,” Wang continued.

China’s Belt & Road New Paradigm for Development: United States Should Join

April 18, 2019

Belt and Road Creates New Asian Paradigm for Global Economic Integration and Inclusiveness

That is the headline on an April 15 {Global Times} op-ed by Toumert Al, the director of Education, International Bachelor Program at the International School under the China Foreign Affairs University. The article provides a tour d’horizon of BRI achievements to date in infrastructure projects on various continents.

“In South Asia, the Belt and Road Initiative is seen as a main driver for infrastructure construction in a region that must bridge the ever-growing gap between its economic potential and the realities of its insufficient infrastructure. According to the World Bank, South Asia requires about 2 trillion dollars of investment in infrastructure construction from 2011 to 2020 if the region wants to be part of the new economic order shaping the future.” The article then discusses a couple of key projects, such as the Padma bridge in Bangladesh and Gwadar port in Pakistan.

Nigeria’s Mambilla Hydro-Electric Dam-3,000 megawatts (courtesy nigerianmuse.com)

“True to its global status and inclusive nature, the BRI is not merely a regional initiative. Africa can be considered a major beneficiary of  China’s economic drive to support the continent’s development and to help its infrastructure and economy achieve targeted growth plans. The year 2018 could be considered the turning point for the BRI in Africa as the signing of the MOU of cooperation between China and 37 African countries and the African Union raised the initiative to a new level. Infrastructure financing provided by China to Africa averaged $11.5 billion between 2012 and 2016.” Examples cited include the $5.8 billion Mambila Hydropower Plant in Nigeria, the Addis Ababa-Djibouti railway, the $11 billion port in Bagamoyo, Tanzania now under construction, and the Nairobi-Mombasa railway project. “Another project that is moving forward and may have the same implications as CPEC (China Pakistan Economic Corridor) has in South Asia is the Suez Canal corridor in Egypt,” the Toumert wrote. In short, the BRI “is a truly new paradigm in international cooperation.”

The Belt and Road Initiative Keeps Growing

China is now engaged in heavy organizing in the countdown to the April 26-27 Second Belt and Road Forum in Beijing, which will bring together representatives of over 100 countries and 29 international organizations. Just how powerful a draw the BRI is to nations across the planet, was shown earlier this week when the tiny Caribbean nation of Jamaica announced that they had signed an MOU with China on the BRI –notwithstanding the withering pressure that Washington and London have brought to bear. A similar, if strategically weightier example of this process was Italy’s signing an MOU with visiting Chinese President Xi Jinping last month.

Foreign Ministry spokesman Lu Kang yesterday discussed China’s approach to the upcoming Forum: “While the BRI was proposed by China, it has grown into an international public good. The success of the first BRF together with the bumper practical outcomes speaks volumes. The fact that more countries and international organizations are taking an active part in the second forum is further proof to its success.”

Asked about media accounts that India would not be sending a delegation–as they hadn’t to the First Belt and Road Forum–because they view the BRI’s China Pakistan Economic Corridor (CPEC) as infringing on Indian sovereignty, Lu responded:

“I would like to reiterate that the BRI is an open and inclusive initiative for economic cooperation. It never concerns territorial disputes. In pursuing BRI cooperation, China and partner countries are committed to equality, openness and transparency, to business operations centered around enterprises and to market rules and international norms. For those with inaccurate judgment on the BRI based on misunderstandings due to lack of knowledge of the real situation, I would like to reassure them that China is sincerely and resolutely committed to the principle of consultation and cooperation for shared benefit, equality and mutual benefit. Since its initiation, the Belt and Road cooperation has been inclusive and open to all countries that are interested in joining and working for win-win cooperation. It excludes no one. If the relevant country would like to take some time to see, we can wait.”

Meanwhile, Xinhua interviewed Cambodia’s Information Minister Khieu Kanharith who said that “the BRI forum will also further promote cooperation between China and ASEAN and between China and Cambodia…. For Cambodia, with Chinese assistance, we can build mega-infrastructure projects, and those projects are crucial to boosting economic growth and making communication easier and faster…. Our first priority is to boost economic growth and to make everybody have a fair share of the economic growth, The BRI can help us through sup-porting infrastructure projects and human resources development.”

He continued: “China has assisted us on equal footing, meaning that although China is a big country and Cambodia is a small country, China always treats us equally. With Chinese support, Cambodia has gained confidence in ourselves and our people are proud and confident in rebuilding the country.”

Chinese Insist the U.S. Should Join the Belt and Road

Asian Infrastructure Investment Bank President Jin Liqun told last weekend’s Harvard China Forum that the “infrastructure bottlenecks are the sewage problems of development. I would say that that’s also a problem for the United States”–a statement Americans can agree with. He presented the Belt and Road Initiative as “a platform for all participating countries to work together, including on connectivity,” which he called a matter not only of regional development, but also of “world peace and prosperity.”

When a discussion arose on how China had gone from being a debtor nation dependent on foreign development assistance, to one of the largest contributors to the World Bank’s International Development Assistance facility today, Jin pointedly commented that how much money a country has is not the issue.

“Accumulated wealth cannot buy you respect unless you help do good things for the rest of the world. So China has been trying to invest and help other countries through its own experience,” Jin stated.

At a Center for China and Globalization conference in Beijing over the same weekend, Jin Xin, director of the China Center for Contemporary World Studies of the Communist Party’s International Liaison Department, took on the arguments of former U.S. Ambassador Terry Miller (from the G.W. Bush days), who asserted the U.S. had no interest in participating in the Belt and Road Initiative, which is viewed as “a Chinese show” that “doesn’t have much to do with us.” Jin Xin countered that the U.S. should work with China in third-country markets under the BRI. If it decides not to do so, the U.S. will again find itself “excluded,” just as it excluded itself from the AIIB, in which more than 90 countries are now members, Jin said.