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.

 

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

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’s Belt and Road Aids Africa’s Growth in New Globalization

(China’s CGTN published my article today, on the eve of the historic 2nd Belt and Road Forum)
Opinion-April 24, 2019

Belt and Road Initiative: Another path to globalization

by Lawrence Freeman

Editor’s note: Lawrence Freeman is a Political-Economic Analyst for Africa, who has been involved in economic development policy of Africa for 30 years. The article reflects the author’s opinion, and not necessarily the views of CGTN.

On the eve of the second Belt and Road Forum (BRF), it is irrefutable that the world has been transformed in the five years since Chinese President Xi Jinping announced the Belt and Road Initiative (BRI).China’s archetype for global development is based on the more elevated concept of each country contributing to the “common destiny of all nations” and mankind’s “shared future.”

By focusing on “global connectivity” through massive investments in infrastructure, linking China to the rest of the world through its land and maritime new Silk Roads, China has presented the world with a new paradigm for development – in effect, redefining globalization.

According to the World Economic Forum (September 2018), “the BRI will encompass 70 percent of the world’s population (4.4 billion) and 63 percent of the world’s GDP (21 trillion U.S. dollars),” primarily from construction of rail lines, highways, ports, airports, hydro-energy plants and pipelines.

The first BRF held in May 2017 included 29 foreign heads of state, 11 heads of international organizations and over two dozen attendees on the ministerial level. Because of the expansion of the BRI over the last two years, already 40 world leaders have confirmed their attendance for this year’s conference.

Awakening the Sleeping Giant, Africa

Nowhere, outside of China itself, are the positive effects of China’s BRI more evident than on the African continent. At the 2017 BRF, the only African heads of States who attended were Ethiopia and Kenya, and ministers from Egypt and Tunisia. With Nigeria, the most populated nation in Africa, officially joining the BRI in 2019, and increased collaboration with China throughout all geographical sections of Africa, participation at this year’s BRF from Africa will undoubtedly be higher.

Engineers from the Addis Ababa Information & Communication Technology Development Agency in Ethiopia, Africa, train on Huawei’s networking equipment at the training center at Huawei headquarters in Shenzhen, China, September 15, 2011. /VCG Photo

Prior to the announcement of the BRI, China had already forged a close working relationship with Africa by convening China-Africa Summits (Forum on China-Africa Cooperation) every three years beginning in 2000, rotating the venues between China and Africa.  At the seventh summit held last year in Beijing, all but one of the 54 African nations attended.

Unfortunately, the West lost its vision of development for Africa after the death of President John F. Kennedy, instead adopting a no-infrastructure policy. What Africa has needed most since the 1960s “Winds of Change” liberation from colonialism is infrastructure, water, energy, rail and roads. China has a different view on this.

Ambassador David Shinn, a respected scholar on Africa, wrote last month: “China has been indisputably the single most important builder of infrastructure in Africa since the beginning of the 21st century.”

Take, for example, Djibouti, which is a BRI hub. China is building the Doraleh Multi-Purpose Port and international free trade zone in this northeast African nation, strategically located right off the Indian Ocean and on the Gulf of Eden. It is estimated that one-third of global shipping passes by this port.

In 2016, the first electrically driven train in sub-Saharan Africa, connecting Addis Ababa, the capital of landlocked Ethiopia, to the port city of Djibouti was inaugurated. This rail line built by Chinese companies utilizing and training African laborers and engineers is key to the develop-ment of the Horn of Africa, providing Ethiopia a port to export the products of its nascent manufacturing sector.

Aboubaker Omar Hadi, chairman of Djibouti Ports and Free Zone Authority, told Xinhua that “projects involving cooperation with China are helping Djibouti promote trade in Africa as well as distribution across the East African region… which couldn’t be achieved without developing proper infrastructure, such as seaports and railway connections.”

Chinese workers help to build a new train station in Beliatta in a southern province near Hambantota, which is Chinese managed and designed in Beliatta, Sri Lanka, November 18, 2018. /VCG Photo‍

Hadi called the “debt-trap” propaganda against the BRI, “complete nonsense, as benefits generated from infrastructure construction will far exceed the investment.”

African nations are attempting to industrialize their economies with growth in their manufacturing sectors. China is assisting by creating special economic zones, industrial parks, and industrial zones in Nigeria, Djibouti, Ethiopia, Egypt, Morocco, and Rwanda. Industry and infrastructure generate jobs, raise skill levels and transfer technology.

Will the West Join the BRI?

Africa’s requirement for infrastructure is enormous, allowing Western nations the opportunity to join with China to industrialize this vast undeveloped continent, which is projected to have 2.5 billion people by 2050. President Xi, at the first BRF, said: “We should foster a new type of international relations featuring win-win cooperation” and “development holds the master key to solving all problems.” Regrettably, western nations have been hostile to joining the BRI. However, last month’s ground-breaking signing of a memorandum of understanding (MOU) by Italy – the first G-7 nation to join China’s BRI – portends a potential change towards a new constructive dynamic.

Read: China’s New Approach to Globalization

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 Redefining Globalization & International Relations for Belt-Road Forum

April 10, 2019

Preparations for the Second Belt and Road Forum

On March 29, Yang Jiechi, member of the Political Bureau of the Central Committee of the Communist Party of China and director of the Office of the Central Commission for Foreign Affairs, spoke at length with the media about preparations for the late April Second Belt and Road Forum for International Cooperation in Beijing.

President Xi Jinping addressing 1st Belt Road Forum on May 15, 2017. (image credit: Reuters/Nicloas Asfouri)

“Since its inception, the BRI has received strong endorsement and warm support of the international community. So far, a total of 124 countries and 29 international organizations have signed BRI cooperation documents with China. Most recently, during President Xi’s visit to Italy, the two countries signed an MOU on promoting BRI cooperation, giving a new impetus to this process. Meanwhile, the BRI vision has been included in documents of major international institutions including the United Nations, the G20, the Asia-Pacific Economic Cooperation and the Shanghai Cooperation Organization. Indeed, the BRI has proved a popular and worthy cause that goes along with the trend of our times and responds to the shared aspiration of countries for development through mutually beneficial cooperation. Looking back at this pursuit over the last few years, I would draw your attention to the positive role the BRI has played in the following three ways…

“The BRI has created new impetus and opportunities for global growth.

“Since the outbreak of the international financial crisis in 2008, to create both new growth drivers and a new cycle of global growth has become a common task for the international community. The BRI aims to address the fundamental issue of promoting development by enhancing all-round connectivity. It has helped countries involved to remove development bottlenecks and implement the UN 2030 Agenda for Sustainable Development. This initiative has thus become an important way for boosting global growth.

“The latest studies by the World Bank and other international institutions suggest that the BRI cooperation will cut the costs of global trade by 1.1 to 2.2% and those of trade along the China-Central Asia-West Asia Economic Corridor by 10.2%. What is more, it will contribute at least 0.1% of global growth in 2019….

“As President Xi Jinping pointed out, the BRI aims to replace estrangement with exchanges between different civilizations, replace clashes with mutual learning and replace a sense of superiority with coexistence; and it aims to boost mutual understanding, mutual respect and mutual trust among different countries. So the BRI is a sure path toward peace and cooperation for win-win outcomes.

“The vision of building a new type of international relations and a community with a shared future for mankind is an important component of Xi Jinping Thought on Diplomacy. The BRI champions mutual respect, consultation on an equal footing, openness and inclusiveness, and mutual benefit. It is an approach to global governance featuring consultation and cooperation for shared benefits. And it aims to promote connectivity the world over. These are all important dimensions of the vision of a community with a shared future for mankind and a new type of international relations….

“The BRF is the highest-level platform for Belt and Road cooperation where all parties concerned meet to build consensus and adopt plans for future cooperation. We have set up a BRF Advisory Council consisting of leading international figures to provide advice on the growth of the Forum. In addition, China and other participating countries have in recent years set up platforms for multilateral cooperation on port, shipping, finance, taxation, energy, culture, think tank, the media and other areas and launched initiatives on a green Silk Road and a clean Silk Road….

“The opportunities come with the BRI’s growing international influence, moral appeal and cooperation potential. Against the backdrop of mounting protectionism and unilateralism in the world, the BRI principle of consultation and cooperation for shared benefits has gained wide recognition. Support for the BRI is the mainstream view of the international community, and the opportunities created by BRI cooperation are widely appreciated in the global community….

“The opportunities come with the accelerated industrialization of a vast number of developing countries, a process which generates new demands in infrastructure connectivity and industrial investment, and promises huge potential for international cooperation…

“We have noticed that some people have expressed different views about the BRI, claiming that the Initiative is China’s geopolitical tool and could cause some countries to fall into a debt trap. Such views are less than objective or balanced. They are simply a misunderstanding, misrepresentation and even biased view of the BRI….

“China and other 27 countries have jointly adopted the Guiding Principles on Financing the Development of the Belt and Road, which highlights the need to ensure debt sustainability in project financing. In case our cooperation partners face difficulties in servicing debts, China will properly address this issue through friendly consultation, and will never press them for debt payment. As a matter of fact, no country has got trapped in a debt crisis since its participation in the BRI. Quite on the contrary, it is through participating in BRI cooperation that many countries have got out of the trap of no development….

“The theme of this year’s BRF is: ‘Belt and Road Cooperation: Shaping a Brighter Shared Future,’ and the Forum events include the opening ceremony, a leaders’ round-table, a high-level meeting, thematic forums, a CEO conference and other side events. “Representatives from over 100 countries, including about 40 leaders of foreign governments, have confirmed their attendance. As the host country, we will, together with other Forum parties, take stock of what has been achieved and draw a blueprint for future cooperation to further enrich BRI cooperation….

“BRI cooperation is not a talk shop, but an action-oriented initiative that delivers real outcomes. The second BRF is expected to produce a full range of outcomes, including both governmental cooperation agreements and initiatives, and concrete cooperation projects involving participation of the business sector. All these will be included in a list of deliverables and be released in due course. We are confident that the second BRF will produce even greater numbers of cooperation outcomes that are of still higher quality.”

China and Italy Challenging Old Geo-Political World Order

This signed article by Xi Jinping, President of the People’s Republic of China, was published March 20, in Corriere della Sera, a leading  Italian newspaper on the eve of his state visit to Italy. It is a beautiful expression of the potential alliance of “East and West.” The old geo-political order manipulated this so called division to maintain political domination. Hopefully, we are now embarking on a new era with the old-order is coming to an end. 

Chinese President, Xi Xinping, to arrive in Italy

East Meets West — A New Chapter of Sino-Italian Friendship

It is a great pleasure for me to pay a state visit to the Italian Republic at the invitation of President Sergio Mattarella in this blossoming season of spring. In 2011, I visited Rome on celebrations of the 150th anniversary of Italian unification and, in 2016, I had a stopover on Sardinia. I was deeply impressed by the way of life and industrial outlook of Italy that blend together the ancient and the modern, the classic and the novel. Now that I am about to set foot again on this beautiful country, it feels like I am to be among old friends, and get immersed in
their wonderful hospitality.

China and Italy are both stellar examples of Eastern and Western civilizations, and both have written splendid chapters in the history of human progress. Being the birthplace of ancient Roman civilization and the cradle of the Renaissance, Italy is known to the Chinese people for its imposing relic sites and masterpieces of great names in art and literature. Friendly ties between our two great civilizations go back a long way. As early as over 2,000 years ago, China and ancient Rome, though thousands of miles apart, were already connected by the Silk Road. During the Eastern Han Dynasty (AD 25-220), Chinese emissary Gan Ying was sent to search for “Da Qin”, the Chinese name of the Roman Empire at the time. Roman poet Virgil and geographer Pomponius Mela made many references to Seres, the land of silk. The famous explorer Marco Polo’s Travels roused the first wave of “China fever” among European countries. That pioneer of cultural exchanges between
East and West was followed by a long list of personages in search of friendship over the centuries.

In our own era, China-Italy relations, tracing the footsteps of our ancestors, are brimming with dynamism. The People’s Republic of China and the Italian Republic established diplomatic relations in 1970. In 2020, the two countries will celebrate the 50th anniversary of our relations. Through the past decades, our two countries have enjoyed mutual trust and close cooperation regardless of changes in the international landscape. Together, we have set a fine example of mutually beneficial relations between two countries that have different social systems,
cultural backgrounds and stages of development. The traditional friendship between us, stronger than ever, has become a strong pillar supporting the rapid and steady growth of our bilateral ties.

Sino-Italian friendship is rooted in our long history of exchanges. In the course of over two millennia, our two countries have embraced the principles of mutual respect, mutual learning, mutual trust and mutual understanding in our interactions, principles that underpin our long-lasting, ever-strong friendship. Confronted by the transformations and challenges of today’s world and informed by our deep appreciation of history, China and Italy both envision a new type of international relations that are built on mutual respect, fairness, justice and win-win cooperation, and a community with a shared future for all mankind.

Sino-Italian friendship is embedded in our deep strategic trust. Both countries’ leaderships approach our relations from a strategic and long-term perspective. Since the establishment of a comprehensive strategic partnership in 2004, our two countries, guided and driven by high-level exchanges, have given each other understanding and firm support on issues concerning our respective core interests and major concerns. Our strategic trust provides a firm underpinning for the long-term and steady growth of China-Italy relations.

Sino-Italian friendship is reflected in our multi-faceted cooperation. As key trading and investment partners for each other, China and Italy have deeply entwined interests. Two-way trade exceeded 50 billion U.S. dollars in 2018 and investment surpassed 20 billion dollars in accumulative terms. “Made in Italy” is a guarantee of quality, Italian fashion and furniture are immensely popular with Chinese consumers, and pizza and tiramisu are the love of many young Chinese. Every now and then, we hear stories about the success of Sino-Italian cooperation in satellite R&D and manned space exploration. Initiatives such as the China-Italy Science, Technology and Innovation Week, joint police patrols and football training, to name just a few, are applauded by people in both countries.

Sino-Italian friendship is carried forward through our intensive cultural exchanges. Chinese and Italians have a deep interest in each other’s cultures. A Chinese professor in his 70s spent 18 years translating Dante’s Divine Comedy, and after revising several drafts, completed this mammoth task before his final days. From Martino Martini, author of the first Chinese grammar book in Europe, to Giuliano Bertuccioli and Federico Masini who wrote Italy and China, many Italian Sinologists have built bridges between Europe and China and contributed to a
long-running boom of China studies on the Apennine Peninsula.

The well-known Italian writer Alberto Moravia once wrote, “Friendships are not chosen by chance, but according to the passions that dominate us.” In a world that faces profound changes of a kind unseen in a century, the onus is on us to bring China-Italy relations to a higher level and to jointly safeguard world peace, stability, development and prosperity. Through my upcoming visit, I hope to work with Italian leaders to map out the future of our relationship and move it into a new era.

China hopes to work with Italy to strengthen our comprehensive strategic partnership. Our two countries may plan more high-level exchanges and cooperation between our governments, parliaments, political parties and sub-national entities, strengthen policy communica-tion, enhance strategic trust and synergy, and continue to give understanding and support to each other on issues of core interests and major concerns, so as to consolidate the political foundation of our relations.

China hopes to work with Italy to advance Belt and Road cooperation. Our two countries may harness our historical and cultural bonds forged through the ancient Silk Road as well as our geographical locations to align connectivity cooperation under the Belt and Road Initiative with Italy’s plan to develop its northern ports and the Invest-Italia program, and jointly build the Belt and Road of the new era on sea, on land, in the air, in space and in the cultural domain.

China hopes to work with Italy to expand cooperation into new areas. China will open up further to the rest of the world, and share its market opportunities with Italy and other countries through the annual China International Import Expo and other avenues. Our two countries may fully tap our cooperation potential in ports, logistics, ship-building, transportation, energy, telecommunications, medicine and other fields, and encourage our companies to partner with each other in third markets for win-win cooperation.

China hopes to work with Italy to promote closer people-to-people ties. As countries with the largest number of UNESCO world heritage sites, China and Italy have plenty of cultural and tourism resources. We may encourage our world heritage sites to forge twinning relationships and our cultural institutions and individuals to organize premium relic and art exhibitions. We may also encourage joint production of films and TV programs, the teaching of each other’s languages, as well as more mutual travel and visits. Through these exchanges, we will make new contributions to the diversity of civilizations and mutual learning between different cultures.

China hopes to strengthen coordination with Italy in international affairs and multilateral organizations. China is ready to enhance communication and collaboration with Italy in the United Nations (UN), the G20, Asia-Europe Meeting and the World Trade Organization (WTO) on global governance, climate change, UN reform, WTO reform and other major issues. Working together, we will promote our shared interests, uphold multilateralism and free trade, and safeguard world peace, stability, development and prosperity.

Looking back at the last five decades, China-Italy relations have struck deep roots and borne rich fruits. Looking ahead, China-Italy cooperation will continue to flourish and prosper. The Chinese people look forward to working hand in hand with our friends in Italy to carry forward our blossoming relationship and imbue our friendship with more vitality and dynamism.

China’s experience: Helping transform an African desert into a garden

William Jones

Editor’s noteWilliam Jones is the Washington Bureau Chief for Executive Intelligence Review and a non-resident fellow of the Chongyang Institute for Financial Studies, Renmin University of China. The article reflects the author’s opinion, and not necessarily the views of CGTN.

With the upcoming visit of Chinese President Xi Jinping to Italy, there will no doubt be some discussion of cooperation between the two nations on the African continent. For Italy, helping to resolve the dire economic situation in Africa is both a humanitarian and an economic concern. The devastated economy in many African countries is bringing more and more refugees to Italy’s shore, and the burden is taking its toll on the Italian economy. For China, Africa has always been a particular concern having shared in the condition of underdevelopment for so many years. Even when both were clearly developing countries, China offered its assistance to its African brothers.

One of the most significant projects in that regard is the Transaqua project. This project would take some of the water from the Congo River, a river with the greatest flow of water in the world, and through a series of canals to the Chari River which flows into Lake Chad, a lake whose surface has been dramatically reduced from 25,000 km2  in 1960 to 1,500 km2 today.

The water transfer project would help revive the lake, and with the construction of dams and power plants along the canal, would help to bring development to the region, directly affecting the Democratic Republic of Congo, Central Africa and Nigeria, through which it would pass. In addition, it would also bring economic benefits to Niger, Cameron, Chad and Congo Brazzaville as well.

People crowd the oceanfront area along the Galle Face green in Colombo, Sri Lanka, November 20, 2018. /VCG Photo
The Italian engineering company, Bonifica SpA has been instrumental in working out the plans for this project and is fully committed to it. In 2017 Bonifica and Powerchina entered an agreement for the joint development of the project. China, with its own extensive south-to-north water diversion project, possesses a good deal of expertise in dealing with such a project. Such collaboration also fits in nicely with the Belt and Road Initiative (BRI), which has received strong support from the Italian government. The Transaqua project developed by Bonifica has in part been developed by PowerChina.

Representatives from both Bonifica and PowerChina were invited in 2018 as speakers at the International Conference on Lake Chad, in Abuja, sponsored by the Government of Nigeria. The final declaration of the conference stated that Lake Chad needs to be saved and that its current situation demands immediate action. The Italian government at the time pledged 1.5 million Euros (1.7 million U.S. dollars) to start the Transaqua feasibility study.

The expansion of the BRI to Africa has kindled new hope in a continent that had virtually been abandoned by the West in terms of large development projects. The Mombasa-Nairobi railway, the Nigerian coastal railway, the Chad-Sudan railway, the Port Sudan-Khartoum railway have already provided the template for industrializing the entire African continent.

President of the International Committee of the Red Cross (ICRC) Peter Maurer attends the Oslo Humanitarian Conference on Nigeria and the Lake Chad Region in Oslo, Norway, February 24, 2017. /VCG Photo
While China has been ground-breaking in returning to the long-awaited – and much-delayed – project of African industrialization, the enormity of the project is of such a magnitude, that China alone cannot do it.  But the BRI opens the possibility of working together with other Western nations in realizing this goal. And the cooperation with Italy on the Lake Chad project can serve as a paradigm for how the BRI must work.

While some Western nations are trying to depict the BRI as a geopolitical “ploy” by China, anyone looking at the effect of the project on the recipient countries will see the falsehood of these claims. As Abraham Lincoln famously said, “You can’t fool all the people all the time.” And to the extent that countries overcome their fears and begin to work with the BRI and contribute their strength to developing other countries, they will better understand the importance of the project and its more profound implications for global development.

China has made great gains in reversing the effects of desertification by means of their water diversion projects, their reforestation efforts and their irrigation projects. If some of this know-how were to be applied in Africa, it would help turn the devastated Sahel region into a veritable garden, which it once was. And the lessons learned can be used on a broader scale to change the nature of life on this planet – for all its people.

*Lawrence Freeman has been an advocate of the Transaqua inter-basin water transfer project for over two decades. I am the Vice Chairman of the International Scientific Advisory Committee to the Lake Chad Basin Commission

Will Africa Emulate China in Eliminating Poverty with BRI? More Electrical Power Needed

March 7, 2019

Rwanda Acknowledges Partnership With China Is Beneficial for Both Nations

President Xi Jinping left and President Paul Kegame-right (East African)

Answering a media query in Kigali on March 5, Rwandan Foreign Minister Richard Sezibera said that the Belt and Road Initiative is a partnership that is mutually beneficial for Rwanda and China, and addresses Rwanda’s development challenges, Xinhua reported. China is an important partner for Rwanda at all levels, and Rwanda welcomes the growing partnership with China, he said, adding that Rwanda and China have important relationships in infrastructure development, party-to-party and people-to-people exchanges, and at the political level.

Last August, {China Daily} reported Rwandan Ambassador to China Charles Kayonga telling the newspaper, through e-mail, that in Rwanda, “we have had financing for a number of roads, and we have seen direct investment by Chinese companies in a number of businesses rise.” 

 Africa is in need of infrastructure, among other things, to achieve sustainable economic transformation, he said, adding that cooperation with China will help finance the infrastructure projects to help spur the continent’s industrial development, which will, in turn, favor China in its vision of going global.

Prescient Xi: China is Eliminating Poverty

Speaking today with deputies from Gansu Province, President Xi Jinping underlined the importance of reaching the goal of eliminating poverty by 2020.

“There should be no retreat until a complete victory is won,” Xi said. “Decisive progress has been achieved in the country’s tough fight against poverty over the past years, marking a new chapter in the poverty reduction history of mankind.” Xi stressed, that the goal to eradicate extreme poverty must be achieved on time. He warned that the tasks ahead remain arduous and hard, as those still in poverty are the worst stricken. He also warned that, “the practices of ‘formalities for formalities’ sake and bureaucratism hamper the effective advancement of poverty reduction.” He also warned against the tendency to celebrate short-term gains when it comes to addressing the problem of poverty. He insisted that claims of success should be grounded in reality, and that the results of poverty alleviation work must be able to stand the test of time.

 Also today, a comprehensive briefing was given on the success of poverty reduction over the last few years by Liu Yongfu, Director of the State Council Leading Group Office of Poverty Alleviation and Development. He held a press conference outlining the progress of the poverty-alleviation campaign. Liu noted that between 2012 and 2018, some 80 million people had been brought out of poverty at an average of 13 million people a year. Of the nine eastern provinces, eight were now free of poverty. He said there are 832 counties still enmired in poverty. In 2016, there were 28 counties that had been lifted out of poverty, and in 2017, some 125 counties, and in 2018, an estimated 280 counties. In 2013 there were 128,000 villages in poverty, while in 2018 there were 20,000. Poverty has been reduced during that period by 85%, Liu said, and the goal this year is to bring 10 million more people out of poverty. In 2019 the government will increase the funds devoted to poverty alleviation by 18.9%


African Development Bank Funding New Power Transmission Line For East Africa

In an article on its website, the African Development Bank (AfDB), pointing to regular power cuts in the East African countries from Kenya to Tanzania, from Uganda to Ethiopia, said this is about to change with the upcoming commissioning of a power transmission line to interconnect Kenya and Ethiopia. This project falls under one of the AfDB’s ‘High 5 priorities’ to ‘Light up and Power Africa.’ Working with
institutional partners, the Bank has mobilized resources to ensure the success of this project. At a cost of $1.26 billion, the project was co-funded by the African Development Bank ($338 million), the World Bank ($684 million), the Government of Kenya ($88 million), and the Government of Ethiopia ($32 million), the article noted.

The interconnection will function by means of a 1,068-km, 500-kilovolt high-voltage direct current transmission line, 437 km in Ethiopia and 631 km in Kenya with related facilities at Wolayta-Sodo (Ethiopia) and Suswa (Kenya). By December 2020, it will have a transmission capacity of 2,000 MW. This will make Ethiopia the energy giant of East Africa, while Kenya will become the epicenter of electricity trading in this part of the continent.

“The project will initially be able to transfer 400 MW from Ethiopia to Kenya, but negotiations are under way to better match the capacity of the line to Kenyan demand,” said Joseph Njogore, first secretary at the Kenyan Ministry of Energy, at an energy forum held in Nairobi in August 2018, the website noted.