West Uses “Debt Trap” to Thwart Alliance of China & Africa for Economic Development

September 8, 2018

“The term “debtbook diplomacy”—with the meaning that China builds influence over other nations by deliberately causing them to take on more debt than they can handle—was coined in a report commissioned by (and custom designed for) the U.S. State Department and written in May 2018 by Sam Parker of the Harvard Kennedy School’s Belfer Center for Science and International Affairs. This report was then used by the U.S. State Department to ring alarm bells all over the world about the potential impact of China’s Belt and Road Initiative. But the report’s author, Sam Parker, is not known to have any expertise in economics or to have written anything about the economies of China or other developing countries.

“Historically, the British Empire was, and still is, the master of debt traps. Its methods have been copied in the post-1971, post-Bretton Woods era by such United States- and British-controlled institutions as the International Monetary Fund and World Bank to shackle nations with unpayable debt, in order to loot them, destroy their physical economic productive capabilities and finally force them to give up their national sovereignty. Under the 19th century, British-dominated, imperialist world order, as in the case of the post Bretton Woods system, money is treated as a “global” commodity controlled by private interests, rather than a political tool controlled by sovereign governments which issuance is intended to promote the productivity of society and the general welfare of its citizens.”` (Schiller Institute’s “Why China’s Debtbook Diplomacy is a Hoax”)

African Development Bank President, Adesina, Denies Debt Crisis in Africa

Speaking to the reporters on the sidelines of the Forum on China-Africa Cooperation (FOCAC) Beijing Summit on Sept 5, and addressing the western propaganda that China is drowning Africa with debt, President of the African Development Bank (AfDB), Dr. Akinwumi Adesina, said: “Let me be very clear that Africa has absolutely no debt crisis; African countries are desperate for infrastructure.” “The population is rising, urbanization is there, and fiscal space is very small,” the AfDB president added. “They are taking on a lot more debt, but in the right way,” Adesina said, Xinhua reported on Sept 5.

Scoffing at the international campaign that the China imposed debt has begun to cripple Africa, Adesina pointed out that Africa’s overall debt-to-GDP went up from 22 percent in 2010 to 37 per cent last year. He stressed that the ratio is markedly lower than the 100 per cent or 150 per cent of many higher-income countries, and over 50 per cent among emerging economies.

Meanwhile, in an interview with the Nikkei of Japan, the foreign minister of Djibouti, Mahmoud Ali Youssouf, said his country intends to help promote China’s Belt and Road Initiative, but is also cautious about over reliance on China in light of Djibouti’s growing debts linked to Chinese investment. “If [the initiative] brings wealth, progress, development, we welcome it,” he said in that interview, Nikkei reported today

Nigerian President Buhari Debunks the “Debt Trap” Hoax

Muhammadu Buhari, the President of Afria’s most populous nation, Nigeria, has emerged from the hugely successful Forum on China-African Cooperation (FOCAC) with a refutation of what he called “insinuations about a so-called Chinese debt trap.”

“Let me use this opportunity to address and dispel insinuations about a so-called Chinese debt trap,” he told the press today. “These vital infrastructure projects being funded are perfectly in line with Nigeria’s Economic Recovery & Growth Plan. Some of the debts, it must be  noted, are self-liquidating. Nigeria is fully able to repay all the loans as and when due, in keeping with our policy of fiscal prudence and sound housekeeping.”

He said: “I am happy to note that Nigeria’s partnership with China through FOCAC has resulted in the execution of critical infrastructure projects valued at more than $5 billion, over the last three years. We have completed West Africa’s first urban rail system, valued at $500 million, in Abuja. Before then was the 180km rail line that connects Abuja and Kaduna, completed and commissioned in 2016, and running efficiently since then,” the President declared.

He said that Nigeria is currently leveraging Chinese funding to execute $3.4 billion worth of projects at various stages of completion. Among these are: upgrading of airport terminals, the Lagos-Kano rail line, the Zungeru hydroelectric power project, and fibre cables for our internet infrastructure. Nigeria signed an agreement for an additional $1 billion loan from China. The money is for additional rolling stock for the newly constructed rail lines, as well as road rehabilitation and water supply projects.

“Debt Trap” Hoax Exposed by Chinese Spokesperson

At a September 4 press conference on the morning of the second day of the FOCAC Summit, Xu Jinghu, the Special Representative of the Chinese Government on African Affairs, was asked by Reuters about whether the $60 billion financing that President Xi Jinping promised in aid for Africa in his keynote address, would create debt problems for Africa.

Xu Jinghu went through the importance of the eight areas outlined by President Xi in order to raise the level of production and productivity of the African economy.  She also made clear that all of the projects are done in close consultation with the African countries in order to meet what they see as their real needs for further industrialization.

She added that Africa is in “the ascending phase” of its development and “faces a gap in the funding for all of their endeavors…”They need capital development and the African and Chinese economy, which is more developed, are therefore complementary.”

Xu commented, “You have to take into consideration the international situation. The  costs of financing for development on the international market has become very expensive and most of the African countries are still dependent on exporting their raw materials. And the price of these have fallen,which has increased the debt of African countries a great deal.  And if you look at the African countries, you will see that China is not the creditor of those African countries with the biggest debt burden.

China Africa Research Initiative Refutes “Death Trap” Propaganda

The China Africa Research Initiative-(CARI) at the Johns Hopkins School of International Studies, Washington DC refuted the “death-trap” narrative that China is subverting African nations by forcing them into debt.  Their The Path Ahead: The 7th Forum on China Africa Cooperation-(Briefing Paper #1, 2018), reports: “Finally, in just three African countries, Chinese loans are currently the most significant contributor to high risk of/actual debt distress” They are;  Djibouti, Republic of Congo, and Zambia.  

Read complete CARI  briefing paper

 

Read:

Who Owns Africa’s Debt: China or Western Nations & Institutions?

 

China and US Should Jointly Partner with Africa to Transform the Continent

It has been my firm belief for several years that, if China and the US jointly partnered with African nations, we can eliminate poverty and hunger across the continent. Development of Africa is not a “zero sum game.” Africa’s infrastructure deficit is estimated in the trillions of dollars for energy, rail, ports, roads, new waterways, and much more. There is no part of Africa that could not be developed, if the two largest economies worked with African nations. China’s Belt and Road Initiative is an excellent vehicle for such collaboration between Presidents Xi, and Trump. Below is a useful article reporting on US and Chines companies working together in Africa

AFRICA IN FOCUS

“American companies and Chinese Belt and Road in Africa”

Yun Sun 

“When it comes to Africa, it is no secret that the United States and China have very different philosophies. China adopts a more state-led approach, with state-owned enterprises and policy banks spearheading Africa’s infrastructure development. The U.S. is more willing to let private companies and the market take the lead on commercial development, while the U.S. government itself puts more emphasis on the continent’s capacity building and governance challenges…

“As China expands its Belt and Road Initiative (BRI) in Africa, government-level U.S.-China cooperation in Africa continues to be scarce. However, this trend contrasts sharply with the growing collaboration between Chinese and American companies in infrastructure projects on the continent. Indeed, although the Chinese projects and financing have the tradition of favoring Chinese contractors and providers, the technical advantages of some American companies have made them the beneficiary of the Chinese BRI campaign…”

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Nuclear Energy Will Power and Industrialize Zambia’s Economy

The agreement that was signed will turn Zambia into a hub of nuclear sciences. The centre is to be used for peaceful purposes such has boosting the energy, health and agriculture sectors.

Nuclear is important for meeting the world’s growing need for reliable, affordable and clean energy. 

Global electricity demand is expected to double by 2050 as people everywhere demand a better quality of life. All low-carbon sources, including nuclear energy, are important for meeting this demand. Nuclear energy is expected to provide at least 25 percent of global electricity by 2050 to successfully meet the needs of human development and protecting the environment.

Zambia has seen the need to embrace nuclear energy by ensuring the country does not lag behind in being a highly industrialised nation.

Zambia Daily Mail

Zambia-Russia nuclear science deal

Chinese Economic Engagement in Africa: New Silk Road on the Continent

“The closest look yet at Chinese economic engagement in Africa”

June 2017
The closest look yet at Chinese economic engagement in Africa

Field interviews with more than 1,000 Chinese companies provide new insights into Africa–China business relationships.

In two decades, China has become Africa’s most important economic partner. Across trade, investment, infrastructure financing, and aid, no other country has such depth and breadth of engagement in Africa. Chinese “dragons”—firms of all sizes and sectors—are bringing capital investment, management know-how, and entrepreneurial energy to every corner of the continent. In doing so they are helping to accelerate the progress of Africa’s economies.

Yet to date it has been challenging to understand the true extent of the Africa–China economic relationship due to a paucity of data. Our new report, Dance of the lions and dragons: How are Africa and China engaging, and how will the partnership evolve?, provides a comprehensive, fact-based picture of the Africa–China economic relationship based on a new large-scale data set. This includes on-site interviews with more than 100 senior African business and government leaders, as well as the owners or managers of more than 1,000 Chinese firms spread across eight African countries1that together make up approximately two-thirds of sub-Saharan Africa’s GDP.

Africa’s largest economic partner

In the past two decades, China has catapulted from being a relatively small investor in the continent to becoming Africa’s largest economic partner. And since the turn of the millennium, Africa–China trade has been growing at approximately 20 percent per year. Foreign direct investment has grown even faster over the past decade, with a breakneck annual growth rate of 40 percent.2Yet even this number understates the true picture: we found that China’s financial flows to Africa are around 15 percent larger than official figures when nontraditional flows are included. China is also a large and fast-growing source of aid and the largest source of construction financing; these contributions have supported many of Africa’s most ambitious infrastructure developments in recent years.

We evaluated Africa’s economic partnerships with the rest of the world across five dimensions: trade, investment stock, investment growth, infrastructure financing, and aid. China is among the top four partners for Africa across all these dimensions (Exhibit 1). No other country matches this depth and breadth of engagement.

Africa’s economic partners, including China, India, France, the United States, and Germany, based on goods trade, foreign direct investment, aid, and infrastructure financing

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“China all weather friend of Namibia”–President Buhari Moves Against British–Zimbabwe President in China–Ethiopia’s Economic Progress

Namibian President Strengthens Relations with China; Defends China as Best Friend of Africa

The Presidents of China and Namibia, Xi Jinping and Hage Geingob, agreed to establish a comprehensive strategic partnership for cooperation between their countries, and signed six bilateral cooperation agreements, at their meeting in Beijing on March 29. President Geingob had begun his seven-day state visit to China the day before.

At the signing ceremony, both presidents spoke of how China has been an “all-weather friend of Namibia,” in reference to China’s support for Namibia’s independence, and now in its development. Xi said, “China welcomes Namibia to participate in the BRI, and hopes to strengthen policy cooperation and synergy of development plans,” Xinhua reported. Xi spoke also of his belief that China and Africa will join hands to build a closer community with shared future and inject new impetus to China-Africa ties.

For his part, Geingob expressed Namibia’s interest in cooperating with China on infrastructure, sustainable development, human resources, technology, poverty reduction, people-to-people exchanges, and major cooperation projects. He also took the occasion to deliver an emphatic defense of China’s development efforts in Africa. Xinhua reported that the Namibian president called China Africa’s best friend. It never colonized Africa, and has always treated small and medium-sized African countries on an equal footing, Geingob said, and the African people oppose unfounded accusations against China.

In an interview with CGTN today, Geingob expressed his pride and appreciation for the elevation of relations with China to a comprehensive strategic partnership.

“China has been supporting us when things were bad, and then after independence, we continued [our cooperation] to another level,” he told CGTN. “Now we are moving up. Now it is the era of the second phase of the struggle for us, where people now have peace and stability, but they are anxious to get the benefits of that freedom. They want to prosper. They want to have shelter, infrastructure, schools, clinics, etc., and they are eager. They are in a hurry. So China being the all-weather friend, who was there when we were first struggling, now that we are in the second phase of the struggle, that of economic emancipation, those who are with us, must come to join us… This time, we are talking about creating a win-win situation.”

Did British Intelligence-MI6 Interfere in its former colony? Nigeria to investigate allegations of Cambridge Analytica involvement in elections

Nigeria’s government will investigate allegations of improper involvement by political consultancy Cambridge Analytica in the country’s 2007 and 2015 elections, a presidency spokesman said on Monday.

The UK-based political consultancy is facing allegations that it improperly accessed data from social media website Facebook to target voters prior to the U.S. presidential election and Britain’s Brexit referendum in 2016.

In Nigeria, a government committee is looking into claims that SCL Elections, a Cambridge Analytica affiliate, organised anti-election rallies to dissuade opposition supporters from voting in 2007, Garba Shehu, a spokesman for President Muhammadu Buhari, said.

He said it would examine claims that Buhari’s personal data was hacked in 2015 when he was an opposition candidate in the presidential election.

The investigation would also look into whether Cambridge Analytica’s work for the election campaigns of the then ruling Peoples Democratic Party (PDP) broke Nigerian law “or infringed on the rights of other parties and their candidates”.

Depending on the outcome, criminal prosecutions might result, said Shehu. Cambridge Analytica could not immediately be reached for comment. PDP candidate Umaru Yar’Adua won the 2007 presidential ballot. He died in office in 2010 and was succeeded by his deputy, Goodluck Jonathan.
(REUTERS): 2018-04-02

Zimbabwe President, Mnangagwa in China with Large Delegation for Economic Deals

–President of Zimbabwe Emmerson Mnangagwa is on a five-day official visit to China. He will meet Chinese President Xi Jinping today. Mnangagwa, who is accompanied by First Lady Auxillia Mnangagwa, met several Cabinet ministers and private sector executives, and will also meet officials of the Communist Party of China and the Chinese business community according to Zimbabwe daily {The Herald}.

The Zimbabwean President will also visit the provinces of Anhui and Zhejiang to meet with the political leadership and the business community. Several economic and business deals are expected to be signed. The director of Platinum Agriculture and Princewood Enterprises, Dakarayi Mapuranga, who is in China with the President, said his company had secured $500 million worth of deals in agriculture, mining and transport sectors. These include a $400 million deal with China’s Lovol company that produces heavy machinery for agriculture and mining, while a $40 million revolving facility was secured with Good Agro Rising for the supply of chemicals for tobacco and other export-oriented crops, and an $80 million deal for the supply of irrigation equipment, including center-pivot and drip irrigation systems.

Dayu, the Chinese-listed firm which clinched the deal, will soon be in Zimbabwe to assess specific irrigation requirements and technology applicable to Zimbabwe. “They [Dayu] need to know

our specific needs and the Ministry of Agriculture has already identified farms where the equipment will be installed,” said Mapuranga. “Our thrust is to support initiatives by the new dispensation to ensure farmers are supported with the machinery they need. This will help bring Zimbabwe back to its breadbasket status.”

A deal was also signed with Allen Bus for 1,500 buses to ease transport challenges in the capital, Harare, and other towns. While 500 buses will be imported fully assembled, the remaining 1,000 will be imported as kits to be assembled in Zimbabwe.

China has Drafted a Partnership Agreement for Algeria

–Joining the Belt and Road Initiative, Chinese Amb. to Algeria Yang Guangyu said on March 30. The draft is being studied by Algeria now, and China hopes to sign it in the next few weeks, at most within 2-3 months, he added. Yang made the announcement in a speech to the Chinese Day celebration on March 30 at the Higher Institute for Algerian Affairs, held on the 60th anniversary of their nations establishing diplomatic relations.

Ethiopia continues on its road to develop its economy with advances in its industrial sector. Review these two articles:   Chinese Factory in Ethiopia ignites American dreams Ethiopia export revenue hits $42 million from industrial parks

 

Africa Collaboration With China’s Silk Road Good for the Continent

Nigeria And China Are In Dialogue On The Belt And Road Initiative

–The Round Table Dialogue held recently in Abuja, organized by the Center for China Studies and chaired by Nigeria’s former Foreign Minister and former ambassador to the People’s Republic of China, Alhaji Aminu Wali, discussed the strategy of connectivity across countries, and within countries. The Belt and Road Initiative will spawn an elaborate network of land, rail and maritime transport arteries and industrial clusters along its now-inclusive global routes, Charles Onunaiju wrote in his article, Nigeria and China’s Belt and Road Initiative, published in “The Sun” on March 28.

“The dialogue recognized that the core feature of the Belt and Road, which is essentially connectivity, is at the heart of the contemporary challenge of Africa, and therefore urged Africa in general, and Nigeria in particular, to play decisive roles in the mechanism of the Belt and Road by appropriate policy engagement.”

The Deputy Ambassador of the People’s Republic of China to Nigeria, Li Jing, speaking on that occasion, said “the continent’s development agendas are therefore in synergy with the Belt and Road initiative, and there is no doubt that Africa and Nigeria, through appropriate policy facilitation, could align to the central features of the Belt and Road to advance her modernization and industrialization.”

Belt and Road Initiative and the African Continental Free Trade Area Provide Opportunities in Africa, Says a World Bank Officer

–In an article in the “Daily Nation” of Kenya, Peter Warutere, a communications officer for the World Bank based in Nairobi, said the condition created by the new African Continental Free Trade Area (AfCFTA) and China’s Belt and Road Initiative (BRI) “presents a window of opportunity for African

countries to transform their economies, achieve rapid growth, and create jobs for their burgeoning youth population.”

He also wrote that “Kenya is well positioned to greatly benefit from the AfCFTA and the development of the Indian Ocean maritime route connecting China with the East African coastline.

The gateway to eastern Africa, Kenya should invest heavily in upgrading its infrastructure and industrial capacity. The window of opportunity for it is to become a vibrant industrial and logistics hub for Sino-African trade, investment and exchange.”

Kenya’s Secretary of National Treasury, Henry Rotich, said his government hopes China will help to make Kenya’s Big Four economic agenda a success. The Big Four agenda consists of food security, affordable housing, manufacturing, and affordable health care, Prensa Latina reports. “We want the Chinese private sector to participate in projects related with this agenda,” the Secretary said.

‘Nuclear Could Turn Zambia into a Regional Food Basket’

–That is the plan, by the Zambia Agriculture Research Institute and the Agriculture Ministry, with help from Russia’s Rosatom nuclear agency. An article under that headline yesterday by the African News Agency describes how for Zambia, and most of Africa, nuclear technology can dramatically improve food availability and nutrition on the continent.

An agreement has been signed with Rosatom for the establishment of a Center for Nuclear Science and Technology in Lusaka, which will help prepare Zambia for nuclear power in the future. Zambia suffers power rationing between 8 and 14 hours per day when water is low at its hydroelectric dams. But immediately, the application of nuclear science and technology will be in agriculture.

Crops that are resistant to disease, able to withstand environmental stresses, such as drought, and produce higher yields are developed by using nuclear radiation to change the genetic makeup of plants. Zambia is developing new crop varieties with these characteristics, which will not only improve the nutrition of the population, but also the lives of the farmers.

Nuclear radiation will also be used for preserving food, using radioactive isotopes. This will immediately increase the food supply. A large percentage of the food produced, especially

in developing countries, never reaches the dinner table. For example, 40% of the fish produced globally rots before it can be eaten. Zambia will be able to join the 60 nations in the world that currently preserve food through irradiation.

Other applications of nuclear technology in agriculture will be for pest and disease control, inspection of the quality and quantity of water resources, and soil conservation.

The Zambia Agriculture Ministry is running multiple research projects in various fields to up-shift agriculture. With the Center for Nuclear Science and Technology, they will have new tools

Benin President Wants China To Build Rail Project

–President Patrice Talon of the West African nation of Benin has asked the French giant Bolloré and a local firm to “withdraw” from a rail infrastructure project so that China could take over the project, according to an interview Talon gave to the French business magazine {Challenges}, published yesterday.

Benin and neighboring Niger have been attempting to link the Benin port of Cotonou with Niger’s capital, Niamey, since 2008.

Talon described the Bolloré offer as “lower-end,” saying that “a private investor cannot finance the railway we want alone.” Talon also said that “China has the necessary financial means” to support the project, expected to cost around $4 billion and pointed out that “China has demonstrated its technical know-how” for building infrastructure in Africa.

Joint Projects Are a Testament to Cameroon’s Trust in China, Says President, Visiting Beijing

–Cameroon President Paul Biya is on a three-day state visit to China, and, as President Xi Jinping

pointed out, he is the first head of state to come to China since President Xi’s reelection. The two presidents met yesterday. President Biya stated that relations between the two countries has stood the test of time, and that China has become one of Cameroon’s strategic development partners. Without listing all of their specific joint projects, President Biya said that they are a testament to the trust that Cameroon has in China.

This afternoon, Biya met with China’s top legislator, Li Zhanshu, of the Standing Committee of yhe National People’s Congress, during which they discussed further bilateral relations in the future. Li said China is willing to have more friendly exchanges with Cameroon’s parliament, and expressed hope that both countries would support each other on political issues. More people-to-people exchanges were also discussed.

In turn, Biya “spoke highly of China’s foreign policy,” Xinhua reports, and said he appreciated China’s long-term support for Cameroon.

Africa Should Learn From China, Advises South African Scientist

–Africa should learn from China’s rapid advances in education, science, and technology to solve socio-economic challenges, said South African scientist Neil Turok. He is the founder of the African Institute for Mathematical Sciences, and director of the Perimeter Institute for Theoretical Physics in Canada. Turok made his remarks yesterday at the opening of the Next Einstein Forum, being held in Rwanda. There are about 1,600 participants at the conference, which takes place March 26-28, and at least half are under the age of 42, {xinhua} reports.
“China has invested heavily in education, science, and technology,” the scientist said, “and the results are amazing. China is emerging as a new global science and technology powerhouse.” He called upon all African countries to focus, prioritize, and promote science and technology for solving economic challenges.

Africa Is  Natural Partner of China in Maritime Silk Road

Africa Is  Natural Partner of China in Maritime Silk Road

Jan. 29, 2018–“The African continent was part of the ancient maritime Silk Road and now is in a good position to be China’s natural partner,” said He Wenping, Director of Africa Studies at the Chinese Academy of Social Sciences, portraying the Belt and Road (BRI) activities in Africa, on the sidelines of the just-concluded African Union Summit.

In South Africa alone, there are more than 300 Chinese enterprises, half of which are major and medium-sized businesses, investing $13 billion in electronics, automobiles, financial information network infrastructure, and construction engineering, said a report compiled by the South Africa-China Economic and Trade Association in 2016.

Despite fears, frustrations, and challenges from unexpected hardships, misunderstandings, and cultural conflicts, China is accelerating the advancement of its all-around cooperation with Africa, He Wenping continued. It is expected to set a good example of deepening regional cooperation for the so-far reluctant Western countries. “BRI deserves to be a platform for the overall exchange and intensified cooperation between China and the world,” she urged.

Germans Invited To Invest in Zambian Infrastructure

Jan. 29, 2018–During an encounter with Stefan Liebing, the chairman of the German Africa Association, in Berlin on Jan. 17, Zambia’s Ambassador Anthony Mukwita presented a document titled “Zambia’s Investment Project,” which had been prepared by the embassy.

“This document contains areas that are ripe for investment in Zambia which you must share with your membership in Germany,” said Mukwita to Liebing.

The areas of possible investment he presented include: construction, agriculture, energy, transport, and tourism, to mention but a few. The Zambian diplomat urged German business to take full advantage of Zambia’s invitation: “Our President H.E. Edgar Lungu is keen to see a reduction in poverty and rise in GDP via foreign direct investment; our peace, stability and predictability, including ease of doing business, continues being a great ingredient of attracting business.” Liebing expressed confidence of stepping up business with Zambia.

German-Zambian contacts were continued at a meeting with leading officials of the Canadian Bombardier rail-tech firm on Jan. 27.  Bombardier Head of Rail for Africa Christian Bengtsson told Mukwita that a functioning railway grid is required for transportation of goods and services in order to enhance economic growth in Zambia. A memorandum of understanding was already signed in 2016, but not much has happened since, because no financing has been made available by the German government or private banks. The Zambian project would be crucial for Bombardier, which, for lack of new contracts in Germany, has been considering reducing its workforce in Germany from 8,000 to 6,000, also by selling the railcar-producing unit in Görlitz.

Bombardier, whose transportation headquarters is in Germany, has carried out feasibility studies on Zambia Railway’s 900-km network, half of which needs to be refurbished. Once the railway is replaced and railcars are purchased, the company is expected to create 5,000 jobs and increase its cargo transportation (mostly iron ore and other minerals) from the current 700,000 tons to about 5 million tons annually, and eventually 8 million tons.

China’s Belt Road at Davos World Economic Forum

Jan. 28, 2018–Under the above headline, the {New York Times} journalist Keith Bradsher bemoans the fact that, like it or not, it was China’s New Silk Road that dominated the Davos World Economic Forum, not the efforts by many to demean the Belt and Road Initiative as merely China’s effort to “spread its influence” and to “bury the recipients in debt and cause considerable environmental damage.”

Under a picture of a smiling Liu He, Xi Jinping’s top economic advisor who gave China’s keynote speech at the Forum, Bradsher acknowledges that that Liu He’s presentation was “one of the best-attended speeches,” and that throughout the Forum, the Belt and Road was the leading subject of discussion.

“At one end of town, President Michel Temer of Brazil welcomed an unexpected offer from Beijing for Latin American nations to work closely with a Chinese initiative,” writes Bradsher. “At the other end of town…, Pakistan’s Prime Minister Shahid Khaqan Abbasi used his talk to praise the rapidly expanding Chinese investments in his country, including to build power stations and a large port…. National leaders seemed to vie with one another in Davos in calling for closer cooperation with China.”

“The China One Belt, One Road is going to be the new WTO — like it or not,” Joe Kaeser, the chief executive of Siemens, told the {Times}.

But China’s actions were not limited to Davos, Bradsher notes. “On Friday, the Chinese government used a policy document issued in Beijing to call for a Polar Silk Road that would link China to Europe and the Atlantic via a shipping route past the melting Arctic ice cap…. At a summit meeting for Latin American and Caribbean foreign ministers in Santiago, Chile, Foreign Minister Wang Yi of China called for close cooperation and participation by the regions countries.”

Belt and Road ‘Heatedly Discussed’ in Davos; ‘China Is Committed to Providing Solutions to World Problems’

Jan. 27, 2018– As reported in the Chinese Foreign Ministry website, a journalist asked spokeswoman Hua Chunying about China’s role in building a common future for the world which they characterized as s “heatedly discussed” in Davos. “Considering that the theme of this annual meeting is ‘Creating a shared Future in a Fractured World,’ what do you think of China’s role in promoting common development and building a common future for the world as the second largest economy?”

Hua Chunying answered by recalling that “the international community still remembers President Xi Jinping’s keynote speech at the WEF annual meeting last year. President Xi evaluated the world economy and came up with his prescription, gave an in-depth analysis of global pressing problems and put forward major proposals to promote the re-balancing of economic globalization, which still has broad and far-reaching influence in the international community.

“China’s contribution to the development of the world is embodied in many aspects. China’s economic growth has injected a strong impetus into the world economy. In 2017 alone, China’s foreign investment reached $120 billion and it imported goods worth 12.46 trillion yuan, which provided a vast market and ample investment and development opportunities for all countries. It is safe to say that  China is the stabilizer and engine of the world economic growth.

“China provides popular public goods for international cooperation. China’s Belt and Road Initiative is one of the most popular international public goods for today’s world, pointing out new directions for improving global governance and providing a new model for international cooperation. The first Belt and Road Forum for International Cooperation hosted by China last year [in May 2017] has produced more than 270 fruitful outcomes.

“China is committed to providing solutions to the world’s problems. We have been attaching great importance to implementing the 2030 Agenda for Sustainable Development, actively responding to the challenge of climate change and making remarkable progress in pollution prevention and treatment. Last year, 10 million people in China were lifted out of poverty. By taking these concrete actions, China has made tangible contributions to meeting global challenges and realizing common development.

“At present, China’s economy has shifted from a phase of rapid growth to a period of high-quality development. We believe this will surely provide more and more positive energy to the common development of the world and the building of a common future,” she said

China Is Working on “the post-high-speed rail age;” Has In-Depth Development Program for Maglev Trains

Jan. 27, 2018–An entire generation of medium- to low speed maglev trains that can run at a maximum speed of 160 kmh, is being developed in China, with plans to operate 5 to 12 magnetic levitation rail lines in cities including Chengdu, Wuhan and Guangzhou by 2020. Altogether 12 Chinese cities, including Tianjin, Hangzhou and Shenzhen, are planning to launch maglev services by 2020, especially between their city center and airports, the city and suburban areas, and the city and surrounding counties.

Sun Bangcheng, deputy director of CRRC Industrial Research Institute, explained that this project is one of 18 national key research and development plans set by the Ministry of Science and Technology in 2016, researching both high-speed passenger and freight trains. The project will be completed by 2021 at a total investment of over 9 billion yuan ($580 million). The project includes six types of trains — three for freight, one high-speed passenger train, and two types of maglev trains. Freight trains with speeds of 250 kmh can transport seafood from Haikou in South China’s Hainan Province to Beijing in north China in one day, according to a project officer at CRRC.

Research into maglev includes a train that can reach 600 kmh and another that travels at 200 kmh. Research is to prepare for “the post-high-speed rail age” in technology, said Sun. The cost of a 600 kmh maglev train is almost the same as a 400 kmh version. The first Chinese-made high-speed maglev train will roll off the operation line in 2018, the report said. Design and construction will begin immediately. A sample carriage will be built in 2018, and a complete train will be ready for a 5-km test run in 2020, said Ding Sansan, deputy chief engineer of CRRC Qingdao Sifang Co.

Chinese Economic Policy Came Out of Study of Great Depression, 2008 Crisis

Jan. 27, 2018– Chinese economist, Liu He, in 2013, in his position as Deputy Director of the Development Research Center of the State Council conducted a comparative study of the 1930s Great Depression and the 2008 crisis. In a report on their conclusions he wrote: “After the outbreak of the crisis, we have been pondering over the possible period of the crisis, its possible international influence and our countermeasures. Since the Industrial Revolution, the crisis of the capitalist world has been frequent. In the 20th century, The Great Depression and the current international financial crisis were the two most widespread and devastating ones. Starting in 2010, we started to carry out a comparative study of the Great Depression of the 1930s and this international financial crisis. Except for Central Government In addition to co-workers, researchers from People’s Bank of China, China Banking Regulatory Commission, the Chinese Academy of Social Sciences, National Research Center and Peking University were also invited to participate.”

The following three conclusions were listed as the principle results of the report.

First, grasp the major changes in the connotation of the period of strategic opportunities in our country and seek the maximum intersection of China’s interests and global interests. The conclusions of the comparative study can tell us that the connotation of the strategic period in which we are located has undergone significant changes. In the economic sense, before the crisis, China’s strategic  opportunities mainly represented the expansion of overseas markets and the inflow of international capital. China seized the opportunity to become a global manufacturing center in one fell swoop. After the crisis, the world has entered a long process of insufficient aggregate demand and de-leveraging. Our strategic opportunities are mainly manifested in the tremendous stimulating effect of the domestic market on the global economic recovery and the opportunities and foundations of technology mergers and acquisitions in developed countries, their facilities and investment opportunities. We should firmly grasp these substantive changes, conscientiously analyze the enormous intersection of interests that have emerged with the new historical conditions in our country and the major economies, and clearly propose a solution to the global dilemma of growth. We will steadily implement the plan when the external conditions are clear.

Second, we should avoid moving to an over-indebted economy and attach importance to regulating and controlling financial fluctuations. We must uphold the essential requirements of

financial services for the real economy. The departure of the U.S. financial industry from its core service function has become the perpetrator of the global financial crisis. This is related to the abandonment of the traditional value of the industry by the U.S. financial industry and excessive pursuit of wealth and innovation. The good performance of the German economy in this crisis is closely related to Germany’s conservative financial tradition and the fact that the financial industry can operate soundly. Various effective measures should be taken to both improve the business environment of the real economy, consolidate the foundation for the development of the real economy,  and to curb capital from empty money-making-money schemes so as to prevent excess self-circulation and inflation in the fictitious economy.

Thirdly, in the process of establishing a new global economic governance structure, the active participants should become  leading policy shapers. Against the backdrop of accelerating changes in global power and the drastic changes in the global economic governance structure and in finding a new equilibrium, China should play a similar role to the United States in taking the initiative in shaping an international new system as a “creditor country” after World War II, China’s overall national strength and rising international competitiveness are favorable conditions for accurately judging the reality and trend of the international situation, clearly defining the interests of our country, breaking through existing institutional frameworks set by Western countries to reflect and convey the interests of our country Unanimously and with the Chinese characteristics on the global economic and financial governance and major international issues of the core ideas and propositions, set the “China agenda”, the introduction of “China program” to strengthen international personnel training and accelerate the institutionalization of China’s international rights and eventually secure the future.