Friday, December 17, 2021

The Mutual Embrace of True Friendship

"Both China and Russia need to carry out more joint actions to more effectively safeguard our security and interests."
"At present, certain international forces are arbitrarily interfering in the internal affairs of China and Russia under the guise of democracy and human rights, and brutally trampling  on international law and the norms of international relations."
Chinese President Xi Jinping
 
"A new model of co-operation has been formed between our countries, based, among other things, on such principles as non-interference in internal affairs and respect for each other's interests."
Russian President Vladimir Putin
Vladimir Putin and Xi Jinping in virtual conference

It used to be called a 'love-in'. The two countries have had their moments of mutual distrust and accusations. They will surface again at some future date, possibly when too many Chinese begin to occupy Russia's under-populated Arctic region as the Chinese population continues to explode. But for the time being they have more in common than what keeps them apart. Both expanding or attempting to expand, their influence abroad. Both building up their advanced technological military weapons.
 
And both notably, threatening their neighbours over territorial disputes. Out of which disturbing advances has come criticism from their neighbours and from Western groups like the EU and NATO. Both China and Russia, infamously, permanent members of the United Nations' core Security Council where decision-making is rarely unanimous; both preferring to naysay the other permanent members, France, Britain, and the United States.

Both now under heavy sanctions, led by the United States, supported by the European Union and NATO along with Canada, Australia and New Zealand. China for its abysmal human rights record on Tibet and Xinjiang and its bullying in the South China Sea, and Russia for its strongarm techniques edging into military invasion in Georgia and Ukraine. 

For the time being, however, they have seen fit to form a common front against their 'enemies' and embrace as best friends. Leading Xi Jinping to endorse Vladimir Putin's demand that binding security guarantees be forthcoming from NATO, that Ukraine will not be welcomed into the NATO alliance and that Russia be permitted to do what Russia will do; invade Ukraine without inconvenient interference.
 
Mr. Xi after all, has much in common, insisting that Taiwan is part of mainland China, and discarding Hong Kong's dearly-held autonomy and love affair with democracy.
https://image.cnbcfm.com/api/v1/image/106990098-16396150531639615050-20317586744-1080pnbcnews.jpg?v=1639615052&w=750&h=422
 
The two have proposed "joint actions" in defence of both Russian and Chinese 'security interests', according to a report issued by the Kremlin. A 90-minute video call had the two leaders celebrating the "model" relations between them, both countries locked in confrontation with the United States on a deepening trajectory.
 
Oddly enough the reports highlight two events; Russia's build-up of troops along the Ukraine border; China's People's Liberation Army's drills in a practice run for a Taiwanese assault.

Vladimir Putin informed his "dear friend" of Russia's travails in "mounting threats to Russia's national interests from the U.S. and the NATO bloc, which consistently move their military infrastructure close to the Russian border"
 
And while they were at this uber-friendly confab, Mr.Putin assured Mr. Xi of his intention to attend Beijing's Winter Olympics in February, an event that will be shy of the presence of Western diplomats who have decided to use a diplomatic gesture to express displeasure in China's intimidation of its neighbours and repression of its Uyghur population.

Xi Jinping and Vladimir Putin at a 2019 gala marking the 70th anniversary of diplomatic relations between Russia and China (Kremlin.ru)
Russia and China’s verbal sparring with the US over competing visions of multilateralism last week in the UN Security Council exemplified the closer ties forged over recent years between Moscow and Beijing.  Kremlin.ru


Labels: , , , , ,

Saturday, October 02, 2021

World Indebtedness to Munificent China

"Many poor governments could not take on any more loans. So [China] got creative."
"[Instead loans were handed to a] constellation of sectors other than central government [often backed by a government guarantee]."
"The contracts are murky, and governments themselves don't know the exact monetary values they owe to China."
"What we're seeing right now with the Belt and Road Initiative is buyers' remorse."
"Many foreign leaders who were initially eager to jump on the BRI bandwagon are now suspending or cancelling Chinese infrastructure projects because of debt sustainability concerns."
Brad Parks, executive director, AidData, U.S.-based research firm
"These debts, for the most part, do not appear on government balance sheets in LMICs [low and middle-income countries]."
"However most of them benefit from explicit or implicit forms of host government liability protection, which has blurred the distinction between private and public debt and introduced major public financial management challenges to LMICs."
"Beijing is more willing to bankroll projects in risky countries than other official creditors, but it is also more aggressive than its peers at positioning itself at the front of the repayment line [via collaterization]."
AidData report
 
Chinese President Xi Jinping, in response to criticism, promised in 2019 that his country's ambitious Belt and Road Initiative would be subject to increased transparency in program financial stability and that there would be "zero tolerance for corruption". Of course, China's ruling Communist Party fails to equate sharp business practise with corruption. They're just going about their transactions in fairly unconventional ways that also happen to screen them from too much unwanted scrutiny. Until a reviewer who knows what to look for reveals the presence of unscrupulous methodology.

A total of one hundred, sixty-five countries are now indebted to China. Which had unveiled a bold new plan to resurrect a modern, improved "Silk Road" of enhanced trade opportunities where all roads lead inevitably to China. A vast network of highways, bridges and other communication infrastructure was to be built in low- and medium-income countries who badly needed modernized transport infrastructure and China made an irresistible offer to build and finance them on a loan basis with tantalizing terms.

Those countries that took the bait are now in a position of facing a total of $385 billion in hidden debts through their participation in the BRI. In the case of 42 poorer countries, debt exceeding ten percent of their individual GDP has become their reality. There are some loans revealed through AidData research that have been under-reported to the World Bank, are off the public balance sheets through a system of special purpose and semi-private loans.

The revelations by that research indicate that loans are "substantially greater" than the data in possession of research institutions, credit rating agencies or intergovernmental organizations with surveillance responsibilities "previously understood" to be the case, according to the study. The World Bank and International Monetary Fund, were said to be aware of problems, but the report gave substance to the scale of just how much was beyond their purview, going under-reported.
 
 
China's overseas lending dramatically underwent change from government-to-government loans to the point where close to 70 percent of the financing was transferred to state-owned companies, banks, joint ventures, private institutions and special purpose vehicles. Which resulted in an estimated $385 billion of debt under-reported with the lenders no longer central government bodies attached to strict transparency.

When Beijing originally developed its BRI in 2013 with a view of investing in global infrastructure hundreds of countries across Central Asia and Africa including low- to middle-income countries, signed up for the investment program launched by President Xi Jinping. Some of those same countries anxious not to miss an opportunity to advance their trade potentials are now rethinking their original enthusiasm. Laos, Papua New Guinea, the Maldives Brunei, Cambodia and Myanmar are part of the list of nations owing debt in excess of ten percent of their GDP.
 
The Yuxi-Mohan railway between China and Laos under construction in May 2019 in China's Yunnan Province.   Getty Images
 
Part of the debt accumulated by Laos as 'hidden debt' was found to be quite significant through research, where the $5.9 billion China-Laos railway project funded entirely with unofficial debt is equivalent to about a third of the impecunious country's GDP. China focused on  countries rich in resources with corruption at high levels for increased loan provisions. The report notes that 35 percent of BRI projects were rife with corruption, faced labour violations, environmental pollution, and public protests.

Countries with traditionally poor performance on conventional measures of credit-worthiness saw China increasing its provisions of loans there in comparison to other international lenders; at the same time imposing much higher interest rates, alongside shorter repayment periods. Of the 50 largest loans, forty were collateralized, generally against future commodity exports. Whatever the scenario, China came out winning, its client countries hooked and sunk.

The arrangement for Pakistan saw Chinese loans with average interest rates of 3.76 percent -- in comparison to an OECD-linked loan rate of 1.1 percent. "A lot of banks wouldn't even lend to Pakistan. If you're able to secure a loan you have to pay the higher risk premium", explained Peter Call, a research fellow at the Australia-based Lowy Institute.  The Center for Global Development in 2018 found Djibouti, Kyrgyzstan, Laos, the Maldives, Mongolia, Montenegro Pakistan and Tajikistan owing over half of all their foreign debt to Beijing.

China systematically underreports its debt to the World Bank's Debtor Reporting System by lending money through special purpose vehicles, a study reveals. (Source photos by AP and Reuters)

 

Labels: , , , , , ,

Wednesday, April 14, 2021

Liberal Government of Canada Sinophile Fetish

"It would have been easy for the government just to keep quiet on this and let the award process go forward."
"The government has to take action so it can be seen as being a lot more supportive of Taiwan. I've been saying for a long time we have to drop the white gloves and be a lot more forceful and firm in our actions with China."
Guy Saint-Jacques, former Canadian ambassador to China 

"Instead of supporting the people of Taiwan, the Trudeau Liberals have threatened to pull support from the forum if the organizers went ahead with the award."
"This attempt to silence those critical of China is shameful. Canada should support those who stand up and speak out against the Chinese Communist Party's violations of human rights and international law."
Conservative Member of Parliament, and foreign affairs critic Michael Chong

"President Tsai of Taiwan is a well-respected international leader, the first female president of Taiwan and a strong global advocate for democracy."
"She would certainly be an ideal fit for this award [2020 John McCain award]."
Robin Shepherd, vice-president, Halifax Forum
Taiwan President Tsai Ing-wen delivers a speech at an event.
Taiwan President Tsai Ing-wen delivers a speech at an event. | Chiang Ying-ying/AP Photo
 
Canada's Liberal government has once again become the recipient of a storm of criticism, naming its posture toward the People's Republic of China as a "disgrace" and "shameful" in the wake of a media report outlining that government officials had made an effort to block an award geared to be presented to the president of Taiwan, in Canada. Federal government officials had threatened to withdraw funding to the Halifax International Security forum should it award the John McCain Prize for Leadership in Public Service to Tsai Ingwen, Taiwan's president.

The Liberal decision was attributed to a fear of offending the Communist Party of China, notoriously sensitive to any whiff of 'insult' toward it by anyone or any entity or any other nation. Since Beijing has made no secret of Chinese President Xi Jinping's passion for 're-uniting" China by absorbing Hong Kong and Taiwan, two breakaway democratic states that have no interest whatever in being ruled by mainland China, any nod to someone like Taiwan's president's courageous stand against Beijing's intimidation tactics is certain to infuriate Chinese authorities.

Canada, like other Western democratic countries, particularly Australia, has felt the sting of Beijing's displeasure on previous occasions, and the Canadian Liberal government, still harbouring hopes that somehow it can manage to sign a free-trade agreement with China, even though Beijing's hostage diplomacy and human rights abuses toward Tibetans, Falon Gong and Turkic Muslim minorities are well known and deplored, fears further animosity directed against Canada from Beijing.

Canada, charge the two former Canadian ambassadors to China, has eschewed any action, however seemingly innocent, to infuriate an already apoplectic China, furious over criticism it has and continues to receive over its treatment of Chinese Uyghurs. In this latest instance where Canada's Liberals have trod on eggshells over China, it is in response to the Halifax International Security Forum choosing to award recognition of Taiwan's president's courage in the face of China's bullying.

The annual event hosted by the Halifax International Security Forum sees attendance by highly influential military officials and politicians. This year, the John McCain prize for courage was to have been awarded to Taiwan's president in recognition of her defiance of China, and her determination that her island state remain sovereign, separate and apart from mainland China. Her successful efforts in controlling the COVID-19 pandemic in Taiwan was also part of the award.

"Canada's Feminist Foreign Policy has no room for one of the most courageous, principled, and seriously threatened women on the planet", wrote David Mulroney, another former Canadian ambassador to China, on Twitter. It is President Xi Jinping's "China dream" of national revival that has him determined to return Taiwan to the Chinese fold of state Communism. Lately, China has been flying military jets through Taiwanese security airspace. And while President Biden has expressed his distaste for Chinese moves, he has done nothing concrete to dissuade Beijing.

Meghan McCain, former Senator McCain's daughter spoke her mind: "Absolutely pathetic -- Canadian government is a bunch of cowards condoning Chinese genocide"

China's President Xi Jinping shakes hands with Canada's Prime Minister Justin Trudeau before their meeting in Beijing.
In this Aug. 31, 2016 file photo, Chinese President Xi Jinping shakes hands with Prime Minister Justin Trudeau ahead of their meeting at the Diaoyutai State Guesthouse in Beijing, China. Photo by Wu Hong / Pool /REUTERS / FILES

Labels: , , , , ,

Saturday, August 01, 2020

A Shifting World Political System Eyeing Chinese-Style Authoritarianism

"While problems between the West and China grew in number, there was no overall response that saw these as elements - trade tensions, technological rivalries, strategic issues and so on - as part of a bigger 'China problem' that required a concerted and co-ordinated response. This was the world on the brink of the Covid-19 crisis; a drama that originated in China and which initially caused some serious problems for Beijing, but one which it was clearly determined to turn to its advantage. It is no accident then that a more strident nationalist tone in Chinese policy has been the result, ranging from tensions with the US and Australia, Sino-Indian rivalry on their common frontier, and to cap it all, China's decision to overturn the fundamentals of its deal with the UK over Hong Kong. Indeed the Covid-19 crisis gave Beijing the opportunity to bring the Hong Kong crisis to a head. However long this pandemic lasts, one consequence is clear - the trajectory of Beijing's more assertive policy is unlikely to change unless real and concerted pressure is brought to bear. And for all the condemnation of China's attitude towards the liberties of the people of Hong Kong, it is hard to see this happening."                                            Jonathan Marcus, BBC News
Riot police fire tear gas into the crowds to disperse anti-national security law protesters during a march at the anniversary of Hong Kong's handover to China from the UK in Hong Kong on 1 July 2020
Hong Kong demonstrations   Reuters

Where to start? Let's try the one, signal issue that has incorporated the entire globe into a fused concern, the global pandemic known as COVID-19, caused by the SARS-CoV-2 virus that suddenly appeared in Wuhan, China back at the turn of the year that brought us into 2020. The year that everything changed. And keeps changing. World history brought to a head, making 2020 a significant year for change and a wholesale disturbance that has roiled the world.

Originating in China and swiftly transposed to the rest of the world, in part thanks to Beijing's efforts to cover up its existence, then failing to give timely and transparent warning, much less its concerted efforts to ensure that the rest of the world didn't close its borders to China, there is much to fault the Chinese Communist Party which rules the country under President Xi Jinping for. Including the fact that once China brought its own initial wave of COVID under control, it saw opportunities in its position as major supplier of the world's PPE.

The ensuing major crisis in the United States, swiftly taking over first place from Italy and Spain in the number of cases and deaths, put a quick end to U.S. President Donald Trump's first impressions of China's Xi Jinping as an admirable man he could do business with. Now Mr. Trump speaks of the "China virus" and not admiringly, a virus that has trashed the U.S. economy and pretty well given a death sentence to his aspirations for a second term in office.

The U.S. FBI Director Christopher Wray has said he has "opened a new counter-intelligence investigation on China every ten hours", to which Beijing responds that the Houston consulate spoken of as a "nest of espionage", was countered by Beijing ordering the closure of the U.S.consulate in Chengdu, all laid at the feet of Secretary of State Mike Pompeo  whose rationale was "a hodge-podge of anti-Chinese lies" to hear Beijing tell it. The spark that lit this fire was the new trade agreement being hammered out between Beijing and Washington. Kaput.

U.S. European allies are being prodded to remove their supply chains from China, mostly in pharmaceuticals and technology. This, at a time that the European Union is negotiating an investment agreement with China. A China that remains dependent on the global economy to rely on its manufacturing exports which in turn promotes its ongoing process of development. Decoupling from China would be an arduous process, but for China an impediment to the progress of its "Belt and Road" infrastructure investment program.

Sanctions imposed by the U.S. on human rights violations against the Uyghur Muslims in Xinjiang certainly represent a sore point in China-U.S. relations. On this file the U.S. has plenty of support; from the U.K. protesting forced sterilization of the Uyghurs, and the return of Hong Kong to Chinese rule, yanking its autonomous status precipitately despite the covenant signed with the U.K. in 1997, leading to a U.K. citizenship offer for close to three million Hong Kong residents.

U.S. President Donald Trump and China’s President Xi Jinping meet at the G20 Summit in Osaka, Japan last summer. Foreign policy experts have wondered how long it may take before China supplants the U.S. as global leader. Trump’s inept handling of the superpower relationship, particularly during the pandemic, may have accelerated the process, writes Tony Burman.
The U.S. and 26 Western democracies criticized China's retraction of the "one country, two systems" agreement at the UN Human Rights Council, leading 53 UN members led by Cuba to sign a resolution in support of Beijing, thus aptly demonstrating the lack of relevance of the United Nations. Then there is the issue over China's South China Sea territorial claims, upsetting its near neighbours directly facing the threats of Chinese aggression and growing military presence.

World stability hasn't been particularly enhanced by the prospect of China deciding to challenge India over their mutual claims of territory in the Himalayas. A situation where the Modi administration may wish to move closer in political alignment with the United States, even while China is making accommodations with Pakistan and Iran both of which would be grateful for the financial investment aid on the horizon. Egypt too is now accessible to China, with a newly signed agreement on vaccine production.

Labels: , , ,

Saturday, April 18, 2020

Holding Beijing Responsible

"Ottawa can't seem to shake this tendency to flatter."
"I'm not suggesting that we need to insult China or provoke a quarrel. We should simply be guided by the facts. And right now the facts argue for the case that China was delinquent, that it wasn't transparent enough. That's not a conspiracy theory."
"When you start acknowledging the truth, then positive and corrective action is possible. As long as you're in denial, there's no hope of action that will ameliorate the situation."
"This is a tremendous missed opportunity and it's not too late for the government [of Canada] to slowly turn the ship around."
David Mulroney, former Canadian ambassador to Beijing, 2009 -- 2012

"You have to draw a line. You have to stop such behaviour."
"You have to acknowledge that if you dealt with this issue with a lot more transparency we would have avoided an international crisis that has led to one of the greatest recessions of our times."
"Cabinet did not fully realize what I call the dark side of China."
Guy Saint-Jacques, former Canadian ambassador to Beijing, 2012 -- 2016
Chinese President Xi Jinping welcomes Canadian Prime Minister Justin Trudeau to the Diaoyutai State Guesthouse in Beijing, Wednesday August 31, 2016. China has rejected Canada's efforts to inject labour standards into a free trade agreement.
Chinese President Xi Jinping welcomes Canadian Prime Minister Justin Trudeau to the Diaoyutai State Guesthouse in Beijing, Wednesday August 31, 2016. China has rejected Canada's efforts to inject labour standards into a free trade agreement. THE CANADIAN PRESS/Adrian Wyld
When Prime Minister Justin Trudeau was leader of the-then opposition Liberal Party of Canada, campaigning during the 2015 general election that brought him to the helm of government, he stated his intention of bringing Canada closer to China, with the ambition of signing a free trade agreement with the Chinese Communist Party, in contrast to the previous government of Conservative Prime Minister Stephen Harper who distrusted the CCP and its obvious untrustworthiness, much less its penchant of abusing human rights.

In his 2018 trip to Beijing, Trudeau fully expected to sign that free trade deal he had placed so much stock in. And China might have been pleased to sign such an agreement, giving it even more influence in Canada, had it not been for Trudeau's usual insertion of recognized rights for aboriginals, environmental policy and gender-based analysis, so much a part of his 'progressive' agenda, even in the face of his conflicted admiration for authoritarian-style governments because they can 'turn on a dime'. And although Trudeau considers Canada, under his aegis, a post-national country, Xi Jinping celebrates Chinese nationalism.
Credit...Roman Pilipey/EPA, via Shutterstock
Canada treads lightly in its relationship with its southern neighbour and largest trading partner, the United States, and most particularly under the leadership of its current president, not known for his steady, guiding hand of objective and open policies. Canada owes much of its international security and its economic health to the fairly open trade and intertwined closeness of Canada's production with that of the United States. And when an extradition request from the U.S. for Huawei CFO Meng Wanzhou led to her arrest in Vancouver, China unleashed the full force of its bitter enmity.

Ever since, the Liberal government has tread lightly, hoping to soften Beijing's acid vituperation and re-ingratiate itself with a world power that knows no constraints or restraints, exercising contempt for other nations' scruples while itself threatening international stability. No greater harm has been done to the global community than when the CPC decided to withhold vital information from the World Health Organization on the seriousness of the SARS-CoV-2 epidemic ravaging Wuhan, unleashing a deadly coronavirus on an unprepared international community.

According to David Mulroney who has experienced ample reflections of China's moody manipulation, Ottawa's "almost humiliating" posture regarding China has as good as given China a green light to continue presenting itself as a champion of industry and morals rather than the criminal ideology that Trudeau's craven attitude avoids speaking of. In providing incorrect information to the WHO, China deliberately chose to place the world in danger. Canada, along with other first-world countries have an obligation to social health and security to name China for its disregard of moral responsibility, much less the crass looter of world resources that it is, in the interests of furthering its own industrial conquest.

The Trudeau cabinet has bent itself like a pretzel to avoid criticizing either China or the WHO, when both have been responsible for the current situation the world finds itself in, trying to control a deadly virus with success nowhere in sight, while millions are threatened and countless lives are needlessly lost. China's aggression and rejection of responsibility only ensures that it will continue to place the world community in danger from its reckless totalitarian decision-making impacting the world outside China.

The Chinese people deserve better from their government. The world community expects better from the Communist Party of China, but Xi Jinping and his colleagues heed no accusations that they cannot attribute to the false cries of 'racism' while bullying the world order and focusing on becoming the next and premier world power. It already considers itself to have achieved that status.

In laying the world low, killing an untold number of people through neglect and arrogance, destroying the world economy, Beijing still comes out ahead, placing its industries on overdrive to satisfy the world's new vital need for medical equipment and drugs in a desperate effort to allay the harm done by China, while China profits. And it will vigorously and effectively fend off any demands that may arise for an impartial international investigation into the true emergence of the Wuhan novel coronavirus.

The Wuhan Institute of Virology opened in 2018 with the founder of a French bio-industrial firm, Alain Merieux, acting as a consultant in its construction
The Wuhan Institute of Virology opened in 2018 with the founder of a French bio-industrial firm, Alain Merieux, acting as a consultant in its construction Hector

Labels: , , , , , , , ,

Follow @rheytah Tweet