Weekly News Roundup: Dispatches from the Silk Road Economic Belt

China Focus: China, Russia expand common ground for regional development
As China is adding investment to revive the "rust belt" in its northeastern provinces, Russia is also looking to boost the economy in its Far East, which brings tremendous opportunities for the two geographically adjacent regions, experts and government officials said at a high-level forum at the 4th China-Russia Expo which closed Monday. Andrey Ostrovsky, deputy director of Institute of Far Eastern Studies at the Russian Academy of Sciences, said the Russian Far East covers 36 percent of the country's territory, but has less than 5 percent of its population. It is rich in natural resources but poor in infrastructure, similar to China's northeastern region. According to the minister, about 20 joint commercial projects are being implemented in the Russian Far East, involving agriculture, petrochemical engineering, raw materials, logistics and tourism, and another four are under discussion. The total investment of those projects are estimated at about 6 billion U.S. dollars.(Xinhua)

China Railway Group signed on to build a $2.5 billion high-speed rail in Russia 

The state-owned company signed a memorandum of understanding with Russia for a line running from Chelyabinsk to Yekaterinburg, the nation’s third-largest city, according to the China Daily. The time to complete the trip, which covers 200 km (125 miles), would be cut from 5 hours to 70 minutes.

32 projects to be implemented in scope of China-Mongolia-Russia economic corridor
Iskander Azzizov, Ambassador of the Russian Federation to Mongolia said that Russia and Mongolia reached an agreement to upgrade the Ulaanbaatar Railway Joint Venture Company. Haiming Xing, Ambassador of People`s Republic of China to Mongolia emphasized "There are six economic corridors between Mongolia and China. China is ready to invest in order to develop those corridors. Og Song, Ambassador of the Republic of Korea to Mongolia stated that "Korea and Mongolia are discussing to establish Economic Partnership Agreement and I hope that it will enable Korean investors to turn their attentions to Mongolia. However, we must remember that stable policy is very significant. MongoliaGoGo

China’s Answer to the World Bank Pledges to Do More by Itself

The Asian Infrastructure Investment Bank pledged to embark on more projects as the sole lender, as it boosts its membership and manages an investment pipeline of up to $7 billion.The fledgling development bank, now in its second year, has already taken on projects by itself and it will do more going forward, AIIB President Jin Liqun said on Saturday in Jeju, South Korea, following the institution’s second annual conference. Still, working together with other lenders is better particularly on large infrastructure deals, he said. Of the 16 projects approved by the AIIB since it started in January 2016, around three quarters have been co-financed with other development lenders including the World Bank, Asian Development Bank, and the European Bank for Reconstruction and Development.

Chinese to enjoy 'red' road trips in Russia

About 1,000 Chinese people will enjoy "red" road trips to Russia from June to September, the China National Tourism Administration announced at a news conference on 20 June. The trips will kick off simultaneously in Hunan and Shaanxi provinces on June 28, with participants first driving to Beijing for an opening ceremony on July 1. From there, participants will drive to Manzhouli, a city in the Inner Mongolia autonomous region that borders Russia. They will enter Russia on July 5 to attend a welcoming ceremony in Moscow. (ChinaDaily)

China reconnecting Afghanistan? 
Anyone attempting to “rebuild” Afghanistan will have their work cut out but the success of China’s Silk Road initiative needs progress here, writes Pepe Escobar. Since 2002, Washington has spent a mind-boggling US$780 billion on its still incomplete Operation Enduring Freedom but Chinese government researchers have now quietly started a discussion in Kabul billed as “Afghanistan Reconnected”.

The ‘Perfect Police State’ is Emerging in Xinjiang

Xinjiang is experiencing an unprecedented security surge following the appointment of Chen Quanguo as the Party Secretary of the Uyghur autonomous region. The recruitment of security staff in Xinjiang had gone “absolutely through the roof” under Chen’s rule. In the first five months of this year, 31,000 such jobs were advertised – more than the entire total between 2008 and 2012. Last year a record 32,000 security agents were hired. (CDT)

The AIIB adds members and distances itself from Beijing
The AIIB opened for business in January 2016, and its ranks are still growing as Argentina, Tonga and Madagascar became the latest to join. The institution's roster, already bigger than the Asian Development Bank's 67 members, is expected to reach 85 to 90 this year. When it comes to lending, the AIIB has shown a preference for playing it safe while the bank cements its position in international finance. Three financing-related items totaling $324 million in lending and investment were approved at the meeting on June 16: a capital contribution to an Indian infrastructure fund and two syndicated loans arranged with other multilateral lenders. (Nikkei)

China is trying to pull Middle East countries into its version of NATO

The Shanghai Cooperation Organization (SCO) is a Central Asian security bloc led by China and Russia that is often described as a future Eastern counterweight to NATO. It held its annual summit last week in Kazakhstan, and the most significant outcome was the announcement that India and Pakistan became its first new members since being formed in 2001. The evolution of the SCO looks set to continue, with Iranian membership gaining momentum and Turkey’s an increasing possibility. (Washington Post)

Unreal estate: The boom in Gwadar’s property market
The unintended consequences of various politically charged investment initiatives are fascinating to track. Today, this article came out from Dawn about a property boom near the port of Gwadar, driven by the influx of money and interest. A great read reminding us of the knock-on effects of infrastructure projects. (Dawn)

Pakistan tightens business visa procedures for Chinese nationals after alleged Islamic State killings

Chinese nationals seeking to renew Pakistan business visas would need referral letters and long-term business visa extensions under the revised rules
(Scmp)

Mongolians fret over China investment as they prepare to vote

A few miles from Mongolia's giant Tavan Tolgoi mine, about 2,000 trucks a day set off across the Gobi desert, delivering coal to China on a road so narrow and ridden with pot holes it has become an accident black spot. Nearby stand the foundations of a railway meant to connect Tavan Tolgoi to China to the south. The unfinished line would enable cash-strapped, landlocked Mongolia to sell more coal at higher prices to its biggest customer, which could also finance the project.But despite the obvious economic benefits, the project has become a casualty of the ambivalence Mongolians feel about China's growing influence. Those feelings loom large over a Mongolian presidential election on Monday.A century ago, Chinese warlords used railways to help colonize Inner Mongolia, and some Mongolian nationalists argue a cross-border link could help facilitate a Chinese invasion. (Reuters)

China's Secret Landgrab (No, Not in the South China Sea)

“Bite by kilometer-size bite, China is eating away at India’s Himalayan borderlands,” Brahma Chellaney, one of India’s foremost strategic thinkers, warned in a recent op-ed. “For decades, Asia’s two giants have fought a bulletless war for territory along their high-altitude border. Recently, though, China has become more assertive, underscoring the need for a new Indian containment strategy.”A former Indian intelligence officers estimate that China has stolen nearly two thousand square miles from India over the past few years. As Chellaney notes, China’s strategy to acquire this land bears many similarities to its tactics in the South China Sea. First, it has civilians of different stripes—“herders, farmers, and grazers”—settle the land. Once the civilians are in place, the People’s Liberation Army comes in to provide protection.(National Interest)

China urges Afghans, Pakistan to form crisis-management mechanism
China has urged Afghanistan and Pakistan to improve relations and establish a crisis prevention and management mechanism, the Chinese foreign ministry said.Foreign Minister Wang Yi met Afghan President Ashraf Ghani in Kabul on Saturday and said a three-way conference mechanism involving the two countries and China could promote dialogue and cooperation, the ministry said in a statement on its website. (Reuters)

Pakistan deploys force of 15,000 to protect Chinese nationals

Pakistan has deployed a 15,000-strong military force to protect Chinese nationals working on energy and infrastructure projects in the country, the president said on Sunday, after the abduction of a Chinese couple raised safety concerns. (Scmp)

CENTRAL ASIA

Russia In Talks With Kazakhstan and Kyrgyzstan Over Military Deployment to Syria

Russia is in talks with Kazakhstan and Kyrgyzstan about sending troops to Syria, senior Russian and Turkish official have said. "Negotiations are now going on, a process is being worked out so that Russian military police can contribute to providing security in Syria, and proposals to our colleagues in Kazakhstan and Kyrgyzstan are being worked out as well," said Vladimir Shamanov, the head of the Russian Duma's committee on defense, in an interview with RIA Novosti. (Eurasianet)

Mongolians pick president after scandal-plagued campaign

Mongolians cast ballots on Monday (June 26) to choose between a horse breeder, a judoka and a feng shui master in a presidential election rife with corruption scandals and nationalist rhetoric.From its sprawling steppes to its capital and even in yurts serving as polling stations, people began to vote in the landlocked country sandwiched between Russia and China that was once viewed as an oasis of democracy full of economic promise.Nomadic herders filed into a yurt in the city of Erdene Sum, 100 km (60 miles) east of the capital Ulan Bator to cast their ballots, wearing the traditional deel coat, fedoras and boots. (Reuters)

Majlis Podcast: Tajikistan's Civil War And What Came After

The topic of this week’s Majlis podcast is the Tajik civil war: How it started, what fueled it, how it ended after five years in an unusual peace deal signed in Moscow on June 27, 1997, and how that deal fell apart over the course of the last 20 years. Muhammad Tahir, RFE/RL's media relations manager, moderated the discussion. (Rferl)

Kazakh foreign minister denies talks on sending troops to Syria
Kazakhstan has not been involved in any negotiations on the deployment of its servicemen in Syria, Foreign Minister Kairat Abdrakhmanov said on Friday."Providing a platform for meetings of all parties concerned is our country’s practical contribution to settling the Syrian crisis. Kazakhstan is not engaged in talks with anyone on sending its servicemen to Syria," he said. (Tass)