Weekly News Roundup: Dispatches from the Silk Road Economic Belt

China-Europe freight train trips grow fast in Q1

China-Europe freight trains have made 1,000 trips in the first three months, up 75% compared with the same period last year, according to China Railway Corporation. The company said the record was made because of increased rail routes and an accelerated train speed on the Chinese side. Xinhua (image: Xinhua) China-Europe freight train trips surge in Q1: China-Europe freight trains have made 1,000 trips in the first three months of 2018, up 75% compared with the same period last year, according to China Railway Corp. The company said the record was made because of an increased number of rail routes and accelerated train speed on the Chinese side. The cross-border rail network has connected 43 Chinese cities with 41 European cities in 13 countries. More than 7,600 journeys have been made between cities in the two continents since March 2011 when the service started. (Global Times)

Europe’s new ‘Eastern bloc

For Central and Eastern European countries, accession to the European Union has driven democratic reform and economic development. But after financial and refugee crises left the bloc reeling, the link between liberal democracy and social well-being is not as evident as it once was. As narratives of a decadent, failing West take hold, the rising East looks increasingly attractive. (Politico)

New freight train service linking Chengdu and Vienna launched

A new China-Europe freight train service linking southwest China's Chengdu City with Vienna, capital of Austria, was launched on 12 April. The train, carrying 41 containers of goods valued at 1.5 million US dollars, including LED displays, tires and lamps, departed from Chengdu, capital of Sichuan Province in the morning of 12 April. The train will travel through Kazakhstan, Russia, Ukraine and Slovakia, spending 13 days on the 9,800-kilometer journey, and finally arrive in Vienna. (Xinhua)

Jinan launches freight train service to Uzbekistan
A new freight train left Jinan, capital of East China's Shandong province, for Uzbekistan Friday morning.The train carried 53 containers of goods valued at 23 million yuan ($3.6 million), including textile machinery produced in Shandong. It will travel about 7,300 kilometers for 13 days to arrive at its destination in Uzbekistan. (China Daily)

Russia’s $55bn pipeline gamble on China’s demand for gas
Putin pivots to Beijing with biggest energy project since fall of Soviet Union. Russia’s first eastern pipeline is the most striking physical manifestation of President Vladimir Putin’s diplomatic pivot towards China amid rapidly worsening relations with the west. When the taps are switched on in December 2019, the world’s largest gas exporter will be connected for the first time with its largest
energy importer. (FT)

Citic Resources plans stake sale to Kazakhstan
Hong Kong listed Citic Resources Holdings is negotiating with Kazakhstan to sell a significant minority stake to the country, which is preparing to play a bigger role in Beijing’s “Belt and Road” trade and development initiative, according to two people with direct knowledge of the matter. (FT)

China’s Answer to the World Bank Wants Green, Clean Asian Infrastructure
Jin Liqun may not be a household name (yet), even though he has one of the most challenging and important jobs in global finance. Jin, 68, is the inaugural president and chairman of the Asian Infrastructure Investment Bank. The AIIB, a Beijing-based multilateral development bank that opened for business in January 2016, is an embodiment of China’s aspirations to play a major role in the international financial system. (Bloomberg)

Veteran China Banker Warns of 'Belt and Road' Risks

* Li Ruogu notes that many countries involved with the 'Belt and Road' initiative have high debts and low credit ratings.Li points out that many of the countries hold “limited” attraction for foreign investors due to a lack of preferential policies in areas such as foreign exchange and taxes
The former head of one of China’s main lenders for projects related to the "Belt and Road" initiative
issued a rare warning about the dangers of investing in many countries involved in the program. (Caixin)

Is China’s belt and road infrastructure development plan about to run out of money?
The limited participation of private investors, narrow financing channels and low profitability levels were major problems, Wang said.“Countries involved in belt and road projects have low financial capabilities and high liability ratios” he said. “It is important to encourage financial innovation to raise funds to support the development of the belt and road.”He called for the creation of an international fundraising mechanism to attract private investors, and a separate system to measure the credit risks associated with each project. (Scmp)

China and Mongolia on Monday agreed to link the Belt and Road Initiative and Mongolia's Prairie Road development initiative to benefit the two peoples. http://bit.ly/2EwFMWY

China's Billions Are Set to Revive Pakistan's Dilapidated Railways
In the past decade, Pakistan’s rail network had become a byword for corruption, delays and filth. But a pledge from China has prompted authorities to overhaul its colonial-era rail infrastructure. (Bloomberg)

CENTRAL ASIA

The Rise of Regionalism in Central Asia?
Despite shared history, Central Asia has long lacked regional cohesion. That could be changing. (The Diplomat)

Nazarbayev makes surprise Nauryz visit to Samarkand, meets with Mirziyoyev
Kazakh President Nursultan Nazarbayev paid an unannounced visit to Uzbekistan’s famous city of Samarkand March 21 where he discussed bilateral, regional and international issues with Uzbek President Shavkat Mirziyoyev. (Astana Times)

Turkmenistan banned bikini imports

The country’s president, who calls himself “the Protector,” also banned black cars because white ones bring good fortune.