Weekly News Roundup: Dispatches from the Silk Road Economic Belt

Exclusive: China may pare back 'divisive' eastern Europe summits

China is considering paring back annual summits with eastern European countries that have fueled concerns in western capitals that Beijing is seeking to divide the continent, according to three European diplomats. (Reuters)

'Gray-listing' pushes Pakistan further into China's orbit
Pakistan is set to become increasingly reliant on Chinese loans and investment now that the Financial Action Task Force, an inter-governmental anti-money laundering watchdog, has initiated a process to place the country back on a counter-terrorist financing watchlist, political and financial analysts say.

(Nikkei)

Pakistan Refutes IMF Report as It Eyes Bonds, China Funding

Pakistan’s de-facto finance minister refuted an International Monetary Fund assessment that the country’s economy was deteriorating and said plans to issue dollar bonds or Chinese-currency bonds haven’t been firmed up.The IMF in a statement this week said the South Asian nation’s economy faces continual “erosion” and its widening external and fiscal imbalances mean that “risks to Pakistan’s medium-term capacity to repay the fund have increased” since completion of a three-year $6.6 billion bailout program that ended in Sept. 2016. (bloomberg)

B&R initiative boosts Caucasus economies
The Caucasus region, which comprises Georgia, Armenia and Azerbaijan used to be an important region along the ancient Silk Road. The B&R initiative which comprises both land-based Silk Route and the oceangoing Maritime Route is aimed at not only boosting trade but also ensuring a comprehensive upgrade of infrastructure, business opportunities and with it, greater influx of tourists. Despite being an unconventional destination, Chinese travelers still venture into the region to experience something different from what they are used to. So what, who and how is China engaged
with in the Caucasus Region? (Global Times)

China's Zijin Mining interested in Serbian copper mine RTB, Belgrade says

China’s Zijin Mining Group Co. Ltd. has expressed interest in buying loss-making Serbian copper miner and smelter RTB Bor, which the Balkan state has been trying to sell for the past decade. (Reuters)

China’s belt and road plan is a major debt risk for weak economies, report says
China’s “Belt and Road Initiative” creates the potential for debt-sustainability problems in some of the world’s weakest economies, according to the Centre for Global Development. The infrastructure project – aimed at forging new economic links with Europe, Asia and Africa – puts Djibouti, Kyrgyzstan, Laos, the Maldives, Mongolia, Montenegro, Pakistan and Tajikistan “at particular risk of debt distress”, researchers at the Washington-based research institute said in a report on Sunday.
(scmp)

A Summer Vacation in China’s Muslim Gulag
How one university student was almost buried by the “people's war on terror.” (Foreign Policy)

Will China's Belt and Road Initiative Push Vulnerable Countries into a Debt Crisis?
Print
As China’s Communist Party paves the way for President Xi Jinping’s indefinite leadership, the international community should expect the Belt and Road Initiative (BRI)—President Xi’s signature global infrastructure plan spanning Asia, Europe, and Africa—to be further cemented as China’s primary strategy of global engagement for years to come. In a new CGD paper, we assess the likelihood of debt problems in the 68 countries we identify as potential BRI borrowers. (cgdev)

The Impact Of Gazprom’s China-Russia Gas Pipeline

Gazprom’s Power of Siberia pipeline is more than two-thirds complete. It will be delivering gas to China by the end of this year. A second pipeline is still under discussion.A report yesterday from Alex Mercouris at The Duran noted some frustration from China over the irregular liquefied natural gas (LNG) supplies coming from its contract partners in Uzbekistan and Turkmenistan. (Oilprice)

Itochu climbs aboard China's Belt and Road Initiative
Japanese company uses improved logistics to start Japan-Europe freight service. (Nikkei)

Kazakhstan getting ready for SCO Summit in Quingdao

Kazakhstan Ambassador to China Shakhrat Nuryshev has had a working visit to Quingdao, Shandong province, on March 1-3 within the framework of the upcoming participation of President Nursultan Nazarbayev in the SCO Summit in June 2018, Kazinform reporter in China reports. (kazinform)

China slows down spending on Belt and Road energy projects
China’s thirst for overseas energy investments is declining, at least by one tally. The nation’s financing for Belt and Road Initiative energy projects dropped 28 per cent to US$14.3 billion last year from US$19.9 billion, according to data released Monday by Boston University’s Global Development Policy Centre. (Scmp)

CENTRAL ASIA


Kazakhstan Grants US Access to Ports for Afghan-Bound Goods
By gaining access to Aktau and Kuryk, the United States will gain additional ways to circumvent Russia. (Eurasianet)

Uzbekistan Gives Full Backing to Tajikistan's Hydropower Project

President Shavkat Mirziyoyev told his Tajik counterpart Emomali Rahmon that Uzbekistan is willing to get involved across the board in the Tajik hydroelectric sector, and name-checked the highly contentious giant Roghun Dam. Construction at Roghun is now underway and according to optimistic Tajik estimates should begin to generate power by early as the end of this year. (Eurasianet)

Dordoi market checked for corrupt schemes
Kyrgyzstan's security service inspected #Dordoi #market for "corruption schemes." Theatricality of this is almost endearing considering that this market is one of the black holes through which #Chinese goods are re-exported in violation of #EEU rules. (24.kg)

$7.5 Billion Pipeline Has Surprise Patrons: Taliban Militants
After decades of talks, Afghanistan finally broke ground last month on a $7.5 billion gas pipeline that will run through areas controlled by the Taliban. Even more surprising: The militant group is backing the project.The Taliban “deems it its responsibility to revive foundational economic and reconstruction work in the country and asks international construction companies to help the Afghans in this regard,” Zabihullah Mujahed, a spokesman, said in a statement last month. (Bloomberg)

In Cina e Asia

La via del debito

La via della seta (aka Belt and Road) crea dipendenza. E’ quanto emerge da un report del Centre for Global Development, secondo il quale gli investimenti infrastrutturali seminati da Pechino rischiano di lasciare i paesi ospitanti con montagne di debiti da ripianare. Il problema si pone sopratutto nel caso di Djibouti, Kyrgyzstan, Laos, Maldive, Mongolia, Montenegro, Pakistan e Tajikistan. Secondo un rapporto pubblicato da Bloomberg a ottobre, dei 68 paesi inclusi nel progetto a guida cinese, 27 hanno un debito sovrano in territorio “junk”. Altri 14, tra cui l’Afghanistan, l’Iran e la Siria, non sono stati valutati o hanno ritirato le loro richieste di rating. Il think tank consiglia di incrementare le sinergie con gli istituiti di credito internazionale come la World Bank. Nel suo rapporto presentato al parlamento in questi giorni, Pechino ha rivelato di aver firmato più di 100 accordi con 86 paesi e organizzazioni nell’ambito dell’iniziativa.

Cina: la spesa per la sicurezza interna continua a crescere
Pechino ha incrementato consistentemente la propria spesa per la sicurezza interna. A un ritmo maggiore rispetto alla crescita economica e all’aumento del budget per la difesa. Secondo quanto rivelato dal ministero delle Finanze a margine dell’Assemblea nazionale del popolo, nel 2017 agli apparati interni è andato il 6,1% della spesa pubblica, ovvero circa 1,24 trilioni di yuan (196 miliardi di dollari) contro gli 1,02 trilioni andati all’esercito, in crescita del 12,6% su base annua. A fare la parte del leone è la regione autonoma dello Xinjiang, dove sono stati spesi oltre 90 miliardi di dollari tra posti di blocco, telecamere di videosorveglianza, scanner facciali e tutto quanto necessario a scongiurare nuovi attacchi di matrice islamica. Le autorità hanno smesso di pubblicare i numeri della sicurezza nazionale nel rapporto annuale a partire dal 2013, a causa dei commenti spinosi della stampa sulle implicazioni della spesa nella repressione della società civile (il dato dello scorso anno compare soltanto in un grafico relativo al budget complessivo anziché nel testo)

A quanto ammontano davvero gli investimenti cinesi in Africa?

Cina e Africa. Un binomio ormai quasi scontato quando si parla dell’attivismo imprenditoriale cinese in giro per il mondo. Ma a quanto ammontano davvero gli investimenti cinesi nel continente? Gli esperti mettono in dubbio l’attendibilità di una delle fonti più citate negli ultimi tempi: l ‘Africa Investment Report‘ pubblicato dal Financial Times a settembre. Secondo lo studio nel 2016 Pechino ha iniettato nel continente 36 miliardi di dollari, pari al 39% degli investimenti cinesi all’estero per quell’anno. Ma secondo gli esperti si tratterebbe di conclusioni inesatte. I dati risultano sovrastimati, come dimostrano i casi del porto di El Hamdania, in Algeria, e di una “nuova capitale” egiziana a est del Cairo, dove le compagnie cinesi sono pronte a costruire ma non necessariamente a investire e dove non entra in gioco la cessione della proprietà come nel caso del porto del Pireo. In realtà, secondo Thierry Pairault, gli IDE cinesi in Africa sono modesti e stanno diminuendo di anno in anno. Le cifre del ministero del Commercio cinese, parlano di 2,4 miliardi nel 2016, in calo del 19% rispetto ai 2,9 miliardi nel 2015. Ma difficilmente i numeri basteranno a placare i sospetti della comunità internazionale.

Proprio pochi giorni fa, prima di recarsi in visita in Chad, Djibouti, Ethiopia, Kenya e Nigeria, il segretario di stato americano Rex Tillerson ha criticato l’operato cinese in Africa accusandolo di creare dipendenza e mettere a rischio le risorse naturali locali.

L’ Holocaust Memorial Museum revoca il premio ad Aung San Suu Kyi

L’ Holocaust Memorial Museum di Washington ha revocato il premio per i diritti umani consegnato ad Aung San Suu Kyi nel 2012. Allora la leader birmana, reduce da 15 anni di domiciliari, è diventata la seconda persona ad essere insignita del riconoscimento dopo Elie Wiesel, sopravvissuta all’Olocausto. La decisione è stata resa nota alla Lady per lettera nella giornata di martedì e riportata dal New York Times nella giornata di ieri. Nella comunicazione, la Lega nazionale per la democrazia viene accusata di aver ostacolato l’intervento delle Nazioni Unite nello stato Rakhine e aver incentivato “una retorica dell’odio contro la minoranza rohingya”. Mentre Suu Kyi si trova a spartire il potere con i militari, la comunità internazionale ritiene che gli sforzi del governo da lei informalmente guidato siano insufficienti a placare la crisi umanitaria. 700mila rohingya sono fuggiti in Bangladesh in seguito alle operazioni messe in campo dall’esercito per contrastare le attività dei presunti terroristi islamici nello stato Rakhine. Ad oggi, la revoca del premio costituisce l’ammonimento più duro diretto contro la leader birmana.

Nello Sri Lanka è stato di emergenza
Lo Sri Lanka ha dichiarato lo stato di emergenza per 10 giorni dopo che nelle ultime settimane lo storico odio settario tra buddhisti e musulmani è riesploso nelle zone centrali del paese. La goccia ad aver fatto traboccare il vaso sarebbe stata la morte di un autista singalese in una rissa con quattro musulmani. Da allora i nazionalisti buddhisti hanno preso di mira moschee e negozi islamici. Facebook, Viber e Whatsapp sono stati bloccati in seguito alla pubblicazione di post innegianti all’odio religioso. Mentre i rapporti sono tesi dal 2012, l’arrivo di rifugiati rohingya dal Myanmar sembra aver acuito la crisi tra i due gruppi religiosi. Reduce da 26 anni di guerra civile, tra gennaio e dicembre 2013 lo Sri Lanka ha assistito a 241 attacchi contro obiettivi musulmani. Molti sono stati fomentati dal gruppo estremista con base a Colombo Buddhist Power Force.

Weekly News Roundup: Dispatches from the Silk Road Economic Belt

China upset as Interpol removes wanted alert for exiled Uighur leader
China expressed dissatisfaction on Saturday at Interpol’s decision to lift a wanted alert for an exile from its Uighur minority, a man China accuses of being a terrorist. (Reuters)

Could the SCO Expand Into the Middle East?
The Shanghai Cooperation Organization recently added India and Pakistan. Could Iran be next? (Diplomat)

China’s one-track mind in Kazakhstan

Many observers see the new dry port of Khorgos as a sign of China’s expanding influence in Central Asia. However, despite the increasing bilateral trade between China and Kazakhstan and the symbolic significance of the project under President Xi Jinping’s “iron silk road”, the dry port should be seen as the limitation, rather than the extension, of China’s railway network in the region. In the face of the unifying bloc of broad gauge networks, a Russian geopolitical obstacle, it is reasonable for China to focus on the southern route of the ‘iron silk road’ to reach Europe. This means going through Iran and Turkey, two countries with standard-gauge rail networks. In December 2017, Beijing signed a US $530 million deal with Tehran on rail, in addition to other investments and loans under the Belt and Road Initiative. (cpianalysis)
Freight train service launched between Urumqi, Naples
Thanks to a new freight train service, citizens of Naples, Italy may find it easier to buy commodities produced in northwest China's Xinjiang Uygur Autonomous Region.A train carrying tomato sauce
left Urumqi, capital of Xinjiang, for Italy's Naples on Monday morning, the first between Xinjiang
and Naples. (Xinhua)

New China-Europe train service begins with 11,000 cars
Since the first cargo train set off from Daqing city, Heilongjiang province, for Belgium last June, the new China-Europe train service tailor-made for Volvo's Daqing factory has transported 10,936 China-made Volvo cars. A one-way trip takes 18 days via the 10,887 kilometers-long route, passing through Russia, Belarus, Poland and Germany, saving 28 days compared to the traditional marine transport. (China Daily)

China's flagship port in Pakistan shackled by heavy security
The port is scheduled to start transshipment on March 7. Yet, for all the fanfare, some question Gwadar's prospects amid heavy security.Balochistan is mostly off limits to outsiders and there is no visible foreign presence beyond the Chinese. Journalists and visitors are closely monitored by  Pakistan's intelligence agencies.. (Bloomberg)

Reality Check: Is Chinese an official language in Pakistan?
The claim: Pakistan has made Chinese an official language.
Reality Check verdict: False - the Pakistani parliament passed a resolution "recommending" Chinese-language courses to be taught in Pakistan, but there's no suggestion Chinese will become an official language of the country. (BBC))

China-Pakistan Economic Corridor brings economic benefits to Pakistan: report
The report, "The economic benefits of the modern silk road: The China-Pakistan Economic Corridor (CPEC) The report, which is based on research work and surveys, said that the unprecedented CPEC has provided 60,000 jobs to Pakistanis since 2015 and that it would create over 800,000 new jobs in different sectors up to 2030. (global times)


CENTRAL ASIA

Afghanistan ready to play connector role in Eurasian integration
The inauguration of TAPI – the Turkmenistan-Afghanistan-Pakistan-India pipeline – signals Kabul is
on-board with the grand project of Eurasian integration.

Turkmenistan's Plan B: Electricity Exports
While Turkmenistan sits on the world's fourth-largest reserves of gas, those riches are worth little without markets. (Eurasianet)


World’s Longest-Imprisoned Journalist Is Freed in Uzbekistan

Uzbekistan has freed a reporter who was incarcerated for nearly two decades on sedition charges, the longest-known prison term served by a journalist, human rights advocates said Friday.The reporter, Yusuf Ruzimuradov, 64, who worked for a newspaper banned by the Uzbek authorities, had been held since 1999. (nyt)

Afghan TAPI Construction Kicks Off, But Pipeline Questions Still Unresolved
Executives and regional leaders gathered for a ground-breaking ceremony for Afghanistan's section of the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline on February 23 in the western Afghan city of Herat.Herat, and uncertainty as the ceremony there approached, provide another reminder of the doubts and questions that have surrounded the TAPI pipeline for years now. (.rferl)

Weekly News Roundup: Dispatches from the Silk Road Economic Belt

China Steps Up to Broker Peace in Afghan-Pakistan Conflict

China hosted top diplomats from Afghanistan and Pakistan on Tuesday in a bid to mediate a long-simmering conflict between the neighboring countries. (Bloomberg)

China, Pakistan to look at including Afghanistan in $76 billion economic corridor

China and Pakistan will look at extending their US$57 billion (S$76.6 billion) China-Pakistan Economic Corridor to Afghanistan, Chinese Foreign Minister Wang Yi said on Tuesday (Dec 26). This will be part of China's ambitious Belt and Road plan linking China with Asia, Europe and beyond. (reuters)

Is China trying to play mediator in Central Asia with offer to include Afghanistan in trade plan?
Beijing also keen to boost anti-terrorism exchanges with Kabul to ensure security across the region, military chief says. “If the CPEC links up to Afghanistan, it can ultimately be a gateway to Iran and the Indian Ocean.” (scmp)

Over 6,200 train trips made between China, Europe in 6 years

Freight trains made a total of 6,235 trips on 57 routes since the China-Europe freight train services began in 2011.The cross-border rail network has bridged 35 Chinese cities with 34 European cities in 12 countries over the past six years.In 2017, more than 3,270 journeys have been made between cities in the two continents, according to the transport coordinating committee of China-Europe trains Tuesday. (Xinhua)

China testing freight rail transportation through Turkmenistan to Iran
A freight container train will be sent from China’s Yinchuan city Dec. 29 along the route through Kazakhstan and Turkmenistan to Iran, the Turkmen Foreign Ministry said in a message Dec. 29.
On Dec. 30, another freight container train will be sent along the same route from the north-western Chinese city of Xi’an in Shaanxi province. (Trend)

China's new 'Silk Road' goes straight through the Caucasus
With its new Silk Road mega-project, China is building on old traditions. But it's hard-core geostrategic interests and not nostalgia which is guiding Beijing. Miodrag Soric reports from Tbilisi, Georgia. (DW)

Can a China-Moldova free-trade deal give Beijing a foothold in eastern Europe?

China has agreed to begin talks on the establishment of a free-trade deal with the former Soviet state of Moldova, as the world’s most populous nation continues to seek to boost its influence in Russia’s backyard. (Scmp)

China Recreates the Silk Road to Challenge Hollywood
China's 'One Belt, One Road' initiative for industrial projects mirrors the ancient trade route and creates a natural market for Chinese movies. (wsj)

The battle to stop Uygurs fleeing China from joining Islamic State
Moderate Uygurs living in Turkey say they struggle to persuade people fleeing a sweeping security crackdown in Xinjiang to reject recruiters from the militant group (Scmp)

CENTRAL ASIA

First-tier court defends Kyrgyz ex-president collecting multi-million moral compensation from journalist and human rights lawyer
On 19 December, the Oktyabr District Court of Bishkek, the first-tier court, has denied the attempt of Atambayev critics to break the collection of 40 million soms (about $ 574,000) of the compensation for moral damages Narynbek Idinov and Dina Maslova, the founders of Zanoza (now - Kaktus), and Cholpon Djakupova, the human rights lawyer, have to pay to ex-president, reports Kaktus news agency. (Fergana News)

America is important for Kyrgyzstan’s foreign policy
Kyrgyz Minister of Foreign Affairs, Erlan Abdydaev met with representatives of national and foreign media at the Ministry of Foreign Affairs of Kyrgyzstan. At the meeting, Minister Erlan Abdyldaev spoke about whether a new agreement on cooperation with the United States and future prospects for bilateral cooperation will be signed, Kabar reports."America is the most important direction in Kyrgyzstan’s foreign policy and we understand the role and importance of the United States in the modern global world," the Minister said. (Azernews)

Kyrgyz president: ISIS ideology spreading into Central Asia

Kyrgyzstan's President Sooronbai Zheenbekov has warned about a threat of increasing expansion of the ISIS terrorist organization's ideology in Central Asian countries."The ideology of Islamic State and other such radical groups is increasingly spreading in Central Asia, with active propaganda and recruiting of citizens of our states," he said at an informal meeting of the CIS leaders. (Vestnik)

Weekly News Roundup: Dispatches from the Silk Road Economic Belt

China goes on logistics buying spree to support ‘new Silk Road’
Acquisitions across Eurasia to enhance trade flows double to $32.2bn (FT)

David Cameron given special dispensation to broker talks between Britain and China in new role leading £750m investment fund

David Cameron is helping to set up up a new £750m UK-China investment fund aimed at forging closer ties between the two countries, it has been confirmed.The former Prime Minister will become vice chairman of the new private equity fund after being approached for the role by Lord Chadlington, a friend and former Tory donor. (Telegraph)

AIIB approves first loan project in China
The Asian Infrastructure Investment Bank (AIIB) announced Monday that it has approved its first loan in China for a natural gas project.The 250-million-U.S. dollar loan will fund a project to connect 216,750 households in approximately 510 villages to the natural gas distribution network, according to an AIIB statement. (Xinhua)

Russia urges India to line up behind China's Belt and Road initiative 

Russia threw its weight behind China’s massive Belt and Road plan to build trade and transport links across Asia and beyond, suggesting to India on Monday that it find a way to work with Beijing on the signature project. (Reuters)

From the Caucasus to the Balkans, China’s Silk Roads are rising
With its focus on Central Asia and Eastern Europe, the Belt and Road Initiative can be seen as fulfilling a strategy of challenging the West that can be traced back to Mao (Asia Times)

Soviet archives reveal a turning point in the Chinese Communist Party’s relationship with Uyghur and Kazakh elites in Xinjiang

In China’s frontier regions, the victims of the “anti-rightist” campaign were initially mostly Han Chinese. In Xinjiang, as elsewhere, the non-Han population was slow to heed Mao’s call, but when they eventually did, the response brought to light serious dissent among intellectuals and party members (particularly Uyghurs and Kazakhs). (Wilson Center)

CPEC long-term plan to be made public on Dec 18: Ahsan Iqbal

Minister for Planning and Development Ahsan Iqbal has announced that the long-term plan (LTP) for the China-Pakistan Econo­mic Corridor (CPEC) that was signed on Nov 21 will be made public on Dec 18. Making the LTP public was a commitment given by the minister back in June. (Dawn)

Construction of China-Russia natural gas pipeline gains steam

China National Petroleum Corporation (CNPC) said on 13 December that it had sped up laying natural gas pipelines connecting China and Russia, a major energy cooperation between the two countries. Welding of the northern part of the 3,371-kilometer east-route natural gas pipeline has begun, the company announced. The pipeline originates in northeast China's Heilongjiang Province and terminates in Shanghai in the east. Construction began in June 2015 and will be completed in 2020. (Xinhua)

2,000-year-old Protectorate of the Western Regions confirmed in Xinjiang
After four years of archaeological study, an ancient city in Xinjiang Uygur Autonomous Region has been basically confirmed as the former seat of the Protectorate of the Western Regions about 2,000 years ago. (Xinhua)

Thought police create climate of fear in China’s tense Xinjiang region
Xinjiang’s published budget data from January to August shows public security spending this year is on track to increase 50 per cent from 2016 to roughly 45 billion yuan (US$6.8 billion) after rising 40 per cent a year ago. It has quadrupled since 2009, a watershed year when a Uygur riot broke out in Xinjiang, leaving nearly 200 members of China’s Han ethnic majority dead, and security began to ratchet up. (AFP)

China builds up troop numbers close to Indian border flashpoint as soldiers prepare for first winter near Doklam

China has started building up its military forces near the Doklam plateau – the site of a protracted stand-off early this year, Indian media has reported.Analysts suggested the development would allow China to tighten its control of its borders and prepare for any future problems in the region.
It is also improving its military infrastructure, including new mortar and gun positions, at a site between five and 10km from the site of this summer’s two-month stand-off, Indian media reported, citing satellite imagery acquired on December 3. (Scmp)

Insight: Hoping to extend maritime reach, China lavishes aid on Pakistan town

China is lavishing vast amounts of aid on a small Pakistani fishing town to win over locals and build a commercial deep-water port that the United States and India suspect may also one day serve the Chinese navy.Since 2014, Beijing has pledged over $800 million in grants and concessional loans for Gwadar, which has less than 100,000 people. In the 15 years before that, China gave about $2.4 billion in concessional loans and grants during this period across the whole of Pakistan, a nation of 207 million people.“Gwadar is exceptional even by the standards of China’s past activities in Pakistan itself,” Parks said. (Reuters)

Nepal’s government-in-waiting to revive scrapped Chinese dam project, officials tell SCMP

Ishwor Pokhrel, general secretary of the CPN-UML, said that after taking power the new government would implement a 15-point joint communique signed by Oli and Chinese Premier Li Keqiang in March 2016 that covered transportation, trade and financial cooperation. (Scmp)

Russia-India-China meeting shows a multipolar world order is taking shape

C. Uday Bhaskar says this week’s meeting of Russian, Indian and Chinese foreign ministers was not marked by complete agreement, but still reveals the fulfilment of the grouping’s promise – an end to unipolar US dominance. (Scmp)

Cargo train service flourishes between Zhengzhou, Hamburg

Cargo trains made a total of 449 journeys between Zhengzhou, a transport hub in central China's Henan Province, and Hamburg, Germany between January and November this year, the operator said on 13 December. According to the Zhengzhou International Hub Development and Construction Co., more than 234,000 tonnes of cargo worth 2.44 billion US dollars were delivered during the period. (Xinhua)








CENTRAL ASIA


Tajikistan: How a Broke Government Keeps its Books Balanced
In its annual budget, Tajikistan is relying on unusual accounting maneuvers to ensure its books reflect a healthy balance. The reality is far bleaker, and international support is playing a key role in holding the country back from the economic precipice. (Eurasianet)

A Second Year Of Shortages In Turkmenistan
Turkmenistan has a population of some 5 million people. Turkmenistan also has the fourth-largest natural-gas reserves in the world.The small population and the large amount of gas led Turkmenistan's first president, Saparmurat Niyazov, to predict after its 1991 independence that Turkmenistan would become a second Kuwait and everybody would be driving Mercedes.
Instead, Turkmenistan is facing its second straight year of shortages of basic foods as winter approaches. (rferl)

Kazakhstan coal miners carry out strike underground
Hundreds of coal miners in Kazakhstan are refusing to return to the surface until their wages are doubled and working conditions improved.More than 600 miners in the Karaganda region of central Kazakhstan have been underground for four days.It is the country's largest workers' protest since the government violently clamped down on striking oil workers in 2011. (The Diplomat)

IRAN’S PROSPECTS IN JOINING THE SCO

Iran's joining of the SCO is beneficial to both sides, said Valdai Club expert, Nandan Unnikrishnan, Vice President and Senior Fellow at the Observer Research Foundation. With the accession of Iran, the SCO will be able to settle the Afghanistan problem, and develop strategic transport corridors. Iran, becoming a member of the SCO, will raise its rating as a regional player. (

Weekly News Roundup: Dispatches from the Silk Road Economic Belt

CEE Is Key to China’s Belt and Road Initiative

With deep government pockets, technical sophistication and a comprehensive investment plan behind it, China’s Belt and Road Initiative (BRI) can have a big impact on the transformation of the Western Balkans. There are caveats, not least debt dependency on cheap Chinese loans, but a proactive approach throughout the region could bring welcome development for many in countries that are not prime investment destinations. That is the conclusion of a major new report, commissioned by the EBRD, which looks at the potential for growth through Chinese infrastructure investments in Central and South-Eastern Europe. (emerging-europe.com)

Could Nepal’s new communist pact mean closer ties with China?
The creation of an alliance of communist parties in Nepal ahead of the upcoming provincial and national elections could lead to closer ties between Kathmandu and Beijing, observers said.

Exclusive: The CPEC plan for Pakistan’s digital future

A new, upgraded cross-border fibre optic cable will address multiple challenges faced by China and Pakistan. (Dawn)

Russia turns to new friends from China and the Middle East
Six years after Rosneft marked a new high watermark in US-Russian corporate relations by agreeing a co-operation deal with ExxonMobil, the Kremlin-controlled oil company has found alternate support from the east. CEFC China Energy agreed last month to pay $9.1bn for a 14.16 per cent stake in Rosneft — and it is not the only Russian company to find new friends in China. (FT)

Rosneft aims to up oil exports to China through Kazakhstan
Russia’s largest oil producer Rosneft wants to boost its supplies of oil to China through Kazakhstan to as much as 18 million tonnes (360,000 bpd) per year from around 10 million tonnes in 2017, industry sources told Reuters. Such a big increase may significantly drain flows of Urals blend to Europe at a time when Russian oil output has been reduced as part of a global pact to support prices. (Azernews)

Xinjiang university calls for promoting Putonghua - Global Times

Professors at Kashgar University in Northwest China's Xinjiang Uyghur Autonomous Region have called for the faculty and students there to speak Putonghua to promote social stability, in a letter published on the school's WeChat account on Sunday. They asked that all members of the faculty and students from all ethnic groups use Putonghua to communicate as a common language, meaning they are asked to speak Putonghua both in and outside the classroom, and between teachers, students, friends and family. (globaltimes)

Construction of new airport begins near China-Russia border

Construction of a new civilian airport has started on China's border with Russia in the northeastern province of Heilongjiang, authorities said on 11 October. Construction of Dongning Airport began 10 October in the border city of Suifenhe, with an estimated budget of 1.15 billion yuan (174 million U.S. dollars), said a city official. Xinhua

How China’s biggest debtors may struggle to pay off their loans

According to the Scmp, Chinese investments in the Karachi Nuclear Power Plant Complex are a rare example of a major Chinese loan that does not face specific concerns about repayment. The Chinese bank is financing most the project with US$4 billion of preferential buyer credit at an interest rate of 2 per cent, a buyer credit of US$2.2 billion at a rate of 6 per cent, and the remainder is a concessional loan at a rate of 1 per cent. (Scmp)

China's CEFC set to raise $5.1 billion from VTB for Rosneft deal: sources
CEFC China Energy is set to raise $5.1 billion in short-term loans from VTB (VTBR.MM), Russia’s second-biggest lender, to part finance its $9.1 billion purchase of a stake in Rosneft Oil ROSM.NN, three people with knowledge of the matter said. CEFC last month said it will buy a 14.16 percent stake in the Russian oil major from a consortium of Glencore and the Qatar Investment Authority, strengthening energy ties between Moscow and Beijing. (Reuters)

If You Build It, They Will Lend: Why Japan May Fund More Infrastructure than China

Demand for infrastructure is growing as developed countries replace deteriorating infrastructure and emerging economies invest in new projects. China has attracted significant attention through its One Belt, One Road initiative and the founding of the Asia Infrastructure Investment Bank, but Japan has recently dominated global project finance. With low borrowing costs and limited domestic credit demand, Japanese banks may be best positioned to lead the financing of a global infrastructure push. (FEDERAL RESERVE BANK OF SAN FRANCISCO)


Afghanistan obtains AIIB permanent membership
Afghanistan has obtained the permanent membership of the Asian Infrastructure Investment Bank (AIIB), the country's finance ministry reported on its website Sunday. Afghan Finance Minister Eklil Hakimi received the Certificate of Permanent Membership of the AIIB on the sidelines of the World Bank and International Monetary Fund (IMF) meeting earlier this week in Washington, the United States, the ministry said in a statement. (globaltimes)

Changchun starts freight train service to Hamburg
China's northeast city Changchun saw its first freight train depart to Hamburg, on 13 October. The trip will take 12 to 15 days at the maximum speed of 120 kilometers per hour, according to a local official. Liu Changlong, Changchun's mayor, said at the opening ceremony that the move will give an impetus to the city's economy and further integrate Changchun with the rest of the world. (China Daily)

Direct China-Britain freight train likely to reshape trade, says logistics chief
The direct China-Britain freight train is likely to shake up traditional trade patterns as speed and reliability are the key in modern supply, said Nichola Silveira, general manager of Logistics of DP World London Gateway. The first China-bound freight train carrying British products left DP World London Gateway terminal on April 10 and arrived at eastern China's Yiwu city known as China's "world supermarket" after a 19-day journey. (China Daily)

CENTRAL ASIA

The Domestic Challenge to Kyrgyzstan’s Milestone Election
Kyrgyzstan’s forthcoming presidential elections on 15 October are a milestone for Central Asia: for the first time, a president from the region will voluntarily stand down at the end of his constitutionally mandated term. Kyrgyzstan has come far in the seven years since the tumultuous events of 2010, when President Kurmanbek Bakiyev was ousted in Bishkek and ethnic violence engulfed the southern city of Osh, killing over 400 people, mostly Uzbeks. The presidential race is tight and unpredictable. Sooronbai Jeenbekov, from the southern province of Jalalabad and representing the ruling Social Democratic Party of Kyrgyzstan (SDPK) party, faces Omurbek Babanov, a wealthy independent candidate from the northern province of Talas, still closely aligned with the party he formed in 2010, Respublika. But whoever wins the ballot will face renewed north-south regional tensions as well as rivalries within Osh, where the memory of violence is still fresh and small arms abound. (Crisis Group)

Will Kyrgyz Democracy Pass Its Next Test?
The outcome of this weekend’s election usher in an unprecedented transfer of power between elected presidents. (Diplomat)

Kyrgyzstan to vote in Central Asia's first real election
Kyrgyzstan will vote on Sunday in the first genuinely competitive leadership election in Central Asia.
The vote on Oct. 15 is Kyrgyzstan's second presidential election since a revolution in 2010 but its first competitive one, a watershed for a region more closely associated with Soviet-tinged autocratic leaders. (Nikkei)

Turkmenistan Downgrades Parliament in Favor of People’s Council
The president of Turkmenistan has approved changes to the constitution downgrading the role of parliament in favor of a revived People’s Council, canceling a minor token gesture toward democratization adopted a decade ago.At the same time, President Gurbanguly Berdymukhamedov has followed through on his long-awaited plan to cancel wide-ranging subsidies that guaranteed Turkmen households free gas, water and electricity. (eurasianet)

Junk Bond Boom Reaches Far Corners of the World
Investors’ thirst for income is enabling governments and companies in some of the world’s poorest countries to sell debt at lower and lower interest rates. And the global bond boom has even reached Tajikistan. (WSJ)

Chief National Security Official of Kazakhstan almost secretly met with the US Secretary of State

Chairman of the National Security Committee of Kazakhstan Karim Masimov, while in Washington, met with Secretary of State Rex Tillerson. The State Department informs on Facebook. The statesmen met on 10 October behind closed doors. Neither details of the meeting, nor the official purpose of the visit is known. Not a single Kazakh media reported a visit. (Fergana News)

Pakistan investment climate

On October 4, the Karachi Stock Exchange 100 index closed at 40,461 points, touching as low as 39,869.88 intraday, Kunwar Khuldune Shaid writes. The market had lost 1,948 points in three days as selling pressures took their toll. However, the tumble in the markets was just the tip of the iceberg. While investors and market analysts feel that the Pakistani government is “distracted,” they are also worried about taxation policies. Altogether, they anticipate that this is going to start hurting the economy and the country’s investment climate. The main driver behind all of this is the ongoing political turmoil in the country following the ouster of Nawaz Sharif as prime minister in July. He had been serving for a third time before his disqualification by Pakistan’s Supreme Court. The KSE-100 Index shed 1,670 points (3.6%) in the immediate hours after the apex court’s verdict. (Asia Times)

Weekly News Roundup: Dispatches from the Silk Road Economic Belt

The Twists and Turns along China’s Belt and Road

China’s trillion-dollar Belt and Road Initiative could potentially transform relations with over 60 countries across Eurasia, Africa and beyond. But to bring the concept to fruition, Beijing must overcome mammoth logistical obstacles, navigate fragile political situations and placate growing regional apprehension surrounding its ambitions (Crisis Group)

CEFC's Rosneft deal driven by national strategy: chairman
CEFC China Energy’s $9.1 billion purchase of a stake in Russia’s Rosneft Oil ROSM.NN was mainly driven by China’s Belt and Road Initiative and has strong support from the government, Ye Jianming, the company’s founder said.Ye posted his thoughts on Monday in a message to CEFC employees on the company’s Wechat account to explain how the privately-owned company secured the deal with Rosneft instead of China’s state-owned oil majors. Wechat is China’s largest social media application mainly used as a messaging tool. (Reuters)

Mapping the China-Pakistan Economic Corridor
The China-Pakistan Economic Corridor (CPEC) is a flagship project under China’s Belt and Road Initiative. Announced in 2015, CPEC has expanded to include as much as $62 billion of investments. In Pakistan, there have been a range of reactions. CPEC advocates have characterized it as a “game-changer." Others have warned that it is a new form of Chinese “imperialism."This analysis attempts to evaluate CPEC’s road infrastructure. It uses mapping tools and LandScan data from 2006 to layout the number of people within a certain radius of the roads. Specifically, it measures connectivity at three levels. (reconnectingasia.csis)

Kazakhstan to export 5 billion cubic metres of gas to China

China recently agreed to a deal with KazTransGas to import 5 billion cubic metres of Kazakh natural gas during one calendar year, according to KazTransGas press service. (astanatimes)

Chinese cargo ship arrives in Russia's St. Petersburg, completing month-long journey on sea route via Arctic Ocean (xinhua)

New international passenger train has been launched between China's Urumqi and Kazakhstan's Almaty, shortening the journey by seven hours (Xinhua)

Xinjiang raises over 600 mln USD for poverty-relief relocation in 2017

Northwest China's Xinjiang Uygur Autonomous Region raised 4.17 billion yuan (about 627 million U.S. dollars) in 2017 in relocation funds as part of its poverty reduction drive.The money, up from the previous year's 1.3 billion yuan, will go toward housing for 83,900 people who will be relocated from poverty-hit regions to more developed areas. (People's Daily)

Kazakhstan Revokes Hundreds of 'Green Cards' Issued to Ethnic Kazakhs From China 

Authorities in Kazakhstan have declared the 'green card' residence permits of some 250 Chinese nationals of Kazakh descent invalid following an investigation of the officials who issued them, prompting fears of repatriation and detention, sources in the emigre community told RFA on Thursday. The move follows the detention in July of the immigration director of Kazakhstan's Jambul region for accepting "additional fees" in relation to green cards. (RFA)

Why Chinese investors are struggling to gain a foothold in Tajikistan
Central Asian country is one of first stops on ‘Belt and Road’, but legal difficulties, murky politics and security concerns pose obstacles to business.

CENTRAL ASIA

Opium for the President: Religion and Kyrgyzstan’s forthcoming elections
Religion has traditionally been a delicate topic for Kyrgyzstan. Even though the overwhelming majority of the Republic’s population identifies as Muslim, no presidential candidate has been in any hurry to touch upon the topic of religion in their election manifestos. Is the political elite ignoring the burning questions and challenges posed by the rise of religious extremism in Central Asia today? (Fergana news)

Closer Uzbekistan-Kazakhstan Ties Not Enough to Resolve Broader Regional Woes

The president of Kazakhstan, Nursultan Nazarbayev, paid an official visit to Uzbekistan in mid-September, highlighting improving relations between Central Asia’s two largest states. There, he met with his Uzbekistani counterpart, Shavkat Mirziyaev, for the sixth time since the latter took office last December, following the death two months earlier of the incumbent (since 1990) Islam Karimov. Mirziyaev had previously chosen Kazakhstan as a second stop on his first foreign tour as head of state, visiting the country in late March, right after Turkmenistan but before going to either Russia or China (Mir24.tv, Tengrinews.kz, September 16; Sputniknews.kz, March 23). (jamestown foundation)

The Rising Risks of Misrule in Tajikistan

Tajikistan’s 25 years as an independent state have been marred by poverty, endemic state corruption and the steady narrowing of political power to a single family. Its patriarch is President Emomali Rahmon, 64, who has ruled the country since 1992 through a carefully calibrated system of patronage and brutality. With Rahmon’s current seven-year term set to end in 2020, many observers believe he is now planning to hand over power to a close family member, probably his eldest son, Rustam, 29. (crisisgroup)

Weekly News Roundup: Dispatches from the Silk Road Economic Belt

No Stops In Kyrgyzstan For China-Uzbekistan Railway Line
The China-Kyrgyzstan-Uzbekistan (CKU) railway project looks to be lurching forward again as China presses ahead with its One Belt, One Road trade-connectivity initiative. It will undoubtedly be a topic on September 6, when Uzbek President Shavkat Mirziyoev visits Kyrgyzstan for talks with President Almazbek Atambaev. The rail line could be a boost for Kyrgyzstan's and Uzbekistan's trade with China. But President Atambaev has mentioned at least one problem he sees with the proposed railway -- it doesn't have stops in Kyrgyzstan. (Rferl)

 China's 'betrayal' - BRICS leaders slam Pakistan-based jihadi groups

"As long as China is backing us, we don't have to worry about the United States or the rest of the world." While the Islamic country's politicians and government officials refuted Trump's claims that Pakistan was supporting militant groups near its border with Afghanistan, they heaved a sigh of relief when Chinese officials came to their support against Trump. Therefore, it was quite natural for Islamabad to expect that the BRICS nations – Brazil, Russia, India, China and South Africa – would not criticize Pakistan-based militant groups during their recently held summit in the Chinese city of Xiamen. But after Trump's censure, Xi Jinping's China, too, expressed its worry about the jihadi groups that many experts say are Pakistan's proxies in the region. DW

Majlis Podcast: China's One Belt, One Road In Central Asia

This week's Majlis podcast looks at the effects of China's One Belt, One Road (OBOR) trade connectivity initiative on Central Asia.The topic was sparked by a recent report from The Hague Centre for Strategic Studies (HCSS) -- A Road To Riches Or A Road To Ruin? The Geo-Economic Implications Of China's New Silk Road.Muhammad Tahir, RFE/RL's media-relations manager, moderated the discussion. (rferl)

Gazprom signals initial China gas pipeline volumesGazprom has signalled the initial volume it will supply to China when the new trans-Siberian gas pipeline comes online in 2020. The company would initially supply around 4.6bn cubic metres through the Power of Siberia pipeline in 2020, Reuters reported. (FT)

India army chief: we must prepare for simultaneous war with China and Pakistan

India’s army chief said on Wednesday the country should be prepared for a potential two-front war given China is flexing its muscles and there is little hope for reconciliation with Pakistan. General Bipin Rawat referred to a recent 10-week standoff with the Chinese armyin the Himalayas that ended last week. He said the situation could gradually snowball into a larger conflict on India’s northern border. Rawat said Pakistan on the western front could take advantage of such a situation.

China to set up 15 bln USD fund for joint projects with Russia
China is working for the establishment of an investment fund worth 100 billion yuan (15.3 billion U.S. dollars) to finance regional cooperation projects between China and Russia, Chinese Vice Premier Wang Yang said here Thursday, 7 September. China is ready to increase the scale of the investment fund and suggest the Silk Road Fund finance China-Russia joint programs, Wang said in a speech at a commercial conversation on the sidelines of the Third Eastern Economic Forum in Vladivostok, a major Pacific port city in Russia. (xinhua)

China, Pakistan agree to strengthen security cooperation

China and Pakistan agreed to strengthen anti-terrorism and security cooperation along the China-Pakistan Economic Corridor. The agreement was reached when Meng Jianzhu, head of the Commission for Political and Legal Affairs of the Communist Party of China (CPC) Central Committee, met with visiting Pakistani Foreign Minister Khawaja Asif and Pakistani National Security Adviser Nasser Khan Janjua Friday in Beijing.

No free AIIB pass for belt and road projects, bank executive says
The China-led Asian Infrastructure Investment Bank will strictly scrutinise projects put to the lender even if they are part of Beijing’s ambitious “Belt and Road Initiative”, a senior bank executive said on Friday amid concerns about the bank’s loan book. He said the AIIB and the belt and road initiative overlapped but the two were very different, with the AIIB also financing many other projects not related to the strategy.(scmp)

As China Moves In, Serbia Reaps Benefits, With Strings Attached

(NYT)

China, Uzbekistan agree to strengthen cooperation
China and Uzbekistan have agreed to strengthen alignment of their development strategies and comprehensively deepen cooperation in various fields.The agreement was reached when Meng Jianzhu, member of the Political Bureau of the Communist Party of China (CPC) Central Committee and head of the Commission for Political and Legal Affairs of the CPC Central Committee, met with Uzbek President Shavkat Mirziyoyev here on Saturday. (Xinhua)

China increases subsidies for residents living close to India

China has substantially increased subsidies to the people living in the border areas along the India-China border in Tibet to motivate them to manage and control the border, a media report said today. The subsidy for each resident above 16 years old in first-tier border towns has been increased from 1,000 yuan ($155) in 2012 to 2,700 yuan ($ 415) in 2017, and from 800 yuan ($ 123) to 2,500 yuan in second-tier towns, state- run Global Times reported. In the past five years, the subsidies the government offered to the border residents has been rising, covering 160,000 people, Jiang Guojie, deputy head of the regional finance department, was quoted as saying by the newspaper. PTI

China: Free Xinjiang ‘Political Education’ Detainees

The Chinese government should immediately free people held in unlawful “political education” centers in Xinjiang and shut them down, Human Rights Watch said today. Since about April 2017, the authorities have forcibly detained thousands of Uyghurs and other Turkic Muslim minorities at these centers, where they are subjected to propaganda promoting Chinese identity. (HRW)

Village 'too frightened to talk' after Kazakh man dies in Chinese police custody

An ethnic Kazakh man has died in police custody in China's northwestern region of Xinjiang after he went to a county police department to enquire about the whereabouts of two "disappeared" brothers, sources in the region told RFA on 8 September. Omirzakh Markhan, 36, died in the custody of Barköl Kazakh Autonomous County in Kumul prefecture on the Muslim feast-day of Eid al-Adha, a day of family reunions and feasting on slaughtered lambs and goats. He was detained on Sept. 1 when he went to enquire about his missing brothers' status, and later died in police custody. Kazakh sources in the area said Omirzakh Markhan was "beaten to death by police." RFA

More freight trains link China, Europe 

China's largest land border port, Manzhouli, has seen growth of China-Europe freight trains in the first eight months of this year. A total of 849 inbound and outbound trains connecting China and Europe passed through Manzhouli in north China's Inner Mongolia Autonomous Region from January to August, while the number for all of 2016 was 846, according to port authorities. The port, which borders Russia to the north and sits close to Mongolia to the west, saw its first container train in September 2013, heading from east China's Suzhou to Poland. (xinhua)

Shinzo Abe’s India visit may see launch of Asia Africa Growth Corridor
India and Japan may initially invest $40 million in the Asia Africa Growth Corridor project seen as a counter to China’s Belt and Road Initiative (live mint)

Weekly News Roundup: Dispatches from the Silk Road Economic Belt

India, Japan seek to counter China with AAGC planI

ndian Prime Minister Narendra Modi made a proposal for the Asia Africa Growth Corridor (AAGC) at the annual meeting of the African Development Bank in May, a proposal that won strong support from Japan. We believe that the two countries are trying to counterbalance the Belt and Road (B&R) initiative with the AAGC plan, which China should take seriously and study carefully. (globaltimes)

Can China-India row be the catalyst for a dispute resolution system among top emerging nations?
Months-long stand-off in Doklam shows BRICS bloc needs to find ways to tackle conflict between members, Chinese government adviser says (Scmp)

Pakistan and China discuss Afghanistan after US official snubbed by Islamabad
Pakistan’s Foreign Secretary met China’s special envoy on Afghan affairs on Monday, a foreign office spokesman said, a day after Islamabad cancelled a scheduled visit by a top US official. (scmp)

Braving security fears, Chinese seek 'Silk Road' riches in Pakistan

While the first phase of the China Pakistan Economic Corridor (CPEC), as the Pakistan leg of this new Silk Road is called, concentrated on infrastructure projects, the second part will focus on setting up special economic zones and integrating Chinese firms into the local economy to help Pakistan develop its industries ranging from mining to agriculture. China has also surged to become by far the biggest source of foreign direct investment (FDI) for Pakistan, topping $1 billion in 2016/17, and is betting on its neighbour at a time when many Western companies are still put off by security concerns and corruption.(reuters)

New Silk Road: Japan To Counteract China In Kazakhstan With New Asia-Europe Rail Deal

Just months after the announcement of a deal that would see China’s COSCO shipping and Lianyungang Port take a 49% cut of Kazakhstan’s epic Khorgos Gateway dry port on the Kazakh/China border, Japan’s Nippon Express logistics firm has signed an MoU with Kazakh Railways (KTZ) to increase the overland flow of container traffic between the Japan / South Korea region and Central Asia, the Caucasus, and Europe. Nippon Express provides the cargo and KTZ handles the transshipment and processing of the containers through Kazakhstan. (Forbes)

Arctic sea route strengthens Sino-Europe trade bonds

Tianjian, a multi-function cargo ship, loaded with over 36,000 tonnes of machinery, set off from east China's Lianyungang on 31 August. Carrying tunneling machines bound for Russia to be used in subway construction work and wind power equipment heading for Denmark, Tianjian is the third of China's planned six cargo ships to ply the northern route to Europe in 2017. (xinhua)

Cargo train services launched between Weihai and Hamburg
Cargo train services have begun between Weihai, a coastal city in east China's Shandong Province, and Hamburg, Germany.A train carrying 34 containers departed from Wendeng Railway Station in Weihai at 10 a.m. Saturday, marking inauguration of the service.The weekly service will pass through Mongolia, Russia, Belarus and Poland, covering 11,000 km to arrive in Hamburg. (Xinhua)

The hunt for Red October: how the Bolshevik Revolution turned into a Chinese tourist trap

The 100th anniversary of the October Revolution has triggered a surge of Chinese ‘red tourists’ to Russia, eager to pay homage at the birthplace of communist revolt (scmp)

Towards new horizons of strategic partnership 

Putin: Ahead of the 9th BRICS Summit to be held in Xiamen, China, on September 4 and 5, Russian President Putin published an article on his views of the prospects of BRICS future cooperation. In his article titledTowards New Horizons of Strategic Partnership, he wrote, "I consider it important in this regard to present Russia's approaches to cooperation within the framework of this large and respected association and to share my views on the future of our further cooperation." "I would like to begin by expressing our appreciation of China's significant contribution as this year's chair of the organisation, which has allowed the BRICS countries as a group to move forward in all the key areas of our partnership, including politics, the economy and culture. Moreover, the group of five has greatly strengthened its global standing." xinhua (in Chinese) xinhua

Trump’s Great Game

Since the US president announced last week a new plan for Afghanistan that involves a greater role for India in the war-torn country and accused Pakistan of providing “terrorist havens,” Islamabad has been struggling to construct an effective strategy in response, FM Shakil writes. While rejecting accusations that it harbors terrorists, Islamabad knows two things: that it cannot fully abandon support for militant groups because they provide a bulwark against India and that its economy still depends significantly on the US. Analysts predict that Washington’s policy of isolating Pakistan could push it closer to Russia, China, Turkey and Iran, dooming to failure US efforts to help the Afghan government bring stability and peace to the region. (Asia Times)

China, Tajikistan agree to forge comprehensive strategic partnership

Chinese President Xi Jinping held talks with President of Tajikistan Emomali Rahmon here on 31 August, agreeing to establish comprehensive strategic partnership between the two countries. Applauding Tajikistan's support for the Belt and Road Initiative, Xi said both sides should synergize the Belt and Road Initiative with Tajikistan's national development strategy for the period up to 2030. The two countries should cooperate more in transportation, energy, ports and network infrastructure development to improve all-round connectivity, Xi said. China and Tajikistan agreed to jointly launch cross-border railway, road and natural gas pipeline projects, and explore cooperation in wind and solar energy, according to the joint statement.(xinhua)

Ghost cities haunt stability dream in China’s far west

Several ambitious projects around Kashgar have stagnated despite government plans to put Xinjiang’s economy on a par with the rest of the nation (scmp)

Nepal and China fast track rail link in aftermath of Sino-Indian border row

China and Nepal agreed on Thursday to ramp up plans for a cross-border railway amid public assurances from China that Beijing would work hard to avoid conflict with New Delhi.Chinese Foreign Minister Wang Yi also said Beijing hoped Nepal could be a bridge between China and India, following a bitter border stand-off between the two Asian heavyweights. (scmp)

Weekly News Roundup: Dispatches from the Silk Road Economic Belt

Chinese investors warned of dangers that lie in wait along the new Silk Road
Public and private institutions are mapping risks for participants in Belt and Road Initiative (Scmp)

China defends Pakistan after Trump calls Pakistan a terrorist haven 

A survey conducted by Pew Research Centre in 2014 showed that Pakistan is China’s strongest supporter in Asia as 78 percent of Pakistanis view China favourably. The strong preference doesn’t come out of nothing. China seems to be the only nation that dare to defend Pakistan against the United States. On 21 August, the U.S. President Donald J. Trump issued his grand strategy in Afghanistan and South Asia, aiming to comprehensively crush terrorism in the region. Hua implied that the United States hasn’t fully recognized Pakistan’s efforts in the international community. Of course, as the nation which does fully recognize Pakistan’s sacrifice, China also “supports the international community in enhancing the international counter-terrorism cooperation and forming synergy.” (TheDiplomat)


China committed to help bring peace to Afghanistan, but Pakistan’s role in process must be respected, says top diplomat
China’s top diplomat Yang Jiechi said during a phone call with US Secretary of State Rex Tillerson on Wednesday that his government was committed to bringing peace to Afghanistan, but also called on the Trump administration to recognise the role of Pakistan in the process. (Scmp)

U.S. Shift Boosts Afghans, Risks Pushing Pakistan Toward China
The Trump administration’s new Afghan strategy bolstered Kabul in its fight against the Taliban, but officials and analysts in Pakistan warned that Washington’s approach risks fueling the 16-year war in Afghanistan and encourages Islamabad to deepen ties with China. (WSJ)

TRUMP BEWARE: PAKISTAN’S LUCK PLAYING CHINA CARD IS TURNING

When the bin Laden raid sent US-Pakistan ties into a tailspin, Beijing rebuffed the advances of Islamabad. But six years on, as relations head south once again, China’s calculus has changed (scmp)

Chinese company seeking railway revival to invest in Afghan marble sector
A delegation of Qin Gen Industrial Company of China, headed by deputy general manager Li Yingjun, has met officials with Afghan Chamber of Commerce and Industries (ACCI) and a number of businessmen and emphasized on joint efforts to enhance cooperation on infrastructures including railway connectivity and trade under the Belt and Road Initiative.Expressing interest in investment in Afghan minerals extraction, Li said the company wants to invest in marble filed and its import. (Xinhua)

Central China transportation hub sees 200 Sino-European freight trains this year
Central China's Wuhan city, a transportation hub, has seen more than 200 Sino-European freight trains so far this year, said local authorities on Saturday. As of Friday, 100 freight trains between China and Europe have left Wuhan, and the city received 103. A total of 18,000 containers were carried, up 41.5 percent from last year, according to Wuhan Asia-Europe Logistics which runs the trains. By May 13 this year when the 1,000th Sino-European freight train left China, the country had 51 Sino-European freight train routes, with trains from 28 Chinese cities travelling to 29 cities in 11 European countries. (People's Daily)

Eurasia high speed railway from Germany to China can be built by 2026

Construction of the Eurasia high speed railway (HSR) connecting Europe to China can be completed by 2026, Russian Railways said in its presentation available with TASS. Construction start at different segment varies from 2018 (Moscow - Kazan HSR) to 2023 (Krasnoye-Moscow and Chelyabinsk - Zolotaya Sopka). The project can be financed with participation of the Russian Direct Investment Fund, BRICS New Development Bank, Eurasian Development Bank, Silk Road Fund and Russia-China Investment Fund, according to Russian Railways. (TASS)

China recruits 30,000 teachers, police, civil servants to move to Xinjiang

Chinese authorities in the troubled northwestern region of Xinjiang have launched a massive nationwide recruitment drive seeking tens of thousands of new police officers, civil servants, teachers, academics, and airline staff. Dangling incentives like free housing, household registration documents, and bonuses, the Xinjiang regional government alone is recruiting more than 12,000 staff out of the 30,000 or more jobs now on offer. Most of the jobs listed by the search engine Sohu require applicants to pass a "political test," while the scope of the advertising and benefits appears geared to majority Han Chinese from elsewhere in the country. RFA

Canadian Journalist Briefly Detained in Xinjiang
Canadian journalist Nathan VanderKlippe, The Globe and Mail’s Beijing-based Asia correspondent, was detained in Elishku Township, Xinjiang on August 23 for over three hours. VanderKlippe in 2014 won an Amnesty International media award for his reporting on Uyghur repression and violence in Xinjiang amid an ongoing terror crackdown in the region. His detention came as foreign journalists in China are experiencing increased harassment, and as state security policies in Xinjiang continue to tighten. (chinadigitaltimes.net)

Loudspeakers from mosques removed in Qinghai to eliminate noise

The Hualong Hui Autonomous County in Northwest China's Qinghai Province has removed over 1,000 loudspeakers from mosques to eliminate noise pollution, according to a report by local newspaper Haidong Times.Loudspeakers were removed from 355 mosques within three days recently in the county with a large Muslim population which is under Haidong city, according to a Friday report that was later deleted. A screen grab of the report is still circulated online.The report said the Hualong government has organized various departments and institutions including the Islamic Association to tackle noise pollution caused by numerous local mosques. (Global Times)

China's Other New Security Concern -- Its Ethnic Kyrgyz

Earlier this month, Qishloq Ovozi looked at China's recent worries about its ethnic Kazakhs and now there is information China has similar concerns about its ethnic Kyrgyz citizens.The Kazakhs and the Kyrgyz are Turkic peoples and the vast majority are Muslims, two distinctions from Han Chinese that are the reasons for Beijing's relatively newfound and increasing unease. (rferl)

Exclusive: China's 'big four' banks raise billions for Belt and Road deals - sources
China's largest state-owned commercial banks are raising tens of billions of dollars to fund the country's Belt and Road investment push, according to people familiar with the matter, bolstering Beijing's ambitions as private capital pulls back. (Reuters)

Is China Winning the Scramble for Eurasia?
Roads, railways and other new connections are reshaping the Eurasian supercontinent and creating new forms of competition as well as cooperation. (National Interest)

CENTRAL ASIA

Russian tanker cuts through Arctic to Asia in record time

A Russian-owned tanker, built to traverse the frozen waters of the Arctic, completed a journey from Europe to Asia in record time this month, auguring well for the future of shipping as global warming melts sea ice. The Christophe de Margerie, a 300m tanker built specifically for the journey, became the first ship to complete the Northern Sea Route without the aid of specialised ice-breaking vessels, said the ship's owner, Sovcomflot, in a statement. (straitstimes)

Kyrgyzstan: Prosecutions Thin Ranks of Presidential Contenders
Two major names in Kyrgyzstani politics have been sentenced to long terms in jail so far in August. Local analysts contend the cases are politically motivated.With presidential election coming up in mid-October, analysts argue the timing of the convictions is not coincidental. They suggest that the cases likely were intended to help members of the ruling elite retain their grip on power. (Eurasianet)

Dushanbe police stop 8,000 women for failing to wear veil correctly
Campaign to "correct" mode of Islamic dress. According to government sources, the veil is a tool to identify women belonging to terrorist groups. (Asia News)