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Category Archives

Japan Moves To Join New Silk Road

Nov. 21 – On Nov. 18, Japan’s Foreign Minister Taro Kono praised the Belt and Road Initiative, calling it “very beneficial to the global economy if it is open and available to all,” as reported today on CGTN.

China’s Foreign Ministry spokesman Lu Kang responded today, saying that China is “pleased to see” Japan’s enthusiasm for the BRI, adding that the project will not only facilitate China’s opening-up and development, but also create greater opportunities for Japan and other countries as well as the world economy.

On Monday, a record 250 leading Japanese business representatives began the annual visit to China sponsored by the Japanese Chamber of Commerce and Industry. At the same time, the Chamber has set up a committee to report on the potential for Japanese cooperation in the BRI. Chinese Premier Li Keqiang addressed the Japanese delegation, saying that “China and Japan should view each other’s development as opportunities and contribute to the building of an East Asian economic community,” according to CGTN.

Japanese economist Daisuke Kotegawa has often told {EIR} that Japan would quickly follow suit if the U.S. were to join the AIIB and the BRI. The Trump visit continues to spark new developments toward the New Paradigm.

China-Panama: Belt and Road Initiative Is Changing the World

On June 12, 2017, Panama announced that it had broken diplomatic relations with Taiwan, and established them with China, formally recognizing the one-China policy. Five months and five days later, on Nov. 17, Presidents Varela and Xi Jinping signed 19 accords between the two countries, including a “Memorandum of Understanding of cooperation in the framework of the Silk Road Economic Belt and the 21st Century Maritime Silk Road initiative,” {La Estrella} of Panama reported.

Varela said to Xinhua that “I’m sure that China and Panama will establish a very strong relationship, which will go well beyond the borders of both countries, and will help bring
stability and peace to the region.” Varela also emphasized that the U.S. is a strategic ally of Panama–in other words, that he sees no contradiction between the Belt and Road policy and good,
strategic relations with the U.S.

A report on Panama’s TVN-2 television on Nov. 17 pointed to the broader scope of what China is up to in the region: “China has proposed to build a new silk road. It has set its sites on Latin America. In Brazil, it has invested in bus and solar panel factories. In Argentina, it is purchasing soy and it built a rail network. In Peru, it invested in energy and aluminum; in Mexico, in auto assembly; in Venezuela, in petroleum; it also financed a bioceanic train to connect Brazil, Peru and Bolivia. A Chinese businessman also is behind the project to construct an interoceanic canal through Nicaragua; China promises Panama an unprecedented economic panorama. But it will be up to the authorities to ensure that those investments benefit all economic sectors.”

Webcast: We are not in Safe Waters yet!

The reverberations from President Trump’s trip to Asia and in particular, to China, continue to shake-up U.S. and world politics, as a growing number of “mainstream” political figures and think tanks are now taking notice, with some even seeming to have been won over by the Spirit of the New Silk Road.. Trump told his cabinet that his trip to Asia was “an historic 12-day trip”, with “more than $300 billion worth of deals…[which] means jobs for the United States at a very high level.”

China and Russia, the two nations with which Trump wishes to increase collaboration, continue to engage in significant diplomatic and economic initiatives to promote peaceful cooperation and development, with new proposals coming from them virtually daily.

Yet, as Zepp LaRouche said on Monday, “We’re not in safe waters yet.” One can see a British imperial hand in the Middle East, with war talk coming from Israel and Saudi Arabia, and the financial system remains “one bad trade away” from a total meltdown. And, as Helga stated in last week’s webcast, the attempt by Chancellor Merkel to pull together a “Jamaica Coalition” has collapsed, meaning that Germany will be without a real government at this time of opportunity, and crisis.

Join us on Thursday, for the weekly strategic strategic update from Mrs. LaRouche.

Finland-China Rail Freight Route Opened

Nov. 13 – With more than 40 containers, a cargo train bound for Xi’an, China departed Kouvola in southeastern Finland, on Nov. 10. It will take 17 days to run 9,000 km distance across the Eurasian continent, passing through Russia and Kazakhstan among other countries, before reaching its final destination in northwest China.

Goods packed in the containers are all made in Finland, ranging from machinery, timber, workwear, and ship components, according to Jari Gronlund, chief operation officer of Unytrade company. Founded just this past summer, Unytrade especially serves the newly-opened route, said Gronlund, who believes the only railway route linking the Nordic countries and China will open a new channel to bring more Nordic products to nations along the route.

Olli-Pekka Hilmola, logistics professor at Lappeenranta University of Technology, told Finnish national broadcaster Yle that a regular train connection from Kouvola to China would be important to the Finnish economy. Li Zhao, Assistant of the General Manager of Xi’an International Inland Port Investment & Development Group, explained that goods will be further transported to various markets in China from the terminus in Xi’an.

As planned, a total of five trains will run between Kouvola and Xi’an by the end of this year. At the same time, a train would depart from Xi’an to Kouvola every week. Li said the trips may start to increase if trade goes smoothly; hopefully a train of goods would be sent every day in the near future.

Rail Freight Connection between China and Slovakia

Nov. 14 -The first trial train with containers from China arrived on Monday, Nov. 13, at the cargo port in Bratislava, the capital of Slovakia. The train’s 11,000-km journey from the Chinese city of Dalian, via Russia and Ukraine lasted 17 days. The train was welcomed by Transport Minister Arpád Érsek, State Secretary for Finance and Government Envoy for the Silk Road initiative Dana Meager, and Chinese Ambassador to Slovakia Lin Lin. The number of such trains should gradually increase and next year their number might be as high as 500.

“The fact that goods travelling across Asia will be transported via the territory of Slovakia in order to get farther into Europe is a huge success and an excellent commercial opportunity,” said Minister Érsek, endorsing the idea of Bratislava becoming a key rail freight hub for Europe. “The transport capacities of Slovakia are today far from being fully utilized. I firmly believe that we are only at the beginning of successful cooperation,” he said.

Completion of Second Russia-China Crude Oil Pipeline

Nov. 14 – On Nov. 12, the second China-Russia crude oil pipeline project, which took only 456 days to build, was finally completed, Asia Times reported, citing a report from the Chinese publication 21st Century Business Herald. Built by those countries’ two biggest oil producers, China National Petroleum Corp. and Rosneft, the 940 km pipeline from Mohe to Daqing, both in Heilongjiang, will have an annual capacity of 15 million tons. According to the planned volume of pipeline transportation between China and Russia, after the completion of construction, Russian oil transported to China’s northeast by land-based crude oil pipelines will double from 15 million tons to 30 million tons per year.

The first oil pipeline of the China-Russia crude oil pipeline project, from Skovorodino to Mohe, moved 100 million tons of oil from Russia to China between 2011 and May 19, 2017, according to TASS. The second oil pipeline will further improve the safety and reliability of China’s crude oil supplies and make up for old Chinese oil fields like Daqing, Liaohe, which will promote the old industrial bases in northeast area and the steady development of the national economy.

Global Times cited Zhang Hong, a research fellow at the Chinese Academy of Social Sciences, that “importing oil from Russia also has great benefits for China because, first, diversifying oil import sources can reduce the risks of regional politics on domestic economic security. Second, in terms of geography, importing oil from Russia is more convenient than getting it from distant sources like Saudi Arabia.”

China: High-Tech Manufacturing Is Growing at 13.4% Per Year

Nov. 14 – Xinhua reported Nov. 13 on third quarter 2017 results for the Chinese economy, as presented by Zhang Liqun, researcher with the State Council’s Development Research Center.

The year-on-year overall growth rate in China for the first three quarters of 2017 was 6.9%, which was higher than expected. Most interesting is that “the high-tech and equipment manufacturing sectors posted stellar growth in the first three quarters, with output up 13.4% and 11.6% respectively,” Xinhua reported. Investment in high-tech manufacturing rose even more dramatically, by 18.4%, up from 11.7% for the same period in 2016. Job creation is correspondingly strong: China created almost 11 million jobs in the first three quarters of 2017—300,000 more than the same period last year. Official unemployment in Chinese cities stands at 3.95%, the lowest level since 2008.

The Xinhua article also quoted the chief economist at the Bank of China, Cao Yuanzheng, who said that it is of vital importance to contain financial risks, including “countering debt, shadow banking and asset bubbles.” Even Moody’s had to admit, in a recent research note, that “a stronger policy focus on financial sector regulation should continue to restrain the growth of shadow banking activities, help mitigate asset risks for the banks, and address some key imbalances in the financial system.” On poverty reduction, which is the central concern of President Xi Jinping and the entire national leadership, Vice Premier Wang Yang presided over a meeting of the State Council’s group on poverty reduction on Nov. 13. Wang emphasized that they had to be focused on “enhancing a sense of mission and crisis awareness, and targeting problems to fulfill the Party’s promise to the Chinese people and the international community,” Xinhua wrote. (The fact that Wang presented this policy as a commitment to the international community is especially notable.) Wang added that to meet these goals it was necessary to train local authorities, “stressing the importance of carrying out research and investigation, and averting formalism.”

Egypt Positioned for Working with New Silk Road

Nov. 7, 2017 -“Egypt supports the Belt and Road Initiative that connects China with the world’s continents through massive networks of land and sea routes,” Ibrahim Mahlab, the Egyptian President’s assistant for strategic and national projects, told a forum in Cairo. Describing the China-Egypt ties as “strong, unique and sustainable,” Mahlab, a former prime minister, expected the initiative to “restructure the traditional models of world trade.”

Egyptian and Chinese officials, businessmen, representatives of financial and economic institutions, as well as a delegation from the Communist Party of China, attended the Nov. 6 forum, on “Belt and Road–Together for a Better Future.” The participants at the forum, co-organized by Sharaf Foundation for Sustainable Development and the Chinese Embassy in Cairo, discussed ways to boost China-Egypt economic, trade and cultural relations, and the available investment opportunities.

“Being a central point between Africa and Asia, Egypt is also a focal axis of Arab and African trade,” Mahlab said, highlighting the significance of Egypt’s strategic location for the Belt and Road Initiative. He noted that Egypt has carried out massive infrastructure projects over the past three years that have greatly upgraded the country’s energy supplies and road networks which could help future investors in the country.

China and Russia: “Silk Road on Ice”

Nov. 8, 2017 -Russian Prime Minister Dmitri Medvedev was in Beijing for regularly-scheduled meetings with his Chinese counterpart, Li Keqiang, and he also met with President Xi Jinping. Xi told Medvedev that China and Russia should create a “Silk Road on the Ice,” and fully “integrate the Belt and Road Initiative with the Eurasian Economic Union.” According to a Xinhua wire, “Xi called on both sides to increase the content of

technological innovation in their cooperation and integrate the Belt and Road Initiative with the Eurasian Economic Union. China and Russia should cooperate in the development and utilization of the Arctic navigation channels to create a `Silk Road on the Ice,’ Xi said.”

Xinhua’s report adds: “Xi said China is ready to work with Russia to expand cooperation in various fields, maintain close coordination in international affairs and promote the building of a community of shared future… Xi pointed out China and Russia should give full play to the prime ministers’ regular meetings and enhance cooperation on energy, equipment manufacturing, agriculture and aerospace.”

Medvedev, for his part, transmitted Russian President Vladimir Putin’s greetings to Xi, and his congratulations on the recently concluded CPC Congress and Xi’s re-election as the general secretary of the CPC Central Committee. The Congress, Medvedev said, “carries great significance to both China and the world.”

Medvedev also met with China’s Prime Minister Li Keqiang, who noted that “Medvedev is the first foreign leader to visit China after the 19th National Congress of the CPC,” Xinhua reported. “This has shown the closeness and high level of China-Russia ties,” Li stated. He also stated that, as affirmed in the 19th CPC Congress, China will “share development opportunities with countries around the world,” Xinhua reported.

Webcast: Trump, Xi, and the Spirit of the New Silk Road

Tune in on Thursday at 12PM EST/6PM CET!

On November 8, 2017, U.S. President Donald Trump and Chinese President Xi Jinping will meet in Beijing, their first face-to-face meeting since their April 2017 summit in Mar-e-Lago, Florida. At that meeting, Trump expressed his pleasure at being introduced by Xi to what Helga Zepp-LaRouche calls the “Spirit of the New Silk Road.” The collaborative relationship which has developed between the two leaders is a cause for optimism, and should develop further with their meetings this week.

That is why the imperial financial oligarchy and their neocon mouthpieces, whose policies have put nations on the brink of World War III and financial bankruptcy, have been escalating wildly, to prevent this meeting from happening. This includes the deployment against Trump by the legal assassin Robert Mueller and his cohorts.

Do you believe that they will allow an honest report of the events in Beijing and, more broadly, on Trump’s trip to Asia, to reach you, through their Fake News media?

On Thursday, Helga Zepp LaRouche will provide a full update on the events taking place in Asia and their strategic significance, and offer her insights on what potential has been created for the successful consolidation of a New Paradigm. As she has emphasized, knowing the truth will provide the inspiration for citizens to act to shape their own future.

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