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Bolivia and China Sign “Strategic Association” Agreement

June 19–During his June 18-19 state visit to China, Bolivian President Evo Morales and his counterpart Xi Jinping elevated bilateral relations to the status of “strategic association,” by which they will deepen cooperation in a variety of sectors as well as coordinate on important international issues and at the United Nations. A special focus of their discussion was on advancing the Belt and Road Initiative (BRI), and Morales praised China for its efforts to create “a new type of international relations” in this context.

On June 13-14, Morales had a state visit in Russia, during which he and President Vladimir Putin also elevated their bilateral relations to the status of a strategic association. While in Russia, among other things, Morales indicated his interest in allying with the Eurasia Economic Union as well.

In a two-hour meeting June 18 with Xi Jinping, the two leaders signed an 11-point joint declaration detailing the specific areas in which they will expand cooperation — infrastructure, industrialization, finance, trade, manufacturing, science and technology (including aerospace), education and culture among them — and also signed a document committing themselves to jointly building the Belt and Road Initiative. Morales expressed the hope that by working together to build the BRI, this will also contribute to expanding cooperation between China and Ibero-America, Xinhua reported.

Xi commented that the BRI “offers a new platform” by which China’s relations with Ibero-America can be strengthened. He also pointed out that both China and Bolivia have ancient civilizations and should learn from each other to explore the use of “ancestral wisdom” to better deal with today’s problems. In terms of financing for development, the joint declaration emphasizes Bolivia’s intention to complete its application for membership in the Asian Infrastructure Investment Bank (AIIB). China’s Eximbank will make a credit line available to assist Bolivia in building a command-and-control center for a subregional security system, and the China Development Bank will be helping to finance construction of the Bombeo-Tuneo highway, according to Xinhua.


China’s Poverty Reduction Even More Impressive

Feb. 13 – Wan Guanghua, the principal economist at the Asian Development Bank’s Economic Research and Regional Cooperation Department, said that more impressive than China’s remarkable economic growth is its successful campaign in reducing poverty. “It is reasonable that China’s success in poverty reduction is usually attributed to its rapid economic development in the past three decades, as without economic growth, Chinese people’s poverty situation cannot be alleviated,” said Wan, reported {People’s Daily Online} yesterday.

Economic growth alone, however, is not the main cause of the poverty alleviation, Wan said, since many countries that have a high rate of growth do not necessarily see poverty significantly reduced. China’s poor people benefit a lot from the country’s economic growth due to strong support from the Chinese government, active promotion of industrialization and urbanization, as well as great importance attached to infrastructure establishment in poor areas, Wan said. They had set up the State Council Leading Group Office of Poverty Alleviation, encouraged rural workers to come to the cities to find better paying jobs, and built infrastructure in poor areas, such as roads, communication, and electricity facilities, thus narrowing the gap between rich and poor.

The economist stated that China’s practices and experiences in poverty alleviation can be studied by other countries in order to help them do the same. He further said that with development of the Asian Infrastructure Investment Bank, construction of the Belt and Road Initiative and China’s State Council Leading Group Office of Poverty Alleviation, China will continue to pass on its valuable experience in poverty reduction to other countries, help other developing countries to strengthen their infrastructure, advance industrialization, and contribute more to the international cause of poverty alleviation.


Now Amsterdam is Connected by Rail to China’s East Coast

Mar 8 – On March 7, a block train departed from the Port of Amsterdam on its 11,000-kilometer journey to Yiwu on China’s east coast. It will travel through through Germany, Poland, Belarus, Russia and Kazakhstan, and will reach its destination on March 23, Rail Freight.com reported today. Thanks to this new train connection, the Netherlands is now connected to the One Belt, One Road project.

“We are proud to add Amsterdam to our Chinese railway network, in addition to our existing connections between China, Russia and Germany. Amsterdam is the largest European port after Rotterdam, Antwerp and Hamburg, which makes it an important hub. The new connection will make it even easier for operators, retailers and brand manufacturers in the Netherlands to do business with and from China,” Erwin Cootjans, CEO of Nunner Logistics told Rail Freight.com. The Belt and Road’s international cross-border rail network has so far connected 35 Chinese cities with 34 European destinations over the past six years.

“The new train connection is an initiative of Nunner Logistics. This logistics service provider noticed the increasing demand for goods transportation from and to China. The need for this new kind of transportation increases now that cargo ships sail slower in order to save fuel. Transport by train is a faster alternative compared to sea transportation, and the costs are much lower compared to transport by airplane,” wrote Netherland’s Hong Kong Business Association in its website.


GBTimes Interviews Helga Zepp-LaRouche on China’s New Silk Road and Europe

Feb. 16 – GBTimes is a multimedia news site, based in Finland where it was founded by Chinese entrepreneur Zhao Yinong, and which refers to itself as a “bridge between China and the rest of the world.” It published the following interview with Helga Zepp-LaRouche on Feb. 16:

China’s ambitious plan to link itself with Europe and Africa through new Silk Road trade routes has so far received a mixed welcome in Europe. The Belt and Road initiative, the brainchild of Chinese President Xi Jinping, proposes to boost trade and economic integration across Eurasia through over $1 trillion worth of investments in railways, ports, power plants and other infrastructure links. The initiative has been officially endorsed by Central and Eastern European countries, many of which are hoping that Chinese investment could create jobs and improve infrastructure.

But Western European countries have been more cautious, with British Prime Minister Theresa May declining to sign up to the initiative during her recent trip to Beijing and French President Emmanuel Macron warning during his trip to China that the New Silk Road cannot be “one-way.” There are also concerns in Brussels about a lack of reciprocity in trade with China and increasing Chinese investment in critical infrastructure in Europe.

The German-based Schiller Institute, however, has for the past several years been campaigning for the Belt and Road initiative in Europe by organizing hundreds of conferences on the topic. Helga Zepp-LaRouche, the institute’s founder and president, talked to gbtimes.com about the initiative and why she believes Europe should embrace it.

Q: What is the Schiller Institute?

HELGA ZEPP-LAROUCHE: The Schiller Institute was founded in 1984 as a think tank, with the main idea behind it being that peace and order in the world would only function if each nation would relate to the best cultural tradition of the others and vice versa. One of the focuses was to fight for a just new world economic order, something like in the tradition of the Nonaligned Movement, especially inspired by the ideas of my husband, Mr. Lyndon LaRouche, and secondly to fight for a renaissance of classical culture. I gave it the name of [German philosopher] Friedrich Schiller because his image of man was the most noble and beautiful one and I thought such a conception was urgently needed in the political realm.

Q: How did you first get to know China?

ZEPP-LAROUCHE: I went to China for the first time in 1971 on a cargo ship, which was repaired in Shanghai. So, I had plenty of occasions to visit many factories, children’s palaces, and the countryside. I also went to Shenzhen, Qingdao and Beijing, and that left a very lasting impression on me because this was in the middle of the Cultural Revolution (1966-1976) and China was very much different then. But it started a deep interest on my side in Chinese philosophy and culture. And then I was also inspired by the changes which took place in China after the reforms of Deng Xiaoping, and I visited China many times in the 1990s and the 2000s, and especially after Xi Jinping announced the new Silk Road. And I could see the dramatic changes and the economic miracle which China has undergone. I feel very privileged that I have sort of personally witnessed the unbelievable transformation of China over almost 50 years.

Q: You mentioned President Xi Jinping who proposed the Belt and Road initiative in 2013. The Schiller Institute has been very supportive of this initiative. Why is this?

ZEPP-LAROUCHE: First, the Belt and Road initiative is presently the most important strategic initiative on the planet because it proposes what Xi Jinping calls a community for shared future of humanity. The idea of one humanity is a perfect conception for overcoming geopolitics, which was the reason for two world wars and, in the age of nuclear weapons, can lead to a terrible catastrophe just as big. If you look at the incredible progress this initiative has made in the five years since it was announced, you already see a tremendous transformation where the developing countries in Africa, Latin America and Asia, for the first time, have legitimate hope to overcome poverty and under-development. It just happens that the Belt and Road initiative is very much in accordance with proposals my husband and myself have made during the last decades. After the Soviet Union disintegrated in 1991 we proposed something that we called the Eurasian land bridge, which was the idea to connect the Eurasian peoples and industries through development corridors. The Chinese government picked up on the proposal to organize an international conference in Beijing in 1996, in which I participated as speaker. Already at that point China considered the development of the Eurasian land bridge a strategic initiative, but this was put on hold due to the Asian financial crisis of 1997. We were then extremely happy when Xi Jinping announced this policy in 2013 — with China’s economic power all these plans can now be realized. Why do you think the Chinese are interested in this idea of bridging the Eurasian continent? China has developed its own economic model of lifting its population out of poverty and it also wants to contribute to eliminating poverty on the world scale. I think that is a very different approach to many other countries. There are now only 30 million poor people left in China. In comparison, there are 90 million poor people in the European Union and more than 50 million people who are officially poor in the United States, but no clear plans to eliminate poverty in totality. So, you are saying China is currently the only major country that has a global vision? Yes. I participated in the Belt and Road forum in Beijing last year and everyone who participated in this conference had a distinct impression that we were witnessing the beginning of a new era of mankind. At the 19th National Congress of the Chinese Communist Party, Xi promoted the goal of having a fully developed, modern, culturally advanced, happy country by 2050 — not only happiness for the Chinese people, but for all the people in the world. Normally politicians in the West think at best until the next election, and I have not heard from any Western leader a plan on how to uplift the entire human species in the next 30, 40, 50 years. The idea to create happiness for the people as a policy goal was last heard during the American revolution when it was set in the American Declaration of Independence that it is a fundamental right to have life, freedom and happiness. This is a notion coming from Latin [sic — she said Leibniz] and it means the ability of people to develop their full potential. I have seen in China on many occasions that people really think that way. They have the idea that there is no limit to their ability to self-perfect to improve society and relations between nations, and it’s a completely different spirit to what you find anywhere in the West.
Q: All Central and Eastern European countries have officially joined the Belt and Road Initiative, but many Western countries including the U.K., France and Germany have been more cautious about it. Why do you think this is the case? ZEPP-LAROUCHE: When certain politicians in these countries say they want to insist on standards and rules, and that they don’t want the spreading of Chinese investment in Europe, I think it’s a question of geopolitical control. The EU for example could have developed Central and Eastern Europe, the Balkans, but they didn’t. When China then comes and starts to build the kind of infrastructure that the EU did not build, these countries are happy and want to go with the new Silk Road. And that causes some people who believe in geopolitics to see it as a threat. The present Western system is based not on the common good as a primary orientation, but on monetarist profit-making. This system benefits those who speculate and those who run the banking system. But it leads to such things like the 2008 financial crisis, which was a systemic crisis, and nothing has been done since other than quantitative easing and pumping money.

Q: But do you think China itself has overcome geopolitics?

ZEPP-LAROUCHE: I know that that is not the view of many politicians in the West, but I think assumptions about China are just people’s projections of what they themselves think. I am not a naive person — I have studied this in depth and looked at it closely — and I do think that China does not plan to dominate the world with its system. The Chinese model is more attractive, and many countries want to repeat what it has been doing, but I don’t think China wants to impose its values. My explanation for this is China’s Confucian tradition. For example, Christians are supposed to win other people over to Christianity, but Confucianism does not do that. Confucianism is perfectly happy to live in coexistence. And if you look at the entire history of China, you never had religious war. You had Buddhism, Confucianism, Taoism and Christianity all living in a perfect ecumenical harmony. So, I think in Chinese history, you don’t find anything which would give credibility to the claim that China is not doing what they say. I think they are doing exactly what they say they are doing and they mean it.

Q: What would it mean for Western European countries to join the Belt and Road Initiative?

ZEPP-LAROUCHE: It would mean that there would be a shift towards the real economy. Right now, you have this money-makes-money philosophy, but if you look at even an advanced country like Germany, there’s a tremendous backlog in infrastructure. There are warnings by some of the logistic organizations that Germany is about to lose its standard as a location for industrial development because of the collapse of the infrastructure. So, if European countries would join the new Silk Road it would mean that they could basically renew their infrastructure like China has done, and to build fast trains among all major cities. With the policy of the Troika [European Commission, European Central Bank and International Monetary Fund], the industries and the economies of the Southern European countries were destroyed. Now you see that with the advantages that come from Chinese investment in the Piraeus port and other projects in Greece, it’s going upwards. And with the EU, it went downwards. The same is true for Italy, Spain and Portugal. Europe could also participate with China in the reconstruction of Southwest Asia, of Syria, of Iraq, because you must bring economic development to these countries if terrorism is supposed to be eliminated. You have to give young people a future which they don’t have right now. It would mean you could solve the refugee problem in a human way.

Q: But do you think that some Europeans might be cautious about the growing Chinese influence because they think they might have to someday accept the same kind of restrictions on freedoms that China has at home?

ZEPP-LAROUCHE: Yes, but if people are worried that they may lose some of their hedonistic impulses — well, that might not be altogether such a bad thing. Because what we are seeing right now is a decadent society with all the violence, pornography and drug addiction. You have an opium epidemic in the United States, which is contributing to the fact that life expectancy is going down for the first time. If there is any parameter for the functioning of an economy, it is the life expectancy. If an economy is doing well, it’s increasing and obviously it’s an indicator that there is something fundamentally wrong if it’s going down because of suicide, alcoholism and drug addiction. On the other hand, there was just a poll made in Germany among 42 firms which were taken over by Chinese investors. In all cases, the management and the employees said that it was a positive thing that the Chinese took over, instead of speculators or hedge funds. I think some of these changes that come with more Chinese investment and influence would be beneficial. I would even go so far to agree with Leibniz, who said already in the 17th century that because of the superior morality of the Chinese, one should import Chinese missionaries to teach morality to the Europeans.

Q: So, you are optimistic that the acceptance of the Belt and Road initiative is growing in Europe eventually?

ZEPP-LAROUCHE: We have found that all people who do business in China or who have travelled to China or who are married with a Chinese person, are all positive, and they know that what China is doing is a historic transformation of humanity. The Belt and Road initiative is not just about economics; it’s not just about infrastructure from A to B, but it is really a new paradigm. And what I mean by new paradigm is a new way of understanding what is the role of humanity. We are the only creative species who can invent new technologies and sciences and change the mode of our existence. It’s not the nature of man to be greedy, to chase for stock market gains and try to exploit and dominate others. It’s the nature of man to develop our own potential to the fullest so that we can contribute to the development of the human species. And the new paradigm will be that more and more people, as time goes by, will be able to realize their true potential as human beings.

https://gbtimes.com/interview-with-helga-zepp-larouche-on-chinas-new-silk-road-and-europe


Pakistan PM Abbasi: “BRI More Than Infrastructure”

Pakistani Prime Minster Shahid Khaqan Abbasi, speaking at the Davos World Economic Forum (WEF) Wednesday, praised the quality and scope of the BRI.

“We strongly recognize the vision of China and President Xi Jinping…. We believe the Belt and Road Initiative is perfectly in sync with the WEF theme of creating `shared future in a fractured world.’ It is much more than just a partnership on infrastructure and it will cause significant improvement in lives of people from different countries.” He said half of humanity lives in the region of the Silk Road. He said the China-Pakistan Economic Corridor has started to show results in Pakistan with a major increase in manufacturing and exports. “The key principles are financial stability and lessening of environmental impact and Pakistan being a more responsible global citizen,”


Afghanistan Looks to India and China To Build Rail

May 1 -Informed sources in New Delhi have told the Indian daily, {The Statesmen} that senior officials from India and China will meet soon to discuss “the broad contours” of their joint cooperation on development projects in Afghanistan which Prime Minister Narendra Modi and President Xi Jinping discussed at their two-day informal summit in Wuhan last week. Afghani Ministry of Economy spokesperson Suhrab Bahman gave an idea of the scope of development that could result on Apirl 29, reporting that one of the joint projects will be the construction of a railroad connecting Afghanistan, Tajikistan, Kyrgyzstan, Iran and China. That exciting potential was reported by Afghan TOLOnews.  Bahman said, in TOLOnews’ report, “that China is interested in giving Afghanistan more share in the ‘Belt and Road’ project connecting China with Central Asia.”

Such joint work will proceed, even though India is not likely to formally endorse the Belt and Road Initiative by name anytime soon, similar stories appearing today in {The Statesman} and {New Indian Express} report.

The {New Indian Express} cited Chinese Vice Foreign Minister Kong Xuanyou’s statement to reporters after the Wuhan summit, that “when it comes to connectivity, China and India do not have any principled disagreements.” He said that the two leaders “did not talk about the specific wording or expression of the Belt and Road, many things China and India are planning to do are in keeping with what the Belt and Road Initiative stands for.”

Afghanistan signed a Memorandum of Understanding with China on the BRI in May 2016, while India is already helping build a road and rail network to connect the Iranian port of Chandahar with Afghanistan, and then up north into Central Asia.

The other “connectivity” project where India and China are already cooperating cited by both newspapers is the Bangladesh-China-India-Myanmar (BCIM) economic corridor. China considers the BCIM as an important part of the Belt and Road; Indian diplomats emphasize that the project started before the BRI.

The {New Indian Express} asked a senior Indian diplomat if the joint project in Afghanistan implies that India might take a “softer” stance toward the BRI when Modi attends the June Shanghai Cooperation Organization summit in China?

“Most unlikely,” the diplomat said. “Given that we have elections next year, any such move would be seen as a climbdown by the electorate. We will continue to oppose the CPEC [China-Pakistan Economic Corridor]. But does that mean we can’t join other segments of the BRI if they align with our own interests?”


Wang Yi to China-Celac Summit: BRI Cooperation is the “Golden Key that Unlocks a Brighter Future for Both Sides

Jan. 25 -In his opening speech to the Second Ministerial Summit of the China-CELAC Forum, held in Santiago, Chile on Jan. 22, Chinese Foreign Minister Wang Yi laid out an exciting perspective for the future of relations between these two regions of the world: China and the Latin American and Caribbean nations (LAC), the latter grouped in the Community of Latin American and Caribbean States (CELAC).

Posted today to the Chinese Foreign Ministry website, the speech, entitled “Join Hands Across the Ocean in a New Era,” describes, among other things, the essential points of the final 2019-2021 Action Plan, whose text is not yet available. He emphasizes that “China stands ready to share in the development dividends with all other countries and achieve common prosperity together with fellow developing countries… The consensus we will reach on Belt and road cooperation at this meeting will be reflected in a special declaration…. As we see it, China and LAC countries are well placed to take full advantage of the BRI.”

The mission of China’s diplomacy, he said, “is to work with all other countries to forge a new form of international relations, featuring mutual respect, fairness, justice and win-win cooperation… The Belt and Road Initiative proposed by China is aimed at providing the world with public goods… {Geopolitical contest or zero-sum game is neither our purpose nor our practice.} We invite all countries, big and small, to discuss the BRI as equals…” [emphasis added]

Wang outlined five key areas that will be the basis of cooperation between China and the LAC countries, emphasizing that Belt and Road cooperation “will be a `golden key’  that unlocks a brighter future for both sides… I think it would be appropriate to compare China-LAC cooperation to a fruit tree. If we can nourish it with Belt and Road cooperation, it will be more exuberant and bear more fruit, both bilaterally and collectively…” The five areas include:

1) building a transportation network connecting lands and oceans, emphasizing China’s support “in building the bioceanic railway and bioceanic tunnels, and open more sea routes and direct air links… China also stands ready to conclude Belt and Road agreements with more LAC countries, and launch more Belt and Road projects with a view to reaping an `early harvest;’

2) fostering a large market that is open and beneficial to both sides;

3) developing competitive and sovereign home-grown industries, based on the most advanced technologies. “China has the equipment, technology, funding and training opportunities you need. Our two sides may speed up industrial cooperation, work to build logistics…  broaden financing channels… and explore establishment of a consortium of development financial institutions, and build more industrial parks and special economic zones;”

4) “seize the opportunity of innovation-driven growth. Enhance coordination between the Belt and road Science, Technology and Innovation Cooperation Action Plan and development strategies of LAC countries, and build a China-LAC online Silk Road and a digital Silk Road. Both sides “may advance cooperation in the emerging areas such as aerospace and aviation… China is ready to help train more researchers from LAC countries through the China-LAC Science and Technology Partnership and the China-LAC Young Scientists Exchange Program.”

5) Extensive exchanges, especially in cultural and people-to-people areas. “China is ready to share more governance experience with LAC countries, enhance… exchanges between our political parties” and other national organizations of media, youth, etc. as well as establish more culture centers in each other’s countries and more Confucius Institutes in LAC countries “to deepen mutual understanding and friendship.”

Wang concluded: “As a Chinese poem reads, `True friends value their promises to each other and will travel a thousand miles to be together.’ Let us make this meeting a new starting point in our relations, seize the opportunity offered by the Belt and Road Initiative, and join hands across the ocean to open a splendid new era of China-LAC relations.”


The U.S. Must Join China’s Belt and Road In Developing The Caribbean and Central America

 

Schiller Institute founder Helga Zepp-LaRouche made the following comments on Jan. 16, 2018.

Concerning the controversies around what President Trump did or did not say, we absolutely have to remain on the high ground, which means emphasizing Lyndon LaRouche’s “Four Laws” and that the United States must join the New Silk Road. 

Now, what that actually means is that it should be obvious to anybody that you cannot solve the problem of immigrants in the United States, or the drug epidemic, without bringing development to the Central American and Caribbean countries in particular. There are many places which are not “shitholes,” but they are hellholes.  For example, according to the FAO the level of chronic undernourishment, ie hunger, in Sub-Saharan Africa is 22.7% of the total population, which is the worst in the world. The second worst region is the Caribbean, where it averages 17.7%. But in Haiti}, an absolutely unbelievable 47% of people have permanent hunger, and 80% are living in poverty. And the whole Caribbean is very far from being a luxury cruise paradise: for the people living there, it’s a complete hellhole, as is most of Central America. [See Figures 1 and 2, which compare select physical-economic parameters of Haiti and El Salvador with Spain.]

Figure 2

Figure 1

Figure 2

Figure 2

The only way you can address that is, obviously, what China is already actively doing with their Belt and Road Initiative, for example in Panama, where they are now building a high-speed railroad from Panama City to the border with Costa Rica.  And China is also the only country which is seriously helping Haiti, announcing a $5 billion plan to rebuild Port au Prince, the capital of Haiti.

So this requires the whole Belt and Road Initiative, not just one project or two. China has proposed on the highest level for Spain and Portugal to be bridges for the Belt and Road to Ibero-America and the Caribbean, and both Iberian governments have already agreed that they do not just want to be the western end of the New Silk Road, but they want to actively be the bridge to the Spanish- and Portuguese-speaking nations in Ibero-America and also in Africa.

We are working right now on writing up this whole question of extending the New Silk Road into all the Americas, as part of our updated global study on “The New Silk Road Becomes the World Land-Bridge:” to build a high-speed railroad from the southern tip of Ibero-America, Chile and Argentina, all the way through the Darién Gap and the Bering Strait, connecting with the Eurasian infrastructure program (see Figure 3).

Figure 3

Figure 3

Now, one of the big problems there, is a geopolitical leftover that a number of Central American and Caribbean countries still have diplomatic ties with Taiwan and not with the People’s Republic of China. Panama recently switched that and agreed to support the One China policy, and obviously this is a big concern for the Chinese, who are constantly confronted with efforts to not recognize the One China policy. As a matter of fact, they recently complained that Marriott Hotel and other firms are talking about Macau and Hong Kong and Tibet as “other countries,” as if they would not belong to China.  So this is a question of accepting the sovereignty of China, which obviously has a lot to do with how they respond.

The situation is economically so severe that you cannot just try to build up from below, but you have to leapfrog and get the productivity level of this whole region up by orders of magnitude. There are obvious angles. For example, you have in French Guiana, which is actually not a sovereign country but a colonialist department of France to the present day, the European Space Agency’s launch site in Kourou, which is very close to the Equator. But then you also have the Brazilian Space Agency’s launch site, in a place called Alcantara, which is even closer to the Equator. These situations are not without problems, but they already represent a very important scientific capacity, and that could be made into a regional project, a science-driver for the entire Caribbean Basin region (see Fig. 4).

Figure 4

Figure 4

Then you have the expanded Panama Canal, the planned Nicaragua Canal, and, as Lyndon LaRouche has often stressed, if you build all of these canals, including the Kra Canal in Thailand, you are really talking about a single world ocean, which would eliminate many of the geopolitical chokepoints of the British.

So we have to really push this, that the United States must join the New Silk Road. This would include building major projects in hurricane-ravaged Puerto Rico, including in Ponce on the southern coast of Puerto Rico, which could become a major port and shipping point for the Maritime Silk Road. Building a deep-water port there would open the whole transport corridors into the Gulf and East coasts of the United States. Connected with that, the Maritime Silk Road would do something similar in Mariel, Cuba, where there is also the plan to build a deep-water port. And since this is very close to the United States, it should all really be integrated into one big project.


One-Third of Global GDP Growth Past Year Occurred in China, According to UN Report

The Chinese economy alone contributed about one-third of global growth in 2017, as measured in GDP monetary terms, according to the “World Economic Situation and Prospects 2018” released last month by the United Nations.

The UN report points to the transformation which the Chinese economy has undergone, from the former global leader in cheap mass-producted exports, to an increasing producer and exporter ofhigh-value goods:

The first half of 2017 witnessed a surge of 93.4% in exports of drones, for example. There was a rise of 32.5% in automobile exports, and a considerable increase in the export of other high value-added products such as mechanical and electronic equipment for manufacturing. By providing medium and high-end products of high quality at reasonable prices, China is delivering larger dividends to the world. In recent years, many foreign media have paid attention to China’s advances in science and technology. World-leading technologies, including the mobile internet, artificial intelligence and Big Data, are serving not only as new drivers of China’s growth, but also contributing to global scientific and technological progress. Meanwhile, China’s telecommunications, computer and information services are being exported, creating new miracles of economic development in other developing economies including those of Africa.

On the other hand, China’s vast market and economic vitality have created huge demand for the goods of other countries—which is important, the UN report states, because world economic growth remains “sluggish” (sic) and de-globalization keeps growing. The Belt and Road Initiative and other public goods, offered by China to the world, have greatly promoted international trade and investment and, at the same time, provided new guidance for economic globalization, the said United Nations report documents. In 2017, China announced an additional 100 billion yuan investment in the Silk Road Fund, and, in the first 11 months of the year, China invested more than $12 billion in countries along the Belt and Road, making an important contribution to world economic development.

The Central Economic Work Conference recently held in Beijing stressed high-quality development, sending a clear message that China continues to be a main driver powering world economic growth and stabilizing world economic development, sharing the dividends of China’s economic development with the rest of the world.


China Releases New Poverty Statistics: 30 Million Remain To Be Lifted Out of Poverty

The total number of Chinese still living in poverty was 30 million at the end of 2017, according to official statements made on Jan. 5 by the Director of the State Council Leading Group Office of Poverty Alleviation and Development, Liu Yongfu. Xinhua reported that Liu explained that this means there was a two-thirds reduction of the number of poor over the last five years, since in 2012 there were 98.99 million poor. Since the official number repeatedly used by Chinese officials for 2016 was 43 million poor, this means that 13 million or so were lifted out of poverty in 2017 alone.

Liu added that “to lift the remaining 30 percent of poor people out of poverty will be the toughest”–a point that President Xi Jinping has repeatedly made. Liu stated that the work will now shift to targeted and precise measures: “We will work to foster local industries, create new jobs, relocate residents in poor areas and strengthen aid to the aged, the disabled and people seriously ill.”

Receiving special attention will be some 30,000 villages where more than 20% of the population is poor. “We will step up support, partly by sending more central and provincial cadres to those villages who will work there for normally two years,” said Xia Gengsheng, another official of the State Council Leading Group Office of Poverty Alleviation and Development.

Vice Premier Wang Yang said at another meeting last week that 2018 will be a key year for the battle against poverty.

The eyes of the entire world are on China in this historic battle against poverty, not just over the stunning specific results already achieved, but as a proof of principle of an underlying optimism: yes, it {can} be done. If in China, why not everywhere?


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