China hosts Silk Road summit in shadow of North Korea missile

Yahoo – AFP, Yanan WANG, Laurent THOMET, May 14, 2017

China's President Xi Jinping speaks at the opening ceremony of the Belt and
Road Forum, in Beijing, on May 14, 2017 (AFP Photo/Greg Baker)

China touted on Sunday its new Silk Road as "a project of the century" at a summit highlighting its growing leadership on globalisation, but a North Korean missile test threatened to overshadow the event.

President Xi Jinping was preparing to host leaders from 29 nations for the two-day summit in Beijing when US and South Korean military officials confirmed that Pyongyang had launched a ballistic missile.

Delegations from North Korea and the United States were expected at the forum, though not their leaders. Few Western heads of government made the trip.

The summit is showcasing Xi's cherished One Belt, One Road initiative, a revival of the Silk Road that could cement China's growing global clout on trade and geopolitics.

"This is indeed a gathering of great minds," Xi said, addressing leaders including Russian President Vladimir Putin and Turkish counterpart Recep Tayyip Erdogan.

Xi pledged to pump an extra $124 billion in funds into the initiative, calling it "a project of the century" in a "world fraught with challenges".

Map showing China's ambitious plan to revive the ancient Silk 

Road trade routes (AFP Photo)

The Chinese-bankrolled project seeks to link the country with Africa, Asia and Europe through an enormous network of ports, railways, roads and industrial parks.

The initiative spans some 65 countries representing 60 percent of the world population and around a third of global gross domestic product. The China Development Bank has earmarked $890 billion for some 900 projects.

The project is seen as a practical solution to relieve China's industrial overcapacity. But it could also serve Beijing's geopolitical ambitions as Washington retreats into "America First" policies.

While Xi did not mention North Korea during his speech to the delegates, the Chinese foreign ministry issued a statement saying it opposes such missile tests.

It urged all parties to "exercise restraint and refrain from further aggravating the tension in the region".

North Korea relies heavily on trade with China for its economic survival, and US President Donald Trump has urged Xi to use that leverage to put pressure on Pyongyang.

The White House called on all nations to impose "far stronger sanctions" following the latest test, which came days after South Korea elected a new president.

Sunday's missile launch "is absolutely an embarrassment to Beijing but it also shouldn't be overstated", Christopher Balding, economics professor at Peking University, told AFP.

"This will not overshadow (the summit) in an enormous way but it will absolutely continue to raise US frustrations with Beijing," he said, adding that Washington was "frustrated" that North Korea was also invited to the summit.

Russia's President Vladimir Putin (L) speaks with his Chinese counterpart Xi

 Jinping during a bilateral meeting at Diaoyutai State Guesthouse in Beijing, 

on May 14, 2017 (AFP Photo/WU HONG)

Respecting sovereignty

Xi focused on his initiative, boasting that it represented a "road for peace", but he cautioned "all countries should respect each others' sovereignty... and territorial integrity".

He warned that "isolation results in backwardness".

The new financing that he promised on Sunday includes 100 billion yuan ($14.5 billion) for the Silk Road Fund and lending schemes worth 380 billion yuan. He also urged financial institutions to contribute 100 billion yuan.

Praising Xi's initiative, Putin warned that "protectionism is becoming the norm".

"The ideas of openness, trade freedom are rejected more and more, very often by those who were their supporters not so long ago," Putin said.

For his part, Erdogan said Belt and Road was "going to be the kind of initiative that will put an end to terrorism".

India, whose Prime Minister narendra Modi is seen on May 12, 2017, has voiced 

displeasure at the China-Pakistan Economic Corridor, a Belt and Road project aimed 

at linking northwestern China to the Arabian Sea (AFP Photo/Ishara S. Kodikara)

Indian concerns

Some Belt and Road projects are raising concerns in certain countries.

India has voiced displeasure at the China-Pakistan Economic Corridor, a Belt and Road project aimed at linking northwestern China to the Arabian Sea.

The route cuts through Gilgit and Baltistan in Pakistan-administered Kashmir, disputed territory that India claims is illegally occupied.

Human Rights Watch raised fears on Saturday about the treatment of people along the new Silk Road route in Central Asian nations with poor track records in infrastructure projects.

The US-based organisation said Chinese authorities have "heightened surveillance and repression to prevent potential unrest that could impede" Belt and Road plans in the western Xinjiang region.

The train, carrying whisky, soft drinks, baby products and pharmaceuticals,
will take 18 days to make the 12,000-km (7,500-mile) journey

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"The Timing of the Great Shift" – Mar 21, 2009 (Kryon channelled by Lee Carroll) - (Text version)

“… Here is another one. A change in what Human nature will allow for government. "Careful, Kryon, don't talk about politics. You'll get in trouble." I won't get in trouble. I'm going to tell you to watch for leadership that cares about you. "You mean politics is going to change?" It already has. It's beginning. Watch for it. You're going to see a total phase-out of old energy dictatorships eventually. The potential is that you're going to see that before 2013. They're going to fall over, you know, because the energy of the population will not sustain an old energy leader. Remember where you heard it... in a strange, esoteric meeting with a guy in a chair pretending to channel. [Kryon being factious... Kryon humor] Then when you hear it, you'll know better, won't you? "Maybe there was something really there," you'll say. "Maybe it was real," you'll say. Perhaps you can skip all the drama of the years to come and consider that now? [Kryon humor again]

These leaders are going to fall over. You'll have a slow developing leadership coming to you all over the earth where there is a new energy of caring about the public. "That's just too much to ask for in politics, Kryon." Watch for it. That's just the beginning of this last phase. So many things are coming. The next one is related to this, for a country in survival with sickness cannot sustain a leadership of high consciousness. There is just too much opportunity for power and greed. But when a continent is healed, everything changes. .."

".. Many years ago, the prevailing thought was that nobody should consider China as a viable player on the economic stage. They were backward, filled with a system that would never be westernized, and had no wish to become joined with the rest of the world's economic systems. Look what has happened in only 30 years. Now, look at Africa differently …”

New $100 bn BRICS bank opens in China to challenge US-led lenders

Yahoo – AFP, 21 July 2015

The bank's opening comes two weeks after a BRICS summit hosted by

Russian President Vladimir Putin (AFP Photo/Alexander Nemenov)

A new $100 billion international bank dedicated to the emerging BRICS countries opened in China's commercial hub Shanghai on Tuesday, officials said, as an alternative to other multilateral lenders.

The "New Development Bank", backed by the so-called emerging BRICS nations Brazil, Russia, India, China and South Africa, has been viewed as a challenge to Washington-based institutions.

The NDB's website explicitly describes it as an "alternative to the existing US-dominated World Bank and International Monetary Fund" which will address needs for infrastructure and sustainable development.

It comes as Beijing -- which is seeking a greater role on the global political stage to mirror its rise to become the world's second-largest economy -- is also setting up a separate Asian Infrastructure Investment Bank (AIIB).

Chinese Finance Minister Lou Jiwei played down the competitive aspect.

"The NDB will supplement the existing international financial system in a healthy way and explore innovations in governance models," he told the NDB's opening ceremony in Shanghai, as quoted by the official Xinhua news agency.

The bank says on its website that it will have authorised capital of $100 billion, with $50 billion paid in initially.

From L: Brazil's President Dilma Rousseff, Indian Prime Minister Narendra Modi, 

Russia's President Vladimir Putin, China's President Xi Jinping and South Africa's

 President Jacob Zuma at the 7th BRICS summit in Ufa on July 9, 2015 (AFP

Photo/Alexander Nemenov)

Xinhua quoted bank president K. V. Kamath, formerly a private banker in India, as saying the institution's management was "working on initiation of operations", including "making business policy" and "developing project preparations".

Operations would begin late this year or early in 2016, he added.

The opening comes two weeks after a BRICS summit hosted by Russian President Vladimir Putin.

Moscow -- which has suffered huge currency fluctuations and struggled to attract investors since the outbreak of the crisis in Ukraine -- sees the bank and a BRICS currency reserve pool as alternative global financial institutions.

At the time of the summit, Russian Foreign Minister Sergei Lavrov said in a statement that BRICS "illustrates a new polycentric system of international relations" demonstrating the increasing influence of "new centres of power".

'Financial order'

The BRICS nations, which represent 40 percent of the world's population, formally agreed to establish the bank at a meeting in Brazil in July last year.

The World Bank said it hopes to work with the newcomer.

"We are committed to working closely with the New Development Bank and other multilateral institutions, offering to share our knowledge and to co-finance infrastructure projects," World Bank president Jim Yong Kim said in a statement.

China, the world's second-largest economy, is also leading the setting up of 

another new multilateral lender, the Asian Infrastructure Infrastructure Bank (AIIB)

(AFP Photo/Johannes Eisele)

The regionally-focused Asian Development Bank also said it would "look forward" to working with the NDB.

Chinese analysts denied the BRICS bank was aimed at challenging other multilateral agencies.

"It's a complement, instead of a challenge, to existing international institutions," Li Daxiao, chief economist of Yingda Securities, told AFP.

"It can help strengthen the currency markets and maintain a stable financial order through the internal stabilisation of the BRICS countries," he said.

The other new Chinese-based multilateral lender, the AIIB, will be headquartered in Beijing and China will be its biggest shareholder with about 30 percent, according to the legal framework signed late last month by 50 founding member countries.

Major European and Asian economies including Germany, Britain, France and Australia have joined the AIIB, but the United States and Japan -- the world's largest and third-largest economies, respectively -- have declined to do so.

Xi and Putin driving Eurasia resurgence, says Duowei

Want China Times, Staff Reporter 2015-07-13

Chinese president Xi Jinping and his Russian counterpart Vladimir
Putin in the Russian city of Ufa, July 10, 2015. (Photo/Xinhua)

Chinese president Xi Jinping and his Russian counterpart Vladimir Putin are actively driving the resurgence of Eurasia, reports Duowei News, a US-based Chinese political news outlet.

Xi and Putin were among the leaders who attended the "dual summit" of the BRICS nations — Brazil, Russia, India, China, South Africa — and the Shanghai Cooperation Organisation — China, Kazakhstan, Kyrgyzstan, Russia, Tajikistan, Uzbekistan —in the Russian city of Ufa on July 8-10.

In his speech at the BRICS summit, Xi called for the formation of a community of responsibility and common destiny based on mutual political trust, economic integration and cultural tolerance.

The importance Xi has placed on the dual summits reflects China's growing investment in diplomacy as part of the country's continuing plan to comprehensively deepen reforms, Duowei said.

Since coming to power in November 2012 as general secretary of the Communist Party, Xi has sought to strengthen ties with Africa and Latin America, as well as build a new type of "major powers" relationship with the US, Duowei said, though it is clear that his primary focus is firmly on Eurasia.

According to Duowei, China's main strategic emphasis now is Xi's ambitious "Belt and Road" initiative, which aims to boost connectivity and cooperation among countries in Eurasia. The two-tier project comprising the land-based Silk Road Economic Belt and the sea-based Maritime Silk Road is likely to be tied in with the newly formed, Beijing-led Asian Infrastructure Investment Bank and New Development Bank (NDB), formerly the BRICS Development Bank, and its US$100 billion emergency reserve fund, of which China is the largest contributor with a share of 41%.

China is not the only country aiming for a Eurasia resurgence, Duowei said, adding that Russia as well as other emerging nations have also been moving towards developing stategies of regional integration.

This is not surprising given Eurasia's strong potential, Duowei said. Eurasia accounts for 75% of the world's population and holds a significant portion of the world's mineral resources. Up to 60% of the world's gross national product is attributable to Eurasia, and three-quarters of the world's known energy resources are also found on the Eurasia mainland, Duowei added, noting that proper strategies and management will reap massive benefits for every party in the long run.

The three main powers in Eurasia are the European Union, Russia and China, Duowei said. The EU is struggling with the Greek debt crisis, while Russia is reeling from the economic sanctions imposed as a result of its annexation of the Crimean penninsula from Ukraine last year, leaving China as the most important driving force of the region, Duowei added.

The unprecendented level of cooperation and integration developing across Eurasia provides cause for optimism, notwithstanding the instability caused by sluggish economies, terrorism, religious fundamentalism, environmental pollution, territorial disputes and military conflicts, Duowei said.

For Beijing, a prosperous Eurasia is not only the key to reviving China's slowing economy, it is the road to greater international credibility and authority, Duowei said. While there is still much integration to be coordinated and many obstacles to overcome, China must face these problems head on if it intends to succeed, Duowei added.

A limited attendance meeting of the Shanghai Cooperation Organisation Heads

of State Council in the Russian city of Ufa, July 10, 2015. (Photo/CFP)

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Chinese President Xi Jinping poses for photos with leaders of the Shanghai 

Cooperation Organization members and observers, the Eurasian Economic Union

 leaders, leaders of invited countries and the BRICS nations, namely Brazil, Russia,

India, China and South Africa in Ufa, Russia, July 9, 2015. (Xinhua/Rao Aimin)

Beijing to earmark RMB500bn for Belt and Road aviation projects

Want Chine Times, Staff Reporter 2015-06-30

Lanzhou Zhongchuan International Airport in Gansu province. (Photo/Xinhua)

The Civil Aviation Administration of China (CAAC) will earmark up to 500 billion yuan (US$80 billion) for 193 large and medium aviation development projects by the end of this year to improve air connectivity with economies covered by the government's "Belt and Road" initiatives, Guangzhou's 21st Century Business Herald reports, citing CAAC director Li Jiaxiang.

At the opening session of the China Civil Aviation Development Forum held June 24-25 in Beijing, Li said that in addition to enhancing the development of international aviation hubs in Beijing, Shanghai and Guangzhou, the government will move to build regional air hubs in Xi'an, Urumqi, Nanning, Kunming and Xiamen in line with the Belt and Road plans. There are now a total of 15 new airports under construction or set to be built in provinces or regions along the New Silk Road Economic Belt and 21st Century Maritime Silk Road, in addition to another 28 airports under expansion, Li added.

The 500 billion yuan civil aviation investment for 2015 represents a drastic increase over the corresponding figures of 68.77 billion yuan (US$11.06 billion) in 2011, 146.46 billion yuan (US$23.57 billion) in 2012, and 145.22 billion yuan (US$23.37 billion) in 2013, due mainly to a total budget of 200 billion yuan (US$32.19 billion) to support 51 strategic investment projects directly serving the Belt and Road initiatives, including airports, airlines and air traffic control facilities, according to CAAC statistics.

Although Li didn't reveal details of how the huge investment fund will be used, the paper said that construction of new airports and the expansion of existing airports will account for the lion's share of the investment fund. This year, the National Development and Reform Commission has approved a budget of 80 billion yuan (US$12.87 billion) for a new airport in Beijing, Beijing Daxing International Airport, and another 69.2 billion yuan (US$9.52 billion) for a new international airport in Chengdu in Sichuan province. These two projects will account for 30% of the 500 billion yuan budget.

In addition, airports in Guangzhou, Chongqing, Haikou, Xi'an, Lanzhou, Changsha and Qingdao are undertaking expansion projects each costing billions of yuan, mainly for the construction of new runways or new terminal buildings, the paper said.

Construction of new minor regional airports is also underway, including in Shache and Ruoqiang in Xinjiang autonomous region, Wudalianchi in Helongjiang province, Ulanqab in Inner Mongolia autonomous region, Longnan in Gansu province, Renhuai in Guizhou province, Lancang in Yunnan province, and Guoluo in Qinghai province, estimated to cost over 10 billion yuan (US$1.6 billion) in total.

Besides fueling investment in aviation infrastructure projects, the Belt and Road initiatives will also expand business opportunities for the aviation industry, according to Li. He said that China now boasts the world's second-largest air transportation system, as it has 52 airlines, 202 airports and 533 international flight routes linking 48 cities in China, laying a solid foundation for the country's aviation industry to further internationalize.

CAAC statistics indicated that China's international airline firms launched 131 new international routes in 2014 and plan to add 83 more this summer and autumn. On another front, countries along the Belt and Road initiatives will open 24 new flight routes to China this year, with four countries to operate flights to China for the first time ever.

Li Keqiang gives a press conference at the EU-China Summit in

Brussels, June 30. (Photo/CNS)

Related Article:

Beijing considering investment platform to aid EU recovery

Framework for China-led international bank signed

Yahoo – AFP, Benjamin Haas, 29 June 2015

Supporters of the Asian Infrastructure Investment Bank say fears over

 undue Chinese influence are overblown, and that the participation by more 

than 50 countries will dilute Beijing's power (AFP Photo/Wang Zhao)

Beijing (AFP) - Countries from five continents formally signed up Monday to the China-led Asian Infrastructure Investment Bank -- a potential rival to the Washington-based World Bank -- as Beijing steps up its global diplomatic and economic role.

Australia was the first country to sign the articles of association creating the AIIB's legal framework at a ceremony in Beijing's Great Hall of the People, an AFP journalist saw, followed by 49 other founding members.

Seven more are expected to do so by the end of the year.

The bank will have a share capital of $100 billion, with $20 billion paid in initially, the document showed.

The signing "is an embodiment of the concrete action and efforts made by all countries in the spirit of solidarity, openness, inclusion and cooperation", Chinese President Xi Jinping said after the ceremony.

Supporters of the Asian Infrastructure Investment Bank say fears over

 undue Chinese influence are overblown, and that the participation by more

than 50 countries will dilute Beijing's power (AFP Photo/Wang Zhao)

Signalling China's central role at the bank, he added: "Now we are willing to listen to your views and proposals."

The AIIB has been viewed by some as a rival to the World Bank and Asian Development Bank, and the United States and Japan -- the world's largest and third-largest economies, respectively -- have notably declined to join.

Earlier this month, former Federal Reserve Chairman Ben Bernanke rebuked US lawmakers for effectively encouraging the AIIB's formation by blocking reforms giving developing nations a greater say in the IMF.

Beijing will be by far the largest AIIB shareholder at about 30 percent, the articles of association posted on the website of China's finance ministry showed. India is the second biggest at 8.4 percent with Russia third on 6.5 percent.

The voting structure gives smaller members a slightly disproportionately larger voice, and a statement accompanying the articles said China will have 26 percent of the votes.

That is not enough to give Beijing a formal veto over all the bank's decision-making, but it will still have an outsized say and a block on some votes which require a 75 percent majority -- including the choice of the bank's president, suspensions of members, and changes to the rules.

"China's shareholding and its voting power at the establishment of the AIIB is a natural result led by the rules decided by all members," said Shi Yaobin, a vice finance minister, according to the official Xinhua news agency.

"China is not deliberately pursuing the veto power," he added, saying share percentages could be diluted by future new admissions.

Chinese President Xi Jinping (R) speaks to Swiss Economy Minister Johann

 Schneider-Ammann (L) as he meets with the delegates attending the signing

 ceremony for the Articles of Agreement of the AIIB in Beijing on June 29, 2015

 (AFP Photo/Wang Zhao)

Among non-Asian participants, Germany is the largest shareholder with 4.5 percent, followed by France with 3.4 percent and Brazil on 3.2 percent.

The AIIB is expected to go into operation later this year and its headquarters will be in Beijing, despite calls from Indonesia that it be based in Jakarta, further cementing China's prominence in the institution.

But all financial terms in the agreement are in US dollars, rather than China's currency, the renminbi, and the bank's working language will be English.

Transparency concerns

Only 50 of the 57 countries that have applied for founding membership signed up in Beijing on Monday, and the finance ministry said the remainder -- Denmark, Kuwait, Malaysia, Philippines, Poland, South Africa and Thailand -- have yet to ratify the necessary agreements.

Washington sought to dissuade its allies from taking part but European countries including Britain, France and Germany have rushed to sign up as they seek to bolster ties with the world's second-largest economy.

There are some concerns over transparency of the lender, which will fund infrastructure in Asia, as well as worries that a resurgent Beijing will use it to push its own geopolitical and economic interests.

The articles of association promise the bank will "be guided by sound banking principles in its operations" and ensure its operations comply with "policies addressing environmental and social impacts".

Russia's Deputy Finance Minister Sergei Storchak leaves after signing an article

 of association to help set up the AIIB during a ceremony at the Great Hall of the

 People in Beijing on June 29, 2015 (AFP Photo/Wang Zhao)

But equally vague statements in the past have done little to soothe critics.

Supporters say fears over undue Chinese influence are overblown, and that the participation by more than 50 countries will dilute Beijing's power.

The articles of association specify that the bank's president must come from the Asian region and will serve a maximum of two consecutive five-year terms.

Shi, a vice finance minister, said that China will "recommend a strong and powerful candidate" for the position, Xinhua reported.

In Tokyo, Japan's Chief Cabinet Secretary Yoshihide Suga said: "We hope the AIIB will play a role as a financial institution that contributes to Asia's development while meeting standards of international institutions, including for its governance.

"We'd like to watch it closely, including its actual operations."

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Modi more open to China after US and Japan disappoint

Want China Times, Staff Reporter 2015-05-17

Over 30 people were killed and around 150 others injured when the
 Dehradun-Varanasi Janata Express derailed near the Bachhrawan railway station
 on March 20, 2015 in Rae Bareli, India. Investment is sorely needed to overhaul
India's outdated rail network and China may provide the answer. (Photo/CFP)

The China strategy of India's prime minister, Narendra Modi, has undergone a clear change, according to Duowei News, a media outlet run by overseas Chinese.

Modi eschewed visiting China after he first came into office, only visiting the US and Japan, and even refusing investment worth US$100 billion from China, according to the website. Now, however, Modi has revised his "Indian Century" plan into the "Asian Century" being pushed by China's top leader Xi Jinping, has opened an account on Weibo, China's version of Twitter, has rearranged his itinerary to make China a priority, has declined to meet the Dalai Lama and seems to have made a U-turn on his reservations regarding China's proposed New Silk Road Economic Belt and 21st Century Maritime Silk Road when he met with Xi on May 15. What happened to effect such a change in Modi's attitude to China? asks Duowei.

Disappointment in US, Japan

After Modi was elected in 2014, he announced that he would revitalize his country's economy and transform India into a modern, efficient and just country, an ideal that former administrations have failed to realize. In his former post as chief minister of Gujarat, he turned the western state into India's factory, achieving what has been lauded as an economic miracle there, according to Duowei. On becoming prime minister, Modi said he would reproduce this miracle nationwide. But however brilliant his blueprint for this may be, it will be impossible to implement without financial assistance from elsewhere. Modi has therefore been seeking a patron nation to fund his ambitious plans. His successive visits to the US and Japan were attempts to secure funding but the two nations offered him little in return.

When Modi went to Japan, he was only able to secure a promise of funding of US$35 billion for the next five years and secured no agreements on nuclear cooperation or high-speed railways. Japan's offer of infrastructure investment fell well below Modi's hopes and expectations. On his trip to the US, although the prime minister manages to improve diplomatic relations in the course of his hectic itinerary, he didn't manage to secure much in the way of concrete investment. It was not just the US government who responded in a disappointing manner; investment from US businesses and Indian Americans, whom Modi hoped to lobby on his visit, have gradually decreased in recent years. The apparent reason for this is the lack of transparency and the amount of red tape in India, which has led several companies to pull out. Not only did Modi not secure the investment he sought from the Obama administration, but he was pressured to sign a weapons deal which would see India hand over money in the other direction.

In between these trips, a potential patron reached out that would mean reaching a political compromise. President Xi Jinping of China visited India before Modi's US trip. Before Xi's trip to India, the Chinese side is said to have deliberately leaked to the media that Xi was planning to offer Modi US$100 billion in investment, three times the sum secured on Modi's Japan visit. Xi in the end announced investment of just US$20 billion.

China Rebuffed

Given that China holds almost US$4 trillion in foreign exchange reserves, investing US$100 billion in India is not an issue for the country. The leaked investment proposal would have seen China invest US$50 billion on industrial parks and overhauling the country's rail network. The other US$50 billion would have been invested on improving infrastructure and river and port facilities in line with China's plans for India's inclusion in its Belt and Road initiative. Given that the source of the leaked proposal was likely the government itself, it is probable that the reason the final announcement put investment at only US$20 billion is due to a decision in New Delhi, according to Duowei. This poses the question of why India, as a BRICS country, would refuse this kind of investment, given its sore need for infrastructure investment.

On his visit to the US, Modi announced that the 21st Century would be "India's Century," clearly an attempt to rival Xi's idea of an "Asian Century" and his efforts to establish a cooperative institution based on a community of destiny among Asian nations. China and India previously appeared to be on different pages in this respect, with Modi actively pursuing improved relations with the US and Japan while taking a more passive stance on China.

Modi was likely concerned that a rising East Asia would undermine Indian growth and the Belt and Road initiative would undercut control of the Indian Ocean. Japan and the US would be a lot less likely to assert influence in the region, due to their physical distance.

There are also ongoing border disputes between China and India and the issue of the Tibetan government in exile, based in India since 1959. Another issue is India's unease with China's close relationship with Pakistan. The characters of both of the leaders of the two countries also poses a challenge for cooperation, as both are seen as hard-headed individuals compared to their predecessors, pledging not to cede their country's core interests and to resolve all disputes within their term in office.

Modi is shrewd enough to adjust his foreign policy to the increasingly polarized opposition that throws the US and its ally Japan into confrontation with China and Russia, and to play each side off against the other while being sure not to clearly align himself clearly with one or the other. Given India's vast population and strategic value, Modi is aware that the country is a vital chess piece in the struggle between the two sides. This is likely the reason why Modi felt the need to refuse Xi's US$100 billion investment offer, gambling on the offer being bested on his US trip.

Strategic U-turn

In the financial year of 2014-2015 that ran up to March, Indian exports to China dropped almost 20% to US$11.9 billion, and imports rose by 18% to US$60.3 billion, with the trade deficit with China rising almost 30% to US$48 billion, making up almost a third of India's total trade deficit. Modi only managed to secure a promise of US$4 billion in investment from Obama, crushing his high hopes for his US visit.

If political tensions between India and China continue to get in the way of economic cooperation, the trade deficit would likely continue to expand given that China is India's biggest trade partner, threatening to collapse the country's economy. According to a piece by C Raja Mohan, consulting editor on foreign affairs for the Indian Express and a distinguished fellow at the Observer Research Foundation in New Delhi, "Modi is abandoning the old approaches to China [...] Modi has recognised that India can't construct a serious business relationship with China — the world's second largest economy and a major exporter of capital — by giving the security establishment a veto over economic policy."

India and Russia are key players in China's Belt and Road project, with Russia necessary to ensure the success of the northern route of the belt and India key to the southern route and the maritime route. President Vladimir Putin of Russia has already softened on the initiative, which may leave India isolated if it refuses to budge on the issue. According to a previous Duowei report, Xi's US$46 billion investment in Belt and Road infrastructure in Pakistan was an attempt to put pressure on India. It appears that this strategy may have been effective in turning India round on participating in the venture after efforts by Xi in Pakistan to depoliticize the initiative.

If India does agree to get on board and set aside political baggage, it could bring huge economic benefits to the country. It may also result in China helping India construct cross-border high-speed rail links, as it did previously for Thailand and Pakistan.

Related Article:

India, China sign trade deals worth billions

US, China can still cooperate: Chinese scholars

Want China Times, Staff Reporter 2015-05-16

John Kerry holds a press conference in Beijing after his meeting with
Chinese foreign minister Wang Yi on May 16. (Photo/CNS)

Despite the fact that John Kerry, the US secretary of state is expected to ask China to stop its land reclamation over the waters surrounding the disputed Spratly islands during his visit to Beijing, various Chinese scholars at a seminar held at Fudan University on May 9 believe that there are still opportunities for cooperation between the two nations, reports Shanghai-based newspaper The Paper.

Ni Feng, the deputy head of the Institute of American Studies under the Chinese Academy of Social Sciences in Beijing said that what American people fear is that a rising China will challenge the current world order established by the United States, the world's only superpower after the end of Cold War. He said that opportunities for cooperation between the nations still exist because US elites have realized that a world without any order is much more dangerous than a world with a new order.

As the power and influence of Russia decreases, Ni said that the space for China and the United States to work together can only become bigger instead of smaller. Ni encouraged China and the United States to help each other in global governance to prevent the world from descending into anarchy. Wu Xinbo, the head of Center for American Studies in Fudan University suggested that Chinese president Xi Jinping tell US president Barack Obama that China has no intention to push for a new Cold War in East Asia during his visit to Washington this September.

He said that China should demonstrate its willingness to cooperate with the United States. It will be very crucial for Xi to realize his idea of a new model for relations between great powers. Wu said that China has to convince the United States that it is not seeking to build its own sphere of influence in the Western Pacific. Da Wei, director of the Institute of American Studies, China's Institutes of Contemporary International Relations also said China and US are unlikely to start a new Cold War.

"The existence of 90 mechanisms between China and the United States will prevent both nations from falling into Thucydides's trap completely," said Da.

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DPRK rejected for AIIB membership as ties with China sour

A Summary" – Apr 2, 2011 (Kryon channelled by Lee Carroll) (Subjects: Religion, Shift of Human Consciousness, 2012, Intelligent/Benevolent Design, EU, South America, 5 Currencies, Water Cycle (Heat up, Mini Ice Ace, Oceans, Fish, Earthquakes ..), Middle East, Internet, Israel, Dictators, Palestine, US, Japan (Quake/Tsunami Disasters , People, Society ...), Nuclear Power Revealed, Hydro Power, Geothermal Power, Moon, Financial Institutes (Recession, Realign integrity values ..) , China, North Korea, Global Unity,..... etc.) - (Text version)

“….. The Recession

The recession is the result of you deciding to change your banking. The Illuminati told many that this could never happen. Why? Because big money can't be touched. It's just too big for any culture to change it, and they counted on that. Well, it just was changed. Do you understand what you're doing here in this country? It affects the whole planet. You are trying to realign the integrity of the way money is used, printed, and loaned. It's not about one party or one government idea. Both had a hand in creating this shift. Maybe it puts another spin on that which you've been told about your economy? When you prune an orchard, for awhile it looks wounded and ugly. Then over time, it blossoms into something far greater than it was.

China

I am Kryon. I've just given you the potentials. "Ah," you say. "But Kryon, right before you leave, you left out the big one. Nobody talks about China." All right. I'll give you still another prediction. China is very interesting, is it not? Suddenly this very old country finds itself in an odd place. They hold the debt for the United States! Some of you would say, "This is not good. This is not going to work." So let me tell you what this is about. Synchronicity has struck, because now China understands that if they're ever going to get paid, they're going to have to ally themselves closer with Western values and help create abundance. Here is the prediction: China will turn North Korea loose soon. The alliance will dissolve, or become stale. There will be political upheaval in China. Not a coup and not a revolution. Within the inner circles of that which you call Chinese politics, there will be a re-evaluation of goals and monetary policy. Eventually, you will see a break with North Korea, allowing still another dictator to fall and unification to occur with the south. How do you like it so far?

I look at old souls who came into this earth courageous, who are sitting in chairs before me. There was a time when you never thought you would even make it to 2011. But because of what you've accomplished on this planet, you are not only still here, but are moving through the shift. Hard times are ahead. But this is all part of planting the seeds of peace. It doesn't come easy. It slowly, slowly moves in a direction that is positive. Your grandchildren will look at you, the ones who are not even born yet, who are on my side of the veil, who are looking at you now. They are saying, "Keep it up! Because when we get there, it indeed will be a peaceful place."

And so it is.

KRYON

Hometown diplomacy a highlight of Modi's Xi'an tour

Want China Times, Xinhua 2015-05-15

Xi Jinping, left, and Narendra Modi visit the Da Ci'en Temple, May 14. (Photo/CNS)

Chinese president Xi Jinping met with visiting Indian prime minister Narendra Modi in Xi'an, capital city of Shaanxi province and Xi's hometown, on Thursday afternoon.

"This is the first time I have hosted a foreign leader in my hometown and I hope you have a happy stay," Xi said at the start of the meeting.

Xi welcomed Modi and thanked him for the warm reception he received on his India visit in September, when the Indian PM accompanied him to visit his home state of Gujarat.

"That left me with a deep impression," Xi said.

In September, Xi and Modi "reached an important consensus on promoting a bilateral strategic partnership of cooperation and forging a closer partnership of development," according to the president.

Both sides have maintained frequent high-level contact and engagement, promoted cooperation in priority areas including construction of railways and industrial parks, strengthened exchanges, controlled border areas, Xi said.

China-India relations are experiencing stable development and facing broad prospects, he added, predicting that Modi's visit will strengthen the partnership.

Xi called on the two countries to look at their ties from a long-term perspective, strengthen coordination on global and regional affairs, and "steer the international order to develop in a fairer direction".

The two countries could strengthen communication on the New Silk Road Economic Belt and 21st Century Maritime Silk Road initiatives, the Asian Infrastructure Investment Bank (AIIB), and Modi's Act East policy, find areas of common interest, and hone a mode of cooperation with reciprocal benefit, Xi said.

He said the two countries should seek common ground in their respective development strategies to jointly promote the region's economic integration and contribute to global economic growth.

He called for more bilateral cooperation in areas including railways, industrial parks, urbanization and training, pledging to encourage Chinese companies to invest in India.

The president also expressed hope that the two countries can trust each other more and control their disputes to avoid weakening bilateral ties.

Xi also called on the two countries to strengthen exchanges between media, think tanks and young people to promote mutual understanding.

Calling China a great neighbor, Modi said India was ready to communicate and cooperate more closely with China, increase cultural exchanges and properly handle disputes.

He also voiced hope for more bilateral trade and closer cooperation with China within the AIIB.

He said he believed the AIIB will play an important role in regional economic and social development and that India welcomes China to increase its investment in the country.

With regard to South Asia, Xi said that China has close relationships in the area and supports the region. China is ready to strengthen reciprocal cooperation with all South Asian nations and promote the region's peace, stability and prosperity, he said.

Modi echoed Xi, saying India attaches high importance to communication in South Asia. India is ready to cooperate with China concerning the Belt and Road Initiative to promote the region's development and prosperity, he said.

After their meeting, Xi accompanied Modi to the Da Ci'en Temple and the Wild Goose Pagoda, where the famous Chinese Buddhist monk Xuan Zang presided over translation of Buddhist scriptures and expounded Buddhist doctrines in the Tang Dynasty.

The Da Ci'en Temple has witnessed a long history of friendly exchanges between China and India, said Xi, vowing to push forward the friendly ties between the two countries.

Modi said he was deeply impressed by the Xi'an visit and presented saplings of Bodhi tree to the temple.

Xi said the Bodhi trees given by former Indian prime Minister Javaharlal Nehru in 1954 continue to thrive today and have become a telling symbol of the friendship between the two peoples.

After the visit, Modi was accorded a traditional Tang Dynasty welcome at the Xi'an city wall and Xi welcomed him at the watchtower of the wall.

The two leaders also enjoyed an art performance staged by Chinese artists.

This three-day tour is Modi's first China visit. Premier Li Keqiang and top legislator Zhang Dejiang will also meet him in Beijing on Friday.

India’s prime minister Narendra Modi and China’s premier Li Keqiang at a joint
press conference. Photograph: Liu Weibing/Xinhua Press/Corbis

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