Chris Faure for The Saker Blog
President Xi Jinping announced The Belt and Road initiative or ‘the new Silk Road,’ six years ago during a state visit to Kazakhstan. The idea is to establish and maintain trade corridors between more than 60 countries in Central Asia, Europe, and Africa. The design is inspired by the legacy of the historical Silk Road that connected the East and the West for centuries. Some of the objectives are unimpeded trade, financial integration and people-to-people bonds. The 2nd Belt and Road Forum came to completion Saturday, April 27th in Beijing, and while 60 countries initially were envisaged, even Mexico has now announced its interest with much activity around Belt and Road in South America as well. This initiative is growing.
Politicians and entrepreneurs from 150 nations attended the second Belt and Road forum. This is 3/4 of the world. President Putin took part in the event, addressed the delegates, held a meeting with President Xi Jinping as well as a series of bilateral sideline meetings. China’s elite Tsinghua University awarded him with an honorary doctorate.
Mr. Putin’s presser at the end of the forum again confirmed:
- China is merely putting stability into place.
- Russia and China are closely aligned strategic partners.
- China has to strengthen the principles of international trade and create conditions for growth in their interests. China should develop transport infrastructure, aviation, ports, railroads, trucks, roads, but this is not enough.
- And here it becomes interesting because Mr. Putin stops talking about China and starts talking about what became clear in this process to Russia and this was it! “We need to strengthen the fundamentals of international trade, international cooperation.” “Russia wants to use its potential in full, and China does this in a very civilized manner. (I love the word civilized in this context!)
- “I think this prospect, this initiative has an excellent outlook.”
- He goes on to say that ‘almost all the countries are interested in this’ and ‘nobody wants to see trade wars except possibly for the countries that initiate such processes’.
https://www.youtube.com/watch?v=vUGj5eTsPUk
Mr. Putin arrived at this 2nd Belt and Road Forum straight from his meeting with Kim Jong Un from North Korea where he stated that there are no secrets. North Korea is looking for security assurances, and a group of countries needs to be drawn together to give them this, to advance de-nuclearization of the Korean Peninsula.
Mr. Xi JinPing addressed the leader’s round table of the Belt and Road forum and outlined the progress from the first forum. He says BRI should be “Open, Green and Clean.” By this, he means open to whoever in the world wants to participate, green in technology and clean in terms of bribery and corruption.
https://www.youtube.com/watch?v=ye4-M_WPDws
Xi JinPing made it very clear that the relationship between China and Russia is epitomized by:
- the highest degree of mutual trust,
- the highest level of coordination and,
- the highest strategic value since the two countries established diplomatic ties 70 years ago.
But besides all the positive language, what actually happened at this 2nd Belt and Road forum?
Let’s first take a look at the name. Belt and Road Forum for International Development. China holds that BRI is not a geopolitical extension or projection of power, but rather a methodology that can lift all boats, or The Sun Shines Over Everyone.
No less than 283 concrete results in six categories were announced as deliverables of this 2nd Belt and Road Forum. Note how this is stated, as deliverables, and not as plans, or objectives or as vague promises for the future. These deliverables are indeed a juggernaut of world development.
Have we ever seen such a size of hopeful international development in our lifetimes? I think not.
Let us look at just 3 of those 283 concrete deliverables:
From the Category of Investment Projects and Project Lists:
8．The Silk Road Fund of China established co-investment platforms with the International Company for Water and Power Projects of Saudi Arabia, the Three Gorges Corporation and the International Finance Corporation of China and the General Electric of the United States. The Silk Road Fund is establishing a co-investment platform with the Surbana Jurong Private Limited of Singapore.
I count impacts in at least four countries.
From the Category of Financing Projects:
3．The Export-Import Bank of China signed loan agreements on road projects with the Ministry of Finance of Serbia, the Ministry of Economy and Finance of Cambodia and the KazAvtoZhol of Kazakhstan respectively, on bridge rail link and pipeline projects with the Ministry of Finance of Bangladesh, on photovoltaic and hydroelectric power plant projects with the Ministry of Finance of Argentina and the Ministry of Economy and Finance of the Republic of Guinea respectively, on steel plant project with the Ministry of Development Planning of Bolivia, on railway projects with the Ministry of Transport of Egypt and the Federal Ministry of Finance of Nigeria respectively, and signed working capital facility agreements with the AL Khalij Commercial Bank of Qatar and the Global Bank Corporation of Panama.
I count impacts in at least 11 countries.
From the Category of Projects by Local Authorities and Enterprises:
Local authorities and enterprises built the China-Serbia Friendship Industrial Park in Serbia; developed Industry and Sci-tech Cooperation Project of China-UAE Industrial Capacity Cooperation Demonstration Zone; developed Cambodian Sihanoukville Special Economic Zone industry upgrade and social development cooperation program; invested in and constructed Zhongtai New Silk Road Tajikistan Agriculture Industrial Park in Tajikistan; implemented the PhaseⅡ of Diamniadio Integrated Industrial Park in Senegal; upgraded and constructed the Project of Chan Mya Shwe Pyi Bus Terminal in Mandalay, Myanmar; invested in and constructed the Belt and Road Logistics and Trade Complex in the United Arab Emirates; acquired Tata Steel Southeast Asian Plants in Singapore and Thailand; undertook with Saudi Aramco the Fine Chemicals and Raw Materials Engineering Project in Panjin, Liaoning Province, China; built Tharcoal block-178MTPA open-pit coal mine & 2*660MW coal-based power plant integrate project in Pakistan; invested in and constructed the project of high-performance radial tires with an annual output of 13.62 million in Serbia; developed 1.5mtpa cement clinker project in Nepal; engaged in laterite nickel ore for battery-grade nickel chemical (nickel sulfate crystal with an annual output of 50,000 tons of nickel) production in Indonesia; constructed PTA/PET project in Saudi Arabia; developed a healthcare medical diagnostic integrated project in Kenya; and constructed China-Uzbekistan Medical Science and Technology Park in Uzbekistan.
I stopped counting when I found impacts in more than ten countries.
As you will immediately notice, the 283 concrete results are not in ones or twos but encompass many countries and many projects. It is already clear that what Mr. Putin said, seems to be very accurate: “We need to strengthen the fundamentals of international trade, international cooperation.” “Russia wants to use its potential in full, and China does this in a very civilized manner.”
(Of course the West remains somewhat clueless and cannot really decode this language of civilized cooperation and I really wonder who has mastered The Art of the Deal).
So, if we pull across the crystal ball which is hazy at best, I respectfully submit that we, globally, have passed the nexus point and that we are now de facto living in a multi-polar world. Here is the list of Deliverables of the Second Belt and Road Forum for International Cooperation
And here you can download the full text of the joint communique of leaders’ roundtable.
A snippet: “The ancient Silk Road contributed to the strengthening of the connectivity and the expansion of the world economy in the spirit of promoting peace and cooperation, openness, inclusiveness, equality, mutual learning and mutual benefit. We look forward to restoring and rejuvenating such spirit, through the Belt and Road Initiative and other cooperation frameworks and initiatives.”
You will agree, this is a global juggernaut. It remains to be seen what the dying empire will do in its final frenzy, but we can already now ask the questions: Are we building a better world here? Will economic development and peaceful international cooperation lead a peaceful world, or does military power projection lead, into the future? Are we seeing a new and improved erstwhile United Nations being born where ‘international trade, international cooperation’ form the basis of moving to ‘people-to-people’ bonds’?
Reference to dying empire at the end, but which empire? A legitimate question.
In my opinion The British Empire, based on and governed by the principles of projection of power never died! It simply shifted the duty of exerting power to the American Empire, but remained key manipulator of that power. Just a couple of examples of how and when this was done: WWI Britain dragged US into it through sinking of Lucitania. WWII Britain dragged US into it too. And most recently, when feeling that it may loose its power, Britain drowned US in Russiagate by inserting Steele Dossier into US election and muddling the outcome – this was necessary because Britain felt threatened by possibility of loosing control over its own “Frankenstein monster” that it created and maintained. How did it do that? – thru it’s financial centre The City of London (by creating Federal Reserve, Wall Street, etc).
Hence my question, which dying empire? Is US military power any lesser now or projected to be any time soon? No. Is banking and economic system changing any time soon? No.
Eurasian infrastructure is being developed under the same economic system, and it isn’t controlled by Eurasia!
Excellent question. Yes, did the British Empire really die ? I think not. In 1776 the Rothschild’s instigated the American “Revolution”, where the newly created US was placed, covertly, under Rothschild’s control. The American colonies just changed hands, from being controlled by the British Crown, to being controlled by the Rothschild’s. The newly created US was permitted to create it’s “own” empire, covertly controlled by the City of London and their representatives in Washington and New York. The US Federal Reserve is a private central bank controlled by the Rothschild’s.
And what can one conclude ? Basically the US was created as a proxy state to do the bidding for the Rothschild’s. Once it’s used up, it will break apart, with a huge chunk of it uniting with Canada, which will take over from the US. According to analysts, the Montana-Colorado region has more oil than Saudi Arabia ever had. Even the people who live there don’t know this. That oil is untouched and obviously is reserved for Canada. Somebody is planning ahead. Now who could that be ?
Which analysts and from where,we hear that we are energy independent, that we have more oil than the world combined yet we still import over a million BPD while peddling the line that we are a net exporter of oil,something smells like a dead fish and I’m sure its little more then propaganda or stink coming from the remains of that dead fish while trying to get its hands on the oil in Iran and Venezuela.!!
Really? What is your real point?
“Hence my question, which dying empire? Is US military power any lesser now or projected to be any time soon? No. Is banking and economic system changing any time soon? No.”
The answer to both your questions is yes and yes. On the first one, you need only read The Saker’s analysis of US military power – you can search the blog. On the second, some research is necessary.
On the economic system there are just too many differences and new approaches to mention, but, you’re going to have to do some research. One example for a research direction is the influence of Islamic financing or the Belt and Road initiative and the mechanisms being created in include the differences in Islamic banking. This was never before even thought of by the Western banking system. This is setting free just huge capital availability.
Then I guess one can go and look at the amount of world trade done with US $ twenty years ago, and see the current numbers, which are percentage wise way lower than 20 years ago.
Then I guess one has to look at the People’s Bank of China which is of course a Central Bank, but not a reserve bank. (The other one is Central Bank of the Republic of China in Taiwan, which belongs to the reserve bank system).
Of course there is this … https://www.project-syndicate.org/commentary/china-central-bank-communication-exchange-rate-by-miao-yanliang-2019-03
And then the banking industry that was created for Belt and Road, starting with the Asian Infrastructure and Investment Bank (AIIB).
Then of course, there are the joint financing projects, in local currencies with currency swaps and the bypassing of the Swift system as well as the BIS (Bank of International Settlements).
So, either I don’t get your question or you need more research? There are massive systemic differences here. At least the SCO (Shanghai Cooperation Organization) countries are out of the Western System to a large degree.
I would suggest also that you go and hear out someone like Peter Koenig and start here – China: A New Philosophy of Economics – https://www.globalresearch.ca/china-new-philosophy-economics/5660068
And for the basics – https://www.globalresearch.ca/weaponizing-world-bank-imf/5672431
Koenig will soon give you the answers that you seek.
“Eurasian infrastructure is being developed under the same economic system, and it isn’t controlled by Eurasia!”
On this comment, you will have to say some more, because you make a statement but give no basis or fact for this.
My real point is that the the reference to an empire is vague, that’s why I asked which one?
If presumed US empire, I put that into question, as I don’t share a view that it exists as such. In my view it’s the British Empire which is not dead, it transformed into AngloZionist empire and I doubt that it will die soon. It controls the world by means of manipulating American and NATO military power and financial institutions under tight control of the City of London.
Is it going to loose control over most parts of the world ? I don’t see it happening, despite the fact that its combined military power getting less effective, but effective nevertheless. Bases around the world, sheer scale of amount of hardware involved, personnel… all growing in numbers and isn’t going to magically disappear
Whatever new economic/financial/monetary systems may prove over time to be potentially suitable to be adopted, this is not happening any time soon. I guess my problem is in being vague by using “soon”, as in how soon is soon. Whatever solution there may be it has to work for all concerned, and for now it isn’t changing yet. To implement global change to economic, financial, monetary infrastructure will take decades, from when that change starts being implemented, and it hasn’t started yet.
Monetary system that is used now is what we have and will have for some time. While currency swaps etc all sounds like a good idea, and positive developments indeed, but it isn’t replacing existing model with currency exchanges etc.
The Dollar empire.