#china pakistan economic corridor

[theculturedmarxist]

In their February paper, “US Dollar Primacy in an Age of Economic Warfare,” presented at the West Point Symposium on “Order, Counter-Order, Disorder” Michael Kao and Michael St. Pierre argue for using a stronger US dollar as geopolitical leverage:

Not only are the effects of interest rates hikes magnified in other countries due to a myriad of structural and idiosyncratic economic fragilities previously discussed, the confluence of wide USD adoption with cyclical USD strength … make the USD a potent geopolitical lever masquerading as a domestic fight against inflation. National Power lends the USD dominance in adoption, while an opportunistic fight against inflation lends the USD cyclical strength for geopolitical leverage.

The US and US-led institutions are already trying to sideline China in countries struggling to make debt payments. And these efforts are likely to continue as interest rates rise and more countries in the Global South are unable to repay loans. A recent UNDP paper stated that 52 developing countries are suffering from severe debt problems.

China is the world’s largest bilateral creditor, and this is especially true for countries that are part of Beijing’s Belt and Road Initiative and/or for countries that possess strategically important natural resources. Washington estimates that Chinese lending ranges from $350 billion to a trillion dollars.

In recent years, western officials and media have ratcheted up criticism of China’s lending practices, claiming Beijing is putting its boot on the neck of countries, holding back their development, and is seizing assets offered as collateral.

Deborah Bräutigam, the Director of the China Africa Research Initiative at the Paul H. Nitze School of Advanced International Studies, has written that this is “ a lie, and a powerful one.” She wrote, “our research shows that Chinese banks are willing to restructure the terms of existing loans and have never actually seized an asset from any country.”

Even researchers at Chatham House admit there’s nothing nefarious about China’s lending, explaining that it has instead created a debt trap for China. That is becoming more evident as nations are unable to repay, largely due to the economic fallout from the pandemic, the Nato proxy war against Russia in Ukraine, inflation, and rising interest rates.

These confluence of events hitting developing countries are entangling China  in multilateral talks that include US-backed institutions like the IMF. Beijing’s preference has always been to try and tackle debt repayment issues at a bilateral level, typically by extending maturities rather than accepting write-downs on loans.

But US Treasury Secretary Janet Yellen and company continue to parrot the talking point that China’s lending is harming countries, and in countries unable to repay their international debts, the West and China are increasingly at odds.

Back in 2020, the G-20 countries created the Common Framework for Debt Treatments to provide relief to indebted countries, which included “fair burden sharing” among all creditors. Beijing’s reluctance to agree to such burden sharing is illustrated by the case of Zambia.

Zambia became the first African country to default on some of its dollar-denominated bonds during the Covid-19 pandemic when it failed to make a $42.5 million bond payment in November 2020.

More than a third of the country’s $17 billion in debt is owed to Chinese lenders. Zambia worked out a deal with the IMF for a $1.3 billion bailout package but can’t access the relief until its underlying debt is restructured – including Chinese debts. But the IMF prescription for Zambia is a blow to Beijing. Here are some details of the arrangement from The Diplomat:

Zambia will shift its spending priorities from investment in public infrastructure – typically financed by Chinese stakeholders – to recurrent expenditures. Specifically, Zambia has announced it will totally cancel 12 planned projects, half of which were due to be financed by China EXIM Bank, alongside one by ICBC for a university and another by Jiangxi Corporation for a dual highway from the capital. The government has also canceled 20 undistributed loan balances – some of which were for the new projects but others for existing projects. While such cancellations are not unusual on Zambia’s part, Chinese partners account for the main bulk of these loans…

While some of these cancellations may have been initiated by Chinese lenders themselves, especially those in arrears, Zambia may not have needed to cancel so many projects. Since 2000, China has canceled more of Zambia’s bilateral debt than any sovereign creditor, standing at $259 million to date.

Nevertheless, the IMF team justified the shift because they – and presumably Zambia’s government – believe that spending on public infrastructure in Zambia has not returned sufficient economic growth or fiscal revenues. However, no evidence is presented for this in the IMF’s report.

Zambia will also cut fuel and agriculture subsidies. So instead of infrastructure investment and social spending, the country gets austerity. The IMF deal also relegates China to the backseat, as it allows for 62 concessional loan projects to continue, only two of which will involve China. The vast majority of the projects will be administered by multilateral institutions and involve recurrent expenditure rather than infrastructure-focused projects.

Despite all the evidence to the contrary, Yellen on a trip to Zambia in February warned that Chinese lending “can leave countries with a legacy of debt, diverted resources, and environmental destruction” and called out Beijing for being a “barrier” to ending the major copper producer’s debt crisis and noted that it had “taken far too long already to resolve.”

The US effort to sideline China in Zambia comes at the same time that Washington is trying to tighten control over resources in the region. Note that back in December the US signed deals with the Democratic Republic of Congo and Zambia (the world’s sixth-largest copper producer and second-largest cobalt producer in Africa) that will see the US support the two countries in developing an electric vehicle value chain.

Beijing is insisting that multilateral lenders also accept haircuts on loans rather than just China being expected to do so. This is a position that most debtor nations agree with. On the other side, the IMF and its partners are worried that its bailout money would merely go to Chinese creditors – many of which are state banks that are increasingly troubled by bad debts.

Gong Chen, founder of Beijing-based think tank Anbound, says that if countries are unwilling or unable to repay their debts to China, it would be devastating:

Widespread debt evasion and avoidance would have a significant impact on China’s financial stability,” he said, “and we are concerned that some countries may try to avoid paying back their debt by utilizing geopolitics and the ideological competition between East and West.

Yellen and company tried to apply more pressure on Beijing at the recent G20 meeting of finance officials in India, but that fell flat on its face much like the West’s efforts to hijack the meeting and turn it into a roundtable on Russian sanctions.

Meanwhile, Zambia has halted work on several Chinese-funded infrastructure projects, including the Lusaka-Ndola road, and canceled undisbursed loans in line with the IMF prescription for its debt problem.

Chinese companies are now attempting to work around these roadblocks by shifting more toward public-private partnerships. For example, a Chinese consortium is now planning to build a $650 million toll road from the Zambian capital to the mineral-rich Copperbelt province and the border with the Democratic Republic of the Congo.

The situation in Zambia does not bode well for other nations needing debt relief, as the delays while the West and China clash mean more pressure on government finances, companies and populations.

And if the West’s primary goal in offering debt relief is to sideline Beijing, as it appeared in Zambia, then that will mean a drastic scaling back of infrastructure projects replaced by austerity. From Sovdebt Oddities:

More broadly, as noted by Mark Sobel, the current international financial architecture is ill-equiped to deal with a major recalcitrant creditor benefiting from outsized (geo)political leverage. While it remains illusional to insulate sovereign restructurings from geopolitical considerations, there is a risk that they would turn into a game of chicken between China on the one hand and the IMF and Paris Club on the other hand. The problem being that if none of the players yields, it will just mean more economic and social hardship for the debtor country stuck in the middle.

Sure enough, the same situation is playing out in two nations that are key points on China’s Belt and Road project: Pakistan and Sri Lanka.

Here is Islamabad’s debt situation, courtesy of Pakistani economist Murtaza Syed at The International News:

For each of the next five years, Pakistan owes the world $25 billion in principal repayments. It will also need at least $10 billion to finance the current account deficit, bringing total external financing needs to $35 billion a year between now and 2027. We have foreign exchange reserves of just $3 billion. For each of the next five years, the government needs to pay 5 percent of GDP to service the debt it owes to residents and foreigners. Our total tax take is only 10 percent of GDP.

Around fourth-fifths of this external debt is owed to the official sector, split roughly evenly between multilaterals (like the IMF, World Bank and ADB) and bilaterals (countries like China, Saudi Arabia and the United States). The remaining one-fifth is commercial, again roughly evenly split between Eurobond/Sukuk issuances and borrowing from Chinese and Middle Eastern banks. By region, we owe roughly one-third of our external debt to China and 10 percent to the old-boys network of the Paris Club, which includes Europe and the US.

Additionally, last year, the Pakistan rupee plunged nearly 30 percent compared to the US dollar. All indications are that the IMF is using bailout negotiations to pressure Pakistan to move away from China and revive its partnership with the US. Some background from WSWS:

Former prime minister Imran Khan’s government was promptly removed in April 2022 after he reversed IMF-demanded subsidy cuts in the face of country-wide protests. Khan had previously implemented two rounds of some of the toughest austerity in the country’s history. In the final year of his government, Khan shifted the country’s foreign policy towards a closer alliance with Russia and deepened ties with China, prompting concern and anger in Washington.

Sharif’s Muslim League (PML-N) and the People’s Party (PPP) assumed power in a coalition with the approval of the military, long the most powerful political actor in the country and the linchpin of the alliance between the Pakistani bourgeoisie and US imperialism. The express aim of the new government was to implement IMF austerity, which it has done.

The IMF-prescribed austerity imposed by Pakistani elites also targets Beijing.  China is Pakistan’s largest single creditor as the country is perhaps the most important country in China’s Belt and Road plans because it would provide China with a potential corridor to the seaport at Gwadar on the Indian Ocean. The supply line would reduce the distance between China and the Middle East by thousands of miles via insecure sea lanes to a shorter and more secure distance by land. Beijing’s spending in Pakistan reflects this, as the $53 billion China has spent on the Belt and Road Initiative (BRI) in the country is tops of all BRI countries.

Yet many of the BRI plans are unrealized, and Pakistan’s current economic situation makes it unlikely they’ll be finished anytime soon. China has dramatically scaled back investment, which fits with its more cautious approach to BRI projects. Meanwhile, decades-high inflation, economic mismanagement, and last year’s biblical floods have led to Islamabad burning through its foreign exchange reserves in order to make debt payments. The US blames China.

“We have been very clear about our concerns not just here in Pakistan, but elsewhere all around the world about Chinese debt, or debt owed to China,” US State Department Counselor Derek Chollet told journalists at the US Embassy in Islamabad after he met with Pakistani officials in February.

Additionally, Cholett said Washington is warning Islamabad about the “perils” of a closer relationship with Beijing.

According to the Times of India, many Pakistani officials have come around to the US way of thinking and are also blaming the China-Pakistan Economic Corridor Project (CPEC), a $65 billion network of roads, railways, pipelines, and ports connecting China to the Arabian Sea,  for worsening the country’s debt crisis. From Indian Express:

Pakistan expanded its electricity generation capacity under the China-Pakistan Economic Corridor Programme (CPEC) but the expansion came at a high cost both in terms of high returns guaranteed to the Chinese independent power producers (IPPs) and the expensive foreign currency debt. Pakistan has been unable to make the capacity payments to IPPs under the long-term power purchase agreements with the electricity sector debt rising to a staggering $ 8.5 billion.

Last December, the government agreed to repay this debt in installments. However, this may have displeased the IMF, which had expected the government, in August 2022, to renegotiate the purchase power agreements. Pakistan tried to renegotiate but the Chinese refused.

The IMF extended the current program on the condition that it would not go to the Chinese IPPs. More from Nikkei Asia:

Observers say Pakistan’s handling of the electricity issue is likely to irk China, noting that Sharif’s government committed to the IMF to reopen power contracts without taking the Chinese companies into confidence. Pakistan has also reneged on a promise to set up an escrow account to ensure smooth payments to Chinese IPPs.

The IMF is demanding that Pakistan rationalize payments to the Chinese IPPs in line with earlier concessions extracted from local private power producers…

The IMF now wants Pakistan to negotiate an increase in the duration of bank loans from 10 years to 20 years, or to reduce the markup on arrears owed to Chinese IPPs from 4.5% to 2%.

Notably, the IMF appears to have been less willing to make concessions than the previous 22 times Pakistan has sought its support since 1959. Oddly enough Beijing is pushing for a deal between Islamabad and the IMF, and China recently extended a $2 billion loan to Pakistan. From the Middle East Institute:

It is interesting to note, for example, that Chinese officials reportedly urged Islamabad to repair ties with the IMF — if true, an indication that Beijing regards resumption of the Fund’s lending program as key to mitigating Pakistan’s risk of default.

It is also revealing that Pakistan seems keener to take on new financing from China than China may be to furnish it. Even as the economy wobbles under a heavy debt burden and other acute challenges, Pakistani officials have sought support from China to upgrade the Main Line 1 (ML-1) railroad, a project which, if not undertaken, they claim could result in the breakdown of the entire railway system.Yet, the IMF wants Pakistan to rein in CPEC activity. And China’s own domestic economic challenges and priorities might make it hesitant to respond to Islamabad’s appeals. On the other hand, the ML-1 project might meet Beijing’s more exacting standards and increasing emphasis on “high quality” BRI infrastructure projects.

The recent rapprochement between Iran and Saudi Arabia could leave Pakistan out in the cold and even more reliant upon the US. From Andrew Korybko:

With the Kingdom likely to focus more on mutually beneficial Iranian investments than on dumping billions into seemingly never-ending Pakistani bailouts that haven’t ever brought it anything in return, Islamabad will predictably become more dependent on the US-controlled IMF. China will always provide the bare minimum required to keep Pakistan afloat in the worst-case scenario, but even it seems to be getting cold feet nowadays for a variety of reasons, thus meaning that US influence might further grow.

About that, last year’s post-modern coup restored American suzerainty over Pakistan to a large degree, which now makes that country a regional anomaly in the geopolitical sense considering the broader region’s drift away from that declining unipolar hegemon. The very fact that previously US-aligned Saudi Arabia patched up its seemingly irreconcilable problems with Iran as a result of Chinese mediation reinforces this factual observation. Pakistan now stands alone as the broader region’s only US vassal.

Pakistan is not only the most highly indebted to China of its BRI partners, but along with Sri Lanka, is also among the largest recipients of Chinese rescue lending. The ruling elite Pakistan is increasingly concerned that the social crisis could spiral out of control and result in something similar to what happened in Sri Lanka last year when a popular uprising toppled the government.

Due to haggling between the West and China, Sri Lanka has been waiting since September to finalize a bailout after a $2.9 billion September staff level IMF deal. And yet many of the recommendations in the agreement have already been implemented—to disastrous effect.

The country is dealing with its worst economic crisis since independence in 1948, including a shortage of reserves and essential items. In February, the IMF said Sri Lanka’s bailout package was set to be approved as soon as the country obtained adequate assurances from bilateral creditors, i.e., China.

Beijing now appears ready to meet more of the IMF’s demands, although details have yet to be released. In a letter in January, the Export-Import Bank of China offered a two-year debt moratorium, but the IMF said that wasn’t enough. According to Reuters, total Sri Lankan debt to Chinese lenders totals roughly 20 percent of the country’s total debt.

Sri Lanka is another focal point of the BRI due to its geographical position in the middle of the Indian Ocean. China’s goal was to transform the country into a transportation hub as much of its energy imports from the Middle East and mineral imports from Africa pass through Sri Lanka. Beijing has already achieved much of these goals. For example, in 2017 a 70 percent stake of the Hambantota port was leased to China Merchants Port Holdings Company Limited for 99 years for $1.12 billion.

The West blames China’s BRI initiative in Sri Lanka for saddling the country with unsustainable debt, but is that really the case? Political economists Devaka Gunawardena , Niyanthini Kadirgamar, and Ahilan Kadirgamar write at Phenomenal World:

The problems associated with the IMF’s policy package have been caught in geopolitical rhetoric. The US alleges that Sri Lanka is the victim of a Chinese debt trap. In fact, Sri Lanka is in an IMF trap. The structural consequences of over four decades of neoliberal policies have exploded into view with the receding welfare state, a ballooning import bill, and investment in infrastructure without returns, all of which relied on inflows of speculative capital. Framing Sri Lanka’s crisis within a narrative of geopolitical competition obscures the core dilemmas of the global economy. Will the evident breakdown force a reckoning with the present order, or will it be used as an excuse to inflict more suffering?

Thus far, it looks like the latter.

[kesarijournal]

Unraveling India’s BRICS and BRI Conundrum

In a world where geopolitics often resembles a complex game of 3D chess, India finds itself pondering its next move on a board set by two ambitious projects – the expansion of BRICS and China’s Belt and Road Initiative (BRI). Imagine a chessboard, not with mere black and white squares, but a vibrant mosaic of global interests, strategic rivalries, and the occasional pawn aspiring to be a queen.…

[defencecapital]

China Completes 10 Years Of $1.4 Trillion BRI Project; Puts South Asia, Barring India & Bhutan, In A Bind

By N. C. Bipindra for EurAsian Times This year marks the tenth year of the People’s Republic of China’s $1.4 trillion Belt and Road Initiative (BRI), Xi Jinping’s ambitious project to connect Asia, Africa, and Europe, a supposed ‘21st century silk road.’ However, the project is viewed with suspicion in view of China’s vision of a China-led world order. The suspicion grew deeper with the…

[latestjobsinpakistan12]

China Pakistan Economic Corridor CPEC Authority Jobs 2022

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[zvaigzdelasas]

Turkey has discreetly imposed a comprehensive ban on the export of weapons and defence-related items to India, one of the world’s leading arms importers, to show its support for Pakistan, India’s main rival in South Asia.[...]

“India, for example, is one of the world’s top five arms importers, a massive market, importing close to $100 billion. However, due to our political circumstances and our friendship with Pakistan, our Ministry of Foreign Affairs does not give us positive feedback on exporting any products to India, and consequently, we do not grant any permits to our companies in this regard,” he said.[...]

Turkey and India are at odds over a proposed initiative introduced by India, the United States and the European Union at the G20 leaders’ summit in New Delhi on September 9, 2023. The initiative seeks to establish a substantial economic corridor linking Europe with the Middle East and India via rail and sea routes. It aims to connect India, Saudi Arabia, the United Arab Emirates (UAE), Jordan, Israel and the EU through strategically placed shipping ports and an extensive railway network.

Excluded from this corridor, Turkey openly expressed discomfort with the initiative, which it believes undermines its role as a trade hub and favors Greece and other regional competitors. Instead, Turkey supports China’s expansive Belt and Road projects.

Ankara is also advancing the realization of an alternative route, known as the Development Road, which aims to connect Europe and the Middle East through Turkey. “We say there can be no corridor without Turkey. The most suitable route for traffic from east to west must pass through Turkey,” said Erdogan on his return flight from India last year.

Erdogan said they are discussing a corridor that goes from Iraq, Qatar and Abu Dhabi through Turkey to Europe. The corridor is a 1,200-kilometer (745-mile) transportation route comprising railways, motorways and pipelines. It will stretch from Iraq’s Faw Port in Basra to the Turkish port of Mersin and is estimated to cost $20 billion.

Turkey’s anti-Indian policies have prompted New Delhi to seek alliances with countries where Turkey faces challenges in its neighborhood, such as Greece, Cyprus and Armenia, in order to send a message to Ankara that it is prepared to play hardball. As a result, security, military and intelligence cooperation among India, Greece, Cyprus and Armenia has been significantly enhanced in recent years.

18 Jul 24

[milfstalin]

[...]

Ultimately, this story about Pakistan is more properly understood as one about the contest between China and the U.S. that pits the rest of the world in the middle. Chinese officials, we learned, regularly told their Pakistani counterparts that Beijing doesn’t see the contest as zero sum, that it’s okay to be friendly with both major powers. The U.S. does not quite see it that way, and Pakistan knows it. The result is the story below. If you’re at all interested in foreign affairs, we think you’ll find this one enlightening.

[...]

In October of 2022, a pivotal year for Pakistan, military chief Qamar Javed Bajwa finally won what he had long been striving for: an official state trip to the United States. His mission was explicit; a document prepared for Bajwa ahead of the visit is titled, “U.S. Re-Engagement with Pakistan: Ideas for Reviving an Important Relationship.”

[...]

From New York, Munir Akram, Pakistan’s representative to the United Nations, began reporting back cables highlighting “sarcastic” comments from his Chinese counterpart, who openly tweaked Akram about Pakistan’s sudden swing toward Washington. In private conversations with their Pakistani counterparts over the past year, as reported by Pakistani diplomats, Chinese officials have expressed displeasure with Islamabad for “switching camps”—rather than merely seeking open relations with both countries.

Now, with their U.S. gamble failing to pay off, Pakistani officials have become increasingly frantic in their efforts to repair relations with China, including, asthe documents reveal, by granting China approval for a military base at the port of Gwadar—a major and longstanding strategic demand of Beijing—and authorizing joint military operations inside Pakistan.

[...]

Internal reports emphasize Pakistan’s wish that its relations with the U.S. and China not be “zero-sum.” “What the Pakistani military prefers is to be able to maintain a balance between their Chinese and U.S. military relationships,” said Adam Weinstein, deputy director of the Middle East program at the Quincy Institute and an analyst on Pakistan. “They believe that if things are balanced, both sides will have an incentive to keep relations strong.”

Despite this preference, a classified internal Pakistani intelligence assessment judges China to be a more “natural strategic ally” than the U.S., with whom Pakistan is deemed to share “limited” strategic interests.

Facing such loss of trust from a key ally, the documents also show that Pakistan’s military-backed government privately promised Beijing a long-coveted concession: a Chinese military base in the key port city of Gwadar. Gwadar is a key node in China’s Belt-and-Road Initiative—the last stop in a land corridor through Pakistan that would connect China’s economy westward, and make it less reliant on shipping transit in the South China Sea. 

In return, Pakistan asked for a major upgrade in economic and military assistance from Beijing in order to insulate Islamabad from the fierce reaction from the U.S. such a deal is expected to provoke.

[...]

This August, Pakistani government sources vented frustration to the media over their failed reconciliation with the U.S., lamenting the meager benefits that mending ties had brought. Government sources told the Express Tribune that “Pakistan’s reliance on the United States to secure the IMF package was not yielding the results.” This week, the IMF announced a decision to consider Pakistan’s loan request at an upcoming meeting slated for September 25, raising hopes that a deal may still be secured.

Pakistan’s private concessions to China come as the U.S. State Department has continued to publicly defend the military regime from criticism over its role in rigging elections this February, gross human rights abuses inside the country targeting the press and civil society, and an ongoing crackdown on supporters of now-imprisoned former Prime Minister Khan. That crackdown now includes credible threats to Khan’s life, as he continues to be held in government custody despite repeated rejection by the courts of the charges against him.

“We believe good governance, long-term capacity building, and sustainable market-based approaches that let the private sector flourish are the best paths to sustained growth and development,” the State Department told Drop Site News in its post-publication statement. “Our partnership with Pakistan spans the full range of regional and bilateral issues, including increasing trade and investment, strengthening security cooperation, promoting regional security and stability, building climate resilience, supporting democracy and human rights, and expanding people-to-people ties.”

The rigging of elections this February was met with general indifference in Washington, as has the ongoing suppression of press and political activism in the country.  On the economic front, Pakistan’s imploding economy has consumed Western aid with nothing to show for it but soaring inflation, blackouts, an internet slowed to a crawl, and joblessness. 

18 Sept 2024

[beardedmrbean]

Unidentified gunmen shot and killed at least seven workers in Pakistan's southwestern province of Balochistan, police said on Thursday.

According to police official Mohsin Ali, gunmen stormed into a house some 25 kilometers (15 miles) east of the port city of Gwadar, and shot the workers while they were asleep. 

The coastal town of Gwadar is the site of several Beijing-backed projects under the China-Pakistan Economic Corridor investment, which is part of the Belt and Road Initiative.

The victims, who were from the central Pakistani province of Punjab, were running a barber shop, Ali said.

However, police said they believed the attack was not related to their jobs. Previous attacks claimed by the Pakistani Taliban near the Afghan border in the north were believed to have been motivated by a militant ban on Western-style beard trimming and haircuts.

Incident follows similar attack last month

Although no group has claimed responsibility for the killings, it follows a pattern of ethnically-motivated attacks in the restive Balochistan province. 

Last month, the so-called Balochistan Liberation Army claimed responsibility for killing several workers who were abducted from a bus on a highway.

Balochistan, a mineral-rich region, is home to a decades-old insurgency led by ethnic Baloch guerillas fighting the government. 

The separatists, who oppose Chinese investments, have long complained that they do not get a fair share of the province's profits.

The Baloch are an ethnic group living on both sides of the Iran-Pakistan border and into parts of southern Afghanistan in an area roughly the size of France. The Pakistani province of Balochistan forms the largest part.

Balochs accuse both governments of systematic discrimination and plundering their region. Several groups of militant insurgents have carried out attacks on both sides of the border.

[mariacallous]

India’s Middle East policy under Prime Minister Narendra Modi is often seen as both successful and perplexing. The governing Bharatiya Janata Party (BJP), to which Modi belongs, has a nationalist Hindu-right bent, and yet India’s outreach toward the Persian Gulf region under the current government, particularly to the Arab world, has been a defining success over the past decade.

The ongoing war between Israel and Hamas, sparked by the latter’s audacious strike on Oct. 7, has brought under the spotlight New Delhi’s diplomatic balance between a “new” Middle East and its traditional support for the “old.” The new is defined by New Delhi’s increasingly close proximity to the security ecosystem of the United States, while the old is highlighted by a visible shift away from the idea of nonalignment. India’s participation in new tools of economic diplomacy—such as the I2U2 minilateral between India, Israel, the United Arab Emirates (UAE), and the United States, as well as the India-Middle East-Europe Economic Corridor (IMEEC) announced on sidelines of the G-20 summit in September—are evidence of these not-so-subtle changes in posture, led by a burgeoning consensus between New Delhi and Washington to push back against an increasingly aggressive China.

India has been a steadfast supporter of the Palestinian cause since its independence, viewing the crisis through moral support for Palestinian sovereignty and as an anti-colonial struggle. In 1975, India became the first non-Arab state to grant full diplomatic status to the Palestine Liberation Organization (PLO). Its then-chief, Yasser Arafat, regularly visited New Delhi. That relationship has become more complicated.

Last month, Modi condemned Hamas terrorism just weeks before the youth wing of Jamaat-e-Islami in the southern state of Kerala, which has close ties with the Gulf, hosted a virtual talk by former Hamas leader Khaled Mashal—showcasing the wide range of views that have long existed within India.

After decades of leaning toward the Arab world, in 1992, then-Prime Minister P.V. Narasimha Rao established full diplomatic ties with Israel. This was done at a time of great change in the across the subcontinent, marked by the country’s economic liberalization following years of crisis. However, Israel was quietly building a strong foundation for this eventuality over the previous decades, supplying India with military aid in two crucial wars that it fought against Pakistan in 1971, before normalization, and then again in 1999, after full diplomatic ties were established.

This normalization forced India to perform a balancing act between three poles of power in the region: the Arab world, Israel, and Iran. All three remain important to Indian interests. The larger Arab world hosts more than 7 million Indian workers, who send back billions of dollars into the Indian economy as remittances; Israel remains a critical technology and defense partner; and Iran’s strategic location helps promote Indian interests in both Central Asia and a now much more volatile Afghanistan under a Taliban regime.

Fast-forward to 2023, and Indian foreign policy toward the region increasingly looks more pragmatic in design, balancing opportunities and challenges in an increasingly fractured global order, or what scholars Michael Kimmage and Hannah Notte have aptly termed “the age of great-power distraction.” As India’s economy rapidly grows, setting its sights on becoming the third largest in the world by 2030, so does its desire for influence. And the Middle East, from a foreign-policy perspective, is where a lot of this influence is being tested.

A recent spat between India and Qatar offers an interesting example for managing inflection points. In October, Doha announced a verdict of death sentences for eight former Indian Navy officials who were working for a private contractor involved with Qatar’s defense modernization. They were charged, according to reports, of spying on behalf of Israel. Since then, New Delhi has responded legally, appealing the Qatari court’s verdict while both countries continue to keep the judicial verdict confidential.

This is not the first time New Delhi has become embroiled in the regional fissures of the Middle East. In 2012 and 2021, Israeli diplomats were targeted in bombings in the capital, and in both cases, India hinted at Iranian involvement and having to delicately manage the situation behind closed doors—effectively telling Iran and Israel not to let their conflict spread to Indian soil.

Today, India is becoming more of an economic stakeholder in the Middle East, and by association, its security postures. This is not just the result of New Delhi’s reoriented foreign policy designs, but also depends on the personal involvement of Modi himself.

In 2017, Modi became the first Indian Prime Minister to visit Israel. Considering his brand of politics, he also visited Ramallah in the West Bank in 2018 to maintain India’s diplomatic consistency. He hosted Saudi Arabian Crown Prince Mohammed bin Salman in 2019 at the height of the Jamal Khashoggi murder scandal, when the Saudis were not welcome in most capitals. And finally, Modi has visited the United Arab Emirates (UAE) five times since taking charge in 2015, and is often found referring to UAE President Sheikh Mohamed bin Zayed Al Nahyan as “brother.”

Since the start of the Israel-Hamas war, Modi has talked to six regional leaders to put India’s position across, from Israeli Prime Minister Benjamin Netanyahu to Iranian President Ebrahim Raisi. The Modi government has attempted to walk a fine line between Israel’s counterterrorism aims against Hamas and the Palestinian humanitarian crisis. Countering terrorism has been an important tool for Modi’s international diplomacy, coming from India’s efforts to isolate Pakistan internationally for its state-sponsored terrorism.

But Indian diplomacy in the Gulf also has another objective: strengthening India’s position on Kashmir, which defines the India-Pakistan conflict, and weakening Islamabad’s case within organizations such as the Organization of Islamic Cooperation (OIC). In February 2019, India’s then-Foreign Minister Sushma Swaraj became the first Indian minister to be invited to speak at the organization since 1969, an event hailed as a major victory of Indian diplomacy; Pakistan was represented by an empty chair during Swaraj’s speech.

New Delhi’s other expanding relationship has been with the United States. In Asia, the institutionalization of mechanisms such as the Quadrilateral Security Dialogue has brought Washington and New Delhi closer than ever before as both look to work together to counter an increasingly erratic China. India’s buy-in with the United States has not been just about the Asian theater, but the Middle East as well, with measures such as the I2U2 and IMEEC taking shape.

However, India’s own domestic politics have often also presented a challenge. In 2022, comments made by a BJP spokesperson against the Prophet Mohammed invoked widespread condemnation by Islamic nations, including those building close partnerships with India. Previously, in private, Anti-Muslim narratives in Indian domestic politics have been an area of discussion between Arab states and New Delhi. During this period, India has also pushed back against reports by the U.S. State Department on what the department described as the country’s deteriorating religious freedoms, criticizing them as “biased.” Despite these differences, strategic cooperation has remained steadfast.

The establishment of I2U2 was a direct result of the signing of the Abraham Accords in 2021. Both Israel and the UAE have been quick to establish a strong economic bilateral relationship since then. The accords have also helped countries such as India to increase economic and political cooperation with greater ease.

It is important to note here that while the I2U2 is seen as an economic cooperation platform, all member states, have taken part in expansive military maneuvers in the region in some shape or form. And this includes India, where all three services of its armed forces, the Army, Navy, and the Air Force, have increased their outreach and participation.

Beyond the I2U2, the announcement of the IMEEC is New Delhi’s latest sign of alignment with U.S. geoeconomic objectives. Already positioned by some as a counter to China’s Belt and Road Initiative (BRI), the idea is to connect the Middle East with Europe and India through a trade corridor that can rival the centrality of the Suez Canal.

But countries such as Saudi Arabia and the UAE, central to IMEEC, are also members of the Belt and Road Initiative and have interest in developing close partnerships with Beijing. Propaganda outlets of the Chinese Communist Party have already labeled IMEEC as a mere “castle in the air” The European Union, the United States, and India alike have marketed the corridor as the next intracontinental highway for digital and economic connectivity. However, IMEEC is in nascent stages of development, and no blueprint is currently on offer on how it is going to function.

These new economic highways, minilaterals, and reoriented geopolitics are transforming Indian foreign policy from one that has always been risk-averse to one that is willing to be a little more adventurous. Today, India is much closer to the United States than it has been at any point in its independent history.

Between its increasingly West-centric defense and technology shopping list—a historical break away from having a predominantly Soviet-era military ecosystem that continues to rely on Russian know-how even today—and the India-U.S. 2+2 dialogues regularly setting new precedents, it is not that surprising to see India partner with the United States in theaters such as the Middle East, where the Abraham Accords have leveled the playing field in a limited fashion between Israel, the United States, and a part of the Arab world.

Simultaneously, a counterargument against deeper U.S. collaboration from India also comes from the time that India helped the United States with the Iran nuclear deal prior to its unceremonious end in 2018. New Delhi had let go of significant diplomatic access to align with U.S. requirements by ending nearly all oil imports from Iran, which has vast reserves, offers good deals, and is geographically conveniently located. This fed into the then-U.S. policy of strong sanctions against Tehran to push it to negotiate with the U.N. Security Council’s group of permanent members. Experiences such as the Trump administration’s withdrawal from the deal continue to fuel a strong undercurrent of distrust toward Washington in Indian political circles.

India’s own position of upholding its strategic autonomy and self-styled leadership of the global south may find it often at odds with its strategic role in the Middle East as a partner of the United States. One of India’s longest-serving successes in this region has been its embrace of nonalignment. The fact that the I2U2 was almost immediately identified by some observers as the Middle East Quad gave it a texture of being an extension of a core U.S. interest—that of containing China. While India has never officially used such terminology, these portrayals in the media were detrimental to the kind of neutrality that New Delhi still hopes to preserve.

Finally, India’s outlook toward the Middle East is looking beyond the traditional centrality of energy and migration. Today, from the beginning, it wants to be a partner in the region’s post-oil growth designs. Indian diplomats in the region, earlier almost exclusively bogged down with migrant matters, are now tasked to secure foreign direct investments from the large Arab sovereign wealth funds. Modi’s majority government, in power since 2015, has been palatable to Arab monarchs who do not have to navigate a labyrinth of India’s coalition politics looking for fast decision-making, which they are accustomed to.

Whether its own leaders like it or not, India has bought into aspects of future security architectures with its membership of the I2U2 and IMEEC in one of the world’s most flammable regions. This is a bold and commendable posture for an economy that will require significant global input for its challenging future economic goals. It is also palatable for the Middle East to have India as a major energy market to diversify its exports and offset Chinese influence over critical commodities such as oil and gas.

[aqdevelopers]

Pakistan Real Estate Investment: Smart Choices Now

One of the wisest financial decisions you could make today Pakistan real estate Investment. The real estate sector in Pakistan has a lot of potential, whether due to the rapidly growing population, urbanization, or development projects spearheaded by the government or private entities.

Why Invest in Pakistan Real Estate?

The real estate sector in Pakistan has consistently been a safe and lucrative investment option over the years. It offers:

High Returns: Prime areas in cities like Karachi, Lahore, Mianwali, and Islamabad continue to enjoy rising property values.

Options for Different Budgets: Choices abound, including residential plots, apartments and commercial spaces.

Economic Growth: Ongoing projects under the CPEC (China-Pakistan Economic Corridor) have significantly advanced infrastructure development, boosting demand for real estate.

Savvy Moves for Investing in Real Estate

Location is Key: Always focus on high-demand areas with strong potential for appreciation.

Understand Market Trends: Research price trends and development plans to make informed decisions.

Invest in Pre-Developed Projects: Properties in established communities often yield better long-term returns.

Diversify Your Portfolio: Invest across residential, commercial, and rental properties to spread risk.

Start Today!

Investing in real estate in Pakistan is a pathway to long-term financial freedom and wealth growth. By making the right choices and planning ahead, you can maximize returns and build a solid foundation for the future. Begin your journey to financial security by exploring Pakistan’s vibrant real estate market today!

[divinejhonson]

Boosting Construction Efficiency with Ready Mix Concrete in Pakistan

 In recent years, the construction industry in Pakistan has witnessed a significant transformation. Among the game-changing innovations is Ready Mix Concrete (RMC), a modern construction material that has streamlined project timelines, enhanced quality, and reduced costs. Ready mix concrete is a pre-mixed blend of cement, aggregates, and water prepared in batching plants and delivered to construction sites. Its rising popularity in Pakistan signals a shift toward sustainable and efficient building practices.

Understanding Ready Mix Concrete

Unlike traditional concrete mixed manually on-site, ready mix concrete is produced in a controlled environment. This ensures consistent quality and composition, making it an ideal choice for large-scale and intricate construction projects. The material is mixed according to project specifications and delivered to the site in specialized trucks equipped with mixers, ensuring freshness and uniformity.

Why Choose Ready Mix Concrete in Pakistan?

The adoption of Ready Mix Concrete in Pakistan has grown rapidly due to its numerous benefits. Let’s explore why contractors and developers are increasingly turning to this innovative solution:

1. Time Efficiency

Manual mixing of concrete is labor-intensive and time-consuming. Ready mix concrete eliminates this inefficiency by delivering a ready-to-use product. This allows construction teams to focus on other critical aspects of the project, accelerating completion times.

2. Enhanced Quality Control

One of the most significant advantages of ready mix concrete is its consistent quality. Produced in state-of-the-art batching plants, RMC adheres to stringent quality standards, ensuring that every batch meets project specifications. This consistency reduces the likelihood of errors and structural issues.

3. Cost-Effectiveness

While the upfront cost of ready mix concrete might seem higher than traditional concrete, it saves money in the long run. Reduced labor costs, minimal wastage, and faster project completion contribute to overall cost efficiency.

4. Sustainability

Sustainability is becoming a key focus in Pakistan’s construction sector. Ready mix concrete is an eco-friendly option as it minimizes material wastage and promotes the efficient use of raw materials. Additionally, batching plants often incorporate recycled aggregates and advanced mixing technologies, reducing the carbon footprint of construction activities.

5. Reduced On-Site Pollution

The traditional mixing of concrete generates significant dust and noise pollution. By shifting the mixing process to centralized plants, ready mix concrete contributes to cleaner and safer construction sites.

6. Wide Application Range

From residential buildings and commercial complexes to infrastructure projects like roads and bridges, ready mix concrete is versatile. Its customizable mix designs cater to various construction needs, making it a preferred choice across sectors.

The Growing Demand for Ready Mix Concrete in Pakistan

The construction boom in Pakistan, driven by urbanization and large-scale infrastructure projects like the China-Pakistan Economic Corridor (CPEC), has created a surge in demand for high-quality construction materials. Ready mix concrete is at the forefront of this demand, owing to its ability to meet the rigorous requirements of modern construction projects.

Key cities like Karachi, Lahore, and Islamabad are experiencing rapid urban growth, leading to a rise in multi-story buildings, commercial hubs, and transportation networks. In such high-density urban areas, the efficient and sustainable delivery of concrete through ready mix systems proves invaluable.

Benefits for Developers and Contractors

Streamlined Project Management

By outsourcing concrete production to ready mix providers, contractors can focus on design, labor management, and project execution. This delegation simplifies logistics and reduces on-site complexities.

Improved Site Safety

On-site mixing of concrete often involves handling heavy materials and equipment, posing safety risks to workers. Ready mix concrete minimizes these hazards, creating a safer work environment.

Increased Structural Durability

The uniformity and quality of ready mix concrete ensure long-lasting and structurally sound buildings. This durability is especially crucial in regions prone to extreme weather conditions, such as Pakistan’s coastal areas.

Customization Options

Ready mix concrete can be tailored to specific project needs, such as strength requirements, setting times, and environmental conditions. This customization enhances project outcomes and reduces the need for on-site adjustments.

Challenges and Solutions in the Adoption of Ready Mix Concrete

While the benefits of ready mix concrete are clear, its widespread adoption in Pakistan faces certain challenges:

1. Limited Awareness

Many small-scale contractors and developers remain unaware of the advantages of ready mix concrete. Solution: Conducting awareness campaigns and offering training programs can educate industry stakeholders about the benefits of RMC.

2. High Initial Costs

The perceived higher cost of ready mix concrete discourages some users. Solution: Highlighting the long-term cost savings and efficiency gains can help shift perceptions.

3. Infrastructure and Logistics

Delivering ready mix concrete requires a robust infrastructure, including batching plants, mixer trucks, and access to construction sites. Solution: Investing in strategically located plants and efficient transportation networks can ensure timely delivery.

4. Limited Suppliers

The availability of reliable ready mix concrete suppliers varies across regions. Solution: Supporting the growth of local RMC providers can enhance accessibility and competition in the market.

The Role of Technology in Ready Mix Concrete

Technological advancements have played a crucial role in the development and application of ready mix concrete in Pakistan. Features like automated batching, real-time quality monitoring, and GPS-enabled delivery trucks enhance the reliability and efficiency of RMC production and delivery.

Moreover, smart technologies such as IoT (Internet of Things) and AI (Artificial Intelligence) are beginning to influence the industry, enabling predictive maintenance, demand forecasting, and mix optimization.

Choosing the Right Ready Mix Concrete Provider

Selecting the right supplier is critical to reaping the benefits of ready mix concrete. Factors to consider include:

Experience and Reputation: Look for established providers with a track record of quality and reliability.

Technological Capabilities: Choose suppliers with modern batching plants and advanced delivery systems.

Customer Support: A responsive customer service team ensures smooth communication and problem resolution.

Customization Options: Ensure the supplier can tailor mixes to meet specific project requirements.

For top-notch solutions, Allied Materials is a trusted name in the industry, providing premium ready mix concrete in Pakistan. Their commitment to quality and innovation sets them apart as a reliable partner for construction projects.

Future Prospects for Ready Mix Concrete in Pakistan

The future of ready mix concrete in Pakistan looks promising. As the construction industry continues to evolve, the demand for sustainable, efficient, and high-quality materials will only grow. RMC’s ability to meet these demands positions it as a cornerstone of modern construction practices.

Furthermore, government initiatives promoting infrastructure development and urbanization will likely drive further adoption of ready mix concrete. By addressing current challenges and leveraging technological advancements, Pakistan can fully harness the potential of RMC to build a more resilient and sustainable future.

Conclusion

Ready mix concrete is more than just a material; it’s a solution to many of the challenges faced by Pakistan’s construction industry. Its benefits—ranging from enhanced efficiency and quality to sustainability—make it an indispensable component of modern construction.

As urbanization accelerates and the construction sector expands, adopting innovative materials like ready mix concrete is essential for meeting the demands of the future. For developers and contractors looking to optimize their projects, investing in Ready Mix Concrete in Pakistan is a decision that guarantees value, quality, and success.

[theculturedmarxist]

The West’s attempt to recruit large swaths of the global community to enlist for the sanctions war has decidedly failed, notes ‘The American Conservative’. Outside of the U.S., E.U., and a few close allies (i.e., economic dependents and military protectorates) such as Canada and Japan, practically no other countries have joined in, preempting any economic dogpile sought by the self-proclaimed defenders of democracy. Increasingly, transatlantic policy seems to be having the exact opposite effect.

As of June 9, Pakistan is the latest country to begin accepting large shipments of discounted crude oil from Russia, as much as 100,000 barrels a day. “This is the first ever Russian oil cargo to Pakistan and the beginning of a new relationship between Pakistan and Russian Federation [sic],” announced Prime Minister Shehbaz Sharif.

In the present geopolitical landscape, such a move is perceived to be in direct defiance of Western efforts to obstruct Moscow’s revenues. The motive behind Islamabad’s shifted political and economic calculations is not difficult to decipher. Nor is it exceptional.

The International Energy Agency (IEA) reported that Moscow is now sending out 8.1 million barrels of oil a day, the highest number going back to April 2020. In January 2023, almost half of those shipments were destined for China and India, which have respectively increased as a proportion of Russia’s oil exports from 21 percent to 29 percent and 1 percent to 20 percent since January 2022.

Chinese oil imports alone jumped in May to the third highest level ever recorded. Beijing also recently issued a crude oil import quota of a whopping 62.28 million tons of allotments. This makes the total import quota amount issued by Chinese leadership 20 percent higher than that of the same time last year. At the same time, Beijing’s natural gas purchases continue to push upward, increasing 3.3 percent year-on-year in Quarter 1, with a 10.3 percent year-on-year increase in April of liquefied natural gas (LNG).

Just as important, if not more so, as the massive shifts in quantity and direction of the energy trade, however, are the size and scope of the joint initiatives—usually under the leadership of Moscow and Beijing ��� that continue to proliferate in opposition to Western-led international organizations.

The recent St. Petersburg International Economic Forum saw representatives of various economic groupings and cooperation organizations outside the Atlantic orbit meet to discuss greater interconnectivity, development collaboration, transportation corridors, as well as investment options for funding various cross border initiatives.

One of these groups is the Shanghai Cooperation Organization (SCO), which continues to focus on greater cooperation and integration with ASEAN nations. This year’s meeting included a notable presentation on the creation of a SCO investment bank to provide the capital necessary to facilitate such collaborative projects.

The BRICS organization featured prominently at the St. Petersburg forum as well. It also includes an important investment bank — the New Development Bank — that provides ready access to liquidity for its members, funds infrastructure projects, and facilitates increased industrial manufacturing. BRICS continues to grow in both clout and size.

A number of new countries applied for membership last year, including Iran and Argentina. 2023 has also seen membership bids from nineteen additional nations before an upcoming summit in Johannesburg this August. One of the most recent applications came from Egypt on June 14. Potential bids from important players in the energy market such as Venezuela (with direct support from Brazil’s President Lula) and the United Arab Emirates are also being discussed.

UAE President Sheikh Mohammed bin Zayed Al Nahyan traveled directly to the St. Petersburg forum in order to meet with Putin on June 16, where the two discussed their desire to build a closer relationship between the countries.

Gulf neighbor — and traditional U.S. ally — Saudi Arabia has to some degree also hedged its geopolitical bets. After refusing Biden’s phone calls in March of 2022 and denying his request to increase oil production to help lower international prices, Riyadh’s friendship with Washington has somewhat soured as of late. (Saudi Arabia also joined the SCO in March 2023, and is a potential candidate for BRICS membership.) In another move that will likely meet with the displeasure of its Western allies, Saudi Arabia additionally decided to move forward with further production cuts of 1 million barrels per day beginning in July.

Consider that, as discussed earlier, China alone has increased its trade with Russia by about 40 percent, and is set to reach a record $200 billion this year. Perhaps most importantly though, more than 70 percent of that trade has been settled in either yuan or the ruble, with the Russian central bank currently holding 40 percent of its reserves in yuan.

Pakistan has reportedly also paid for its new shipments of Moscow’s crude with Chinese yuan. Earlier in 2022, Saudi Arabia suggested the possibility of denominating its oil transactions with Beijing in the currency.

The present geopolitical system with all of its accompanying features is only made possible by the dollar reigning supreme as the world’s reserve currency. Champions of the present order faithfully hold that this system will be maintained indefinitely, guaranteed on the back of U.S. military might and Western economic dominance.

But the international environment is beginning to shift, as much due to the burgeoning economic alliances outside the confines of Western-backed international agencies as because of the policy decisions of those latter agencies and their U.S. patron. No recent move has acted as a greater accelerant to this shift than Washington’s decision to freeze and then seize the foreign currency reserves of the Russian Federation at the outset of the Ukraine war.

The weaponization of financial reserves has increased distrust in the present system to new heights. The end of dollar dominance may not be nigh, but it is a much more likely possibility than many in the West care to admit.

Russia has demonstrated that having an economy based on commodities and heavy industrial production matters more in today’s international environment than a narrow set of economic indicators such as annual GDP growth or per capita income. Should dollar dominance ever come to an end, this fact will be made painfully clear.

The United States and other Western countries have adopted an increasingly ideological perspective regarding the future course of economic development. Leaders choose to accept only information that aligns with their dogmatic beliefs.

A failure to remove its ideological blinders and comprehend political and economic conditions as they objectively exist will spell disaster for the Western bloc.

[blueworldcity001]

Blue World City: A Modern Residential Development

Blue World City, located near Islamabad, Pakistan, is a large-scale residential and commercial development project offering a blend of modern living with traditional aesthetics. Developed by Blue Group of Companies in collaboration with a Chinese engineering company, Blue World City aims to provide affordable luxury in a prime location. The project is strategically positioned near the China-Pakistan Economic Corridor (CPEC) route, making it a desirable location for investors and residents alike, with future prospects for economic and infrastructure growth.

[jobustad]

New Ministry of Planning Development & Special Initiatives Jobs in Islamabad October 2024 Advertisement

New Ministry of Planning Development & Special Initiatives Jobs in Islamabad October 2024 has been announce through latest advertisement The Ministry of Planning. Development & Special Initiatives invites dynamic and visionary professionals to join the China Pakistan Economic Corridor Support Project (CPEC-SP) in leadership positions for accelerating development under CPEC.Details are Mention…

[darkmaga-returns]

Russian Prime Minister Mikhail Mishustin, Premier of the State Council of China Li Qiang, and Mongolian Prime Minister Luvsannamsrain Oyun-Erdene are holding trilateral talks in Islamabad, Pakistan, on Wednesday.

Russia and China are strengthening economic cooperation despite unprecedented external pressure, launching joint investment projects, Russian Prime Minister Mikhail Mishustin said.

"Despite unprecedented external pressure, Russia and China are strengthening economic cooperation, we are increasing mutual trade, launching joint investment projects. Partnership in the energy sector has acquired a comprehensive strategic character, covering oil, gas, coal and nuclear industries," Mishustin said at a meeting with Premier Li Qiang of the State Council of the People's Republic of China.

In the sphere of transport, Moscow and Beijing are increasing cargo transportation, improving the capacity of border crossings on the Russian-Chinese border, and creating new international transport corridors. Special attention will be paid to agricultural issues and strengthening food security between Russia and China, Mishustin added.

"We sincerely appreciate our strong cultural and humanitarian ties and jointly carry out activities within the framework of our intercultural years of Russia and China, which are held by the decision of our leaders," the head of the Russian government said.

Mikhail Mishustin noted that the talks are being held on the sidelines of the Shanghai Cooperation Organization (SCO) Council of Heads of Government and expressed confidence that cooperation between Russia and China will contribute to further improving the efficiency of this association, and allow for the full realization of its significant economic potential.