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China, Russia shaking economic status quo
By Nikolas K Gvosdev
It is a truism in US foreign-policy circles that China would never risk its profitable economic ties with the United States by working more closely with Russia to frustrate US initiatives around the world. But the recovery of the Russian economy has led to reinvigorated commercial ties between Moscow and Beijing. In 2006, China became Russia's fourth-largest trading partner, while Russia moved up to become China's eighth-largest partner.
Chinese Vice Premier Wu Yi and Russian Deputy Prime Minister Alexander Zhukov have called for bilateral trade between the two states to reach US$60 billion by 2010. Yes, this will still only amount to one-fifth of the value of Sino-US trade at current levels. But China is clearly going to diversify its trading options so as to reduce its dependency on US markets. (On a separate note, the European Union has surpassed the United States as China's leading trading partner.)
And Beijing wants to build on the foundation of improved political ties with Russia as a way to deepen commercial ties. Speaking recently in Moscow, Wu said, "The Chinese government attaches importance to such relations with Russia and has striven to create a sound platform for cooperation between companies from the two countries."
Many American analysts take comfort in the scenario of growing conflict between a depopulating Russia (especially in its Far Eastern regions) and a China "bursting at the seams" disrupting any rapprochement between Beijing and Moscow. China's former foreign minister (and current state councilor) Tang Jiaxuan sees increased economic ties between Russia's regions and China's provinces along the common border as the way to forestall conflict - in particular by linking the revitalization of China's "red rust belt" of its northeastern provinces, which have participated less in China's prosperity, with Russia's Far Eastern regions in a type of common economic space.
Further developing China's northern and western regions, away from the booming south coast, is also driving its renewed efforts to push for stronger economic ties among Shanghai Cooperation Organization (SCO) member states. Alongside the St Petersburg International Economic Forum last month, an SCO Business Forum was convened. Wu laid out a Chinese vision for a new round of regional infrastructure projects that would link roads, railways, telecommunication networks and power grids to "promote the common prosperity of all countries in the region". And while the overall numbers may still be small potatoes, China's trade with other SCO states tripled over the past six years to reach US$45.2 billion.
One proposal advanced last month by the Experts' Forum of the SCO that met in Almaty, Kazakhstan, was for an Asian energy grouping - combining such producers as Russia and Kazakhstan with consumers such as China and SCO observers such as India and Pakistan. One benefit would be that under such a system hydrocarbons would not have to be exported through non-SCO countries, in essence creating a closed and secure system. Unmentioned in that conclusion was the realization that a Eurasian land network would reduce China's vulnerability to disruption of its energy supplies - which the US currently transports by sea - in the event of any clash.
No one should be going into hysterics any time soon - no new Warsaw Pact is in the making and we are not returning to having two distinct world blocs. But we should also realize that the days of unquestioned US - or even Western - dominance of the global economic system is coming to an end, and adjust accordingly.
http://www.atimes.com/atimes/China_B.../IG03Cb02.html
Asia Times Online
These trade numbers are really mind boggling when you consider China's trade with Russia was barely $10 billion three years ago. Of course back then that trade was conducted using the d0llar as the medium of exchange, today it's the Ruble and the Yuan, in three more years they project Russian/Chinese trade to be $60 billion. Keep in mind the Russian/Chinese pipeline hasn't even turned on yet, I would imagine $60 billion is a very low estimate. If I'm not mistaken I believe 2007 is officially the year of China in Russia. The two of them have been having joint military exercises for the last three years, they've also come to an agreement regarding any border disputes. A united Russia and China was always something that scared the crap out of the brit empire, I'll bet queen liz is in need of a diaper change as of the moment. Funny that Bush Sr. met with Putin over the weekend in Maine, just in case anyone really thought his idiot son was running things. Ex-CIA meets Ex-KGB, I wonder if they're on the same side and if not I wonder who wins, looks like Russia and China to me.
By Nikolas K Gvosdev
It is a truism in US foreign-policy circles that China would never risk its profitable economic ties with the United States by working more closely with Russia to frustrate US initiatives around the world. But the recovery of the Russian economy has led to reinvigorated commercial ties between Moscow and Beijing. In 2006, China became Russia's fourth-largest trading partner, while Russia moved up to become China's eighth-largest partner.
Chinese Vice Premier Wu Yi and Russian Deputy Prime Minister Alexander Zhukov have called for bilateral trade between the two states to reach US$60 billion by 2010. Yes, this will still only amount to one-fifth of the value of Sino-US trade at current levels. But China is clearly going to diversify its trading options so as to reduce its dependency on US markets. (On a separate note, the European Union has surpassed the United States as China's leading trading partner.)
And Beijing wants to build on the foundation of improved political ties with Russia as a way to deepen commercial ties. Speaking recently in Moscow, Wu said, "The Chinese government attaches importance to such relations with Russia and has striven to create a sound platform for cooperation between companies from the two countries."
Many American analysts take comfort in the scenario of growing conflict between a depopulating Russia (especially in its Far Eastern regions) and a China "bursting at the seams" disrupting any rapprochement between Beijing and Moscow. China's former foreign minister (and current state councilor) Tang Jiaxuan sees increased economic ties between Russia's regions and China's provinces along the common border as the way to forestall conflict - in particular by linking the revitalization of China's "red rust belt" of its northeastern provinces, which have participated less in China's prosperity, with Russia's Far Eastern regions in a type of common economic space.
Further developing China's northern and western regions, away from the booming south coast, is also driving its renewed efforts to push for stronger economic ties among Shanghai Cooperation Organization (SCO) member states. Alongside the St Petersburg International Economic Forum last month, an SCO Business Forum was convened. Wu laid out a Chinese vision for a new round of regional infrastructure projects that would link roads, railways, telecommunication networks and power grids to "promote the common prosperity of all countries in the region". And while the overall numbers may still be small potatoes, China's trade with other SCO states tripled over the past six years to reach US$45.2 billion.
One proposal advanced last month by the Experts' Forum of the SCO that met in Almaty, Kazakhstan, was for an Asian energy grouping - combining such producers as Russia and Kazakhstan with consumers such as China and SCO observers such as India and Pakistan. One benefit would be that under such a system hydrocarbons would not have to be exported through non-SCO countries, in essence creating a closed and secure system. Unmentioned in that conclusion was the realization that a Eurasian land network would reduce China's vulnerability to disruption of its energy supplies - which the US currently transports by sea - in the event of any clash.
No one should be going into hysterics any time soon - no new Warsaw Pact is in the making and we are not returning to having two distinct world blocs. But we should also realize that the days of unquestioned US - or even Western - dominance of the global economic system is coming to an end, and adjust accordingly.
http://www.atimes.com/atimes/China_B.../IG03Cb02.html
Asia Times Online
These trade numbers are really mind boggling when you consider China's trade with Russia was barely $10 billion three years ago. Of course back then that trade was conducted using the d0llar as the medium of exchange, today it's the Ruble and the Yuan, in three more years they project Russian/Chinese trade to be $60 billion. Keep in mind the Russian/Chinese pipeline hasn't even turned on yet, I would imagine $60 billion is a very low estimate. If I'm not mistaken I believe 2007 is officially the year of China in Russia. The two of them have been having joint military exercises for the last three years, they've also come to an agreement regarding any border disputes. A united Russia and China was always something that scared the crap out of the brit empire, I'll bet queen liz is in need of a diaper change as of the moment. Funny that Bush Sr. met with Putin over the weekend in Maine, just in case anyone really thought his idiot son was running things. Ex-CIA meets Ex-KGB, I wonder if they're on the same side and if not I wonder who wins, looks like Russia and China to me.