Orban’s China visit follows his visits to Russia and Ukraine last week to discuss the prospects for a peaceful settlement in the conflict…reports Asian Lite News
Hungarian Prime Minister Viktor Orban paid a surprise “peace visit” to Beijing and met with Chinese leader Xi Jinping in Beijing.
“China is a key power in creating the conditions for peace in the Russia-Ukraine war,” Orban posted on the social media platform X after his meeting with the Chinese President on Monday
“This is why I came to meet with President Xi in Beijing, just two months after his official visit to Budapest,” said the leader of Hungary, which assumed the six-month rotating presidency of the 27-member European Union council earlier this month.
In a video he posted from a Beijing airport tarmac on Monday on X, Orban hailed China as the only world power “clearly committed to peace”. He also posted a photograph and captioned it “Peace mission 3.0”.
Orban’s China visit follows his visits to Russia and Ukraine last week to discuss the prospects for a peaceful settlement in the conflict between the two countries that began in February 2022.
US daily The Washington Post noted that even as Xi embraced Orban in China’s capital city, Russian missiles hit Kyiv, Dnipro and other Ukrainian cities on Monday -killing at least 31 people, including two at a children’s hospital in Kyiv.
Kremlin spokesperson Dmitry Peskov was cited by TASS news agency that Orban has displayed his “political will for dialogue.”
“We take it very, very positively. We believe it can be very useful,” the Kremlin official was cited as saying.
Orban visited Kiev and Moscow on July 2 and 5 and he proposed first to Ukrainian President Vladimir Zelensky and then to Russian leader Vladimir Putin to consider the prospect of a ceasefire and preparations for peace talks, Russian state media reported.
Addressing a press conference later Putin said that Russia was not in favour of a ceasefire, as Kiev could use this to its advantage. Instead, he advocated for a complete end to the conflict in Ukraine, TASS reported.
The White House press secretary Karine Jean-Pierre said Orban’s visit “will not advance the cause of peace and is counterproductive to promoting Ukraine’s sovereignty, territorial integrity, and independence.”
Responding to a question during a briefing press briefing on July 8 US State department spokesperson Matthew Miller said the US found the visits to Keiv and Moscow by Orban as “concerning”
“Look, before he traveled to Russia, you did see the Hungarian prime minister travel to Ukraine. We thought that was an important thing for him to do. We thought that was a productive step. And we would welcome, of course, actual diplomacy with Russia to make it clear to Russia that they need to respect Ukraine’s sovereignty, that they need to respect Ukraine’s territorial integrity, but that is not at all what this visit appears to have been,” Miller said.
As per a report in the Al Jazeera, the Hungarian prime minister broadly opposes Western military aid to Ukraine and has blocked, delayed or watered down EU efforts to assist Kyiv and impose sanctions on Moscow over its invasion.
Orban is next headed to Washington, DC, to attend a summit of NATO leaders, which will discuss ways to assure Ukraine of the alliance’s continued support. (ANI)
In response to China’s action, Taiwan’s armed forces employed aircraft, naval vessels and coastal missile systems to monitor Beijing’s activities….reports Asian Lite News
Taiwan’s Ministry of National Defence (MND) said that 15 Chinese military aircraft and 10 naval vessels have been detected around Taiwan in the past 24 hours till 6 am (local time) on Sunday.
In response to China’s action, Taiwan’s armed forces employed aircraft, naval vessels and coastal missile systems to monitor Beijing’s activities.
In a post on X, Taiwan’s Ministry of National Defence stated, “15 PLA aircraft and 10 PLAN vessels operating around Taiwan were detected up until 6 a.m. (UTC+8) today. 14 of the aircraft crossed the median line and entered Taiwan’s central, southwestern, and southeastern ADIZ. We’ve monitored the situation and responded accordingly.”
Since September 2020, China has intensified its use of “gray zone tactics” by operating more military aircraft and naval ships near Taiwan, according to Taiwan News report. According to CSIS, gray zone tactics are termed as “an effort or a series of efforts beyond steady-state deterrence and assurance that attempts to achieve one’s security objectives without resorting to direct and sizable use of force,” the report said.
This latest incident adds to a series of similar provocations by China in recent months. Beijing has increased its military activities around Taiwan, including regular air and naval incursions into Taiwan’s Air Defence Identification Zone (ADIZ) and military exercises near the island.
Taiwan has been governed independently of China since 1949. However, China views Taiwan as part of its territory and insists on eventual reunification, by force if necessary.
On Friday, Taiwan MND stated that 30 Chinese military aircraft and nine naval vessels were operating near its territory from 6 am (local time) on Friday and 6 am (local time) on Saturday.
Of the total aircraft, 23 People’s Liberation Army (PLA) aircraft entered Taiwan’s southwestern and southeastern Air Defence Identification Zone (ADIZ).
The Chinese military aircraft came as close as 72 kilometres from Eluanbi in the south and 77 kilometres from Keelung in the north, according to a Taiwan News report. In response to China’s action, Taiwan’s armed forces monitored the situation and responded accordingly.
In a post on X, Taiwan’s MND stated, “30 PLA aircraft and 9 PLAN vessels operating around Taiwan were detected up until 6 a.m. (UTC+8) today. 23 aircraft entered Taiwan’s southwestern and southeastern ADIZ.#ROCArmedForces have monitored the situation and responded accordingly.” (ANI)
Huang previously exposed the use of Chinese-made inverters in the military’s optical communication projects….reports Asian Lite News
An investigation by Taiwan’s government into the use of Chinese-made technology by their military has revealed the use of Huawei routers at an Army base, Taiwan-based Taiwan News reported on Saturday.
Taiwan People’s Party (TPP) Legislator Huang Kuo-chang continued investigating an optical communication procurement case, questioning the military’s use of Huawei routers. The Ministry of National Defence’s Armaments Bureau confirmed on Thursday that two Huawei routers and one Advantech Co. data reader made by a Chinese manufacturer were found at the Army’s Hongchaolin Camp, and the bureau plans to penalise the contractors responsible, Taiwan News reported, quoting the Central News Agency.
Huang previously exposed the use of Chinese-made inverters in the military’s optical communication projects. On Thursday, he said the industrial computers used in the project were also made in China, potentially compromising national cybersecurity.
Earlier, in October 6, 2023, Taiwan conducted an investigation to determine whether four of its companies violated US sanctions or Taiwanese investment regulations by providing services to Chinese firms reportedly assisting Huawei in building semiconductor plants.
Emile Chang, an official from the Ministry of Economic Affairs responsible for investment oversight, stated that an “administrative probe” has been initiated into the four Taiwanese companies mentioned in a media report.
The four firms under scrutiny-Topco Scientific, United Integrated Services, L&K Engineering Co, and Cica-Huntek Chemical Technology–have all denied any allegations. They clarified in separate statements that their involvement was limited to wastewater management, interior decoration, or approved construction work in Taiwan, with no supply of semiconductor materials or equipment.
Huawei has been at the centre of the tech rivalry between the United States and China in recent years. Concerns about potential espionage on behalf of the Chinese government led Washington and its allies to restrict Huawei’s access to advanced chip technology and chip manufacturing equipment. Huawei, however, has consistently denied these allegations. (ANI)
The celebrations in Shimla saw Tibetan Buddhists offering long-life prayers and a rich tapestry of cultural performances showcasing the diverse heritage of the Tibetan and Indian communities…reports Asian Lite News
The Tibetan community in exile across the globe joined together in celebration today, marking the 89th birthday of the 14th Dalai Lama. Festivities were particularly vibrant here in Shimla, where members of the Tibetan and Hindu-Buddhist communities gathered to honour the spiritual leader with cultural performances and prayers.
The Dalai Lama, revered as a spiritual guide and symbol of compassion worldwide, holds immense significance for the Tibetan community, serving as a beacon of hope and unity.
Tsewang Phuntsok, Chief Representative Officer of the Central Tibetan Administration, underscored the profound influence of the Dalai Lama in his remarks to ANI.
“Yeah. Today, not only here in Shimla, but all over the Tibetan community around the world, we are celebrating His Holiness Dalai Lama’s 89th birthday,” Phuntsok stated, emphasising the global reach and deep reverence for the Dalai Lama’s teachings on non-violence and compassion.
The celebrations in Shimla saw Tibetan Buddhists offering long-life prayers and a rich tapestry of cultural performances showcasing the diverse heritage of the Tibetan and Indian communities. Monks, students, and locals gathered in unity to express their gratitude and respect for The Dalai Lama.
Speaking on the importance of the occasion, Phuntsok remarked, “His Holiness Dalai Lama is everything for the Tibetan, the living Buddha. So on this auspicious occasion, we pray for his long life daily.”
The celebrations were also witnessed in Dharamshala, which not only reinforced the bonds within the Tibetan community but also demonstrated the deep admiration and respect that transcends borders and cultures for the Dalai Lama.
As the sun set over Shimla, prayers for the long life of The Dalai Lama echoed through the serene hills, symbolising a profound connection to spirituality and unity among those who gathered to honour the 89th birthday of the revered leader. (ANI)
The 15th anniversary of the Urumqi Massacre was marked by various groups and individuals concerned with human rights…reports Asian Lite News
Uyghur Americans commemorated the 15th anniversary of the Urumqi Massacre in front of the Chinese Embassy in Washington, DC. The Uyghur Americans Association shared pictures of the protest on X.
In a post on X on Friday, the Uyghur Americans Association stated, “Uyghur Americans commemorated the 15th anniversary of the Urumchi Massacre in front of the Chinese Embassy in Washington, D.C., today.”
The tragic events unfolded on July 5, 2009 as thousands of Uyghurs took to the streets in a march towards the People’s Square in central Urumchi to protest the Chinese government’s handling of the Shaoguan incident.
A large number of people were killed and sustained injuries in three days of violence between ethnic minority Uyghurs and Han Chinese that began on July 5, 2009, in Xinjiang’s largest city, Urumqi. This incident involved the deaths of several Uyghurs at the hands of a mob of Chinese factory workers during a dispute.
The 15th anniversary of the Urumqi Massacre was marked by various groups and individuals concerned with human rights, Uyghur advocacy, and remembrance of the victims. These events typically serve as a platform to raise awareness about the Urumqi Massacre, commemorate the victims, and advocate for justice and accountability.
There are several significant issues concerning Uyghurs in China. Reports from various sources indicate that Uyghurs and other ethnic minorities in the Xinjiang region face widespread human rights abuses, including arbitrary detention, forced labour, forced assimilation practices, and religious and cultural repression.
The Chinese government has been accused of detaining hundreds of thousands of Uyghurs in internment camps under the pretext of combating extremism and terrorism. These camps are reported to subject detainees to indoctrination, abuse, and harsh conditions.
According to reports, Xinjiang is heavily monitored through surveillance technologies, including facial recognition, AI-driven monitoring systems, and mass data collection.
On July 5, The World Uyghur Congress (WUC), an Uyghur rights organisation based in Munich, Germany in a statement released on Friday, condemned the Chinese authorities for the atrocities they inflicted upon the Uyghur community of East Turkistan.
The WUC slammed Beijing and stated that the country must take responsibility for atrocities in the East Turkestan/Xinjiang region, and compensate the victims for the losses they had suffered.
In a post on X, World Uyghur Congress stated, “On the occasion of the 15th anniversary of the Urumchi massacre, the WUC & @GfbV demand that the government must finally recognise its responsibility for the massacre of the Uyghurs in East Turkistan and compensate the victims.”(ANI)
The event was organised by CAP Liberte de Conscience, Campaign for Uyghurs, and Centre for Uyghur Studies….reports Asian Lite News
Human rights activists, diplomats, and other intellectuals highlighted the growing Islamophobia in China targeting Uyghur Muslims and Kazakhs during a side event at the UN Human Rights Council’s 56th session in Geneva.
The event was organised by CAP Liberte de Conscience, Campaign for Uyghurs, and Centre for Uyghur Studies.
The gathering brought together global experts, civil society leaders, and policymakers to strategise on effective measures and foster international cooperation.
Abdul Hakim Idris, a senior member of the World Uyghur Congress, underscored the dire situation, citing mass detentions of Uyghur Muslims and Kazakhs in alleged concentration camps since 2014.
He condemned the Chinese government’s actions, including the destruction of mosques and religious materials, and the imposition of sinicization policies erasing Uyghur customs.
“Millions of Uyghur Muslims and Kazakhs are detained in concentration camps under the pretext of radicalization. Since 2014, thousands of mosques have been demolished, closed, or repurposed. The Chinese government has burned Qurans and destroyed religious materials. In 2017, the government labelled Islam as a mental illness to be eradicated under sinicization. Uyghur customs are forced to conform to Chinese norms, erasing Islamic elements from their architecture,” said Abdul Hakim Idris.
Reflecting on historical grievances, Rushan Abbas, founder and executive director of the WUC, recounted decades of oppression by the Chinese Communist Party (CCP), accusing it of genocidal policies under the guise of counterterrorism.
She said, “In 1949, the CCP claimed our land and began oppressing our people, who possess rich resources and strategic importance. My people have endured the CCP’s genocidal policies disguised as counterterrorism.”
The United States Ambassador to the UN Human Rights Council, Michele Taylor, delivered a strong condemnation, labelling the situation in Xinjiang as potentially constituting international crimes, including crimes against humanity.
She said, “I want to be clear from the beginning that we condemn in the strongest terms the policies in Xinjiang, which, according to the High Commissioner’s assessment, may amount to international crimes, including crimes against humanity. The US has consistently called for the PRC (People’s Republic of China) to cease its human rights abuses in Xinjiang.”
She called for immediate action, demanding the release of arbitrarily detained individuals, the cessation of human rights abuses, and the end of discriminatory policies in Xinjiang.
“We call for the PRC to release all arbitrarily detained individuals in Xinjiang, halt harassment, surveillance, and threats both domestically and abroad, end discrimination based on culture, language, religion, or belief, and abolish forcible assimilation policies. Furthermore, we demand an end to forced labour, forced marriage, birth control, sterilisation, abortion, and family separation policies in Xinjiang,” Taylor emphasised.
The event underscored global concerns and calls for justice, emphasising the urgency of addressing human rights violations in Xinjiang and ensuring the dignity and rights of affected Muslim communities. (ANI)
Experts suggest that China’s provocative actions in the South China Sea are not only acts of aggression but also attempts to drag the US to the brink of war….reports Asian Lite News
Chinese coast guards engaged in a confrontation with Filipino sailors in waters controlled by the Philippines while these boats were transporting daily supplies to the Philippine military. According to visuals released by the Philippine military, the behaviour of the Chinese coast guards resembled that of non-state actors such as pirates rather than a state military.
The disturbing footage shows three Chinese boats aggressively attempting to overtake the Filipino vessel. During the ensuing scuffle, Chinese coast guards brandished knives and used strobe lights to obscure the cameras recording the aggression.
They rammed the Filipino boat, seizing and destroying essential supplies meant for the troops. One Filipino sailor lost his thumb in the attack.
These visuals are reminiscent of Chinese aggression in disputed territories, similar to the Galwan Valley clash during the peak of the Covid-19 pandemic, which resulted in the deaths of 20 Indian soldiers and 40 Chinese soldiers.
At the core of this dispute are China’s erratic claims over the South China Sea.
What is at the heart of the Dispute
The South China Sea, located between the Indian and Pacific Oceans, is a shared maritime area involving China, Japan, the Philippines, Vietnam, Malaysia, and other Southeast Asian nations. China arbitrarily claims the largest portion of this maritime space.
The South China Sea is globally significant, with around $3 trillion of international trade passing through it annually.
Additionally, it is rich in natural resources, including substantial oil and gas reserves.
As China ascended to economic power, it began asserting its erratic claims over territories already historically demarcated by other South-East Asian states.
In 2016, due to these contentious claims, the Philippines initiated an international arbitration action against China under the United Nations Convention on the Law of the Sea (UNCLOS).
The Permanent Court of Arbitration ruled in favour of the Philippines, finding no legal basis for China’s claims.
China, however, responded negatively to the arbitration ruling and refused to accept the binding decision. In response to China’s aggressive stance in the region, major Southeast Asian powers, including the ten ASEAN members, Japan, India, Australia, and the US, have attempted to establish mechanisms for a free and open Indo-Pacific, which China opposes.
The recent confrontation between the Philippines and China in the South China Sea is not an isolated incident.
To strengthen its claim, the Philippines positioned a World War II-era ship, the Sierra Madre, on the partially submerged Second Thomas Shoal in 1999, stationing marines on it.
Over the past 25 years, the Philippines has consistently supplied essentials to the ship.
In 2021, China typically deployed only one ship during these resupply missions, but by 2023, this number had increased to an average of 14 ships. In one operation in December of last year, researchers identified at least 46 Chinese ships monitoring the second Thomas Shoal.
China continually provoking Philippines
The June 2024 incident is one of many aggressive acts by China in recent years, each escalating in provocation.
For instance, on April 30 this year, near the contentious Scarborough Shoal, Chinese coast guard ships fired water cannons at two Philippine patrol boats. Philippine officials indicated that water cannons could damage their ship engines or even capsize smaller vessels.
A similar incident occurred in March when Chinese coast guards fired water cannons near Philippine boats, injuring several crew members.
The Philippines has a longstanding security treaty with the US, one of the oldest such agreements between the US and its Asian allies.
This treaty stipulates that the US will assist the Philippines in the event of an attack or war-like situation. The Philippines has clarified that this protection extends to attacks on its coast guard.
Experts suggest that China’s provocative actions in the South China Sea are not only acts of aggression but also attempts to drag the US to the brink of war.
In his keynote speech at the Shangri-La Dialogue in Singapore this year, Philippine President Ferdinand “Bongbong” Marcos Jr. declared that any fatalities resulting from the ongoing standoff with Beijing in the South China Sea would be “very, very close to… an act of war”.
Responding to a question on US-Philippines mutual defense, he asserted that “we would have crossed the Rubicon” in such a scenario.
Conclusion
China has actively provoked nearly all of its neighbours, with the exception of Russia. Central to its aggression is the desire for hegemonic and authoritarian dominance in Asia.
China has consistently antagonised its neighbours, including India, Japan, Vietnam, and now the Philippines.
This pattern has intensified since Xi Jinping ascended to power. Experts describe this behaviour as ‘bluff brinkmanship’, where China’s grey zone military maneouvers, whether in the Galwan Valley or the South China Sea, have jeopardised regional security to assert its dominance.
Similar tactics were evident in the recent clash involving knives and fists between China and the Philippines.
Should a soldier use a lethal weapon next time, it could escalate into full-scale war.
Notably, post-pandemic, China’s economy is faltering, causing anxiety for Xi Jinping’s authoritarian regime, which may explain the surge in skirmishes over the past decade.
The international community must address China’s ongoing military escalation, while the threatened powers need to develop a collective strategy to counter its aggression.
Ferdinand Marcos Jr. sworn in as Philippines’ 17th President.(photo: https://www.facebook.com/photo/?fbidV2368058591112&set=pb.100044537672013.-2207520000 )
‘Philippines won’t get intimidated’
Amid China’s growing aggression, Philippines’ President Ferdinand Marcos Jr has said that the nation would not be intimidated by Beijing’s expansionist acts.
His remarks came at the headquarters of Philippine South China Sea forces at Palawan island.
According to the Philippine President “In defending the nation, we stay true to our Filipino nature that we would like to settle all these issues peacefully.”
During the visit to the headquarters, Marcos awarded medals to 80 sailors who took part in the resupply mission, and urged the sailors to continue defending their nation despite the situation being “dangerous”.
Quoting Marcos as saying, Al Jazeera reported that the Philippines will continue to exercise its freedom.
“We will never be intimidated or oppressed by anyone. Continue to exercise our freedoms and rights in support of our national interest, in accordance with international law,” Marcos said.
The statement came as a response towards the recent incident of a violent clash between Chinese and Philippine sailors near the Second Thomas Shoal about 200 km away from Palawan island.
During that incident, the Chinese forces injured Filipino navy personnel and damaged at least two military boats in the South China Sea.
Additionally, the Filipino sailors also accused Chinese coastguards of stealing and damaging their equipment, the Al Jazeera report claimed.
Previously, the Philippines News Agency (PNA) had reported that the Armed Forces of the Philippines had rejected China’s allegation that a Philippines ship illegally entered its waters and collided with one of its coast guard vessels, terming it “deceptive and misleading of the China Coast Guard.
In a message to reporters, Armed Forces of the Philippines (AFP) public affairs office chief Col. Xerxes Trinidad stated, “The AFP will not discuss operational details on the legal humanitarian rotation and resupply mission at Ayungin Shoal, which is well within our EEZ (exclusive economic zone).” Trinidad added, “We will not dignify the deceptive and misleading claims of the China Coast Guard (CCG),” PNA reported.
The AFP official stressed that the presence and actions of Chinese vessels within the Philippines’ exclusive economic zone (EEZ) that infringe on Manila’s sovereignty and sovereign rights remain the main issue.
Trinidad said that the China Coast Guard’s continued aggressive actions escalated tensions in the region, according to PNA
The statement of the Armed Forces of the Philippines came after the China Coast Guard (CCG) claimed that a Philippine replenishment ship illegally entered waters near Ren’ai Reef (Chinese name of Ayungin Shoal) on Monday last week, forcing them to take appropriate actions.
Notably, Ayungin Shoal is a submerged reef in the Spratlys Islands in the South China Sea (SCS). The BRP Sierra Madre, which is considered an outpost of the Philippine Navy, has been grounded in Ayungin since 1999. (ANI)
This comes after the Chinese coast guard boarded and seized Da Jin Man No. 88 and detained its crew on July 2….reports Asian Lite News
The US State Department said on Thursday that it is closely monitoring the status of a seized Taiwanese fishing boat by China and its crew, Taiwan News reported.
This comes after the Chinese coast guard boarded and seized Da Jin Man No. 88 and detained its crew on July 2.
A US State Department spokesperson told CNA it is monitoring the situation and encouraging both parties to “maintain open lines of communication” to resolve the matter peacefully.
The Taiwanese boat was intercepted by two Chinese coast guard ships 43.89 km (23.7 NM) northeast of Liaoluo Bay in Kinmen and taken to Fujian’s Weitou Port. Two Taiwanese and three Indonesians were on board the fishing vessel, as reported by Taiwan News.
The Taiwan Coast Guard Administration (CGA) said on Wednesday that the incident occurred within Chinese waters. The CGA also said it would request relevant authorities to advise the fishing associations to avoid operating in these waters during China’s summer fishing moratorium.
CGA Deputy Director-General Hsieh Ching-chin said that follow-up negotiations with China would be handled through the Mainland Affairs Council and the Fisheries Agency. Hsieh called for the release of the crew and boat.
However, China’s Taiwan Affairs Office claimed the vessel’s seizure was an act of “normal law enforcement” and the relevant departments would handle it per laws and regulations.
Earlier in the day, Taiwan’s Ministry of National Defence (MND) has said that it detected 30 Chinese military aircraft and 8 naval vessels operating near its territory from 6 am (local time) on Wednesday and 6 am (local time) on Thursday.
According to Taiwan’s MND, 19 of the Chinese military aircraft crossed the median line and entered Taiwan’s northern, central, southwestern, and southeastern Air Defence Identification Zone (ADIZ). In response to China’s action, Taiwan sent aircraft, and naval ships and deployed coastal-based missile systems to monitor China’s military activity, Taiwan News reported. (ANI)
There are two reasons for this decline in Chinese presence in Africa since the past few years: internal turmoil and problems facing China and the reluctance of the African nations to accept loans from China because of the difficulties associated with BRI projects, writes Vaishali Basu Sharma
The Belt and Road Initiative (BRI) of China has reached a dead end in Africa. Burdened with debt and experiencing corruption scandals, violations of labour laws, environmental hazards and public protests associated with BRI projects, the African nations are increasingly turning them down and now turning to the United States of Africa to fill the need for building infrastructure projects in the continent. India has also been taking a leading role in investing in infrastructure projects in African countries.
A Boston University study in 2023 found that lending to Africa by China has dropped to the lowest level in two decades, says Voice of America. Available data say in sub-Saharan Africa BRI investments fell by 55 percent between 2021 and 2023, from $16.5 billion in 2021 to $7.5 billion in 2023. This region drew $4.5 billion of investment in construction activities in 2022, compared to $8.1 billion in 2021. An Observer Research Foundation study says BRI investments in Africa reached their peak in 2016. After that, Chinese loan volumes have steadily declined in Africa. Between the pre-pandemic years of 2017 to 2019 and the pandemic years of 2020-22 the average volume of loan to African countries fell by 37 per cent. The situation has not been retrieved in the post-pandemic years.
According to these studies, there are two reasons for this decline in Chinese presence in Africa since the past few years: internal turmoil and problems facing China and the reluctance of the African nations to accept loans from China because of the difficulties associated with BRI projects.
China has been facing domestic challenges increasingly in recent years. The revenue of local governments has always played a key role in the economic growth of China. Since the pandemic of 2020-21, the falling values of property and land and increased government spending have caused revenue shortages for local governments. The revenue deficit of provinces crossed the $1000 billion mark in 2022. In 2023, China’s national budget revenue was $3.3 trillion, while the national expenditure grew to $4 trillion, resulting in a deficit of $690 billion. Besides, rising youth unemployment, an ageing population and geopolitical unrest like the war in Ukraine have all contributed to the decision of China to reduce their large-scale debts. As a result, some African countries are stuck with lots of proposals for mega projects but China is not funding them any longer.
In most cases, however, the African countries themselves are turning down fresh proposals for investment under BRI or are withdrawing from ongoing BRI projects. Many BRI projects have faced problems in the stage of implementation and a growing number of borrowers had to struggle to repay their debts to China. Some African governments have been accused of undertaking monstrous white elephant BRI projects; among them Standard Gauge Railway in Kenya and Kampala- Entebbe Expressway in Uganda. The projects are now faced with insurmountable problems of debt repayment and the uncertain global environment putting a question mark on their economic viability. Projects have been executed with little concern for issues related to economic feasibility and social and environmental risks.
Botswana has withdrawn from a 300 km road rehabilitation project because financial negotiations have taken longer than usual because of discrepancies in terms and conditions. Kenya and Uganda have pulled out of negotiations from the Naivasha to Kampala Standard Gauge Railway project for the same reason. “I wish those responsible for the SGR would have looked at repayment. It’s a massive investment project, to have repayment being done in 20 to 30 years,” Kenyan economist Victor Kimosop has been quoted in the VOA report in the contest of the Mombasa to Nairobi and Nairobi to Naivasha railway project.
In the latest setback for BRI in Africa, an oil pipeline being built with Chinese assistance at Niger has been threatened by an internal security crisis. A $400 million deal was signed in April this year with PetroChina for laying the 1,930-km-long pipeline from the Chinese-built Agadem oil field in Niger to the port of Cotonou in Benin. In June, there was an attack on the pipeline by rebel group Patriotic Liberation Front that disabled a part of the pipeline. The group has threatened more attacks if the deal with China is not cancelled.
Among the reasons for unsuccessful negotiations and abandoned projects are disagreements over terms, the risk that African countries will not pay their share of project costs, concern over African debt levels and the problems in executing thermal power projects because of global warming. The Covid-19 pandemic has complicated the situation with respect to repayment of Chinese debt by African countries. Nearly 40 percent of the African countries are now estimated to be at high risk of debt distress. In 2021, 30 of the 48 countries that were part of the G20 Debt Service Suspension Initiative were from Africa. This initiative allows less developed countries to suspend the payment of the principal and the interest on their debts to G20 member countries. China had to write off 23 loans from 17 African countries and provide debt refinancing and deferring of payment to several other African nations. Kenya has already approached the U.S. for financial assistance.
U.S. President Joe Biden has appealed to the African nations that the U.S. can be a better partner in the economic revival of these nations than China. Loans from Beijing carry high interest rates and other difficult terms. China is reluctant to write off foreign debt and is secretive about how much money it has loaned. The U.S. has called on international financial institutions to coordinate debt relief and support through multilateral funding agencies offering better terms.
India is also coming up in a big way to replace China as the main country helping to bridge the infrastructure gap in Africa. The Adani Ports and Special Economic Zone has made an entry in Tanzania with the signing of a 30-year agreement with Tanzania Port Authority to operate and manage a terminal at the Dar es Salaam Port in the east African country. “We are confident that with our expertise and network in ports and logistics, we will be able to enhance trade volumes and economic cooperation between our ports and East Africa. We will strive to transform Dar es Salaam Port into a world class port,” APSEZ Managing Director Karan Adani has said.
Senior executive of India’s Shapoorji Pallonji Group S. Kuppuswami has recently said in Washington that infrastructure projects set up by Indian companies in Africa are helping strengthen ties with African countries and called upon American development finance institutions to collaborate with India to ensure early execution of such projects to regain the trust of nations lost out to China. These projects by India have “phenomenally” strengthened India’s ties with African nations, he has told PTI in an interview.
(The author is an analyst on geopolitical and macroeconomic issues. Email: postvaishali@gmail.com)
The two met on the sidelines of the SCO Meeting of the Council of Heads of State and discussed bilateral issues…reports Asian Lite News
External Affairs Minister S. Jaishankar on Thursday met his Chinese counterpart Wang Yi in the Kazakhstan capital Astana, and said that the “Line of Actual Control (LAC) must be respected and peace and tranquillity in the border areas be always enforced”.
The two met on the sidelines of the SCO Meeting of the Council of Heads of State and discussed bilateral issues ranging from restoring border peace to rebuilding relations.
Agreeing that the prolongation of the current situation in the border areas is not in the interest of either side, the two Ministers had an “in-depth exchange” of views on finding an early resolution of the remaining issues along the Line of Actual Control (LAC) in Eastern Ladakh to “stabilise and rebuild” bilateral relations, the Ministry of External Affairs (MEA) said in a statement.
EAM Jaishankar emphasised the need to redouble efforts to achieve complete disengagement from the remaining areas in Eastern Ladakh and restore border peace and tranquillity.
He also reaffirmed the importance of fully abiding by relevant bilateral agreements, protocols, and understandings reached between the two governments in the past. The Line of Actual Control must be respected and peace and tranquillity in the border areas always enforced, the EAM said.
To resolve the remaining issues at the earliest, the leaders agreed to continue and step up meetings of the diplomatic and military officials.
They agreed that the Working Mechanism on Consultation and Coordination on India-China Border Affairs (WMCC) should hold an early meeting.
The EAM reiterated that the India-China relationship is best served by observing the three mutuals — mutual respect, mutual sensitivity and mutual interests.
The two Ministers also exchanged views on the global situation.
EAM extended to FM Wang India’s support for China’s Presidency of SCO next year.
