China has established a global financial institution that focuses on building roads, railways and other key infrastructure projects crucial to development in Asia. Though there are concerns raised by the United States, the formulation of the AIIB ties China further into a multilateral system.
China has emphasised tirelessly that the Asian Infrastructure Investment Bank (AIIB), its new financial institution initiative, is an open and inclusive multilateral institution. The United States has presented the main opposition to the AIIB, but recently many of the US’s allies have joined the financial institution as founding members.
The AIIB is a test of leadership both for an existing superpower and a rising power. The sharp difference between the US and many of its close allies’ reaction to the China-led AIIB shows the US’s dominance over leading financial institutions is waning. However, a lot remains to be decided as to how the AIIB will work and how far it will test the US’s dominance in this field.
In September 2013 during a visit to Astana President Xi Jinping spoke of establishing a ‘Silk Road Economic Belt’ (SREB) that would ‘open the strategic regional thoroughfare from the Pacific Ocean to the Baltic Sea, and gradually move toward the set-up of a network of transportation that connects Eastern, Western and Southern Asia.’ Made during the President’s inaugural visit to Central Asia, the speech was both an articulation of a policy in a region that had been underway for around a decade, as well as the first declaration of a foreign policy vision that has increasingly shaped China’s own projection of its approach to foreign affairs. Founded in Central Asia, the SREB and the development of trade and infrastructure corridors emanating from China that it has come to symbolize, is slowly becoming Beijing’s dominant and most vocalised foreign policy strategy and is possibly set to be the defining public narrative for Chinese foreign policy under Xi Jinping.
After the deterioration of Russian–Western relations over Ukraine, Moscow has shown itself keen to reinvigorate its relationship with Beijing as a preferred partner – especially but not exclusively in the all-important energy sector. In addition, the two countries’ common ambitions for a multipolar international structure enhance the mutual benefits of a strong partnership. Yet, Sarah Lain argues, the Sino–Russian relationship is characterised by increasing inequality, as Moscow finds itself needing Beijing more than Beijing needs Moscow.
After years of fence-sitting, Beijing appears to have finally decided to admit that it is willing to play a role in Afghanistan’s future. While the exact contours of the part it seeks to play are still uncertain, China’s willingness to be seen to be involved in brokering peace in Afghanistan is surprising for a nation that continues to profess non-interference in other countries’ internal affairs as the core of its foreign-policy credo.
It also remains unclear exactly how China can help to bring the Taliban to the peace table: while it may have the links to both the government in Kabul and the Taliban, it is uncertain that it knows how to bring them together, beyond offering a platform for talks. This activism is nonetheless likely to be welcomed by Western powers. Yet high expectations are not warranted; even if China does ultimately prove that it knows what to do with these talks, its efforts in Afghanistan will ultimately seek to advance its own interests rather than those of the West. Continue reading →
Kazakhstan has faced many security challenges during its 23 years as an independent country. Its geo-strategic position at the heart of Eurasia has led to its adoption of a multi-vector foreign policy championed by its leader and widely emulated in the region. Consequently it has looked to maintain good relations with all its neighbors and has sought membership of a range of international organizations and institutions that it believes enhance its foreign policy objectives. In recent years China has included Central Asia as a region for its economic ambitions, and in the process China has challenged Russia’s historical dominance in this region. As China’s economic activity grows in the region, it would be reasonable to assume that China would seek influence in the sphere of regional defence and security, including that of Kazakhstan. Continue reading →
China’s rise in Central Asia is not a new phenomenon. For the past decade, Beijing has gradually moved to become the most significant and consequential actor on the ground in a region that was previously considered Russia’s backyard. In September last year, President Xi Jinping announced the creation of a ‘Silk Road Economic Belt’ running through the region. Although this declaration is the closest thing seen so far in terms of an articulation of a Chinese strategy for Central Asia, it nevertheless offered more questions than answers.
To understand China’s approach to Central Asia, a wider lens needs to be applied to explore both the detail of what is going on and how this fits into a broader foreign policy strategy that is slowly becoming clearer under Xi Jinping’s stewardship.
A country that could benefit from Russia’s cancellation of South Stream is Turkmenistan. A country that holds almost 10% of the world’s gas reserves, and is home to the globe’s second largest gas field, Turkmenistan certainly has enough gas to supply more markets. After various gas supply disputes with Russia, and a general weakening in geopolitical relations, there is no doubt the European energy security would benefit from a boost in supplies from Central Asia.
Recent steps indicate Turkmenistan is showing renewed signs of interest. In November 2014, Turkmengas signed a framework agreement with Turkey to supply the Trans Anatolian Natural Gas Pipeline project (TANAP), a section of the Southern Gas Corridor project, set to be completed by 2018. The project proposes to transport 16 billion cubic metres (bcm) of gas a year from Azerbaijan’s Shah Deniz II field in the Caspian Sea to Europe via Turkey, aiming to reach a capacity of 31 bcm by 2026.
There are very few details in the public domain about the Turkish-Turkmen deal. And it all sounds a bit familiar. It is not the first time that such a Turkish-Turkmen agreement to cooperate has been signed, and it is unclear if anything concrete has actually been decided.
Furthermore, there are many challenges to Turkmenistan’s participation in the project, the key one pertaining to the long-standing dispute over Continue reading →
The conclusion of the 14th Shanghai Cooperation Organisation (SCO) summit hosted in Dushanbe, Tajikistan, on 11-12 September 2014 resulted in the signing of key documents that set out procedures for accepting new members, including requirements that applicant states need to fulfil in order to achieve full SCO member status. Consisting of China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan, the SCO has not expanded since its evolution from the “Shanghai Five” in 2001. Despite this, discussions relating to SCO membership expansion, specifically in relation to India and Pakistan’s potential entries, have been on the SCO leaders’ table for a number of years. However, it was only at the recent SCO summit that the organization’s leaders have come closer to agreeing on the admission process for new members.
Russian President Vladimir Putin in particular supports SCO expansion. At the Dushanbe summit, he proclaimed the progress over SCO membership enlargement to be of great importance, emphasizing that when Russia takes the SCO chairmanship at the next summit in Ufa in 2015, Continue reading →
Central Asia is emerging as a region that could test the influence of India and China. Although New Delhi is following Beijing’s lead and expanding into this resource-rich and strategically important region, it is set to play second fiddle.
Parts of this article were adapted from the authors’ “China and Central Asia: A Significant New Energy Nexus” in The European Financial Review, April 30, 2013, accessible here.
Over the past decade China has aggressively developed its energy cooperation with Central Asia, which has an abundance of oil and natural gas deposits, and relative political stability. Through its energy relationship with Central Asia, China not only diversifies its access to new energy sources but also gains greater flexibility in playing regional geopolitics that advances its broader national interests.
(Any opinions expressed here are those of the author and not of IHS Jane’s)
China’s northwestern Xinjiang province has again made headlines in 2014, largely because of a number of brutal attacks carried out by militants within the province’s Muslim Uighur population. Among the most notable attacks, 29 people were killed in a 1 March knife attack at a train station in Kunming; on 22 May, 39 people were killed in a market attack in Xinjiang’s capital, Ürümqi; and in July, the Chinese authorities reported that 59 “terrorists” and 37 civilians had been killed in Shache county during an attack on a police station, followed by the murder of a Uighur imam.
The death toll among the militants may, in reality, be much higher as a result of the authorities’ hardline security response. Although the Chinese government interprets such attacks as a product of religious extremism, many Uighurs view them as protests against the discrimination they experience at the hands of the authorities.
According to a poll conducted by the Sharq Research Centre (a Dushanbe-based think tank focusing on migration, economic, social and political issues in Tajikistan), Tajiks view China (the dragon) and India (the elephant) differently. According to results from the Sharq poll, people in Tajik cities in the early 2000s tended to look to India as a friendly nation while they saw China as a potential threat. Over a decade later, little has changed in these perceptions, with Tajiks continuing to view China predominantly with suspicion.
Xinjiang will soon see the launch of its first high-speed railway train that will run from Lanzhou city in neighboring Gansu province to Urumqi, the capital of Xinjiang. The government has hailed this as a significant move that will boost Xinjiang’s economy through more open trade, tourism and connectivity into Central Asia as part of the leadership’s vision of the new Silk Road Economic belt. Yet, the Guardian has countered that the high-speed railway in Xinjiang may end up exacerbating the growing economic inequality in the province.
Dushanbe’s local drivers have been complaining about the city government’s actions in organizing the head of states’ summit for the Shanghai Cooperation Organisation (SCO) which has just taken place on 14 September 2014. The complaints are numerous: The city’s second main street, Ismoil Somoni Avenue, is partially closed; the right lane of the roadway between the President’s Office and the Avicenna memorial is under renovation. This avenue connects with another main road in the city: Rudaki Avenue, where all government institutions are located. The city authorities informed local news agency Asia Plus that the roadway will be closed for 10-12 days; with an increasing number of cars in the city, local taxi drivers believe this could be dangerous for Dushanbe’s roads.
September is the busiest month for India’s foreign office. By the end of the month, Prime Minister Narendra Modi will have visited Japan and the United States and hosted Australian Prime Minister Tony Abbott and Chinese President Xi Jinping. In this list of big-ticket names, Mr Xi’s visit, scheduled for the 17th of this month, is the one diplomatic visit that is likely to be most closely watched.
For decades, harsh political realities have clouded Sino-Indian relations. China and India are nuclear-armed neighbours with a contested border running more than 3,000 kilometres. They went to war in 1962 over their border dispute. The countries have competing claims over Indian-administered Arunachal Pradesh – known as South Tibet in China – and military build-up continues on both sides. China’s tacit support for Pakistan has long been a cause for concern in India, while New Delhi’s sheltering of the Dalai Lama continues to irk Beijing. But with a new leadership at the helm in both countries, there is room for this relationship to improve. Continue reading →