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China, Nepal to focus on cross-border Railway

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Like USA and Russia that have assumed Asia pivot to influence the continent, China also has its own Asia pivot but it also has South Asia pivot too trying to woo the nations to come under its  new Silk  route program nicknamed the ‘One Belt, One Road (OBOR)’ initiative. 

China’s South Asia pivot is yielding fruits as it has been able to rope in maximum of the region: Pakistan, Bangladesh, Sri Lanka and Nepal are now the satellite countries of Beijing, leaving very little scope for India to manipulate or maneuver. Only one country that stays behind the military prowess of India is Bhutan which maintains economic relations with New Delhi as most of the food stuff and other manufactured goods is has come from India. Afghanistan has plenty of compulsions not to annoy economic power India that liberally releases funds for Kabul and also to bowl harmless balls to Indian military batboys for 100s and 50s.

Nepal is one of nations that benefits maximum from Chinese extra enthusiasm for recapturing the Old Silk Road for making itself the real super power and for this reason Katmandu is willing to  annoy New Delhi, though it takes care not to  strain the relations with India.

China and Nepal have agreed to start technical works to build a cross-border railway link via Tibet to boost connectivity.  This was decided during the recent visit of Nepalese Deputy PM and Foreign Minister Krishna Bahadur Mahara to Beijing. “Both sides have agreed to move forward technical works relating to construction of Nepal-China cross-border railway line.

China has also developed close relations with Sri Lanka during the regime of former president Mahinda Rajapaksa whose nearly decade-long tenure was ended by Sirisena in 2015.  Also, the USD 1.5 billion Chinese-funded Colombo Port City project had sparked off security concerns in India.

China already has strong ties with Pakistan and the two countries are working closely on developing the USD 46 billion China-Pakistan Economic Corridor.

 Connectivity

 The bilateral relation between Nepal and China has been friendly and is defined by the ‘Sino-Nepal Treaty of Peace and Friendship’ signed on April 28, 1960 by the two countries. The government of Nepal, though initially unenthusiastic about its ties with People’s Republic of China, has been of late making efforts to increase trade and connectivity with China while also simultaneously trying to decrease its reliance on India.

The Araniko Highway that connects Kathmandu to Kodari and onwards to Tibet did not encourage dreams of multi-laned container traffic flowing down even before the 2015 earthquake. Post the quake, China closed the route after massive landslides in Tibet, leaving only one road that connects Kathmandu to Tibet – the Rasuwagadhi highway, built upon an old trade route that connected Nepal to Tibet via the Kerung pass.  It was through this highway – still under construction in most sections in Nepal, and perhaps the most affected highway during the quake – that petroleum arrived in Kathmandu in 2015 during the infamous Indian blockade. It is also this highway that will connect Nepal to the much-flaunted Chinese Belt Road Initiative (BRI), with the Chinese interested in building Kathmandu itself.

Relations between Nepal and China got a boost when both countries solved all border disputes along China–Nepal border by signing the Sino-Nepal boundary agreement on March 21, 1960. The government of both Nepal and China ratified the border agreement treaty on October 5, 1961. From 1975 onward, Nepal has maintained a policy of balancing the competing influence of China and Nepal’s southern neighbour India, the only two neighbors of the Himalayan country after the annexation of the Kingdom of Sikkim by India in 1975. Since 1975, Sino-Nepal relations have been close and grown significantly with China being the largest source of FDI, while India still remains one of the major sources of remittance to Nepal. As per the estimate of Nepalese government, there are around 2-3 million Nepalese migrant workers in India while the number of Nepalis in China is minuscule (3,500 in Mainland and 15,950 in Hong Kong) as of 2017.

In the late 1970s after the annexation of Kingdom of Sikkim by India, King Birendra of Nepal proposed Nepal as a “zone of peace” between India and China and in the 1980s, Nepal began importing Chinese weaponry. When the United States, United Kingdom and India refused to supply arms to the regime of King Gyanendra of Nepal, who had assumed direct rule to suppress the Maoist insurgency during the Nepalese civil war (1996–2006), China responded by dispatching arms to Nepal, in spite of the ideological affinity of the Maoists with China.

 After the peace process and national elections in Nepal in 2008, the new Maoist-led government announced its intentions to scrap Nepal’s 1950 treaty with India, indicating a stronger move towards closer ties with China. In 2007-08, China began construction of a 770-kilometre railway connecting the Tibetan capital of Lhasa with the Nepalese border town of Khasa, connecting Nepal to China’s wider national railway network   In a meeting between Chinese and Nepalese officials on 25 April 2008, the Chinese delegation announced the intention to extend the Qingzang railway to Zhangmu (Nepali: Khasa) on the Nepalese border. Nepal had requested that the railway be extended to enable trade and tourism between the two nations. On the occasion of the Nepali premier’s visit to China it was reported that construction will be completed by 2020. The section Lhasa-Shigatse opened in August 2014.

China last year agreed to consider building a railway into Nepal and to start a feasibility study for a free trade agreement with landlocked Nepal, which has been trying to lessen its dependence on its other big neighbour India.

Belt and Road

Nepal also signed up to President Xi Jinping’s Belt and Road initiative which is opposed by India as it passes through Pakistan-occupied Kashmir. Of late, India takes special interest about parts of Jammu Kashmir being controlled by Pakistan while does not want anyone to mention about its own occupied and heavily militarized and hence highly terrorized parts of Jammu Kashmir. As an ambitious South Asian power  India is also engaged with both USA and Israel to jointly control the world,  It has of late developed double speaks as well. 

During the high-level talks in Beijing, Mahara had requested China to forward the work relating to preparation of a Detailed Project Report for the construction of inter-country railway line giving it high priority, it said. However, China’s state-run People’s Daily has claimed that during Mahara’s visit to China early this month a deal has been struck to establish the rail link. It said the rail link includes two lines: one connecting three of Nepal’s most important cities and two between China and Nepal.

The daily, however, did not identify the Nepalese cities. The Sino-Nepali railway, which passes through the Chinese border town of Zhangmu and connects with routes in Nepal, will be the first railway by which China enters South Asia, said Zhao Gancheng, director of the Centre for Asia-Pacific Studies at the Shanghai Institute for International Studies. “Although the railway connection between China and Nepal is intended to boost regional development and not for military purposes, the move will still probably irritate India,” he was quoted as saying by the daily – the ruling communist party’s official mouthpiece.

Prime Minister Prachanda today said Nepal was keen to be involved in the One Belt One Road project proposed by China and reiterated Nepal’s commitment to the One China policy during a meeting with Chinese Defence Minister here.  General Chang Wanquan, who leads the 2.3-million-strong Peoples Liberation Army (PLA), the world’s largest, arrived here today with a 19-member delegation on a three-day goodwill visit at the invitation of Defence Minister Balkrishna Khand. Chang, the first Chinese Defence Minister to visit Nepal in 16 years, discussed with Prachanda bilateral military cooperation and the One Belt, One Road (OBOR) initiative, an ambitious project viewed with suspicion by India.

Prachanda said Nepal was keen to be involved in the OBOR project, a pet project of Chinese President Xi Jinping. He also reiterated Nepal’s commitment to the One China policy and said it would not tolerate any activity against Tibet and Taiwan. Prachanda also expressed his happiness over the cooperation that armies of Nepal and China have developed of late, the Prime Ministers Secretariat said in a statement after the meeting.

India has some concerns over the OBOR, which includes a maze of projects connecting China with Euro-Asia and is floated by Beijing as a connectivity and economic project. Thanking China for its support to Nepals economic development, Prachanda wished a complete success of Changs visit.

Prachanda is the first Chinese Defence Minister to visit Nepal after a gap of 16 years, which is a matter of pleasure for us,” said a senior official at the Defence Ministry.  The visit comes ahead of the Indian Army chief General Bipin Rawats four-day official visit to Nepal from March 28.

The Chinese defense ministers visit coincides with the first joint military exercise between the Nepal Army and the PLA scheduled later this year. Chang will receive a briefing on the joint exercise and also visit Nepal Army’s Kathmandu Valley unit. He called on President Bidya Devi Bhandari tomorrow and meet his Nepalese counterpart Balkrishna Khand and Nepal Army chief Rajendra Chhetri.

Chang and Nepalese officials discussed issues relating to bilateral military cooperation and proposed joint military exercise, according to officials.

The delegation accompanying Chang discussed the ideas floated last year by then Nepalese prime minister KP Sharma Oli during his visit to China. A possible support to Nepal Army from China was hinted at.

Prachanda visited China to take part in the Boao conference which is committed to promoting regional economic integration and bringing Asian countries closer to their development goals. He said that the main objective of his visit to China will be to build confidence though there is no plan to sign any new agreement. Prachanda said he will hold high-level talks with Chinese officials during the visit, which will be instrumental in strengthening bilateral relations. He will also meet Xi.

Hours before flying to China, Prachanda held discussions about agenda of the visit with former prime ministers, former foreign ministers and foreign policy experts at his official residence. 

With Nepal willingly joining the BRI, commentators in both Nepal and India have argued that the move signals Kathmandu’s willingness to move away from the Indian ‘sphere of influence’. With India and China now locked in a stand-off in Doklam, commentators are also asking what this means for smaller nations like Bhutan and Nepal to be in the midst of two clashing giants.

Military

Sino-Nepalese military ties are growing stronger of late. Nepal and China today began their first-ever joint military exercise with a special focus on combating terror, amidst Beijing’s increasing forays into South Asia causing concern in India.  The 10-day-long military drill “Sagarmatha Friendship 2017” that will last till April 25 is being organised by the two countries as part of their preparedness against terrorism that has posed as a serious security threat globally, the Nepal Army said.  Sagarmatha is the Nepali name of Mt Everest, the world’s highest peak.

The Chinese Peoples Liberation Army’s squad arrived in the capital to participate in the military exercise that will focus on counter terrorism and disaster response. The joint training with China marks Nepal Army’s extension of military diplomacy. The Nepal Army has long been conducting joint military drills with Indian and American Army. “A small Chinese troop will be participating in the first ever drill with an equal number of Nepali Army personnel,” said military spokesman Jhankar Bahadur Kadayat.  He did not mention the strength of the participating troops. The exercise will take place at the Army’s Maharajgunj-based Training School, where Yuddha Bhairab, Mahabir and Bhairabnath Battalions are located.

The Nepali Army has said the joint military exercise with China is a step towards preparations against the possible threat from terrorism.

It maintains that the drill is a part of its regular bilateral and multilateral military exercises aimed at sharing experiences, skills and professional knowledge which it has been doing regularly with the nations that Nepal shares diplomatic ties.

Nepal had proposed joint military exercises during Chinese Defence Minister General Chang Wanquans official visit to Nepal on March 24. Experts believe that the joint military exercise could make India uneasy as China attempts to exert influence in the region. Nepal, a landlocked country, is dependent on India for its imports.

Crises

 Nepal has just come out of its two greatest crises namely natural crisis in the form of earthquake & constitutional crisis. Both the events have shaken the roots of Himalayan country.  However, two events had contrastingly affected the India-Nepal relations. Cooperation & timely support during the earthquake proved India’s worth for Nepal & its irreplaceable geostrategic position. However, forming of new constitution & its implementation created a tense scenario between the two nations & overshadowed the Indian rescue efforts during earthquake.

In both the events China took advantage to deepen its ties with Nepal & put India on the strategically disadvantageous position, whereas, Nepal also seems to play the China card with India on India’s suggestions for the demands of Terai people and constitutional reforms i.e. for more representation of Terai people in parliament, provincial territory demarcations and issues related to citizenship rights.

In September 1961, King Mahendra had embarked on a 17-day state visit to China, where he was feted as an ‘esteemed friend of the Chinese people’. Mahendra had carried out his royal takeover the year before, and Indian PM Jawaharlal Nehru was not happy with this new development.

Big brother

Despite talks between Nehru and Mahendra, the Delhi-Kathmandu relationship continued to deteriorate under the face of cross-border attacks by the Nepali Congress rebels, and in September 1962, India imposed an “unofficial and undeclared economic blockade on Nepal” – but even as Mahendra began to get frantic and Kathmandu’s response turned ‘hysterical’ to the blockade, the Sino-Indian war began on October 20 that year.

China proposed the establishment of an economic corridor among the three countries to promote trilateral cooperation and common prosperity. Nepal can become a stage for mutually beneficial cooperation between China and India, rather than an arena for competition.

India poses to be a Big Brother in the region and refuses to make the region tension free by quickly resolving the Kashmir issue by surrendering them their sovereignty that would eventually herald a new peaceful and genuinely surrounding in the region. India needs to work to resolve the issues through diplomacy and mutual cooperation.

Indian blockade caused economic problems and social tensions problems as well as irritation in Nepal. Nepal had witnessed a shortage in essential supplies from India during the 2015 Madhesi blockade. China at that time had extended its help to Nepal to ease the situation.

 Observation

India is treating South Asia and the Indian Ocean as its backyard with a hard-line manner and the way the Indian Pm Modi went around the region soon after his rise to power vindicates that impression. .

Now it is necessary to analyze the current situation whether growing proximity of China and Nepal is a real threat for India or it’s just an overemphasized perception and if it’s a new reality in triangular relations how India is going to be affected by it.

 Nepalese nationalists in Nepal lauded the king for taking the country away from the Indian dependence. One can conclusively argue it was the 2015 blockade that turned Kathmandu towards Beijing.

China’s deepening economic ties in South Asia – set to be further strengthened through the “One Belt, One Road” initiative – would likely be followed by closer security ties as well, despite Delhi’s unease.

China hopes India can understand the pursuit of China and regional countries for common development, and be part of it. However, New Delhi doesn’t share this thinking, instead seeking to balance China and overtake it. If such tendencies in India continue, China may even fight back, because it cannot digest if its core interests are violated. “This is not what we hope for, but the ball is in India’s court,” so reads a Chinese the commentary.

 Beijing warns India of action if its interests are threatened by New Delhi’s actions. China’s Defence Minister and People’s Liberation Army General Chang Wanquan made a rare visit to Sri Lanka and Nepal, and Chinese state media warned India that Beijing will “fight back” if Delhi interferes into China’s relations with South Asian countries.

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East Asia

The dynamic of Chinese Premier’s visit to EU headquarters

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In the wake of Chinese Premier Li’s attendance at the meeting of the Council of Heads of Government of the Shanghai Cooperation Organization in Dushanbe, he and his entourage started the third stop of their Eurasian trip in which Premier Li also attended the opening ceremony of the 12th Asia-Europe Meeting summit in Brussels, the Capital of the European Union. In view of the strained relations between China and the United States over the past months, it is clear that China aims to intensify the partnership with the EU.

This year’s summit on the theme of “Europe and Asia: global partners for global challenges”, was attended by the leaders from over 50 Asian and European countries and representatives from international organizations. As Nicolas Chapuis, EU’s envoy to Beijing, remarked that it was a meeting of minds, all looking for ways to better safeguard a rules-based international order, at a time when globalization is under attack. Given that the general context where globalization is in question, China has equally faced new challenges globally. For sure, it is necessary to further work between China and the EU to bring stability, and to bring prosperity to both sides and beyond.

As the EU has aimed to play a civilian power rather than a conventional great power, China and the EU have vowed to address climate change and international developments which are two areas where China and the EU have a great deal of potential to work together and actually have cooperated substantially in addressing climate change, poverty alleviation, access to water, small and medium businesses and surely education for young women. Both the Netherlands and Belgium are the advanced member states of the EU and the original founding states of the European Common Market. In addition, they have argued for high importance on developing their relations with in all areas of agriculture, energy, infrastructure and connectivity which must be carried on under the United Nations framework. It meant that China and the EU have concluded the consensus on upholding multilateralism and common development. It is held that the treaty signed on October 18will help China and the EU further open to one each other and eventually contribute to forging free trade and fair cooperation on investment between the two sides.

EU, as the largest economy of the world, believes that the future of peace, security, stability, and prosperity lies in the multilateral framework. Due to this, it is imperative for the EU and China to continue their persistent efforts in upholding the spirit of the 2015 UN’s Climate Change Conference, and finding creative solutions to the challenges facing the world right now. As what the summit meeting between Li and European Commission President Jean-Claude Juncker demonstrated that our global village is the place only where we can live, the time of closed borders is the past. The future is open borders.

Besides climate change and international development, what China would like to achieve from its Premier’s visit to the EU is self-evident: China, as a rising power and also the defender of the current trade rules and the global system, has reiterated its sincerity of peaceful rise. By approaching to the EU, China aims to demonstrate its willingness to protect intellectual property rights for products from the EU alongside other countries. Equally, the two sides have reached the EU-China Comprehensive Agreement on Investment, which would further open market access for companies as well as set rules to protect investors from both sides.

For sure, trade is still a pivot in China-EU relations and has to be held through negotiations and cooperation. As the birthplace of modern diplomacy which highlights the core concepts of negotiation, persuasion and mutual compromise if necessary, EU and China would be comfortable to work together through more dialogue and joint actions in addressing challenges and pressing issues facing the world today, such as trade frictions and reform of the World Trade Organization.

Moreover, spurred by the protectionist voices in Washington, the July EU-China summit in Beijing was significant in that both sides were able to agree a lengthy statement, something that they could not achieve in the two previous EU-China summits. To that end, when both sides sought to emphasize areas of cooperation rather than divergence, they also expressed support for the rules-based multilateral trading system and agreed to set up a working group on reform of the WTO. Both sides also agreed an exchange of market access offers that should give an impetus to the ongoing negotiations for a bilateral investment agreement. Moving these talks towards a conclusion would be of critical importance in preserving free trade. China confirmed its commitment to acceding to the WTO Government Procurement Agreement (GPA). In brief, both sides have discussed connectivity — taking stock of progress in the EU-China connectivity platform — and exchanged views on the digital economy, including how to avoid introducing market access barriers through their respective cybersecurity regulations.

In addition to business and investment, China, as both a rising power and a developing country as well, has been early keen in the advanced technology and innovative learning as well. For example, Premier Li frankly said that China is willing to further enhance cooperation with Belgium in innovation and high-technology under the principle of paying full respect to law and commitment from both sides. Therefore, the cooperation in technology and innovation as well as safe use of nuclear energy were among the topics of the meetings of Chinese Premier with his host countries. Remembering that advanced technologies from the EU will have great market potential in China, and China will give strict protections to intellectual property according to the essential rules and a rules-based international order and free trade.

The EU has now come out with its own connectivity strategy for linking Europe and Asia with an emphasis on sustainability and transparency. Some have viewed it as a response to China’s Belt and Road Initiative. But given the demand for new infrastructure development, there is a clear need to help countries between Europe and Asia improve their economies.

Even though we have different perceptions of some of the world issues, Chinese are optimistic about their relationship with the EU. Not long ago, however, there are complaints that the EU has reneged on a promise to grant China market economy status and its growing protectionism. China considers the proposed screening of Chinese investments in the EU as an unfriendly act. Although the EU and China have signed impressive documents outlining their mutual desire to deepen their strategic partnership, relations have rather stagnated over the above trade disputes. Yet, majority of Chinese young people and intellectual elites have looked to the EU for the originality, innovation and creativity.

Geographically far off from each other, the EU and China can understand each other from their experiences in history. Particularly, China holds fast that since it is a key part of the family of civilized states, Chinese thought or culture, the principles at the basis of Chinese history and life, must be understood through regular communications and dialogues at all the levels. This is the nature of Chinese Premier Li’s visit to the headquarters of the European Union.

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Twists and Turns in US -China Trade War

Gen. Shashi Asthana

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US Secretary of State Mike Pompeo’s stopover at Beijing on 08 October may not have been a pleasant experience, more so in the backdrop of accusation of US Vice President Pence about  China attempting to interfere in U.S. elections. The agenda of North Korean denuclearisation, where US and China were broadly agreeing earlier, seems to have taken a back seat, and improvement of relations doesn’t seem to be realistic in near future. The ongoing trade war continues as both sides dig their heels despite being the biggest trading partners of each other, because it is also linked with global dominance, strategic and military posturing, diplomatic and information offensive.

 China Braving Threat to its Vulnerabilities

China is putting a brave front despite being badly hit at some of its most vulnerable spots in the tit-for-tat trade war with both sides spiralling the slapping of tariffs on a wide range of each others’ trade items. Taiwan, which is another sensitivity of Beijing is witnessing visit of US officials after Taiwan Travel Act was signed by President Trump, with a promise to arm it further with latest weaponry. US continued military posturing in South China Sea, along with the appearance of UK warship ignoring Chinese repeated warning is another concern.   A recent injection of over $110 billion by China into its banks and hardly any financial benefits coming out of BRI partners incapable to repay anything is tightening its financial freedom for global dominance. Some of its BRI partners want to get out of the ‘Debt Trap’ by refusing/reducing Chinese investments is adversely affecting Chinese dream project (BRI), after five years of its announcement like Philippines.

Not a Smooth Sail for US

US on the other hand cannot be celebrating either, with China digging it heals and refusing to give up either in trade war or South China Sea. On North Korean front, the policy of good optics continues with Kim managing to get a lot of goodies from South Korea (presumably at their cost), during the last summit of North and South Korea. Kim in fact has been an outright winner, managing to get another Summit with President Trump, which helps him in convincing his countrymen of his sound leadership, as well as boosting his status internationally. US sanctions on paper continue, but after the chest thumping at Singapore Summit, his friends like China automatically relaxed the sanctions on North Korea, without any worthwhile denuclearisation/reduction in his nuclear/missile arsenal. US realises that knocking out China financially is the key to its global dominance; hence is unlikely to soften up to China. US also faces another challenge of keeping its allies like Japan and South Korea satisfied while negotiating with North Korea and asking ASEAN to make choices of partners, besides continuing with CAATSA hurting some of its strategic partners who could be helpful in balancing China.

It will take some time to see that whoever has greater resilience to withstand the economic stand-off and appetite to take setbacks will have an upper edge, which seems to be US at this point of time. As per IMF assessment, China’s GDP size will be 1.6 per cent lower in 2019 than it otherwise would be, if the US slaps tariffs on all Chinese imports.

How is India affected?

The Indian economy has survived some global slowdowns earlier and should be able to sail through the present one. The bigger problem is the sanction under CAATSA in dealing with Russia for urgently needed military hardware like S-400 and Iran for cheaper crude oil being paid in rupee terms, for which India has adequate refineries. The US option of buying shale oil does not suit India as it does not have adequate refineries and will have to purchase finished product in dollar terms. The port of Chabahar is also crucial for India for connectivity to Afghanistan and CAR. The silver lining is that US being our strategic partner will like to have well equipped Indian Forces to balance China and Indian connectivity to Afghanistan, in case Pakistan does not serve their strategic interest. On both counts I am hopeful that US will find a way out not to hurt its strategic partner.

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The talks held in September 2018 between Kim Jong-Un and Moon Jae-In

Giancarlo Elia Valori

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In less than one year three meetings have been held between the North Korean Leader and the South Korean President, Moon Jae-In.

In the initial meeting the two leaders had decided to put an end to the state of war between their two countries. They had also reaffirmed the goal of denuclearization of the entire peninsula, with the consequent destruction of the nuclear potential of South Korea and of the United States, in particular. They also decided to create an inter-Korean Liason Office between the two sides of the Demilitarized Zone and to bring together the families dispersed between the two Koreas. Finally, the idea was to create new communication infrastructure – railway lines, in particular – a project by which Russia has always set great store.

Indeed, Russia is betting many of its cards on a reunification between the two Koreas, capable of enabling it to keep its excellent relations with South Korea – which are essential for the economy – and to also support North Korea, which is Russia’s unavoidable strategic goal.

Now the two Koreas are dealing on their own, without the US brokerage and intermediation with respect to South Korea, although President Donald J. Trump has recently stated that President Moon Jae-In is his official “delegate” for the denuclearization of the Korean peninsula.

The United States is scarcely interested in the internationalization of the North Korean economy. It only wants denuclearization, while Kim Jong-Un wants denuclearization to develop his country’s economy and maintain its geopolitical and national autonomy.

A serious problem – both in talks and in the final or working documents – is also to define an effective mechanism to check denuclearization.

Indeed, between September 17 and 19, 2018, the signing of the Joint Declaration of Pyongyang has not fully clarified the mechanism of checks on the denuclearization of the Korean peninsula. Kim Jong-Un’s idea is to organise these checks with a series of “experts” appointed by the friendly powers, while the South Korean idea is to accept the maximum possible denuclearization to start the long process of reunification.

The two respective Defence Ministers, however -namely Song Young Moo for South Korea and Rho Kwang Chul for North Korea – have just signed a separate document from the rest of agreements.

In that text confidence-building measures between the parties are put first, with North Korea’s acceptance of dismantling a launch pad and a site for checking jet engines, with the presence of yet unspecified, but friendly international experts. From IAEA? We have some doubts, in this case.

Subsequently North Korea could also dismantle the Nongbyon site, if the United States does the same in South Korea.

It should also be recalled that most North Korean missiles are built to be launched by mobile vehicles, not from fixed bases.

In short, North Korea wants the United States to remove the nuclear umbrella protecting South Korea and Japan while, in the recent talks with North Korea, the United States thinks of a bilateral treaty regarding only the Korean peninsula and, at most, some classes of North Korean missiles.

In the US mind, the planned reduction of North Korean long-range missiles could be even equivalent to a nuclear and conventional decrease of its troops stationed in Guam.

On the basis of a new future agreement, both Koreas (and God only knows how and to what extent the North Korean conventional military potential would be useful for a South Korea unified with North Korea) would also define maritime and land buffer zones, as well as a no-fly zone over the old border, with a view to avoiding clashes or accidental air battles.

This is already partially clear, but much work shall be done to define all the details.

There would also be plans to cover or reduce artillery batteries along the coast.

Obviously, should these talks run aground, the only concrete political result would be the progressive divergence between South Korea and the United States, precisely on the problem of the peninsula’s denuclearization.

Furthermore, over and above the aforementioned sites, North Korea will dismantle the site of Dongchang-ri, in addition to the site of Yongbyon, while Kim Jong-Un is also very interested in the building of fast railway links between South and North Korea.

The two Koreas will get the industrial site of Kaesong back in shape and the old tourist project concerning Mount Kumgang back in track, besides planning new joint economic and tourist areas.

The inter-Korean agreement regards also collaboration for medical and environmental issues, as well as for the protection from epidemics.

In other words, both Koreas think of an economy of compensation between them, which could also develop at a later stage and become a need for the development of both countries.

An economic-political symbiosis that could get the United States out of play and later reinstate Russia, which is increasingly interested in the South Korean economy, as well as finally favour China, which has no intention of leaving the Korean peninsula to the hegemony of North Korea alone.

At the end of the Treaty, there is also the project of a joint participation in the Tokyo 2020 Olympic Games and a joint candidature for the 2032 Olympics.

A few days ago, North Korea also expressed its intention to join the International Monetary Fund and the World Bank – a sign that the internationalization of the North Korean economy is now a certainty.

Hence it is a de facto peace treaty between the two Koreas.

If North Korea continues along this line, it is very likely that South Korea will gain a tactical advantage over the sea while, if the relations between South Korea and the United States remain as they currently are, there should be no significant changes in bilateral relations between the USA and South Korea.

However, what is the current state of relations between the United States and North Korea?

In fact, while the inter-Korean relations are all in the framework of effective confidence-building measures, the clear purpose of the fourth round of talks between the two Korean leaders is to preserve a strong US engagement in the whole negotiation process.

Kim Jong-Un wants to engage the United States for his global economic projection and he certainly does not want to remain tied to a regional economy, albeit open and “reformed” according to China’s rules.

For North Korea, the procedure is simple: at first, bilateral talks with the US support for South Korea; later peace between the two Koreas and finally what is only interesting for the USA, namely denuclearization.

It is not even unlikely that the United States does not accept this timing, but it is also unlikely that it realizes the strategic and economic aspects of this timing.

North Korea wants a fundamental agreement with South Korea because: a) it is an unavoidable asset for the modernization of its economy; b) it is the fundamental strategic factor to have the support of both Russia and China, who want to avoid North Korea’s hegemony over the peninsula, but also want to keep it as a rampart for US forces in South Korea; c) it is only through South Korea that North Korea will eventually be in a position to be connected to the Chinese maritime economic and strategic system and reach up to the Mediterranean.

In fact, if the relations between the United States and North Korea improve further, the site of Yongbyon could be dismantled definitively.

Hence currently Kim Jong-Un wants to thoroughly test the US goodwill, rather than South Korea’s goodwill, in developing a long or very long-term peace policy.

In Kim Jong-Un’s mind, there is in fact a key factor: the US behaviour in the phase in which Muammar Gaddafi accepted its proposal to dismantle his nuclear project.

Kim Jong-Un thinks that not even the story of Saddam Hussein is a guarantee for the US long-term reliability and for the stability of its leaders’ word of honour.

This is the real important factor in the strategy of the North Korean Leader.

Moreover, the US immediate reactions to the last meeting between the two Korean leaders have been fast and positive, both by President Trump and by Secretary of State Mike Pompeo.

And North Korea’s autonomous foreign policy has been seen also recently, with the 70th Anniversary military parade.

North Korea’s military parade and its important national celebration, was attended by Li Zhansu, ranking third in the internal power hierarchy of the Communist Party of China (CPC); by Valentina Matviyenko, President of the Russian Federal Council, the third elected office in the Russian Federation; by a very significant figure, Mohamed Ould Abdel Aziz, President of Mauritania, and finally by Hilal al Hilal, deputy-General Secretary of the Syrian Baath Party.

With peace, North Korea will significantly develop its already multiple economic and political relations with Africa, which will be essential for its new economic development.

At the military parade staged on September 9, there were also authorities from Iran, South Africa and Singapore – which is the never forgotten model of the Chinese “Four Modernizations” -as well as other 60 delegations from “friendly” countries.

At economic level, in August, shortly before the big military parade of the 70th Anniversary, there was the International Fair of Razon, which hosted as many as 114 companies of which 52 North Korean ones.

The North Korean product lines mainly included pharmaceuticals, foodstuffs, textiles, electronics and cosmetics.

However, there were many Chinese large companies selling their products in North Korea despite the UN sanctions.

As from September 17, there was also the Autumn Fair which brought together 320 commercial companies from Russia, New Zealand, Australia and China.

This is in fact the new paradigm of North Korea’s foreign policy.

The dollar has also grown in the exchanges with the North Korean currency, both on the official and on the “parallel” markets.

If all goes well at geopolitical level, the North Korean project will be to further improve its light industry, in addition to the diversification and quantity of products, with a view to trying its own autonomous way on the market world, as was the way of the nuclear system.

It should be recalled that this was also Kim Il-Sung’s project.

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