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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

Power Projection of China

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A coin has always two faces, an analyst is ought to analyze the both sides.

China is considered as flag holder of soft power with a global agenda of peaceful rise. At moment, the world is facing a new emerging global order by the rise of multiple actors in the international arena. Now there are two school of thoughts who are proposing contradictory views like one wing regarded it as optimistic Sino rise who believes that China’s rise is peaceful. Its foreign policy is viewed as one of the most harmonious policy ever structured. They believe in the mutual cooperation and peaceful coexistence. Rise of China is an optimistic opportunity which is justified by different aspects. As African states were facing a massive number of problems at all levels, many super powers came and ruled the world but they didn’t bothered the prosperity of third world countries.

China started invested in African region and assured the chances of prosperity over there. Due to this economic integration of China in Africa, a demise of Indian influence in that has been observed as well. Their economic cooperation is based on model of helping underdeveloped countries by initiating the projects like Belt and Road Initiative. They are extending the helping hand to developing countries by selling products at cheaper rates. They respect the ideologies of other countries, for example, China didn’t celebrated Pig year in Muslim countries. Regarding Pakistan, here the optimistic view is prevailed at higher context. Pakistan’s policy makers favor Chinese investment in Pakistan, as it will help Pakistan in economic prosperity. China helps Pakistan at almost all of the international forum. Friendship of china and Pakistan is the strongest one to be observed. Pakistan can learn a lot from them. The proper use of diplomacy, image building, projection of soft power and individualism in ideologies and beliefs. Long term planning strategies can be learned from them. China is all weather friend of Pakistan but self-skills are significant, as there is a famous Chinese saying, “to serve a guest by fish is a good way but to teach them how to catch fish is the best way to serve them.”

On the other hand, there are supporters of pessimistic Sino rise who believe that China’s rise is threat for globe. This pessimism is oftenly prevailed by western analysts. They think that rise of China can disturb the existing world order. For example, China is competing with American economy in the international market. Balance of power is coin of international politics, so other actors are emerging now. But the rise and demise of powers after a certain time period is one of the laws of nature. Specially America is feeling threatened by this emergence of China as a super power which can be seen through events like Huawei issue over 5G technology, its sensitization, trade war between china and America, claim of copyrights by America etc. increasing influence of China in majority of states is posing the seriousness of issue. Chinese model of Confucianism is spreading as it has started practices in South Korea as well which is predicted through their cultural stimulus.  Pessimistic school of thought deny the authenticity of foreign policy of China, they consider that it is a mere framework which has nothing to do with reality.In reality China’s behavior is like relations having towards Taiwan, South China Sea etc. Interest of states are very important which may differ from each other. Lensing through these views, this unpredictable situation leaves a humans mind into a chaos, whether the rise of China is peaceful or just a myth?

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East Asia

The origin of the Four Modernizations and President Xi Jinping’s current choices

Giancarlo Elia Valori

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On September 13, 1971 Lin Biao tried to flee to the USSR with all his family, aboard a Trident plane of civil aviation, which had left with little fuel and no active radio contact.

The crash of the aircraft in Mongolia, where both Lin and his whole family died, was caused by the order given directly by Mao to shoot down the plane.

 What had happened, obviously in political and not in personal terms?

 The answer is simple: Lin Biao was very strongly opposed to the new agreement between China and the United States and hence had organized a military coup. For Lin Biao all the room for US geopolitics was to be found in what the Third International’s forces traditionally defined as “imperialism”.

 For Mao Zedong, imperialism was vital for both the USSR and the USA- and considering that he was far from the continent that was the prize for which of the two won the Cold War, namely Europe-he refused to make too many differences between the two.

 As a man of Tao and Zen, Mao treated an evil with another evil.

  Mao Zedong, however, also knew that a new economic relationship with the United States was needed, after the long economic crisis and the factional instability within the Chinese regime. The Soviet Union could certainly not give it economic stability and hence the “Great Helmsman” turned to the distant enemy rather than to the near quasi-friend.

 Nothing can be understood about China, including current China, if geopolitical choices are separated from economic, financial and industrial ones which, however, are subjected to the strategic “policy line” defined by the Party – a policy  line that is cultural and always based on a very long term.

 On September 29, 1972 the diplomatic relationship with Japan were resumed, along with those with the United States. An evident overlapping of different geopolitical lines which, however – in the minds of the Chinese decision-makers -were similar also from the symbolic viewpoint.

 In 1973 Deng Xiaoping reappeared in public, upon direct order by Mao Zedong.

 Those were also the years of the late definitive success of the “policy line” of Zhou Enlai, who had successfully gone through the Great Cultural and Proletarian Revolution, which had partly overwhelmed him, and led the 10thCPC Congress.

 That was the compromise which held the Party together, after Lin Biao’s elimination. An unstable agreement between the reformist “Right” (Zhou had spoken of “four modernizations” many years before, exactly in 1965) and the Left, silenced by Mao, that had crossed the red line of the Cultural Revolution and the failed communization of rural areas.

 In those years, also the Party’s Left lacked mass management of the people and the Party and had to agree with the other factions, while Mao mediated and also created “third wheels”.

  Create something from nothing – one of the Thirty-Six Stratagems of the Chinese Art of War.

 In 1973, just before the equilibrium between Zhou and the old CPC apparata broke again, Deng Xiaoping was fully rehabilitated and also became member of the Chinese regime’s deep axis, namely the Central Military Commission.

 In 1975 Deng was elected vice-President of the Central Committee and member of the Politburo Standing Committee.

 The connection between the reformists – if we can call them so – siding with Zhou Enlai, and the “centre” of the Party’s apparatus – that regained its roles and posts by ousting the Armed Forces -prevailed once again.

 Again in 1975, the National People’s Congress praised the “Four Modernizations” already proposed by Zhou and, in its final statement, hoped “that China would be turned into a modern and powerful Socialist country in the approximately twenty years before the end of the century”.

 Political transformation through the new economy, as well as preservation of the regime through political transformation itself.

 We could call it “the Tao of geoeconomics”. Acceleration of industrialization and modernization, but without creating the disaster of rural masses, who were objectively unable of providing the start-up capital for implementing any of the Four Modernizations. This was the real difference with the USSR of the 1930s.

 That capital had to be produced in innovative companies and be attracted from outside.

 At the time, however, the CPC was not yet firmly in the hands of any factions. In September 1975, the national Agriculture Conference saw the harsh clash between Deng Xiaoping and the old “Shanghai group” of the Cultural and Proletarian Revolution that, however, no longer controlled most of the Party.

 Zhou Enlai died in January 1976 and shortly afterwards, in Tiananmen Square, there were severe incidents, albeit with the constant presence of many wreaths reminding of Zhou.

 Later there were also strikes and unrest, until the capture and trial of the “Gang of Four” in Shanghai. It had inspired the “Cultural Revolution” and was then directly accused by Hua Guofen – the man appointed by Mao to lead the transition- of having prepared a coup.

 China’s transformation, however, began again from rural areas: at the second Agriculture Conference in Dazhai, in December 1976 – where various cases of corruption and “social polarization” were described and stigmatized- the discussion focused on the First Modernization, namely that of rural areas.

 When you regulate too much, a parallel and illegal market is created. This always happens.

 Obviously this also happens when total communization is applied to the economic cycle of rural areas.

 Certainly those were residues of Sovietism in the CPC’s  doctrine, but also of the a-dialectical implementation of Marxism-Leninism in historical and social contexts in which the analysis of the founder of “scientific Communism” had never focused.

 In fact, when you read the works and correspondence that Marx dedicated to the Russian agricultural issue, you note that the author of “Capital” foresaw a direct Socialist social transformation stemming from the maintenance of the social and community networks in traditional villages. It may seem strange, but it is so.

 This system operates only with a non-industrialized State that is scarcely widespread in the territory. Otherwise, the problem is that of capitalism in rural areas to generate the surplus of urban and industrial investments.

 Even in the Second Volume of “Capital”, Marx’s model is essentially this one.

 It is precisely on the agricultural issue that the stability and success of many Communist regimes isdefined and, not surprisingly, the first of Zhou’s and later Deng’s Four Modernizations was precisely that of agriculture.

 The topic characterized all Party’s organizations, but it was in late December 1978 that the Third Plenary Session of the 11th CPC Central Committee decided to decentralize the economy – another factor strongly different from the Leninist tradition – and even to liberalize it, in addition to a process of ideological revision, namely Gaige Kaifang that roughly means “reform and opening”.

 That was also related to the request for opening international trade based on the criterion of “mutual benefit” and equality between the various countries.

 Hence, also from the ideological viewpoint, Deng became the Supreme Leader of the Party – as well as of the State apparatus – and announced the Open Door policy.

 An extremely important fact was also the separation of the Bank of China from the People’s Bank of China, so as to serve as single State body for foreign exchanges.

 That was the start of the “Long March” towards the Four Modernizations, with an unusually united Party, and currently towards “Socialism with Chinese characteristics” , as well as – at geopolitical level -President Xi Jinping’s New Silk Road.

 In January 1980, the “four freedoms” – of work, people, goods and capital – were abolished.

 The new planning needed to manage all aspects of productive forces.

  That was explained by a covert war of the Chinese economy against the penetration of foreign capital and joint ventures, which in fact were immediately regulated by specific legislation enacted the previous year.

 The great British operation of economic control over the South-Chinese coasts was resumed from Hong Kong, but the Chinese government eliminated the possibility of such an action by Great Britain (and by the USA, at least partly).

 Hence the Party’s unity had to be reflected in a new context and, to some extents, in the whole society, so as to prevent the liberalized Chinese economy from taking the Party and Socialism away. A new rationale for the CPC’s Leninist unity.

 The new Act on contract law was enacted in March 1981, and in 1982 also the new civil procedure law was enacted, which became effective on October 1, 1982.

 In September 1983, at the 12th CPC Congress, there were three groups within the Party: the nostalgic Maoists, a small and narrow majority for Deng Xiaoping; the Orthodox group that still wanted a nationally planned economy, as in USSR -hence probably the heirs to Lin Biao; finally the real reformists.

 Deng won with a clear, but not overwhelming majority.

 Hence, everyone was waiting for the Four Modernizations to fail, so as to go back to the old routine of the Plan.

 As also happened in the USSR, it was often fully imaginary compared to the actual reality of the things done and produced.

 It was in 1983, however, that the Third Front strategy was implemented, i.e. Mao’s directive – drawn up as early as 1962 – according to which the national strategic industries had to be moved from the coasts – militarily and politically difficult to defend – to the internal areas. Without said Mao’s directive, the New Silk Road could not be understood even currently.

Hence 14 open coastal cities that were declared so in 1984, but with a new law on profits that served as mainstay of Modernizations: companies were asked to pay a certain share of profits to the government, but they could withhold some profits if they matched and exceeded the requirements of the contract with the State.

 In 1985 a new regulation also involved government bonds. The seventh Five-Year Plan began, underlining a “scale” approach, in which the coastal areas – gradually freed from traditional strategic companies – were driving the economic development, which later spread like wildfire even in the internal areas.

 It was the Hong Kong model that Deng Xiaoping’s executives copied and adapted.

 For a short lapse of time, Chinese analysts and Party planners also looked to the Singapore model, with the (single) Party of Lee Kuan Yew.

 It isby no mere coincidence that Shenzen was close to the former British colony, and often the Chinese attracted and favoured the companies of the British area towards the new Chinese coastal areas also characterized by free-market economy.

 Advanced and high-tech services in coastal areas, and lower value-added, but still inevitable, productions in internal regions.

 A new dualism, where rural overpopulation had to be gradually absorbed by inland strategic companies.

 A double geopolitical status of inland areas which, in many cases, is repeated also in the current Belt and Road Initiative.

 In 1986, the “open-ended” contracts for the manpower working in State-owned companies came to an end.

 In October 1987,the 13th CPC Congress was held, in which – for the first time – there was talk about the “commodity economy”, i.e. a two-tier mechanism, in which the market is matched and also “corrected” by the old national planning.

 A sort of re-edition, for internal use, of the formula “one country, two systems” implemented by China with the agreements for Macao and Hong Kong.

 In 1988, however, the 7thNational People’s Congress officially legitimized the private initiative (not the mere ownership) and enabled private individuals to buy State-owned companies.

 The term “People’s ownership” was also deleted, while individuals and groups, even non-Chinese ones, could buy land with a system similar to that of the British real estate leasing.

 Profits, wherever made, had to be reinvested in the company that originated them, before requesting any financing from the People’s Bank.

 The Special Economic Zones, modelled again on the Hong Kong system, became five.

 Hence innovation on the coasts and strategic companies in the central regions – mainly public ones, which still remained almost completely public.

 In April 1989, Jiang Zemin rose to power.

 Student demonstrations also began in Tiananmen Square, where, year after year, the various anti-regime organizations gathered: Falun Gong, the networks of many illegal parties, unrecognized union organizations and many “spontaneous” groups.

 And some old “Red Guards”.

 Zhao Ziyang, the Party leader already defenestrated by Jiang Zemin, was in fact at the centre of “spontaneous” organizations.

 The various Autonomous Federations of Workers -spread by location and not by industry – were legally created.

 Gorbachev’s visit took place in May 1989.

  That was the key moment of a long series of doctrinal, practical, cultural and historical differences that – from the very beginning – divided the two great Eastern heirs to the Marxist-Leninist Third International.

 What really mattered to the Chinese leadership was that the Russian crisis did not overwhelm the Chinese Communists: that was the meaning of the declaration signed by Gorbachev, which regarded the “peaceful coexistence” of the two Communist regimes.

 The leader of the Soviet Party was made fun of – not even so elegantly – not because he had reformed the Soviet economic system – in a way, however, that the Chinese deemed wrong – but for one reason only: he had relinquished the Party’s role in the reformist process, which the CPSU had to lead and guide for China, from the very beginning.

An “economicist” mistake, as the CPC’s ideologues said – yet another proof of the Marxist roughness of the “Northern enemy”, as Deng Xiaoping called Russia.

 Sarcastic sniggers on the lips of Chinese leaders. Then Gorbachev explained again his perestrojka and glas’nost, but the Chinese leaders, whose power was based on Party’s bayonets, kept on not taking him seriously.

 Days before the arrival of the Soviet leader, at least one million people had gathered in Tiananmen Square.

 The problems that the Chinese leadership had to solve in a short lapse of time were radical: the “hard” wing that was previously a minority prevailed and managed to convince Jiang Zemin.

 The Party and its authority – the basis of any transformation, even the most radical one – were re-established without much talk. It was impossible to think about a heir to the “Long March” that dissolved the Party within “society”.

 On May 19, the CPC decided to follow the hard line and the military forces reached the areas near the Square, from the outskirts of Beijing.

 Few hours later, the Square was completely cleared, but that was done the hard way.

 Shortly afterwards, at the 4th CPC Plenum, Jiang Zemin –  also following the experience of Tiananmen Square – returned to one of his old theories and developed the “Three Represents” model, i.e. the idea that the CPC’s power was based on its “vast representation” of the Chinese productive forces, of the cultural and technological avant-gardes and of the wide strata of population.

 In other words, the Chinese society – and its economy, in particular – was reformed by bringing the elites together, part of whom were in Tiananmen Square, but also the large crowds still organized by the Party.

 A Confucian middle way that was particularly successful.

 Hence, Zhao Ziyang definitively lost the game within the Party that, however, was also inside the Tiananmen Square insurgency.

 Once the crisis was over, Deng Xiaoping left also the last very strong power in Jiang’s hands: the leadership of the Central Military Commission.

 Shortly afterwards – and there was nothing more symbolic than that event – the Stock Exchange of Shanghai reopened. A reopening that had been expected since the 1930s.

 Later also the Shenzhen Securities Exchange opened. In both of them, any securities – including those issued by the State – were traded, but there was only one deep logic: to acquire productive capital to generate strong and self-sustained development of the coasts and of the high value-added industries that had to compete on the world free market, without granting protection and aid that would go to the detriment of the deep productive structures of the internal regions.

 In 1992, Deng’s journey to Southern borders had a clear route, although the CPC’s leadership had always had some doubts about the “free economic zones”. The core of the issue was that the GDP had to be increased in the lapse of time between the 1990s and the beginning of the Third Millennium.

  It had to be rapidly increased from 6% to 10%.

 Without that “quantitative” assessment – just to use the old Communist jargon – there could be no “qualitative” transformation of Chinese society.

 Everything had to be done soon – well, but soon. That was the characteristic of Deng Xiaoping’s years – extraordinary years, in some respects.

 In a short lapse of time, the Party developed the concepts of “Socialism with Chinese characteristics” and of “market Socialism”, which are so important also in President Xi Jinping’s current policy line.

 There were also other changes that, in a few years, led to the current Socialism with Chinese characteristics, as advocated by President Xi Jinping. However, everything could be done from a legal view point began in those years.

 The transformation process of the Chinese economy is long, powerful and complex, but – unlike what is often said in the West – it is never a mere market mechanism or a naive adaptation of the Party or the State to the absolute Western rules of globalization.

 As early as the 1990s, China has decided to govern market globalization and not just being a part of it. It wants to lead the process so as to be – now that the end of the century about which Deng thought has long been over – the axis of globalization and the centre of the new global hegemonies.

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East Asia

US-China Global Rivalry and BRI

Irfan Khan

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Starting in 2001 from the low-cost industry, China has established most advanced technology today. To a first approximation, China is struggling at its best, to emerge as global power or super power, or in other words you might like to say about. However, in some respect, it still faces challenges, in domestic politics, military’s capability and most importantly what its equivocal vision of whether unipolar or multipolar world.

It sounds well that, Belt and Road Initiative (BRI), as of its first kind and biggest developmental project in the history, will open its trade, economy and influence, across the world.BRI is transcontinental and transitional, cooperation and connectivity-based long-term mega project to China and its allies but countries like US, Turkey and India have perceived it as geopolitical, economic colonialization. For the similar reasons, Turkey and India had not attended “Second Belt and Road Forum for International Cooperation”, held in Beijing, China last month. BRI spreads across Asia, Africa and Europe, subsuming 68 countries. BRI countries, sharing 30% of global GDP, 62% of world population will find it advantageous and economic driver of change. In reality, BRI will decide of what shape the world would be in 21 century and the next super power. However, BRI’s perennial progress until its completions, is the real test of leaderships of Chinese and also of world. 

US as global leader, is being hamstrung by US-Russia rivalry, US-China fickle economic relationships, China’s openness to international market, Russia growing hegemony and categorially the “Globalization”. US’s influence as major economy, and supplier has been fading away each passing day. The quip, what I had struggled then, have lost now, is not an exaggeration about US.

China’s military capability is not so high compared to US. What if, China has to engage in a conflict for a long time same the US has been in Middle East. This is of much significance, to ponder.

Globally diplomatic and strategic campaign by US and its allies and security situation are main Challenges to BRI. For instance, Pakistan, a flagship partner of BRI, has been enduring insurgency, backed by multi-fold foreign agencies. Last year November attack on China’s consulate Karachi, bomb blast in Quetta, Baluchistan in April and recent Gwadar attacks mirror the security challenges to BRI. Stability in Afghanistan, Pakistan’s relationships with Afghanistan, India and Iran, would affect the progress of BRI.

China’s military capability is not so high and sophisticated compared to US. What if, China has to engage in a conflict for a long time same the US has been in Middle East. This is of much significance, to ponder. To circumvent proxies, if may any, China and its allies, must share a sophisticated intelligence—the most advance than ones the individual has today.  

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