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What ails Sino-Indian Relations?

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India extended aid to China to cope with COVID19. When China asked for medical supplies, India regretted. Aside from the COVID gesture, there are serious problems in relations. India became independent on August 15, 194 while China on April 1, 1950.  Sino-Indian relations have since witnessed ups and downs from bonhomie, hindi-chinee bhai bhai (Indian-Chinese brotherhood) to being at daggers drawn. The last coffin in the relations is India’s cartographic aggression of amending maps to show Chinese territories  as Indian.

Genesis of boundary dispute

McMahon Line: Upon independence, British legacy was a boundary dispute with China in the east in the form of McMahon Line “by treaty, custom or both’, exacerbated by India’s claim of disputed Kashmir state’s accession on October 26, 1947 (historian Alastair Lamb doubts authenticity of the `instrument of accession’).

India’s prime minister pundit Jawahar Lal Nehru was adamant that  `India’s boundaries with China were clear and not a matter off further argument’(Notes, Memoranda and Agreement Signed between the Government of India and China, White Paper II, 1957 (new Delhi, Ministry of external Affairs, government of India, 1959), p. 49, 52-57). China shrugged off India’s point of view.

Border incursions: Both countries accused each other of border violations. India alleged People’s Liberation Army often trespassed Hoti, Damzen, Shipki Pass, Lapthal and Sangcha Malla by 1954. To create a nation-wide furor, Nehru told Indian parliament on August 25, 1959 that a Chinese detachment encroached into Indian Territory of Longiu in the Subansiri frontier Division at a place south of Migyitunand opened fire. Inlate1950s,

The 1962 War

Nehru and Zhou En Lai met in New Delhi from April 19 to 25 1960 to defuse the situation. But, it was in vain. The boundary dispute led to October 1962 War. In the short war, China occupied Aksai Chin, an uninhabited area of Ladakh in disputed Kashmir state, close to Azad Kashmir area. After occupying Aksai Chin, China built its Highway219 to connect with its eastern province of Xinjiang.

Why Sino-Indian bonhomie ended: The 1962 War was upshot of Indi’s Forward Policy, propounded by Indian’s General BM Kaul, and reluctantly followed by Nehru. According to this policy, India provocatively deployed troops and established b order outposts along India-China boundary. To justify deployment, India alleged China had built seven roads inside the Indian territory of Ladakh, several roads being close to India’s border in Punjab, Himachal Pradesh and Uttar Pradesh, six in Sikkim and Bhutan borders, and eight in the North East Frontier Agency. It was further alleged that China had established seven new posts in Ladakh, 14 in the Central Sector of Punjab, Himachal Pradesh, 12  across Sikkim and Chumb Valley, and three across NEFA.

Contours of Disputed border: Sino-Indian boundary is divided into three sectors, eastern western and the middle. The border dispute relates only to the western and eastern sectors. Western sector covers 4000 kilometers. Half of this boundary separates disputed Kashmir from China’s north-western province, province Xinjiang Uyghur Autonomous region. In the undefined northern part of the frontier, India claims an area equivalent in size to Switzerland under China is actually part of Indian Territory of Ladakh. Besides, Indian claims a Chinese controlled territory that was debatably ceded to China by Pakistan in the northern sector. Furthermore, Shakasgam Valley was claimed by India but later happened to be shown as Chinese territory in China Pakistan Boundary Agreement of 1963.

China’s claim over Arunachal Pradesh: China claims an Indian controlled area three times bigger, including most of Arunachal Pradesh. China never ratified McMahon Line.

Since inclusion of Tibet in China, Arunachal Pradesh is a buffer between Tibet an India’s north-eastern region.

Twang Region: China disputes Indian claim that Tawang region is a part of Indian Territory, showed as such in McMahon Line. China says Taiwan had historically been a part of Tibet. By corollary it is a part of China.

The Sino-Indian dispute began from Taiwan region. In view of India’s hardline position, China began to claim whole state of Arunachal Pradesh as its territory.

Duplicity: The hallmark of India’s foreign policy towards her neighbours is equivocation. India’s China policy is ostensibly based on Panchsheel principles that are mutual respect, non-aggression, non-interference and peaceful existence. But, it is actually based on Chanakya’s mandala principle which states ‘all neighbouring countries are actual or potential enemies’.

The duality of India’s foreign policy is reflected in her relations with China. Atal Behari Vajpayee, then Indian prime minister, is extolled as `architect of India’s China policy’. During his visit (June 2003) to China, he admitted China’s suzerainty over Tibet. Even in a written statement before the Lok Sabha, he said, ‘On Tibet, I would like to assure this House that there is no change in our decades old policy. We have never doubted that the Tibet Autonomous Region is a part of the territory of the People’s Republic of China”. But, in a subsequent press conference, he clarified that there was no cataclysmic change in the status quo and India’s views on disputes with China.

After the visit, the Indian delegation told newsmen that ‘the Chinese draft wanted India to use the word “inalienable” for both Tibet and Taiwan being part of its territory, but India did not go the whole hog with this phraseology. Frontline dated July 18, 2003 reported, ‘Indian officials were at pains to point out that they had used the term “People’s Republic of China”, and not China- the PRC being an entity that came into existence in 1949’.

“What was the status quo? Kiran Kumar Thaplyal and Shiva Nandan Misra in Select Battles in Indian History: From Earliest Times to 2000 A.D (Volume II, page 632), point out ‘India gave major concession to China by giving up military, communications, and postal rights. It also withdrew military detachments from Yatung and Gyantse. By this treaty (1954) India indirectly recognized Chinese sovereignty (as against suzerainty) over Tibet referring to the latter as Tibet region of China’.

India’s intrusions into the Chinese territory are a stark contradiction of her status quo concerning the Chinese territory adjoining her so-called state of ‘Arunachal Pradesh’. The after math of the India-China War, also, was acceptance of Chinese point of view by India.

The vicissitudes of India – China Relations (1950 – 1962) reflect that India unquestioningly accepted China’s control of Tibet. India’s policy on Tibet during the British rule was to secure Tibet as a buffer state between India and China (fear of red China and the then USSR).

Yet, to China’s chagrin, India spurred Tibetans to expe1 the Chinese mission from Lhasa in the middle of 1949. This event forced the Republic of China in January 1950 to claim Tibet as part of China. Induction of Chinese army into that region in October 1950 vapourised the Englishman-conceived buffer between India and China.

India made muffled protests and then, according to military historians, ‘meekly acquiesced’ to China’s forward policy. In November 1950, when EI Salvador requested that Tibetans plea be heard by the United Nation, the Indian delegate did not support it. United States and Britain could not exploit the issue as India, China’s immediate neighbour, did not vote for Salvadorian proposal.

In March 1959, Dalai Lama fled to India, and was given asylum along with his followers. The New China News Agency accused India of ‘expansionist aims in Tibet’. Indian border post of Assam Rifles at Longju was evicted by the Chinese by force. In the Western Sector, the Indian government decided to set up posts north east of Leh.

India sent patrols to Lanak Pass. One of these patrols of about seventy men encountered the Chinese at Kongka Pass. On 20 October the Chinese and Indian patrols clashed. The flight of the Dalai Lama into India in 1960 and clashes between rival patrols led to a border war between India and China in 1962.

Inference: Duplicity in India’s foreign policy is the greatest obstruction to peaceful resolution of her disputes with her neighbours. She never tangibly objected to Chinese control of Tibet or construction of communication links in the area. Never invoked intervention by UNO on this matter. Yet, she sheltered Dalai Lama, and sent patrols into Chinese territory, leading to India-China War. India considers Kashmir issue to be a bilateral dispute. Yet she does not like to sit eye-ball-to-eyeball with Pakistan on dialogue table. She boasts of friendly relations with Bangladesh. But, simultaneously accuses the latter of providing sanctuaries to Indian ‘terrorists’ and ‘insurgents’ in BD territory. About Bhutan, the Indian strategic analysts say, if India does not annex it, China will.

It is high time India said no to her whimsical behaviour. How long will India cling to the Barbie doll of animosity towards her neighbours? It is not Chanakya’s maya yuddha (war by trickery) principle, but reason, which India should follow.

Mr. Amjed Jaaved has been contributing free-lance for over five decades. His contributions stand published in the leading dailies at home and abroad (Nepal. Bangladesh, et. al.). He is author of seven e-books including Terrorism, Jihad, Nukes and other Issues in Focus (ISBN: 9781301505944). He holds degrees in economics, business administration, and law.

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East Asia

The complex puzzle of Canberra-Beijing ties, as diplomacy takes a back seat

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Australia and China seems to be engaged in a repulsive tariff war targeting each other’s goods. Canberra is struggling to manage its complex economic relationship with Beijing even as it finds itself in the strategically opposite camp. How did things turn out this way? Here, I analyse.

***

There was a time when Australia under the Mandarin-speaking Prime Minister Kevin Rudd, who was in office from 2007 to 2013, had the highest level of warmth in relations with China.

The Labour premier saw a promising prospect of economic partnership with a rising China at that point of time, but gravely under-estimated the geopolitical threat that would be soon posed by Beijing, a mistake later governments would realise and is still striving to rectify.

Quad pullout and comeback

Rudd even pulled Australia out of the four-nation Quad grouping in 2008, a year after it was conceived by former Japanese PM Shinzo Abe, in a move to appease Beijing with which Canberra’s economic partnership was progressively moving upwards. But, nine years later, Malcolm Turnbull’s premiership brought Canberra back to the Quad as regional and global security dynamics witnessed a paradigm shift.

Strategic shift

A decade later since Rudd took office, despite closer economic ties with Beijing, Canberra pushed for a closer alliance with the United States since 2017, the year Quad Security Dialogue was revived during the ASEAN and Related Summits in Manila.

It was a result of changes in security assessments by Canberra with regard to new threats and challenges from an increasingly assertive Beijing in the Indo-Pacific and beyond.

The rift between Australia and China further widened, earlier this year, when the Australian government supported an inquiry into the origins of the novel coronavirus, annoying China where it originated. Australian politicians also became increasingly divided on hawkish and dovish lines.

Huawei and ZTE ban

Tides were turned in 2018 when Australia became the first country in the world to ban Chinese telecom giants Huawei and ZTE from 5G trials and rollout, citing security concerns, as these companies ‘allegedly’ had links to the Chinese ruling establishment which they deny.

Beijing also reciprocated with tit-for-tat measures from time to time. The latest in line of such measures was the imposition of temporary anti-dumping tariffs up to 212.1 per cent on Australian wine imports with effect from November 28, this year.

Ongoing tariff tensions

2020 saw a foray of imposition of tariffs and reciprocal duties from both sides right from the beginning of the pandemic. Attempted mergers and acquisitions by Chinese companies involving companies in Australia were also blocked by Canberra citing security reasons.

Adding oil to the fire, anti-dumping investigations were initiated by both sides against each other, for using its findings as rationale for imposing more tariffs on different sets of goods such as aluminum, steel, paper, coal, copper, sugar, log timber, and barley.

ChAFTA

What will be the fate of the 2015-signed China-Australia Free Trade Agreement (ChAFTA)?

The worsening ties might take a toll on ChAFTA as it readies for a five-year review next month, notwithstanding the other broad-based trade pacts in which both countries are participants such as the recently-signed, 15-nation Regional Comprehensive Economic Partnership (RCEP).

ChAFTA took about a decade to complete and led to zero tariffs on many goods, but RCEP is still in its infancy.The main issue is not whether a review of ChAFTA is possible, but how to prevent the looming prospect of Canberra and Beijing retreating from the current commitments directly or indirectly that would effectively reduce the pact into a state of coma.

As ChAFTA goes for review in December, the most likely outcome could be both countries agreeing to maintain the deal’s status quo. If any of the parties wishes to terminate the pact, there is a six-month notice period after which they can leave, with or without a review.

Still economic partners, but political rivals

Today, China has positioned itself as Australia’s largest trading partner. Moreover, Australia strongly benefits from its close proximity to the vast markets of China and Japan which together represent over 40% of all Australian exports, in which a little over 32% amounting to $89.2 billion, are exclusively to China, as data from 2019 show. Despite this, Canberra and Beijing remain at odds politically.

Exercise Malabar 2020 and beyond

One of the striking questions in the strategic circles of all Quad partner countries is, will Australia continue to take part in the annual Exercise Malabar in the coming years, annoying Beijing further?

While Japan is a strategic partner in the Quad, ties with China are moving on an adversarial path, particularly worsening since Canberra took part in the annual Exercise Malabar in the Indian Ocean this month, after a gap of 13 years since it left the mega naval war games.

The exercise by the four Quad partners of India, United States, Japan, and Australia is apparently a warning to Beijing’s naval ambitions in the waters of the Indo-Pacific.

Supply Chain Resilience Initiative

In fact, all the Quad partners and other democracies in the Indo-Pacific wish to decouple itself from over trade dependency on China. But, domestic economic realities prove otherwise. With a raging pandemic and the unravelling US-China cold war threatening supply chains, Japan has recently put forward an idea – the Supply Chain Resilience Initiative or SCRI.

It is a trilateral approach to trade, with India, Australia, and Japan as the key-partners aimed at diversifying its supply risk across a group of supplying nations instead of being disproportionately dependent on just one, apparently keeping China in mind.

Despite all these measures, the prospect of closing of huge Chinese markets for Australian exports, owing to a disproportionately high level of tariffs is haunting domestic producers in Australia that could potentially make Australian wine largely unmarketable and non-feasible in Chinese markets.

Ineffective diplomatic efforts

Current Australian PM Scott Morrison has been trying to bridge gaps in a reconciliatory tone by stating that his government’s actions are wrongly seen and interpreted by some only through the lens of the strategic competition between China and the US. But, Beijing doesn’t seem satisfied, as evident in the decision to impose the recent set of disproportionate tariffs on wine.

Loss of businesses for Australian domestic producers is already hurting the Australian economy badly as goods remain stalled at ports. But, the behemoth of Chinese economy appears to be largely resilient to adverse impacts, compared to the Australian economy.

Way ahead

Australia’s producers and farmers are largely unhappy and unsatisfied with the way Canberra is dealing with Beijing as it directly threatens their livelihoods.

As things turn out worse, Canberra will have to strategise newer options to effectively balance geostrategic and economic considerations with regard to Beijing, possibly through the diplomatic route, in a way to immediately diffuse the prevalent confrontational approach to come out of this diplomatic impasse.

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Is China on the brink of a food crisis?

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It is not a secret that the current COVID-19 pandemic has been affecting people all around the globe. The virus touched almost all spheres of regular life – i.e. it resulted in temporary or permanent closure of businesses, a rise in the unemployment rate, inability to physically spend time with family and friends. Such drastic changes in times of uncertainty significantly impacted the well-being of the world population. Moreover, Food and Agriculture Organization of the United Nations (FAO) warned about the emerging food shortages worldwide. According to FAO statistics, global food prices have been on the rise for four consequent months, hitting their maximum in September 2020. China – the place where the virus originated – is one of the states that have been seriously affected by the disruptions, including production and distribution of food.

In his speech on August, 11 Chinese leader Xi Jinping did not admit any food shortages. However, he promoted food security through the campaign “operation empty plate,” thereby encouraging people to stop wasting food. It is interesting to note that Mao Zedong introduced a similar food campaign before the 1959 Great Chinese Famine. Meanwhile, there has undoubtedly been a significant increase in food prices in China. Many experts claim that China is on the brink of a food crisis that has been manifested as a result of lockdowns, infected livestock, and poor weather conditions. It is difficult to give any predictions or estimations about the future food situation in China because the country does not share enough of its data with the rest of the world, yet it is possible to answer the question why the state faces food difficulties.

Average food prices increase

The National Bureau of Statistics of China reported that, on average, food prices have increased by 11.2% compared to 2019. The price level of vegetables increased by 6.4% in one month; egg prices soared by 11.3% within the same period. Pork prices grew the most, by 52.6% compared to the last year’s statistics. Why is it important?

Firstly, many workers and their families who faced loss or decrease of income or remittances became food insecure. That, in turn, has had social repercussions for the overall level of crime, health concerns among adults and infants, high death rate, different demographic and economic challenges. Furthermore, international trade will also suffer: due to the lack of labor force Chinese imports in foreign countries will seemingly increase in price.

Secondly, China, along with other countries, was in a period of recession earlier this year. Food insecurity will cause difficulties in coming out of this financial downturn.

The impact of lockdowns on food supply chains

One of the main factors contributing to the declining agricultural productivity and spiking food prices in China is the restrictions on personal mobility and transportation of goods. In January Chinese authorities adopted measures to limit mobility within the country; they imposed “city lockdowns, traffic control, and closed management of villages and communities.” Such restrictions impacted food supply chains. For the production part many workers experienced difficulties getting to work that created a shortage of physical labor. That is why some crops were not picked, others were not even planted. As a result, the supply of agricultural goods decreased. On the other hand, at the beginning of the year, the demand for them also fell as restaurants and bars were closed. Thereby, many crops went to waste, while farmers did not make enough profit to purchase the seeds and fertilizers for the next season. It is a problem because businesses continue to open up, raising the demand and prices on crops. Immobility also impacted the distribution of seeds and fertilizers to the farms that disrupted the plantation season. Furthermore, the distribution of agricultural goods to grocery stores became difficult. Particular inconveniences associated with the restrictions on mobility all added up to the spike of prices on crops.

African Swine fever outbreak

Another factor impacting the emerging food crisis in China is the failure to rebuild last year’s loss of pigs due to the infection. Chinese porcine farms were hit by the African swine fever outbreak that infected and killed a large number of pigs (40% of total Chinese pigs’ population), decreasing the supply but increasing the prices on pork in 2019. According to China’s National Bureau of Statistics, pork prices were 52.6% higher in August this year than the year before, while corn prices – the main porcine fodder – increased by 20% compared to last year. Chinese farmers failed to improve the situation in 2020 due to severe flooding. The increased amount of precipitation caused considerable losses of corn and thus the inability to feed pigs. China began to import crops from abroad – particularly, corn from the US. As the United States Department of Agriculture (USDA) stated, China had been importing 195,000 more tonnes of American corn than the year before.

Shuttered diplomatic relations between China and Western states

Some experts claim that Chinese diplomatic relations with such Western countries as Australia, the US and Canada shattered due to the fire of four ballistic missiles on the Indian border on August, 26. These states are China’s major food exporters. If their diplomatic relations with Beijing worsen, then the trade has a high chance of being negatively affected as well. In other words, Chinese imports of crops have the risk of becoming more expensive, meaning that the prices of pork and other goods might rise even more.

Severe flooding and drought

Finally, worsened weather conditions – some parts of China experienced drought, others were hit by flooding – led to a decrease in crops and a significant increase in food prices. Southern, Central and Eastern China underwent a period of heavy rain and the worst flooding in the last hundred years. Excessively high water levels in major Chinese rivers, including the Yangtze River, resulted in the evacuation of 15 million people in July 2020. Moreover, the flooding destroyed 13 million acres of agricultural land, which is estimated to cost at least $29 billion of economic damage. In the meantime Northern (Xinjiang province) and Southwest (Yunnan province) China have gone through a period of severe drought. In April 2020 nearly 1.5 million people in Yunnan province were caught in an emergency situation: shortages of drinking water, damage of hundreds of hectares of crops and livestock. Consequently, the supply of many agricultural goods and pork decreased, which spiked the prices on these goods.

Chinese long-term prospects toward food security

To conclude, immobility, African swine flu, worsened weather and security conditions led to the growing food shortages and increasing food prices in China. This being said, the Chinese government has been working on that problem. It has taken special measures to ensure sufficience of agricultural goods by investing in various disaster relief funds for different crops, particularly rice and wheat. For example, Chinese authorities allocated 1.4 billion yuan to save the agricultural harvest in Hubei province. Due to the substantial loss of agricultural products, China has also increased its imports. General Administration of Customs reported that China’s grain imports rose by 22.7% in July 2020 compared to the previous year. Meanwhile, the Chinese leader took a gentle approach to solve this problem. He did not announce the issues related to the insufficient number of crops; instead, he adopted a program for encouraging people to be more frugal with their eating habits. The Chinese Academy of Social Sciences followed the same path as it denied anticipation of a food crisis in the short-term perspective, yet warned about possible food shortfalls by 2025 if no agricultural reforms take place. As of now, China is not on the break of a food crisis; however, its shuttered prospects for long-term food sustainability are subject to dangerous repercussions.

From our partner RIAC

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China and Mongolia: A Comprehensive and Never-Ending Strategic Partnership

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Mongolia is an exceptional country when it comes to Eurasian geopolitics, linking China with Russia, two great countries in terms of military and economic capabilities, geographical area and population. In June 2016, the China-Mongolia-Russia Economic Corridor (CMREC) was announced in order to consolidate friendly relations and promote economic exchanges for the success of the Belt and Road Initiative. Many reports indicate the great position of Mongolia on the Chinese economic map as a pillar of the modern Chinese initiative. Mongolia is a major economic partner of China, and the Chinese administration aspires to forge permanent relations of cooperation and coordination with Mongolia by virtue of its common geography and strategic location, in order to open up through it to Russia and other Mongolia is a key economic partner of China, and the Chinese administration aspires to forge permanent relations of cooperation and coordination with Mongolia by virtue of its common geography and strategic location, in order to open up through it to Russia and other international partners.

Mongolia is rich in natural resources, for example the mining industry provided up to 30% of GDP and almost 90% of exports, but its economy is not as developed compared to China. Some economic reports indicate the great economic benefit to Mongolia from the China-Mongolia-Russia Economic Corridor. Mongolia is expected to witness unparalleled economic growth in terms of international economic cooperation, which will positively affect the national economy. The Mongolian economy depends heavily on China’s investment; data of the two largest ports in Inner Mongolia Autonomous Region in northern China indicates enormous economic benefits. In the chart below, the continued economic progress achieved in Inner Mongolia is shown. In addition, rail trade increased by 16 percent year-on-year to 11.2 million tons in 2017. In the same year, 570 trips were made on the China-Europe railways passing through Ernhot (a county-level city of the XilinGol League, in Inner Mongolia Autonomous Region, located in the Gobi Desert along the Sino-Mongolian border, across from the Mongolian town of Zamyn-Üüd).

The Belt and Road Initiative aims for mutual profit, cooperation and peaceful communication. China shares an ancient cultural history with Mongolia, long common borders, and economic cooperation that has never stopped. The strategic geographic location of Mongolia makes it a priority for China on the new Silk Road, in addition to the richness of natural resources and livestock that China needs.

The Mongolians are a horse-loving people, a country known for its large number of horses. Mongols without horses are like birds without wings. Despite globalization and the great economic progress in the neighbor (China), as well as the cold weather and difficult geography, the Mongolians did not abandon their traditions and the Mongolian way of life still exists today. In Mongolia there are herders of horses, camels and cattle to benefit from milk, meat, wool, etc. During the pandemic in China, for example, President Battulga set up what is known as “Sheep Diplomacy” where Mongolian President donated 30,000 sheep to China. This initiative indicates the Mongolians’ positive intentions towards the Chinese and the desire to open up more. In this context, I would like to point out that China is a big importer of meat and the Chinese demand for meat is constantly increasing, as shown in the chart below. Here is a great opportunity for Mongolia to increase its exports of meat to the Chinese market.

The reading of Mongolian history indicates that this country has passed through periods of prosperity. Mongolia may be a good example of power and rule, as its borders extended to many countries during the rule of Genghis Khan (1162-1227), the man whom the Mongolians consider their historical leader and has turned into a hero and a national symbol. The Mongolians did not abandon their land despite the cold weather and difficult geography, indicating that they are a deeply rooted people with land. Mongolia, with its vast territories and few people, has turned into a meeting place for Russia and China, and a strategic center for Chinese economic expansion. Therefore, it is impossible for the Chinese administration to abandon the partnership with Mongolia.

The Mongolian economy is heavily dependent on livestock, and the number of pastures has increased significantly since the Soviet era because of the transfer of ownership to the people. However, the government is still not able to provide all services to citizens “the government has failed to promote education and health care and veterinary care in pastoral communities, so there is no longer any incentive to stay in rural areas” said Sarol Khuadu, an official at the Institute for Environmental Research in the Mongolian capital. The policy, which no longer places much emphasis on the countryside, has led to the transfer of large numbers of citizens to the capital and to engage in the world of money and business.

Unfortunately, the Mongolian government is not working seriously to support citizens in remote areas. The conditions of life are not good and the loans granted are high interest, in addition to the weather that adversely affects their businesses. In order to help the poor and rural people, in cooperation with national governments, humanitarian, development and scientific partners, FAO has developed an early warning approach by monitoring risk information systems and turning warnings into proactive actions. International organizations contribute to permanent humanitarian and social assistance in Mongolia.

Mongolia’s strategic policy through the “Mongolia Steppe Road Program 蒙古国“草原之路” is largely in line with the belt and road initiative, which is a road connecting Mongolia, China and Russia. Consequently, Mongolia, a country that mainly depends on the agricultural sector, will be a center for economic communication between China and Russia, and thus will witness a great economic development. The Steppe Road Program aims to boost Mongolia’s economic standing and create an advanced network of infrastructure for communication with China and Russia and build an oil and gas pipeline. In 2014, during his historic visit, Chinese President Xi Jinping raised the level of relations between the two countries to “Comprehensive Strategic Partnership Relations”. Since then, bilateral cooperation has begun to move faster.

China has never abandoned Mongolia; it is a country of advanced strategic location as a bridge between Asia and Europe, in addition to the important agricultural sector in Mongolia which benefits China greatly, not to forget to mention the China-Mongolia-Russia Economic Corridor which has become an important part of the belt and road initiative and a key component of Sino-Russian cooperation.

The relationship between China and Mongolia today is an ideal example of the bilateral relationship between two neighboring countries. Cultural, economic, political and tourism communication is in continuous progress between the Chinese and Mongolians, and the Belt and Road Initiative will push this communication forward. The Chinese aspire to increase free trade areas and economic connectivity through a developed infrastructure network.

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