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6-10-2015, 18:09

It all starts in Sichuan

In St. Petersburg, from session to session and in selected conversations, what I saw were some crucial building blocks of the Chinese New Silk Road(s), whose ultimate aim is to unite, via trade and commerce, no less than China, Russia and Germany.

For Washington, this is beyond anathema. The response has been to peddle a couple of deals which, in thesis, would guarantee American monopoly of two-thirds of global commerce; the Trans-Pacific Partnership (TPP)—which was essentially rebuked by key Asians such as Japan and Malaysia during Obama's trip—and the even more problematic TransAtlantic Partnership with the EU, which average Europeans absolutely

Abhor (see Breaking bad in southern NATOstan, Asia Times Online, April 15, 2014). Both deals are being negotiated in secret and are profitable essentially for US multinational corporations.

For Asia, China instead proposes a Free Trade Area of Asia-Pacific; after all, it is already the largest trading partner of the 10-member Association of Southeast Asian Nations (ASEAN).

And for Europe, Beijing proposes an extension of the railway that in only 12 days links Chengdu, the capital of Sichuan, to Lodz in Poland, crossing Kazakhstan, Russia and Belarus. The total deal is the Chong-qing-Xinjiang-Europe network, with a final stop in Duisburg, Germany. No wonder this is bound to become the most important commercial route in the world.47

There's more. One day before the clinching of the Russia-China gas deal, President Xi Jinping called for no less than a new Asian security cooperation architecture, including of course Russia and Iran and excluding the US.48 Somehow echoing Putin, Xi described NATO as a Cold War relic.

And guess who was at the announcement in Shanghai, apart from the Central Asian “stans”: Iraqi Prime Minister Nouri al-Maliki, Afghan President Hamid Karzai and crucially, Iranian President Hassan Rou-hani.

The facts on the ground speak for themselves. China is buying at least half of Iraq's oil production—and is investing heavily in its energy infrastructure. China has invested heavily in Afghanistan's mining industry—

Especially lithium and cobalt. And obviously both China and Russia keep doing business in Iran.49

So this is what Washington gets for over a decade of wars, incessant bullying, nasty sanctions and trillions of misspent dollars.

No wonder the most fascinating session I attended in St. Petersburg was on the commercial and economic possibilities around the expansion of the Shanghai Cooperation Organization (SCO), whose guest of honor was none other than Li Yuanchao. I was arguably the only Westerner in the room, surrounded by a sea of Chinese and Central Asians.

The SCO is gearing up to become something way beyond a sort of counterpart to NATO, focusing mostly on terrorism and fighting drug trafficking. It wants to do major business. Iran, India, Pakistan, Afghanistan and Mongolia are observers, and sooner rather than later will be accepted as full members.

Once again that's Eurasian integration in action. The branching out of the New Silk Road(s) is inevitable; and that spells out, in practice, closer integration with Afghanistan (minerals) and Iran (energy).



 

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