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Post by TsarSamuil on Nov 13, 2010 7:33:46 GMT -5
Russia, Japan resolve to strengthen cooperation (Update 1)
Russian President Dmitry Medvedev and Japanese Prime Minister Naoto Kan agreed on Saturday to strengthen bilateral cooperation following a recent clash over a long-standing territorial dispute, the Russian Foreign Minister said.
Medvedev and Kan met for talks in the Japanese city of Yokohama, where both leaders are to attend the Asia-Pacific Economic Cooperation summit.
"Both leaders have reaffirmed their determination to develop Russian-Japanese cooperation in the economic, humanitarian and political spheres," Sergei Lavrov told journalists after the meeting.
"The president has stressed the need for more active action on the international stage, including in the Asia Pacific region where Russia and Japan can contribute to solving the [region's] problems," he added.
Earlier this month, Medvedev aggravated a long-standing dispute over four of the Kuril Islands by becoming the first Russian or Soviet leader to visit them. Both countries have laid claims to the islands since they were occupied by the Soviet Union at the end of World War II.
During Saturday's talks, Medvedev reaffirmed Russia's position on the islands, Lavrov said.
"Just as Kan expressed disappointment over...[Medvedev's] visit to Kunashir Island, our assessment of the situation is that the president decides himself which region of Russia he visits," Lavrov said. "This is and will remain our territory."
Medvedev invited Kan to visit any Russian region, including the Far East.
"The invitation was accepted and we will now work on a specific timeframe for the visit," Lavrov said.
YOKOHAMA, November 13 (RIA Novosti)
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Post by TsarSamuil on Nov 17, 2010 0:21:02 GMT -5
Good idea? Maybe for far east, economic sense to get rid of towns that don't make much economic sense...but it's bad for culture n ties to the land.
Not to mention crowding people up makes the nation vulnerable to attack, easier to strike most down?..but then again nukes would do the job regardless where people are.
Hopefully making larger centres in the east ensures that people stay n grow instead of most moving west to European Russia. Otherwise the region will be overrun by Chinese n/or muslims.
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Russia considers biggest population redistribution since Stalin.
The Kremlin is considering pushing ahead with the biggest geographical redistribution of its population since Josef Stalin's forced deportations of entire nationalities in the 1940s.
Telegraph.co.uk
By Andrew Osborn in Moscow 5:57PM GMT 16 Nov 2010
Under the plans, which were leaked to the daily Vedomosti newspaper, the majority of Russia's 141 million-strong population would be concentrated in just twenty urban centres rather than sparsely spread out over one fifth of the earth's surface as is now the case.
At the moment, ninety per cent of Russia's towns are relatively small with a population of 100,000 people or less, many of them in remote locations. The leaked plan said such places had "no future" and were not worth developing.
Instead, it proposed relocating people to twenty giant agglomerations where Russia's main natural resources such as oil and gas were located.
Unlike in Stalin's day, when people were forced to move at gunpoint on the often spurious grounds that they were 'enemies of the people' or Nazi collaborators, relocating would be optional and encouraged on economic grounds alone.
Much of rural Russia is dying as young people move to towns and cities anyway and entire Soviet-era settlements which were built around just one or two factories are no longer economically viable.
"There is no need to fight against the current and we need to develop big cities and urban centres," the plan said according to the newspaper.
Saddled by an obsession for central planning, the Soviets decreed that many towns and settlements be built in areas where the climate was too harsh and where the expense of providing basic utilities was unjustifiably expensive.
Analysts said the plan, which would roll back the Soviet idea of urbanising the entire country, is likely to be heavily touted by President Dmitry Medvedev as part of his agenda to modernise Russia.
"Changing the map of the country is a necessary but not simple task which needs to be done very carefully as any overreaction could lead to a fight for urban resources," a government official was quoted as saying.
With speculation mounting about whether Mr Medvedev or Vladimir Putin, the prime minister, will run for the Russian presidency in 2012, the plan could be a useful electoral tool for Mr Medvedev according to analysts.
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Post by TsarSamuil on Nov 17, 2010 16:39:40 GMT -5
Japanese PM says considering visit to Kuril Islands.
Japanese Prime Minister Naoto Kan said on Wednesday that a possible visit to the disputed Kuril Islands, called the Northern Territories by Japan, deserved careful consideration.
"Given how important the prime minister's visit [to the islands] is, it must be considered seriously. At the moment I do not have any concrete plans," Kan said in a speech to the Japanese parliament.
Earlier this month, Russian President Dmitry Medvedev aggravated a long-standing dispute over four of the islands, by becoming the first Russian or Soviet leader to visit one of them.
Both countries have laid claims to the islands since they were occupied by the Soviet Union at the end of World War II and the dispute has prevented them from signing a peace treaty to formally end wartime hostilities.
The Japanese premier reiterated Japan's stance on the status of the islands.
"Japan's principal position that the Northern Territories are part of our country and that the territorial dispute must be resolved through the signing of a peace treaty, has not changed," he said.
Last week Medvedev met with Kan during the APEC summit in the Japanese city of Yokohama. Medvedev invited Kan to visit "any part of Russia, including the Far East."
Kan said he "wanted to develop friendly relations between Russia and Japan on a basis of trust, as between two partners."
TOKYO, November 17 (RIA Novosti)
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Post by TsarSamuil on Nov 21, 2010 12:23:51 GMT -5
What's the difference between cooperating with the Chinese or the West? 5 Reasons. 1. China doesn't get involved in our internal affairs. 2. China doesn't get involved in our internal affairs. 3. China doesn't get involved in our internal affairs. 4. China doesn't get involved in our internal affairs. 5. China doesn't get involved in our internal affairs. ---------- China Will Manufacture Four Car Models in Bulgaria. Standartnews.com Luybomir Mihailov, Interviewer Sunday, 21 November 2010 Guo Yezhou, Ambassador of the People’s Republic of China to Bulgaria - Your Excellency, what has prompted you to visit the national trade fair in Sofia? - I would say the idea has come naturally. I took office in Sofia just three months ago but I feel this city as a quiet and comfortable place. I decided that it will be interesting to my compatriots in China to learn more about Bulgaria. - What has made the greatest impression on you? - First of all these were the stands with foods and perfumery based on the famous Bulgarian rose. I also paid attention to clothes and textile, because China is the world’s largest manufacturer of readymade clothing. The Bulgarian craftsmen are for sure very original, too. - Are the Bulgarian goods competitive at the Chinese market? - China definitely welcomes the Bulgarian goods. I think that this expo and its coverage in the Chinese media will be an additional promotion for your produce. - When will the first Chinese cars roll of the production line of the Lovetch plant? - In the second half of 2011 four models of Chinese vehicles will be manufactured in Bulgaria and the prices will be affordable for the Bulgarians.  Director of the Sofia Palace of Culture Hristo Drumev showed Chinese Ambassador Guo Yezhou and Chinese journalists around the traditional “Made in Bulgaria” expo Photo: Georgi Nikolov ------------- Bulgarian Transport Minister: China's High-Speed Rail Invitation 'Real' Novinite.com Business | November 4, 2010, Thursday Bulgaria's Transport Minister, Alexander Tsvetkov, has defined as "absolutely real" China's invitation to Bulgaria and Turkey to participate in a project for a high-speed railway connection from the Far East to Europe. "The invitation is absolutely real. It is an old idea of China to have a high-speed railway connection from them, through Turkey and Bulgaria, which would enable the import of more goods to Europe," Tsvetkov said in an interview for the Bulgarian National Television. He added that Bulgaria was not only ready to realize this project, but was also seeking cooperation with China for renovation of the railway's technology. "We believe we could cooperate very well with China on this matter. I had many meetings with different companies in China, not only in the field of railways, but also in construction. China is very interested in economic cooperation with Bulgaria," Tsvetkov said. In his words, however, there have to be changes in the railway's infrastructure and staff because the employees had to be more responsible. Tsvetkov also said Bulgaria could not provide enough financing for the rehabilitation and modernization of the railways. He said that some of the EU funds for railway infrastructure will go for the construction of the Sofia subway because it was a priority project. The minister has stated that a big Chinese delegation is preparing to visit Bulgaria until the end of the year and added that business in Bulgaria is not very popular in China.  A map of the northern China to Europe rail routes via Kazakhstan and Russia. China appears interested in developing a southern route as well, inviting Turkey and Bulgaria to join in it. Map by nigelnixon.com ---------- Chinese Businessmen: Bulgaria Most Important Balkan State. Novinite.com Business | October 11, 2010, Monday Chinese businessmen have suggested that Bulgaria should increase the marketing and advertising of its goods in China, in order to boost the consumers' interest. The suggestion was made by Wan Jifei, the Chair of the China International Trade Promotion Committee. He led a delegation of 22 Chinese companies, which took part Monday in a joint forum with Bulgarian companies organized by the Bulgarian Chamber of Commerce and Industry (BCCI). According to Jifei, Bulgarian producers should participate in exhibitions and fairs in order to popularize their products in the People's Republic. He also pointed out the opportunity of organizing a joint project for advertising between BCCI and the Chinese institution. “Bulgaria is the most important country in the Balkans, and one of the markets with greatest potential in Central and Eastern Europe. One of the major reasons for the interest of Chinese companies in Bulgaria is the fact that with its good geographic location it can turn into a door to Europe and its markets,” Jifei declared. Bulgaria's Economy Minister, Traicho Traikov, has stated that there is an opportunity for traditional Bulgarian products, like yogurt, wine and essential oils to be promoted in China. "However, we owe the business. We need to provide a better infrastructure and logistics,"Traikov said. He has reiterated the government's intention to turn Bulgaria into "the EU door for Chinese imports." Chinese companies have participated in several business forums with Bulgaria in the last few months. Traikov, as well as Bulgaria's Finance Minister Simeon Djankov, visited China, in order to present the opportunities for investment in Bulgaria. So far, the only specific result of the negotiations between the two countries is the agreement for creation of a joint company to operate the future business zone to be built in Bozhurishte, near Sofia. According to information from the Bulgarian Ministry of Economy, the Bozhurishte project has an area of about 500 acres and close to 1/3 of them will be allocated to Chinese companies. Minsiter Traikov has stated that Chinese companies are interested in investing in the fields of electronics, infrastructure, energy, agriculture, engineering and construction materials. Bulgaria's Deputy Economy Minister, Evgeni Angelov, has stated that China also wanted to invest in the construction of the Belene nuclear power plant, Hemus Highway and in Kozloduy NPP. Traikov has explained that the investment model has become more transparent. "The model includes funding from the China Development Bank and from the US Eximbank to companies, which want to invest in Bulgaria," he said. In 2010, the trade between Bulgaria and the People's Republic of China started growing again, with a total value of USD 653 M in January-August 2010, a 36% increase year-on-year, according to the China International Trade Promotion Committee. According to data of the Bulgarian National Statistical Institute, Bulgaria's exports to China grew by 252.3%, year-on-year. |
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Post by TsarSamuil on Nov 21, 2010 12:49:23 GMT -5
ČR trolling for Chinese investment.
Rising economic power is showing interest in Central Europe.
Praguepost.com
November 17, 2010
By Cat Contiguglia - Staff Writer
Just five years ago, there was little Chinese investment farther east than Germany. Now, however, total outbound investment into Europe tops billions of dollars following 2009 Chinese legislation that encouraged foreign investment. But whether the Czech Republic is in the position to be on the receiving end of this boom, and what that investment might look like, is uncertain.
By the end of 2009, total outward Chinese foreign direct investment (FDI) reached $246 billion from $26.5 billion in 2007, according to data from the Chinese Commerce Ministry (MOFCOM). Europe has so far received 3.8 percent of the total, or $8.7 billion. Out of that, the Czech Republic ranked behind most countries in the region with a total of $49.34 million invested in the country by the end of 2009, compared with $93 million in Romania, $97 million in Hungary and $120 million in Poland.
So far, investments in the Czech Republic and planned projects are mainly associated with manufacturing, but in the long term, Czech officials are hoping to make their country a prime choice for larger and more long-term investments through cooperation in higher value-added projects, like technology and development centers in cooperation with universities. Although that goal has become a sort of slogan for the government, it may not be on track to materializing fast enough, according to Petr Hýl, executive chairman of the China Investment Forum, a regional platform sponsored by the Czech Industry and Trade and Foreign Affairs ministries, as well as bodies in Slovakia and China.
"What I'm trying to explain to politicians is that in the coming decade, China will be the country investing abroad, and it will be a big loss to this country if it went to Germany and Poland and not here," Hýl told The Prague Post at a Prague forum held Nov. 8-11. The government is not moving fast enough to make the country's technology and development sector attractive, he added. "I would suggest strongly that we are missing the train; it looks like we are already missing our opportunities."
Statistics of China's outgoing FDI into the Czech Republic from MOFCOM don't correspond across the board. A spokesperson for CzechInvest gave a range of between $42 million and $50 million, while numbers from the China Investment Forum add up to a total investment by the end of 2009 of $42.46 million, compared with the $49.34 million reported by MOFCOM.
China's investments into the Czech Republic have increased in recent years. In 2006, there was approximately $9.1 million in new investment, compared with $15.6 million in 2009, according to the China Investment Forum. In comparison with investments into other countries in the past five years, however, that's not a lot, Hýl said.
"China is a large country and has many companies that have higher revenue than our entire state budget," he said. "[Czech officials] need to very clearly say we need to cooperate with China. If the Czech Republic is unfavorable to China in any way, they will not beg to come here."
Currently, there are only five Chinese companies that have established facilities in the Czech Republic, according to data from CzechInvest. Those companies include two electronics production facilities and a manufacturer of transport equipment, as well as Shanghai Maling, which produces canned meat.
Shanghai Maling is estimated to be the largest Chinese investment in the Czech Republic. The initial investment was nearly 20 million Kč, and the company currently has 70 employees, an annual production of about 6.8 metric tons of product and yearly profits of around 975,000 Kč.
"Canned meats from China cannot go to the EU market because of restrictions, so the decision was to make a factory here for the whole European market because it would be advantageous for the Chinese company to have production here," said Jiří Vančura, a project manager for the Prague-based company. "The Czech Republic was a good choice because it is more developed than other East European countries, and what they needed was infrastructure. They feel that this is a good place."
Companies like Shanghai Maling are examples of what China is most interested in at the moment, according to Dr. Haiyan Zhang, the program director for the Euro-China Center at the Antwerp Management School, who said barriers to Chinese exports have pushed Chinese manufacturers to establish facilities in the EU.
"If this happens, the CEE will enjoy their locational advantages related to lower production and operating costs," he said.
That trend looks like it will hold in the immediate future, as China has approved 12 FDI projects in the Czech Republic that will operate in the textiles, food, automotive and machinery sectors, according to MOFCOM.
Courting companies
But Czech officials concerned with attracting Chinese money are hoping those advantages of stability and operating costs will attract higher value-added projects in the long term. Despite Hýl's concerns about not moving fast enough, Jaromír Černík, head of CzechInvest Asia Pacific, said the framework for these projects has indeed been put in place by the government, and what the next step needs to be is for the country to cast its net abroad and convince companies in China and Hong Kong of the advantages in the Czech Republic, a plan that Černík said would likely make China a significant investor in the Czech Republic in the long term.
"Most of them have not materialized yet; the happy ending is still missing," he said. "The work now is to use all our networks abroad - in China and Hong Kong - to tap those companies into cooperation."
Černík added that the Czech Republic has become increasingly attractive to investors interested in aerospace, nanotechnology, information technology and automotives.
Vančura said his company had already been approached by a number of Chinese investors interested in discussing the investment climate, including some involved in tech industries.
Efforts to foster better trade relations and attract Chinese investment have boomed over the past five years with cooperation agreements with China blooming all across the region. In the Czech Republic, Hýl's forum is actually one of a number of government-supported efforts to attract Chinese investment. The three-day Prague forum was focused on encouraging Czech investment in China, but also hosted a number of programs to warm Chinese investors to the region, including a tour of several factories and technology centers. In addition, CzechInvest and the China Council for the Promotion of International Trade, which represents 16,000 companies from China's richest province, Zhejiang, signed an agreement of cooperation last year, and CzechInvest has hosted a number of events in both the Czech Republic and China to encourage relations.
In the end, however, experts say some of the major barriers to Chinese investment are misleadingly simple.
The difficulty of obtaining visa and residency permits in the Czech Republic is a major drawback, according to Zhang, as well as the different currency, language and cultural barriers.
"Misunderstanding public opinion about China due to historical reasons and the common experience of the communist system might create an 'unfavorable' environment for Chinese entrepreneurs and managers to invest in the CEE," he said.
Černík urges Czech companies to reach out and also invest abroad, along with new export start-up ventures that connect with Asian capital in order to get the companies interested in the Czech Republic. Once investors make it here, they need to be further encouraged, Zhang said, with welcome packages including consulting services for partner and location identification.
"The identity, or image, problem is a common problem for many small countries, and to build up a global image is very important," Zhang said.
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INVESTMENT TIMELINE
In 2009, China passed measures to boost investment abroad, which led to the highest levels of outgoing FDI the country has ever seen. The following charts the liberalization of China's FDI and the consequent race to attract Chinese investment in countries worldwide:
March 2009: China's Commerce Ministry announces provincial-level officials will be given responsibility for the approval of overseas investments less than $100 million
August 2009: A liberalization of rules governing foreign investment makes it cheaper and easier for Chinese companies to invest in or acquire foreign companies
September 2009: The Chinese State Council publishes guidelines to encourage more small and midsize businesses to expand overseas
July 2010: Germany and China sign a series of deals for a closer trade relationship and greater Chinese investment in Germany
November 2010: Poland signs a declaration on Polish-Chinese cooperation, and Hungarian Prime Minister Viktor Orbán visits Shanghai for negotiations on increased economic cooperation
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Post by TsarSamuil on Nov 23, 2010 11:03:41 GMT -5
Yes, lol, Russia does border North Korea directly. This seems to be a serious provocation, but it will probably/hopefully? calm down. ----------- Vid, rt.com/news/korea-conflict-attack-nuclear-escalation/CCTV video of North Korean bombs hitting South's Yeonpyeong island www.youtube.com/watch?v=ZcsXT6fL9lESouth vs North: 'Koreas clash could turn into Gulf War III' www.youtube.com/watch?v=91XRs2026A0----------- War hysteria could lead to full-scale conflict on Korean peninsula. RT.com 23 November, 2010, 17:47  As tensions between North and South Korea heat up, Russia warns against the danger of escalating aggression. Clashes began between North and South Korea on Tuesday morning, as both countries fired artillery shells across their disputed maritime border. The two sides blame each other for the initial attack. The Russian foreign ministry said the clashes are unacceptable and called on both sides to show restraint to prevent the outbreak of military conflict. “What happened deserves condemnation. Those who initiated the shelling must accept responsibility. We insist that both sides must take measures to pacify the situation and prevent similar action in the future. Unfortunately, this is already the third incident of its kind this year. But this time, there’s a colossal danger of the situation descending into military conflict. This must be avoided. Russia has repeatedly warned of the growing tension in the region, and is now counting on both sides to arrive at a suitable conclusion,” Russia’s Foreign Minister Sergey Lavrov said. Pavel Leshakov, director of the International Centre for Korean Studies at Moscow State University, says a full-scale conflict between North and South Korea is unlikely, but the war hysteria that is quickly spreading across the Korean peninsula is a real threat. Leshakov also said there was quite possibly a link between the latest Korean conflict and North Korea’s recent show-off of its new nuclear facility. On November 20, the media published a review by American nuclear experts who describe an industrial-scale uranium enrichment plant in Korea. The report sparked fresh alarm over North Korea’s growing nuclear capability. According to Leshakov, the very fact that Pyongyang decided to show the facility to the United States is an invitation to negotiations. “The most important thing now is negotiation between North Korea and the USA. If the USA takes a more cautious and thorough attitude towards problems on the Korean peninsula, the solution could be reached quite simply,” he said. ---------- Infographic, en.rian.ru/images/16145/70/161457015.jpgNorth Korea launches attack on South Korean island (WRAPUP) North Korea opened artillery fire at a South Korean island on Tuesday, killing one soldier and provoking a retaliatory attack from the South, Seoul's YTN television reported. An eyewitness told the TV station that some 60 to 70 houses were ablaze on the Yeonpyeong island in the Yellow Sea. The island, which is off the countries' west coast, is populated by some 1,200 people. A spokesman for South Korea's joint chief of staff said "scores of rounds" were fired by the North. South Korean military retaliated by firing some 80 rounds, Yonhap said. At least one South Korean marine is reported to have died, with three seriously injured. It is not immediately known if there were any civilian casualties. The South Korean military is on its highest non-war alert and the Air Force has deployed fighter jets to the island. Yonhap said Seoul was considering the evacuation of its nationals currently in North Korea. "We will decide whether we should evacuate them or not after looking into the safety of those at the Mount Kumgang resort and the Kaesong industrial park," the South Korean agency quoted a Unification Ministry official as saying. South Korean President Lee Myung-bak ordered an emergency meeting of security ministers in connection with the attack. Tuesday's exchange of fire came amid large-scale military exercises in South Korea. The drills, involving some 70,000 troops, were launched Monday and are to last through November 30. "Our army was carrying out military training, and there was a telegram from North Korea with a protest and questioning whether this was an attack," the spokesperson was quoted as saying by South Korea's Yonhap news agency. He did not rule out that subsequent artillery fire from the North was a response to the drills. The attack is the second incident in the tense Yellow Sea border area this year. In March, a North Korean submarine was alleged to have torpedoed a South Korean naval ship, the Cheonan, causing the loss of 46 lives. An international investigation said the North was to blame, but the reclusive regime denied involvement. North and South Korea remain technically at war, since no peace treaty was signed following the Korean War in 1953. The Demilitarized Zone between the countries is the most heavily armed border in the world. The latest attack comes after the revelation that the North has created a new uranium enrichment facility. Despite the development, South Korea will not seek the return of U.S. tactical nuclear missiles over fears that the move could scupper international efforts to persuade North Korea to halt its nuclear program, the South Korean deputy defense minister said. "Redeploying U.S. tactical nuclear weapons in South Korea would cross the line of the denuclearization policy on the Korean Peninsula," deputy defense minister Chang Kwang-il told Yonhap. He added that "South Korea has had no talks with the United States over the issue." MOSCOW, November 23 (RIA Novosti) ------------ South Korea vows 'enormous retaliation' against North's attack (WRAPUP 3) South Korean President Lee Myung-bak on Tuesday ordered to punish North Korea's shelling of one of the South's border islands "through action," in a bid to prevent further provocation. "Enormous retaliation is going to be necessary to make North Korea incapable of provoking us again," the South's Yonhap news agency quoted South Korean President Lee Myung-bak as saying in the headquarters of the country's joint chief of staff in Seoul. North Korea opened artillery fire on the South's Yeonpyeong Island in the Yellow Sea at 14:34 local time (05:34 GMT) on Tuesday, killing at least two South Korean marines. Sixteen others were injured, along with 3 civilians. The South immediately fired back. Pyongyang accused Seoul of striking first. The South said it had been conducting military exercises but artillery fire was not directed at the North. "The provocation this time can be regarded as an invasion of South Korean territory. In particular, indiscriminate attacks on civilians are a grave matter," the South's president said. "Reckless attacks on South Korean civilians are not tolerable, especially when South Korea is providing North Korea with humanitarian aid," Lee went on. He said a military response is necessary. "Our military should show this through action," he added. "Given that North Korea maintains an offensive posture, I think the Army, the Navy and the Air Force should unite and retaliate against [the North's] provocation with multiple-fold firepower," Lee said. INTERNATIONAL CONDEMNATION Western powers have condemned the attack but warned against further escalation. United Nations Secretary General Ban Ki-moon said it was "one of the gravest incidents since the end of the Korean War" more than half a century ago. He said he was "deeply concerned" by the incident and called for "immediate restraint." Russia called on both Koreas to refrain from the use of force. "Russia firmly condemns any show of force...all disputes should be settled by exclusively political-diplomatic means," the Russian Foreign Ministry said in a statement. It also urged both sides to "show restraint and not permit actions that could lead to the escalation of the military conflict on the Korean peninsula." NORTH CLAIMS SELF-DEFENSE However, North Korea claimed its forces had responded to a South Korean attack, the North Korean Central News Agency said. "Despite our persistent warnings, South Korea fired dozens of shells from 1 pm local time [04:00 GMT] and we immediately retaliated with military force," the agency said. A spokesman for the South's joint chief of staff said "scores of rounds" were fired by the North. South Korean military retaliated by firing some 80 artillery rounds, Yonhap said. Tuesday's exchange of fire came amid South Korea's drills. "Our army was carrying out military training, and there was a telegram from North Korea with a protest and questioning whether this was an attack," Yonhap quoted the spokesman as saying. He did not rule out that the North's shelling was a response to the drills. TENSIONS RISE The South Korean military is on its highest non-war alert and the Air Force has deployed fighter jets to the island. Yonhap said Seoul was considering the evacuation of its nationals currently in North Korea. The attack is the second incident in the tense Yellow Sea border area this year. In March, a North Korean submarine was alleged to have torpedoed a South Korean naval ship, the Cheonan, causing the loss of 46 lives. An international investigation said the North was to blame, but the reclusive regime denied involvement. North and South Korea remain technically at war, since no peace treaty was signed following the Korean War in 1953. The Demilitarized Zone between the countries is the most heavily armed border in the world. The latest attack comes after the revelation that the North has created a new uranium enrichment facility. Despite the development, South Korea will not seek the return of U.S. tactical nuclear missiles over fears that the move could scupper international efforts to persuade North Korea to halt its nuclear program, the South Korean deputy defense minister said Chang Kwang-il. SEOUL, November 23 (RIA Novosti) |
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Post by TsarSamuil on Nov 23, 2010 11:13:56 GMT -5
Welcome to the Future: Bulgaria's Industrial Zones - and Why China Is Interested in Them.
Novinite.com
Ivan Dikov
Special Report | November 22, 2010, Monday
In June 2010, the Bulgarian government broke the news that it formally invited Chinese authorities and companies to set up and manage a joint industrial zone in Bozhurishte, right outside of Sofia, a development that can well be seen as revolutionary.
The first ever industrial factory in the Ottoman Empire, a state spanning some 18 million square km, was opened in 1833 in Sliven by the Bulgarian entrepreneur Dobri Zhelyazkov. Yet, in spite of that and other industrial sparks in Bulgaria, especially after its National Liberation in 1878, up until the 1950s, it remained a primarily agrarian society with little heavy industry. (In 1891, when the international proletarian movement set foot in Bulgaria, the country had only 3 000 industrial workers in total.)
The Bulgarian heavy industry created by the communist regime (1944/48-1989), which was grossly inefficient and tied with the Soviet and COMECON economies, was largely wiped out in the 1990s by mismanagement, low competitiveness, loss of markets, suspicious privatization deals, lack of investment, to name but a few.
As the worst passed (the Bulgarian crisis of the mid and late 1990s), and Bulgaria has already been integrated to a certain extent with the EU, the authorities and private companies today stand a fair chance of taking advantage of the processes of the global economy by attracting greater FDI. The so called industrial zones – designed to fit both outsourcing and expansion of multinational corporations – appear to be a very attractive way to do that.
These prospects don't seem to have been hurt substantially by the global economic crisis of 2008-2009 – as the global quest for cost-effective labor and production continues – and as the People's Republic of China, the world's primary outsourcing destination of the past decades, is on the verge of becoming a global "outsourcer" itself.
What is more, over the past couple of years, the governments of both Borisov and Stanishev in Bulgaria started to recognize and emphasize the need to create a real export-oriented economy and to generate export-driven economic growth.
The Concept of Industrial Zones in Bulgaria
In the recent years many in Bulgaria started to hope that industrial zones – areas planned for industrial development, logistics, and, in more specific cases, office and business parks – would be the key to the country's economic takeoff.
As the Bulgarian state finances and economy stabilized after the 1990s collapse thanks to the currency board, the eventual completion, more or less, of the structural reforms, the gaining of NATO and EU membership, and the introduction of sinfully (in the good sense) low taxes, hopes have been that Bulgaria's crucial geographic location and its still skilled labor force would drive in more and more foreign investors.
These hopes might have been overstated, with every single small town mayor deciding to set aside a municipal plot and wait for investors to show up. In 2008, the Socialist-led Stanishev government announced a rather interesting plan to set up 100 industrial zones around the country, turning Bulgaria into a largely export-driven economy by 2018. Top government officials have been talking about how Bulgaria offers outsourcing conditions competitive to those of Chindia.
While all that did not really translate into extremely impressive industrial investments in Bulgaria in the past couple of years – largely because of the global economic crisis – it did lead many to realize and state the potential of export-oriented industries.
With the global crisis now winding down and a new set of institutional endeavors, Bulgaria might finally have found the right track for its development of industrial zones. A "National Company Industrial Zones" (NCIZ) was set up in early 2009 to work closely with the Ministry of Economy, Energy, and Transport, and the InvestBulgaria Agency, all of those including a number of technocrats and professionals with education and management experience from Western countries and companies.
In the meantime, a couple of municipalities managed to create functioning zones with state help, while several private industrial zone projects have also developed successfully.
The big question in 2010-2011 is – can Bulgaria create more such pockets of industrial development and expand the existing ones in order to bring in FDI, spur greater GDP growth and exports, and finally start advancing along the lines of hi-tech, innovation, and research and development.
"National Company Industrial Zones" was established in the spring of 2009 with the goal of facilitating the inflow of FDI in the country by offering industrial terrains to foreign firms. Our priorities also include the creation of an innovation and a high-technology center, and this is a solid way to increase the competitiveness of the Bulgarian economy in general. I personally think all industrial terrains are important – they can serve different manufacturing firm requirements in different times. In view of this, if a foreign firm contacts us, through our close work with the Ministry of the Economy, Energy and Tourism, and the InvestBulgaria Agency, we can channel them to locations that are most attractive for them," Kiril Nikolov, CEO of the NCIZ, told Novinite.com (Sofia News Agency) in an interview.
After 2008, the Bulgarian governments and the National Company have decided to modify the initial plan for 100 industrial zones, and to go for the creation of eight major industrial zones around the country and a hi-tech park.
"I think that the current model is much more realistic... Several well developed industrial zone projects are enough, and will do the job rather than dotting the entire landscape with them. At present, the National Company is investing enormous efforts to develop such industrial zone projects including as municipal and state projects," commented in an interview for Novinite.com (Sofia News Agency) Nikolay Brankov, Managing Director of Industrial Developments at SIENIT Holding, a Bulgarian construction company that started five private industrial parks in the past decade.
"Our industrial zones are 100% private; the National Company is 100% state-owned. I can point to the Ruse Municipality, which has managed to set up a 100% municipality-owned industrial zone, on its own, where the municipality was the developer," Brankov explains.
Where Are We at? Bulgaria's Existing Industrial Zones
The plans of the state company provide for developing industrial zones at several major locations around Bulgaria at the junctions of key transport corridors, close to ports, airports, and industrial and city centers.
Three of those eight zones are considered to be already completed: Free Zone Ruse (37 hectares in area), located at Bulgaria's main Danube port, with French manufacturer Montupet a major investor with a car parts factory. Free Zone Vidin (30.8 ha), located at another Danube Port, and Free Zone Svilengrad (7 ha), close to key crossings on the borders with Turkey and Greece, have also been developed.
The future and "in progress" projects include industrial zones at Burgas (27 ha) and Varna West (109 ha), both at Bulgaria's major Black Sea ports and large cities; and Karlovo (58 ha) and Telish/Pleven West (200 ha), close to major inland industrial centers.
The jewel in Bulgaria's industrial crown, however, is expected to become the future industrial zone in Bozhurishte, right outside of Sofia, with an area of 191.4 ha, which is to be managed jointly with the Chinese Province of Zhejiang, and is to attract major Chinese companies wishing to invest and trade in Europe.
Several private-driven industrial zones have sprung up in Southern Bulgaria, all located around Plovdiv, a major industrial center. These have been constructed by SIENIT Holding, in partnership with other private entities, and with the support of local and state authorities.
Among those, the Maritsa Industrial and Commercial Zone is the largest (300 ha); it is right outside of Plovdiv and employs about 3000 people. Major investors there include Liebherr, Schneider Electric, Linde, Balkan Star, Industrial Commerce, Socotab, Ferrero, among others.
Then there is the Rakovski Industrial Zone (85), a major success story for a municipality of 30 000, declared in 2005 to be "The Most Successful Industrial Zone in Bulgaria" and awarded as a model for public-private partnership. It provides jobs for about 1100 people, with major investors including William Hughes, Kaufland, inexic, ABB. For its EUR 15 M investment in an electric systems plant there (to employ 500 by 2011), ABB grabbed one of Bulgaria's "Investor of the Year" awards in 2009.
The other projects of SIENIT, still under development, include the Kuklen Industrial and Commercial Zone (70 ha), Parvomai Industrial Zone (100 ha), and the Letnitsa Industrial Park (54 ha), which is the company's only project in Northern Bulgaria.
Checking the Boxes: Bulgaria's Advantages
What are the advantages that Bulgaria can count on in its bid to attract investors and outsourcing not just from Europe but also from China, the United States and all around the world? And how "self-fulfilling" are these advantages? Are they enough for successful industrial zones development on a large-scale – and for attracting the future "reversed outsourcing" to come from China and other destinations?
Every single brochure you pick up advertising Bulgaria as an investment destination will tell you of the country's great location in Southeastern Europe, on five major European transport corridors (No. 4, 7, 8, 9, and 10), which in themselves are trans-continental Eurasian highways.
The "why invest here" list includes also the well-educated and highly-skilled labor force, EU and NATO membership, macroeconomic and fiscal stability of the state, low level of public debt, free trade agreements and access to major markets - EU, USA, Russia, Turkey, the Mediterranean, ASEAN.
Add to that some of Europe's most competitive operational costs, 10% corporate (0% in areas with high unemployment) and income tax, and other details of preferential treatment for foreign investors. Does that automatically add up to grand foreign investments in industries and manufacturing?
It appears that for Bulgaria, for the time being, the whole has been smaller than the sum of its parts as far as foreign industrial investments are concerned. While Bulgaria saw staggering growth of foreign investments in the years prior to the 2008-2009 world economic and financial crisis – the record EUR 9 B in 2007, followed by EUR 6 B in 2008 – most of those were in financial services and banking, construction, real estate, and tourism, with some major investments in IT and services outsourcing such as call and customer support centers.
As the foreign investments in real estate and banking generally vanished because of the crisis, some recent data does bode well for Bulgaria's industry: in the first quarter of 2010, Bulgaria registered a 412% growth year-on-year, or a total of EUR 513 M, of foreign direct investments in the non-financial sectors.
For the time being, however, most foreign investors in Bulgarian industry have been from Europe and, to a lesser extent, from North America.
"Many Chinese firms with international operations are looking for the most cost effective approaches to further expand their businesses. Bulgaria offers quite a few advantages – taxation benefits, educated labor force, a gateway to the EU, crossroads of several trans-European transportation corridors, etc. So, I hope will Bulgaria become a desirable investment destination for Chinese firms in that aspect... Taxation is very important. Bulgaria offers one of the lowest corporate taxes in Europe. Our Investment Encouragement Act, which was amended recently, further can provide tangible tax benefits to foreign firms willing to invest in the country. The Act allows for R&D write-offs, exemptions on payment of corporate taxes, and other benefits, and it is a great mechanism to stimulate enterprises that enter Bulgaria," NCIZ CEO Nikolov explains.
By all accounts from government officials and business experts and analysts alike, the Bulgarian "National Company Industrial Zones" has started to invest enormous efforts into helping Bulgaria finally start utilizing on those prerequisites.
"Bulgaria has been meeting most of the requirements, and we are checking most of the investors' boxes for a number of reasons. Bulgaria has favorable taxes, for the past 5 years Bulgaria's taxation policy has been extremely attractive. We enjoy cost effectiveness of labor, skilled or unskilled. We have relatively attractive prices of electricity, water, natural gas. Then, of course, the global aspects – good location, access to markets, transport infrastructure. These are the kinds of things that investors evaluate to determine whether to go for a certain investment," says in turn Nikolay Brankov from SIENIT.
Brankov, however, points out that the ability to offer the investors the finished product is what really matters when it comes to a decision on whether to locate their production in Bulgaria.
"Our idea as a developer has been to provide each of the investors with a full package of services in one place. This means that we provide them with the end product executed according to their requirements. They don't have to deal with anything else other than their original activity, which is manufacturing or logistics. They don't have to become familiarized and go through the entire administrative process in Bulgaria, which I can say, is rather complicated for the construction of one industrial plant. It is this finished product that attracts them the most. A plot of land in itself, however, attractive it might be, is not enough, foreign investors need a functioning facility where they can start work," he elaborates.
Does Bulgaria Really Have Disadvantages?
What has been holding back Bulgaria in its efforts to attract more FDI? First of all, one needs to point out that, as mentioned above, in the pre-crisis years FDI had started to pour into Bulgaria at a rate unseen before in its history.
The list of "negative prerequisites" as far as manufacturing is concerned includes things like Bulgaria's lack of substantial mineral and energy resources, its tiny domestic market, general concerns about the rule of law and corruption (areas in which Bulgaria is believed to be making steady progress).
The more problematic areas probably have to do with the Bulgarian bureaucracy, and the underdeveloped capacity of the local, and sometimes the central authorities to provide fast solutions to foreign investors, at least up until now. Brankov has indicated that the model of public-private partnerships, which can be a major factor for economic and industrial development, has generally failed to yield substantial positive results in Bulgaria, largely because of the lack of capacity on part of the municipalities.
He has pointed out that on the local level the best option for industrial zones and similar projects would be for municipalities and private Bulgarian enterprises to partner in order to attract foreign companies. He has recognized, however, that, on a larger level, as in the case of the future Bozhurishte Industrial Zone and the prospects of working with the Chinese, the role of the government is the major factor because of the intergovernmental nature of the respective project.
One has to bear in mind that institutions such as the Economy Ministry and especially the InvestBulgaria Agency, which has been around for a while, have received rather positive feedback from investors.
Could labor – both skilled and unskilled - be an issue for anybody seeking to invest in Bulgaria? That hardly seems to be the case today even though, as the Bulgarian economy was booming before 2008, a favorite media topic was the imagined need to "import" unskilled laborers from countries such as Vietnam, or engineers from Ukraine or Belarus. Both Nikolov and Brankov are convinced that both skilled and unskilled labor is abundant in Bulgaria at present.
"I don't think there will be a shortage of labor, maybe a steeper learning curve for some. After all, we live in a market economy where the labor mobility is determined by the requirements of the businesses, and the willingness and the capabilities of people to satisfy them," Nikolov says
The one issue that Bulgaria does need to do much work on is its transport infrastructure. For one thing, Bulgaria's railway lines have seen little investment in the recent years in order improve their speed and energy efficiency. The capacity of the Danube river and sea ports could well be expanded – back in 2007 the head of Port Varna Danail Papazov alarmed that the port was close to the point of being unable to handle the enormous volumes of booming trade. Bulgaria's airports appear to harbor much potential, and substantial progress has finally started to be made on highway construction in the past year. Development of transport will be crucial if Bulgaria really – and finally – wants to takes advantage of its geographic location In general, it is safe to say that as far as Bulgaria's transport infrastructure is concerned – the best is yet to come.
"Bulgaria for its part has to create a climate for foreign investment. One aspect of that is the rule of law. Companies need to know that their investments are protected. There also need to be incentives. There is a competition in Europe, especially in Central and Eastern Europe. Believe me, Romania, Hungary, Serbia are trying to attract many of the same investors. The government of Bulgaria needs to make some strategic decisions... In Bucharest and Belgrade, they too would like to have investments come," US Ambassador to Bulgaria James Warlick told Novinite.com (Sofia News Agency) in an interview.
Outsourcing Reversed: When Will the Chinese Investors Arrive in Bulgaria?
According to Kiril Nikolov, the Bulgarian government and the National Company are currently "refining a Master Plan for the establishment of the industrial zone" at Bozhurishte.
The Bulgarian authorities expect to work on Bozhurishte with partners from China in two major ways: first, creating and managing a joint venture for the industrial zone with China's Zhejiang Province; the venture will operate a portion of the total plot in Bozhurishte and will offer industrial zone conditions to interested manufacturing firms from China and the world in general; second, apart from the joint Bulgarian-Chinese park, Bulgaria will develop additional capabilities on the Bozhurishte plot, and will invite Chinese companies to become residents there.
Nikolov has explained that senior officials from China and Zhejiang visited Bulgaria several times and made it clear they preferred Sofia as a location for the joint industrial zone – because of its transport location and human resources.
"I think that at the moment Bulgaria has clear advantages. Right now the Bulgarian Economy Ministry and the Bulgarian Cabinet, together with the "National Company Industrial Zones" are investing enormous efforts to attract Chinese industrialists to Bulgaria. Why is that and why is it possible and feasible? Because if we look at the developed industrial provinces of China, it is safe to say that Bulgaria has come close to them in terms of the cost levels generated here and there," commented Brankov in his capacity as the manager of several industrial zones.
He points out, however, that at present it is still easier for an European company to outsource to Bulgaria than for a Chinese company to do so because of the intergovernmental regulations.
"As far as the construction of facilities and outsourcing or just expanding production operations are concerned – that would not be hard at all. The bulk of the work, however, has to be done on intergovernmental level. For all this to happen, there must the approval of a lot of people and institutions," he believes.
Major Chinese investments in Bulgaria have so far been isolated cases, though rather important ones - a car manufacturing plant of Great Wall Motors near Lovech that opened doors recently, the glass factor in Razgrad of China Luoyang Float Glass Group, and a solar park in Ihtiman by Polar Photovoltaics, among others.
The last 6-8 months, however, have seen a greatly intensified dialogue between the governments of Bulgaria and the People's Republic of China, in which the Bozhurishte Industrial Zone near Sofia is a major topic but is not the only one.
Economy Minister Traikov has made it clear that Bulgaria is looking forward to Chinese concessions of Bulgarian ports and airports, and Transport Minister Tsvetkov went to Beijing to get an invitation for joining a project of China and Turkey for a high-speed "Asia-Europe" rail.
If the Bozhurishte Industrial Zone works out fine – and chances are that it will – this could be a major breakthrough in Bulgarian-Chinese economic and trade relations, with a significant spillover effect to other projects and other fields.
What Are We Really Getting At: Bulgaria's First Hi-Tech Park
The Bozhurishte Industrial Zone will be very important not just because it will be huge, it will be near Sofia and will create many jobs, and it could be a crucial Bulgarian-Chinese project. There is more to it – the efforts of the "National Company Industrial Zones" to create a high-technology park there, which will be the first of its kind in Bulgaria.
"The park is meant to be developed on a portion of the terrain in Bozhurishte. It will consist of a high-technology park, a business incubator and the inherent technology transfer office. The park itself will serve as a base for R&D work coming from outside firms, from research teams, or from universities. We would like this to be an in-sourced facility for pure R&D, containing labs, testing centers, and experimenting units. The incubator will provide conditions to newly formed innovative firms by supporting them in various functional aspects of their business – marketing, finance, legal, business planning, etc., while leaving the pure R&D work to the firms themselves," Kiril Nikolov explains, underscoring the significance of this project, which, if successful, could make a major impact on the development of the Bulgarian economy.
"This model works very successfully all over the developed world, and it is a base for making practical use of advanced science. Currently, we are working with several potential partners what we would like to become part of the project. We are moving very seriously ahead with this initiative," he says.
He and other senior Bulgarian officials have generally been cautious in announcing details about the development of the state-sponsored industrial zone projects, preferring to set the conditions right in order to attract investors from China, Europe, the United States, and around the world.
With the new dynamics and trends emerging in the work of the Bulgarian government and the economy finally starting to emphasize the export-oriented industries, Bulgaria appears to have high-hopes for the future of its industrial development. It should become clear in a couple of years or even months what the cautious optimism of the Bulgarian statement officials indicates.
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Post by TsarSamuil on Nov 23, 2010 11:18:12 GMT -5
Russia, China lift restrictions on trade in ruble and yuan.
Russia and China have lifted restrictions on trade in the rubles and the yuan in a bid to boost bilateral trade and economic cooperation, following the results of a meeting between Russian Prime Minister Vladimir Putin and his Chinese counterpart Wen Jiabao on Tuesday.
"This is a serious step forward towards creating better trade conditions and this is the result of the strengthening of our economies," Putin said.
The restrictions were lifted after Russia and China signed a protocol on amendments on Tuesday to the existing Russian-Chinese trade and economic cooperation agreement dated March 5, 1992. The document was signed by Russian Deputy Finance Minister Alexei Savatyugin and Chinese Deputy Commerce Minister Gao Hucheng.
"Until now, under our previous agreements, we made mutual settlements exclusively in foreign currency, first of all, in U.S. dollars, and now, as the first step, trade in Russian rubles has started on the forex exchange in China and at the beginning of December trade in the yuan will begin in Moscow," Putin said.
In 2002, Russia and China started an experiment in their border areas, which allowed Russian and Chinese banks to open ruble and yuan accounts . A year later, the Bank of Russia and the People's Bank of China signed an agreement on trade in national currencies.
According to Viktor Melnikov, Deputy Chairman of the Russian Central Bank, Russian-Chinese trade from 2003 to 2010 in the border areas jumped more than 900 percent, while absolute volumes are not as high as some technical problems, for example VAT refund, impede bilateral trade.
In 2009, bilateral trade in the Russian national currency amounted to 15.5 billion rubles while trade in the Chinese currency totaled 53 million yuan or $7.79 million. Over the same period, overall Russian-Chinese trade turnover amounted to $38.8 billion.
Putin said trade turnover between Russia and China in 2010 would probably reach the pre-crisis level and added the January-September turnover had already grown by 56 percent to $42 billion.
ST PETERSBURG, November 23 (RIA Novosti)
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Post by TsarSamuil on Nov 23, 2010 16:23:55 GMT -5
Former US Diplomat Advises Eastern Europe to View Chinese Offers Carefully.
Novinite.com
Diplomacy | November 23, 2010, Tuesday
The governments in Eastern Europe should be very careful with offers for joint projects made by China, former US Assistant Secretary of State Robert Gelbard said in an interview for Novinite.com (Sofia News Agency).
Asked to comment on how America should view the intensive dialogue on economic projects between Bulgaria and China over the past few months, Gelbard said that Chinese projects in Eastern Europe are no matter for concern for the United States.
At the same time, however, he urged the governments of countries in Eastern Europe to think about the long-term consequences that such deals might have economically.
"I think that governments in Eastern Europe should look at offers by the Chinese government very carefully. They should not fall into the same trap that many governments elsewhere in the world did... they need to think about what their people and countries get out of this over the long term. Not just in terms of short-term benefits. There are too many deals offered by the Chinese government, which look good on the surface but are not," Gelbard explained.
In his interview for Novinite.com (Sofia News Agency) US Ambassador to Bulgaria James Warlick has also declared there is no way Chinese projects in Bulgaria could cause geopolitical concerns for the United States.
Warlick has emphasized the importance of attracting foreign investors and the interconnectedness of the countries operating in today's global economy.
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Post by TsarSamuil on Nov 26, 2010 12:01:31 GMT -5
North Korea Warns Region at ‘Brink of War’ Novinite.com World | November 26, 2010, Friday North Korea state media said Friday that South Korea and the United States are recklessly pushing the Korean peninsula “closer to the brink of war” by scheduling a joint military drill for this weekend, CNN informed. A group of naval ships, led by a nuclear-powered US aircraft carrier, is heading to the Yellow Sea to take part in the drill, due to begin on Sunday, the BBC reported. “The situation on the Korean peninsula is inching closer to the brink of war due to the reckless plan of those trigger-happy elements to stage again the war exercises targeted against [North Korea] in wake of the grave military provocation they perpetrated against the territorial waters of [the North Korean] side in the West Sea,” the North Korea’s KCNA news agency said. The West Sea was the scene of Tuesday’s shelling of the South Korean Yeonpyeong Island by North Korea. Four South Koreans died and 15 others were injured in the attack. North Korea has announced that South Korea provoked the attack because shells from its military drill landed in the North’s waters. “The army and people of [North Korea] are now greatly enraged at the provocation of the puppet group, while getting fully ready to give a shower of dreadful fire and blow up the bulwark of the enemies if they dare to encroach again upon [North Korea’s] dignity and sovereignty even in the least,” KCNA said, as cited by CNN. In response to Tuesday’s attack, South Korea has already increased troop numbers on Yeonpyeong Island, and has said it is changing its rules if engagement to allow it to respond more forcefully to similar incidents, according to the BBC. On Thursday, South Korea’s Defense Minister Kim Tae-young resigned as a result of the criticism of the country’s response to the artillery bombardment. South Korean President Lee Myung-bak accepted the resignation of “to improve the atmosphere in the military and to handle the series of incidents,” as a presidential official said. --------- 2nd Korean War? South admits firing first shells in row with North Korea. RussiaToday | November 23, 2010 www.youtube.com/watch?v=O33sfN00oDkSouth Korea has admitted it fired artillery shells that triggered an early morning clash with North Korea. However it says it was part of a military drill and denied it was directed at the North. Earlier Seoul blamed the North for what it called an unprovoked shelling of its island. Pyongyang claimed the South had violated its maritime border during the military drills. Seoul has since threatened its neighbour with what it called 'enormous retaliation'. Russia's foreign ministy said the clashes were unacceptable and called on both sides to show restraint.... |
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Post by TsarSamuil on Dec 20, 2010 15:01:55 GMT -5
Russia’s Pacific policy: A myriad of scenarios.
© RIA Novosti
Alexei Fenenko
09:41 15/12/2010
Russia’s main aspiration in the Far East is to become a full-fledged Pacific power. This is a challenging objective that could become a turning point in Russia’s political history.
To begin with, two-thirds of Russia’s total land mass lie in Asia and contain the bulk of Russia’s natural resources.
In addition, the global economic center has shifted from Europe to the Asia Pacific region, which means that Russia’s foreign policy should be redirected at retaining effective control over its Far Eastern region and strengthening its influence across the region.
Ideally, Russia would like to become a link between the Atlantic and the Pacific regions, but this is impossible without extensive infrastructure development throughout its Far Eastern region.
In this connection I would like to draw your attention to four questions.
First, Russia must develop its highways as well as other logistics and infrastructure facilities in the Far East, which have been neglected due to extreme local weather conditions, in particular along the freezing Pacific Ocean coast.
Second, Russia’s military influence in the Asia Pacific region is not adequate to its stature. It has a powerful nuclear submarine fleet based there, but its political influence remains minor compared to that of the United States, which has a powerful naval group there capable of making its presence felt.
The third issue concerns Russia’s economic influence. To date Russia has only supplied missile technology and sometimes military aircraft to countries in the Asia Pacific region, under separate agreements with Indonesia, Malaysia and Vietnam. It does not have a free trade agreement with any Pacific country (it is only negotiating such an agreement with New Zealand). Asia Pacific, as a region, is indeed a promising market, but it is unclear how China would react to Russia’s attempt to boost its ties with countries in the region. The East Siberia – Pacific Ocean oil pipeline, currently under construction, could boost Russia’s influence, and tangibly strengthen Russia’s economic presence in the Asia Pacific region.
And lastly, Russia is not a member of the region’s key organization, the Association of South-East Asian Nations (ASEAN). It is a member of APEC, but this does not provide sufficient grounds for it to become a full-fledged regional player.
Russia’s regional policy here is also influenced by the United States’ attempts to revive the ANZUS Security Treaty. During his November tour of the Pacific Rim, U.S. President Barack Obama signed the Wellington Declaration, recognizing New Zealand as a strategic partner, which essentially brings New Zealand back into ANZUS, and the Melbourne Agreement, which boosts Australia’s troop contribution.
This has placed a question mark over potential cooperation on missile technology between Russia and the ANZUS countries: suborbital carriers that could easily be modified for military use are already in development. Russia faces something of a dilemma there: the Australian and New Zealand markets are obviously both interesting and promising, but cooperation with either country risks provoking serious difficulties in Russia’s relations with China. In 2001, Russia and China signed a treaty of neighborliness, friendship and cooperation, stipulating commitments that resemble those between allied states. Therefore, if Russia decides to boost missile and space cooperation with Australia and New Zealand, countries that are seen by China as pillars of the U.S. military presence in the Pacific Ocean, it may risk losing China. China would be likely to review the 2001 treaty, thereby further complicating the situation on the Russian-Chinese border.
Moreover, Russia’s potential gains from cooperation with the ANZUS countries remain vague. Its earlier project to build a space launch center on Christmas Island jointly with Australia ended in failure.
Russia’s cooperation with the key player in the region, the United States, is mixed: with both positive and negative aspects.
On the positive side, Russia and the United States are very close in the Far East. Their relationship in Europe is limited to military issues (such as the U.S. military presence there), whereas in the Far East they could cooperate in a number of areas. One such area is, of course, regional development, the attraction of U.S. investment, and even going as far as creating free economic zones in the Bering Sea or Kamchatka. The United States has recently expressed considerable interest in this possibility.
Another aspect of this is that Russia stands to benefit from U.S. economic involvement in the Far East. As an alternative to China’s growing influence on ASEAN, analysts close to the Obama administration, in particular at the Brookings Institution, have proposed a Northern Alternative to ASEAN that would boost economic ties between the U.S. and Canadian Pacific coasts, Russia’s Far East and Japan. The United States is uneasy about ASEAN’s system of preferential consultations, in particular those with China under the ASEAN+1 mechanism, with China, Japan and South Korea in ASEAN+3, and with the latter three countries plus India, Australia and New Zealand in ASEAN+6.
This should also worry Russia, which is not one of ASEAN’s privileged partners, and it is difficult to say when it could be accorded that status. There are several possible scenarios. On the one hand, Russia could promote integration within APEC, of which it is a member, but both China’s reaction and the outcome of rapid trade liberalization across the Far East are unpredictable. On the other hand, it could give serious consideration to the idea of a Northern Alternative to ASEAN and closer relations with the United States, but it remains uncertain how China and the ASEAN countries, with which Russia has missile and space contracts, would respond. One of the key areas of cooperation between Russia and the United States is pushing the APEC-integration project forward: this would allow us to attract investment towards further developing the Russian Far East. Lastly, closer ties with the United States would facilitate Russian military and space cooperation with the ANZUS countries.
Now for the negative side: Russia is seriously concerned by a possible confrontation with the United States should the situation deteriorate. In this context, it is worth noting that the United States has sporadically mulled scenarios which would see Russia lose control over its Far Eastern region since the early 20th century. Back then, U.S. researchers developed scenarios based on the possibility of Russia losing in a new war to Japan. The Theodore Roosevelt administration said that if that were to transpire, the United States would occupy the Russian Far East. In 1920, the United States supported the declaration of the Far Eastern Republic, and in the 1990s American analysts seriously considered what course of action the United States would follow if Russia were to lose control of the Far East. Although not expressly worded as an official policy, those scenarios are highly alarming.
Another danger lies in the fact that APEC is not an organization of countries per se but of economies. For example, Taiwan and mainland China sit alongside each other as APEC members. According to the United States, Russia would benefit economically if its Far Eastern region were given an independent seat in APEC. This may well be the case, but the political consequences of such a move are impossible to forecast.
The Far East is one of the few regions in which Russia and the United States have territorial claims against each other, in particular over the controversial 1990 Shevardnadze-Baker agreement on the delimitation of the Bering Strait and the United States’ refusal to recognize the Sea of Okhotsk as Russia’s internal sea. Moreover, Russia is embroiled in a serious territorial dispute with a key ally of the United States: Japan. If Japan does sign a new security treaty with the United States and launches a rearmament program, Russia would have to add in a new military adversary, Japan, backed by the United States, when developing its regional policy. This would also increase the risk of a confrontation in the Far East.
All these hypothetical threats are compounded by Russia’s underdeveloped military transport infrastructure in the region. Therefore, even though broader cooperation with Asia Pacific countries promises significant economic rewards, Russia should remain wary of the United States’ policy in the Far East.
Alexei Fenenko is Leading Research Fellow, Institute of International Security Studies of RAS, Russian Academy of Sciences
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Post by TsarSamuil on Dec 22, 2010 12:37:40 GMT -5
Interview: China-Belarus cooperative prospect bright: ambassador.
Xinhua
09:27, December 22, 2010
China and Belarus have a bright prospect for cooperation as the two countries share highly economic complementarity, says the Chinese ambassador to Belarus.
Ambassador Lu Guicheng said that in recent years, China-Belarus ties have expanded rapidly and have been promoted by the leaders of both countries.
The ambassador also said in the interview with Xinhua that the two countries are mutually supportive of each other on global affairs and frequent interactions between senior officials of the two countries have injected strong momentum into the development of bilateral ties.
Lu also stressed that China-Belarus reciprocal economic cooperation is flourishing, with the smooth development of some major cooperative projects on infrastructure construction.
"China and Belarus are economically complementary on resource, market, fund and equipment, and thus share a broad prospect for cooperation," Lu told Xinhua.
Meanwhile, the diplomat mentioned the profound friendship between the Chinese and Belarusian peoples.
After a deadly earthquake struck China's northwestern region of Yushu in April, Belarus was among the first to extend condolences and provided aid to the people affected, Lu said.
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Post by TsarSamuil on Jan 17, 2011 18:45:31 GMT -5
China to maintain relations with Belarus regardless international situation.
17.01.2011 09:44
MINSK, 17 January (BelTA) – China will continue developing equal relationship with Belarus regardless the changes on the international arena, Counselor of the Chinese Embassy to Belarus Zheng Shi said in a meeting in the House of Friendship to mark the 19th anniversary of the diplomatic relations between Belarus and China.
The diplomat stressed that the major principles of the Chinese-Belarusian relations include equality, mutual respect, non-interference with the internal affairs of each other. “We will stay committed to these principles despite any charges in the international arena. I believe that if every country builds up international relations based on the same principles as China and Belarus do, there will be more peace, harmony and stability in the world,” the Chinese official said.
In his words, China and Belarus achieved a lot in 2010. “We have reached a new level in our cooperation. Numerous mutual visits between the authorities of the two countries can be cited as a good example of successfully-developing relations. In October 2010 President of Belarus Alexander Lukashenko paid his sixth visit to China, attended the Belarusian exposition at the World EXPO 2010 in Shanghai and met with China President Hu Jintao,” the diplomat noted.
He added that Belarus and China have been closely cooperating and supporting each other.
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Влад
Serdzhant
Posts: 24
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Post by Влад on Jan 20, 2011 22:44:01 GMT -5
Good idea? Maybe for far east, economic sense to get rid of towns that don't make much economic sense...but it's bad for culture n ties to the land. Russia should NEVER under any circumstance or condition surrender one centimeter of territory. Russia has already lost too much territory through political circus of the past century. The territories of the Russian Empire are destroyed forever now because of Soviet Union. Who cares about "economic sense"? Russia's land was acquired by divine plan. Ceding land to Chinese devils is treason. In any sane society, anyone in power who even asserted such idea should be banished from society for treason. |
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Post by TsarSamuil on Jan 21, 2011 16:31:40 GMT -5
I meant makes more economic sense if the people in the far east move to cities to get jobs perhaps, the cities will grow I hope instead of the entire far east declining because nobody wants to live there because it's bleak, lack of jobs n it's not even good for farming?
The people who live there today, weren't they forced to go under the Tsars n later the Soviet Union? If cities like Vladivostok n others grow then the far east may stop being just a backwater region... without forcing people, it's impossible to stop their movement to the cities anyways? So trying to make a reality a policy is perhaps a bit weird.
Borders should be made more secure I agree, so Chinese n others don't become too many.
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