June 26,
2016 "Information
Clearing House"
- "RT"
-
As the whole planet attempts to digest the
implications of Brexit, the real heart of 21st
century action once again shifts to Beijing,
where President Vladimir Putin on Saturday pays
a visit to Chinese President Xi Jinping.
Business will include clinching a $6.2 billion
high-speed rail deal; increased supply of
Russian wheat to China – by building a
Trans-Baikal grain terminal; and steps towards
deeper military cooperation. They are already cooperating
on an engine that will power the new
Russia-China airliner.
Everything connected to the Russia-China
partnership spells out Eurasia integration. It
starts with the New Silk Roads, a.k.a. One Belt,
One Road (OBOR), which will progressively
interplay with the Eurasia Economic Union (EEU),
as Putin emphasized at the St. Petersburg forum.
It involves the expansion of the Shanghai
Cooperation Organization (SCO); the immediate
future of BRICS, including the New Development
Bank (NDB); projects to be financed by the Asian
Infrastructure Investment Bank (AIIB); and
Russia-China coordination inside the G20.
OBOR
and the EEU naturally merge as Eurasia will be
slowly but surely fashioned into a massive
emporium – an interlocking trade and
infrastructure network stretching from Russia’s
Far East and the Chinese east coast to Western
Europe, including the Middle East and Africa on
the way.
Geopolitically, the expansion of OBOR-EEU is
Eurasia’s response to the lame duck Obama
administration-peddled Trans-Pacific Partnership
(TPP), which excludes both Russia and China. Xi
Jinping has visited Central Asia and Eastern
Europe recently – from Serbia to Uzbekistan -
selling OBOR. Moscow, considering its influence
over Balkan states, will add extra support.
One
just needs to look at some numbers to gauge the
power of the multi-pronged Chinese offensive.
Beijing is rolling out up to $100 billion to the
NDB; between $50 billion and $100 billion to the
AIIB; $40 billion to the Silk Road Fund; $40
billion to the China-Pakistan Economic Corridor
(CPEC). These multilateral financial investments
will roll out in stages – and can be easily paid
out of the yearly surplus in cash of Beijing's
myriad current operations.
Additionally, Beijing has as much as a $4
trillion pile of cash to be used at the
discretion of Xi and the collective leadership.
This is the reality – not the usual US ‘Think
Tankland’ blabbering about China’s imminent
implosion. Compare it with the Fed printing so
many new US dollars, about $60 billion a month,
as the US would have a really hard time
committing to any possible financial investment
(apart from war) in the $100 billion range.
Supply chain
geopolitics, anyone?
Beijing
and Moscow inevitably would have come to the
conclusion that their strategic partnership
creates leverage and thus increases its value as
it translates into multi-vector supply chain
geopolitics.
‘Pipelineistan’ – with those humongous 2014
Siberian deals
– is an essential node of the whole package, as
Russia will ensure the supply of natural gas to
China bypassing the dreaded Strait of Malacca,
which Beijing well knows the US Navy could
easily block at will. The interpenetration also
translates, for instance, into Gazprom offering
CNPC a stake in the monster Vankor gas field.
Moscow
for its part does not need to rely exclusively
on the West for foreign investment – on top of
it controlled/sanctioned by Washington. Chinese
investment will be key, as under OBOR-EEU
synergy, Russia should be well on its way of
developing its full potential as a global
supplier of energy and agriculture and a
privileged transit corridor across the whole of
Eurasia.
Russia
may even profit from climate change. Few may
know that Russia - with permafrost fast
retreating - is warming up faster than any other
nation. That opens the vista of new fertile
soils that could allow poultry and fish to be
exported to – where else – China. Not to mention
torrential amounts of freshwater. Chinese
companies are buying large stakes in Russian
fertilizer companies such as Uralkali as well as
becoming partners of Singapore-based companies
to go all out into food processing in Russia.
Contrary to what US ‘Think Tankland’ never
ceases to parrot, the Russia-China strategic
partnership goes way beyond a mere supply-demand
alliance of convenience. Were the Kremlin to
take the fateful decision, Chinese companies
could certainly rebuild creaking parts of
Russian infrastructure in only a few years.