Archive for the Sino-Russian Category

China challenges US economic war against Russia [World Socialist Website]

Posted in BRICS - Brazil, Russia, India, China, South Africa, China, Germany, India, Italy, Japan, NATO, Neo-colonialism, Obama, Pentagon, Russia, SCO Shanghai Cooperation Organization, Sino-Russian, Syria, Ukraine, US imperialism, USA, USA 21st Century Cold War, USSR, Wall Street on January 7, 2015 by Zuo Shou / 左手

By Alex Lantier
23 December 2014
Directly challenging the NATO powers’ policy of cutting off credit to Russia to undermine the ruble and bankrupt the Russian economy, China is pledging to extend financial aid to Moscow.

On Saturday, Chinese Foreign Minister Wang Yi stressed the need for mutual aid between China and Russia in remarks on the ruble crisis, which has seen a drastic 45 percent fall in its value against the dollar this year. “Russia has the capability and the wisdom to overcome the existing hardship in the economic situation,” Wang said. “If the Russian side needs it, we will provide necessary assistance within our capacity.”

On Sunday, Chinese Commerce Minister Gao Hucheng told Hong Kong’s Phoenix TV that Beijing would strengthen ties with Moscow in energy and manufacturing, predicting that Chinese-Russian trade would hit its target of $100 billion this year despite the ruble crisis. As the ruble’s value in dollars or euros swings wildly, Gao proposed moving away from the dollar in financing Chinese-Russian trade and instead using the Chinese currency, the yuan or renminbi.

Gao said China would focus on “fundamental factors such as how the two economies complement each other,” Reuters reported. “Capital investors may be more interested in a volatile stock or foreign exchange market. But in terms of concrete cooperation between the two nations, we shall have a balanced mentality and push forward those cooperations,” Gao said.

Yesterday, China Daily cited Li Jianmin of the Chinese Academy of Social Sciences saying that aid to Russia could pass through channels like the Shanghai Cooperation Organization (SCO) or the BRICS forum. Significantly, both the SCO (an alliance of China, Russia, and Central Asian states) and the BRICS (Brazil, Russia, India, China, South Africa) exclude the United States and Europe.

Li noted that already last month, when Chinese and Russian premiers Li Keqiang and Dmitry Medvedev met in Kazakhstan, they signed extensive deals on railways, infrastructure and development in Russia’s Far East region, north of China. “Loans, cooperation in major projects, and participation in domestic infrastructure investment in Russia are options on the table,” he added. In one such deal last month, China signed a $400-billion, 30-year deal to buy Russian gas.

These offers of assistance cut across the economic war on Russia launched by US and European imperialism to punish Moscow for opposing their neo-colonial restructuring of Eurasia.
In retaliation for Russian support for President Bashar al-Assad against NATO’s proxy war in Syria and Russian opposition to the NATO-backed Ukrainian regime in Kiev, the NATO powers sought to financially strangle Russia. As Russian oil revenues fell in line with the fall in world oil prices and the ruble collapsed, they worked to cut off credit to Russia and demanded that Russia acquiesce to the Kiev regime.

The basic financial mechanism of this strategy was laid out in London’s Financial Times by Anders Aslund of the Petersen Institute for International Economics. “Russia has received no significant international financing—not even from Chinese state banks—because everybody is afraid of US financial regulators,” he wrote. With a yearly capital outflow of $125 billion, liquid foreign currency reserves of only $200 billion, and total foreign debts of $600 billion, Russia would run out of dollars and be bankrupted in as little as two years, Aslund calculated.

Now, however, Beijing appears to be accepting the risk of a showdown with the United States and publicly preparing to throw a financial lifeline to Russia. Chinese currency reserves of $3.89 trillion are the world’s largest and, on paper at least, allow Beijing to easily repay Russia’s debts.

Significantly, the calls of Wang and Gao to aid Russia came a day after a divided European Union (EU) summit on Russia last week. Though the EU supported US sanctions against Russia, German Foreign Minister Frank-Walter Steinmeier, French President François Hollande and Italian Prime Minister Matteo Renzi all publicly opposed calls for more sanctions. Leading European newspapers also warned of the risk of a collapse of the Russian state…

…The economic conflicts erupting between the major powers over the oil crisis and the imperialist war drive in Eurasia testifies to the advanced state of the crisis of world capitalism, and the rising risk of world war.

Chinese aid to Russia, should it materialize, will exacerbate US conflict with China. Washington has tried to militarily encircle it through the “pivot to Asia,” allying with Japan, Australia, and India. Plans for war with China, both economic and military, are doubtless being pored over on Wall Street and in the Pentagon.

A year ago, in an article titled “China must not copy the Kaiser’s errors,” Financial Times columnist Martin Wolf warned China against any action that could be construed as a challenge to US global hegemony. He indicated that a Chinese policy replicating the German Kaiser’s challenge to British hegemony before the outbreak of World War I in 1914 would lead to a similar outcome: all-out conflict.

“If open conflict arrived, the US could cut off the world’s trade with China. It could also sequester a good part of China’s liquid foreign assets,” Wolf wrote, recalling that China’s “foreign currency reserves, equal to 40 percent of GDP are, by definition, held abroad.” Such naked theft of trillions of dollars that China has earned from trade with the United States and Europe would directly raise the prospect of a collapse of global trade and preparation for war between nuclear-armed powers.

With its ever more reckless and violent policies, US imperialism is vastly overplaying its hand, discrediting itself at home and fueling opposition from rival states. By driving Russia and China together, in particular, Washington is undoing what was long seen as a major achievement of US imperialist statecraft: the 1972 rapprochement between US President Richard Nixon and Chinese leader Mao Zedong, which turned China into a US ally against the former Soviet Union.

“Many Chinese people still view Russia as the big brother, and the two countries are strategically important to each other,” Renmin University Associate Dean Jin Canrong said, referring to Soviet backing for China as it fought the United States in the Korean War, shortly after the…Chinese Communist Party (CCP) came to power in 1949. “For the sake of national interests, China should deepen cooperation with Russia when such cooperation is in need.”

“Russia is an irreplaceable partner on the international stage,” the CCP-linked Global Times wrote in an editorial yesterday. “China must take a proactive attitude in helping Russia walk out of the current crisis.”

Edited by Zuo Shou

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Interference in Ukraine is unacceptable – Russian and Chinese leaders [Voice of Russia]

Posted in China, Russia, Sino-Russian, Ukraine on February 8, 2014 by Zuo Shou / 左手

6 January 2014

Moscow and Beijing condemn any attempts at external interference in the situation in Ukraine, the Russian president’s spokesman Dmitry Peskov said. “Both parties have emphasized the unacceptability of any interference from the outside in what is happening and a very serious condemnation of such interference has been voiced,” Peskov told reporters following the talks between Russian President Vladimir Putin and Chinese leader Xi Jinping.

“The sides aired much criticism of outside interference,” Peskov said…

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China and Russia hold naval exercise in Sea of Japan [World Socialist Website]

Posted in Afghanistan, China, Encirclement of China, Georgia, Japan, Pentagon, Russia, SCO Shanghai Cooperation Organization, Sino-Russian, US imperialism, USA, USA 21st Century Cold War on August 10, 2013 by Zuo Shou / 左手

By Ben McGrath
16 July 2013

Tensions in the Sea of Japan were raised last week as a major naval exercise between China and Russia came under close observation by a simultaneous air exercise conducted by Japan and United States only a few hundred kilometers away.

The joint exercise conducted by China and Russia from July 8–10, in Peter the Great Bay, off the coast of Vladivostok, was the largest ever between China and another nation. It demonstrated the growing relationship between the two countries, aimed at countering the US “pivot to Asia,” which includes deploying 60 percent of American naval and air forces to the Asia-Pacific as part of a drive to confront China.

The “Joint-Sea 2013” exercise involved 11 surface ships and one submarine from Russia, including the Varyag, a guided-missile cruiser and the flagship of the Russian Pacific Fleet, and seven Chinese ships, all newly built in the 2000s. China’s contingent consisted of four destroyers, two guided missile frigates and a support ship. The commander of the Chinese fleet, Major General Yang Junfei, said it was “our strongest lineup ever in a joint naval drill.”

The drills between the two navies were clearly aimed at repelling an attack from a hostile force, not dealing with terrorism or piracy as previous exercises have been presented. Chinese media outlets highlighted reports that the Chinese warships had more than 160 surface-to-air missiles, “enough to deal with the warplanes of a US aircraft carrier.” Russian SU-24 fighter-bombers simulated air strikes on the fleet, while Chinese and Russian vessels conducted anti-submarine drills against a Russian Kilo, reputed to be one of the quietest submarines in the world.

Russia and China plan to follow up the naval exercises with joint land/air drills, to be held between July 27 and August 15 in the Ural Mountain region of Chelyabinsk, ostensibly focusing on anti-terrorism.

Provocatively, the US and Japan held a joint air exercise on almost exactly the same dates, from July 8 to 12, in the airspace around Hokkaido. The drills were designed to send a message to China and Russia that American military dominance in the region would remain. The air drills involved eight F-15s and eight F-16s from each country and continued 24 hours a day. Japanese officials admitted that the exercises were monitoring the “entire process” of the Russo-Chinese naval drills.

This is just the latest in a long line of US provocations. Despite the claim that China is a growing military threat in the region, it is the US that is using its superior military might in a bid to arrest its relative economic decline while trying to undermine China’s influence. In April, Washington flew nuclear-capable B-2 and B-52 strategic bombers to the Korean peninsula in the midst of sharp tensions with North Korea, China’s ally, over its nuclear programs.

Last month, Japan and the US conducted a two-week joint exercise in California, codenamed “Dawn Blitz,” with a scenario of retaking an island. China called for the exercise to be cancelled but was ignored. With China and Japan locked in a tense dispute over the Senkakus/Diaoyu islands in the East China Sea, the Obama administration sent a thinly-veiled message to Beijing that Washington will back Japan against China if war breaks out over the islets.

Russia and China have developed a closer relationship in response to the growing US threats. Ever since the US-led invasion of Afghanistan in 2001, Russia and China have developed the Shanghai Cooperation Organisation (SEO) to counter the US intervention into the Central Asia region. The regional rivalry was evident when Washington backed the former Soviet republic of Georgia against Russia, leading to a brief regional war in 2008.

In March, Chinese President Xi Jinping made Russia his first stop during his first foreign visit as president, in order to emphasise the “top priority” of the “special relationship” with Russian President Vladimir Putin’s regime. Xi was the first foreign leader to be invited into Moscow’s military command centre, where he was reportedly shown a computer simulation of how the US missile defence system undermines global nuclear “balances.”

Beijing and Moscow have enhanced their strategic cooperation in recent weeks. This included signing a $270 billion deal to triple Russian oil shipments to China for the next 25 years. The supply will reach 46 million tonnes a year—or nearly one tenth of Russia’s current oil output. Russia is due to receive $70 billion as an immediate payment, because China is desperately seeking to secure energy supplies in the face of an increasingly overt American threat to cut off its shipping lanes via the “pivot” strategy.

In an attempt to bolster China as counterweight to the US, Russia also agreed to sell Beijing advanced weapon systems. China reportedly secured a deal last month to buy 100 of the latest SU-35 fighters from Russia. This aircraft is believed to be able to outperform any of its rivals, such as Japan’s F-15Js, except America’s most advanced F-22 stealth fighters.

Closer strategic ties between Russia and China are another clear sign that, by recklessly building up military capacities and alliances to confront the two countries, US imperialism is sowing the seeds for a new global conflagration.

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“Nurturing SCO growth and independence” – Vehicle For China, Russia To Defend Themselves Against West [Global Times]

Posted in China, Russia, SCO Shanghai Cooperation Organization, Sino-Russian on November 20, 2011 by Zuo Shou / 左手

Nov. 8, 2011

Monday, the leaders of the Shanghai Cooperation Organization (SCO) countries met in St. Petersburg. Some Western media have been caustic in appraising the organization. The SCO boasts two big powers, China and Russia, and four central Asian countries as members, and now has several major Asian countries as observers. Others are lining up for membership. While facing complex external pressures, cooperation within the SCO is progressing apace.

China holds the absolute economic advantage in the SCO, but Russia is ahead of China in several other aspects. SCO holds practical functions for China, such as anti-terrorism. It is also a platform to extend the Sino-Russian strategic partnership and acts as a stage for China to attune its broad diplomatic ability with its growing clout.

Internationally there is often discussion about who is the true leader of the SCO between China and Russia? At present, China is not capable of leading the SCO yet and should perhaps not have such ambitions.

It is not worthwhile for China to fight with Russia within the SCO. The two countries are both independent global powers and their relationship has a profound effect on the world stage. The strategic risks they face exist outside Asia. The SCO should be a place for China and Russia to come together and smooth over small differences.

Russia is a serious strategic partner for China. As long as this relationship is maintained, both countries will find it easier to assert themselves globally.

The West cannot threaten these countries individually, let alone united. Even if both countries value their relations with the West dearly, China and Russia are friends. It is one important reason why the West emphasizes and respects the two countries.

However, as the gap in economic strength between the two countries widens, Russia may make subtle changes in its attitude toward China. It is hard to say that the Sino-Russian relationship will remain as it is. As neighbors, the two play roles in each other’s development.

China should bind with Russia as much as possible through the SCO, rather than proving that it surpasses Russia in certain aspects. Its strategic aims within the SCO should remain modest and work to increase common interests.

China can be broad-minded, but its control of the SCO is limited. The organization may not always go where we wish it to. This is a reality China must accept.

The adjustment of the global forum politic is being largely influenced by China’s rise.

Therefore, developing a sense of laissez-faire should become a crucial component of China’s political and diplomatic strategies.

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China, Russia for Talks on Strategic Security [Prensa Latina]

Posted in China, Russia, Sino-Russian on February 1, 2011 by Zuo Shou / 左手

Beijing, Jan 23 (Prensa Latina)

China and Russia will hold talk since Monday on strategic security as part of a mechanism by which they exchange criteria about their relations and international issues.

The State Advisor Dai Bingguo travelled to the neighbour country for a visit with this purpose until Tuesday, invited by the Security Council advisor Nikolai Patrushev.

According to official sources during this fifth meeting Dai and host will also talk about regional issues of mutual interest.

The next talks should contribute to the aim of getting deep into strategic association of coordination agreed by the two countries leaders, emphasized a spokesman of the Chinese foreign ministry in the announcement of the trip.

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China, Russia quit dollar in trade settlement [People’s Daily]

Posted in Capitalism crisis early 21st century, China, China-US relations, Early 21st Century global capitalist financial crisis' US origins, Economic crisis & decline, Education, Energy, Premier Wen Jiabao, Russia, Sino-Russian, USA on November 30, 2010 by Zuo Shou / 左手

Is it true that this big story has been relatively ignored in the US mainstream media? Zuo Shou 左手

November 24, 2010

China and Russia have decided to renounce the US dollar and resort to using their own currencies for bilateral trade, Premier Wen Jiabao and his Russian counterpart Vladimir Putin announced late on Tuesday.

Chinese experts said the move reflected closer relations between Beijing and Moscow and is not aimed at challenging the dollar, but to protect their domestic economies.

“About trade settlement, we have decided to use our own currencies,” Putin said at a joint news conference with Wen in St. Petersburg.

The two countries were accustomed to using other currencies, especially the dollar, for bilateral trade. Since the financial crisis, however, high-ranking officials on both sides began to explore other possibilities.

The yuan has now started trading against the Russian rouble in the Chinese interbank market, while the renminbi will soon be allowed to trade against the rouble in Russia, Putin said.

“That has forged an important step in bilateral trade and it is a result of the consolidated financial systems of world countries,” he said.

Putin made his remarks after a meeting with Wen. They also officiated at a signing ceremony for 12 documents, including energy cooperation.

The documents covered cooperation on aviation, railroad construction, customs, protecting intellectual property, culture and a joint communique. Details of the documents have yet to be released.

Putin said one of the pacts between the two countries is about the purchase of two nuclear reactors from Russia by China’s Tianwan nuclear power plant, the most advanced nuclear power complex in China.

Putin has called for boosting sales of natural resources – Russia’s main export – to China, but price has proven to be a sticking point.

Russian Deputy Prime Minister Igor Sechin, who holds sway over Russia’s energy sector, said following a meeting with Chinese representatives that Moscow and Beijing are unlikely to agree on the price of Russian gas supplies to China before the middle of next year.

Russia is looking for China to pay prices similar to those Russian gas giant Gazprom charges its European customers, but Beijing wants a discount. The two sides were about $100 per 1,000 cubic meters apart, according to Chinese officials last week.

Wen’s trip follows Russian President Dmitry Medvedev’s three-day visit to China in September, during which he and President Hu Jintao launched a cross-border pipeline linking the world’s biggest energy producer with the largest energy consumer.

Wen said at the press conference that the partnership between Beijing and Moscow has “reached an unprecedented level” and pledged the two countries will “never become each other’s enemy”.

Over the past year, “our strategic cooperative partnership endured strenuous tests and reached an unprecedented level,” Wen said, adding the two nations are now more confident and determined to defend their mutual interests.

“China will firmly follow the path of peaceful development and support the renaissance of Russia as a great power,” he said.

“The modernization of China will not affect other countries’ interests, while a solid and strong Sino-Russian relationship is in line with the fundamental interests of both countries.”

Wen said Beijing is willing to boost cooperation with Moscow in Northeast Asia, Central Asia and the Asia-Pacific region, as well as in major international organizations and on mechanisms in pursuit of a “fair and reasonable new order” in international politics and the economy.

Sun Zhuangzhi, a senior researcher in Central Asian studies at the Chinese Academy of Social Sciences, said the new mode of trade settlement between China and Russia follows a global trend after the financial crisis exposed the faults of a dollar-dominated world financial system.

Pang Zhongying, who specializes in international politics at Renmin University of China, said the proposal is not challenging the dollar, but aimed at avoiding the risks the dollar represents.

Wen arrived in the northern Russian city on Monday evening for a regular meeting between Chinese and Russian heads of government.

He left St. Petersburg for Moscow late on Tuesday and is set to meet with Russian President Dmitry Medvedev on Wednesday.

Agencies and Zhou Wa contributed to this story.

By Su Qiang and Li Xiaokun, China Daily

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China and Russia strengthen strategic ties to counter threats from US-Japanese axis [World Socialist Web Site]

Posted in Anti-fascism, China, China-US relations, Dalian, Diaoyu Islands, Fascism, Georgia, Germany, Japan, Obama, President Medvedev, Russia, Sino-Russian, South China Sea, Taiwan, Tianjin, Tibet, US imperialism, USA, USSR, World War II, Xinjiang on October 7, 2010 by Zuo Shou / 左手
By John Chan
6 October 2010

Russian President Dmitry Medvedev’s visit to China on September 25-27 is a further sign that Moscow and Beijing are consolidating their ties in order to counter the US and its main ally in North East Asia, Japan.

 Medvedev and Chinese President Hu Jintao issued a joint statement that called for “comprehensively deepening strategic cooperation,” amid mounting threats and challenges in the Asian Pacific region.  The statement emphasised mutual support for each other’s core interests—Russian support for Beijing’s sovereignty over Taiwan, Tibet and Xinjiang, and Chinese support for Moscow’s “efforts to promote peace and stability throughout the Caucasian region and the Commonwealth of Independent States”.

 While not naming the US, the statement was clearly directed against Washington.  In 2008, Russia waged a war with the US-backed Georgian regime to support the independence of two Georgian provinces.  In Asia, US-China tensions have sharpened during the past year as the Obama administration has intervened aggressively in the region over a range of issues—from selling arms to Taiwan to backing South East Asian nations in their territorial disputes with China in the South China Sea.

 Just as significant was a second joint statement marking the 65th anniversary of the end of World War II.  The two countries condemned attempts “to glorify Nazis, militarists and their accomplices, and to tarnish the image of liberators”.  The statement was aimed not only at Western criticisms of the Soviets…, but also right-wing nationalist politicians in Japan who whitewash the crimes of the wartime militarist regime.

 “The fascists and militarists schemed to conquer and enslave us two nations, other countries and the whole [Eurasian] continent.  China and Russia will never forget the feat of those who checked the two forces,” the statement declared.  It went to proclaim that the “glorious history” of Soviet-Chinese wartime cooperation against Japan “has laid a sound foundation for today’s strategic partnership of coordination between China and Russia”.

 The statement was directed against Japan in particular.  It came during a bitter diplomatic row between China and Japan over the disputed Diaoyu islets (known as Senkaku in Japan) in the East China Sea, triggered by Japan’s detention of a Chinese trawler captain.

 Medvedev began his trip by visiting the northeastern Chinese city of Dalian, where he paid his respects to Soviet soldiers who died fighting to expel the Japanese army from Manchuria in August 1945.  Significantly, he also paid tribute to Russian soldiers killed in the 1904-05 war between Tsarist Russia and Imperial Japan—a conflict between two imperialist powers.

 Following Medvedev’s visit, China’s official Xinhua news agency accused Washington of “protecting large numbers of militarist war criminals in Asia”, especially in Japan, after the end of World War II.  The comment also accused the US of betraying the post-war agreements among the Allies, which included China.  Xinhua highlighted the fact that under the 1945 Potsdam agreement, Japan had to return all territories annexed during and prior to the war.  However in 1971, the US unilaterally handed the Diaoyu Islands back to Japan, despite China’s objections.

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