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Posts Tagged De-Bunking Anti-CPEC Propaganda

CPEC – A SUMMARY

CPEC China Pakistan Economic Corridor …

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Pakistan FWO Completes Building Over …

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Map of China Pakistan Economic Corridor …

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Can Reap Benefits From CPEC Route …

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China-Pakistan Economic Corridor (CPEC)
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China Counters Indian Influence in South Asia By Sajjad Shaukat

China Counters Indian Influence in South Asia

By Sajjad Shaukat

 

Under the caption “Chinese investment in Bangladesh rings India alarm bells, Beijing deepens ties across South Asia billion infrastructure loans”, a news item was published in the Financial Times on August 7, 2018. Its summary is:  “China has invested $3.7bn in Bangladesh to built a 6 km long bridge over Padma River which will link north and south Bangladesh by road and rail. India is disturbed over Chinese growing influence in South Asia where it funded similar projects in Pakistan, Sri Lanka, Nepal, and the Maldives. It is ringing alarm bells in India which surrounds Bangladesh on three sides and considers itself as Dhaka’s principal ally. India should be concerned, given the role China is also playing in other countries which surround it. In Pakistan, Beijing is planning to spend $60bn on roads, railways and power plants as part of the China-Pakistan Economic Corridor, which will give China access to the sea via Gwadar port on Pakistan’s south coast. In the Maldives, it has signed a trade agreement and has been handed a contract to build a new airport that was originally granted to the Indian company GMR Infrastructure. In Sri Lanka, it has taken control of the southern port of Hambantota after Colombo was unable to repay the money it borrowed from Chinese state-backed lenders to build it.”

 

In fact, China is countering Indian influence in South Asia, as New Delhi has planned to establish its hegemony in the region.

 

 

 

 

 

 

In this regard, the fast-growing economic power of China coupled with her rising strategic relationship with the Third World has irked the eyes of Americans, Israelis, some Western countries and particularly, Indians. Owing to jealousy, America desires to make India a major power to counterbalance China in Asia.

 

America which is backing Indian hegemony in Asia, especially to counterbalance China is supplying New Delhi latest weapons, arms, and aircraft. During President Barack Obama’s second visit to India, the US and India announced a breakthrough on a pact which would allow American companies to supply New Delhi with civilian nuclear technology, as agreed upon in 2008. Besides, America also announced $4 billion of new initiatives aimed at boosting trade and investment ties as well as jobs for the Indians. During Indian Prime Minister Narendra Modi’s visit to America, the then President Barack Obama strongly assured him to favour India’s membership in the Nuclear Supplier Group (NSG), Earlier; Washington also pressurized the International Atomic Agency (IAEA) to sign an accord of specific safeguards with New Delhi. America had already contacted the NSG to grant a waiver to India for starting civil nuclear trade on a larger scale. In the recent past, during the meeting in Washington, the US President Donald Trump also gave the same assurances to Modi.

 

 

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By availing the US secret diplomacy, in the pretext of the presumed threat of China, India has been trying to establish her dominance in South Asia.

 

Historically, India has continued interventionist and hegemonic policies vis-à-vis her neighbours through its secret agency RAW. Besides supporting separatism in East Pakistan which resulted in the dismemberment of Pakistan and continued assistance to the separatist elements of Pakistan’s Balochistan province, New Delhi occupied Sikkim, subdued Bhutan, sponsored terrorism in Sri Lanka, and has been teasing Nepal.

 

As part of the double game, India has also been making a cordial relationship with the small countries of South Asia with a view to colonializing them gradually. For example, during the visit of Prime Minister Sheikh Hasina to New Delhi, India and Bangladesh on April 8, 2017, signed 22 agreements in the fields of defence cooperation, civil nuclear energy, space and cyber security among others, following bilateral talks between Indian Prime Minister Modi and his Bangladeshi counterpart. Both the countries also signed a Memorandum of Understanding (MoU) through which India would extend a line of credit of $500 million to support Bangladesh’s defence-related procurements.

 

India is planning to counteract China’s influence in Sri Lanka. In this respect, two different stories in published in Indian media, need attention.

 

In this context, on April 27, 2017, on a website, LiveMint.Com, Elizabeth Roche under the title, “India renews Sri Lanka ties to counter China influence in South Asia” wrote, “India moved to cement closer economic ties with Sri Lanka in a bid to negate the growing influence of strategic rival China in the Indian Ocean region and South Asia. A pact on economic cooperation was signed in the presence of visiting Sri Lankan Prime Minister Ranil Wickremesinghe and his host Prime Minister Narendra Modi. The leaders welcomed the signing of the memorandum of understanding for Cooperation in Economic Projects, which outlines the agenda for bilateral economic cooperation in the foreseeable future”, an Indian foreign ministry statement said without giving details—Both sides expressed their commitment to ensuring that this mutually beneficial agenda is expeditiously implemented.”

 

Roche explained, “Analysts said this move by India was aimed at warding off increasing Chinese influence in South Asia which India considers its sphere of influence. In recent years, China has tried to co-opt Sri Lanka and the Maldives into its ambitious. One Belt One Road initiative—a programmes to invest billions of dollars in infrastructure projects including railways, ports and power grids across Asia, Africa and Europe—Given the subsequent hiccups in the neighborhoods first policy or placing—a deterioration of ties with Pakistan and strains in India-Nepal ties for instance—Modi seems to be looking at a new framework of ties with India’s neighbours with the aim of countering Chinese influence, Mansingh said. The new formula includes an element of strong economic cooperation, he said, pointing to India announcing the extension of a $4.5 billion line of credit for development infrastructure and other projects in Bangladesh and another $500 million for defence hardware purchases for Dhaka during the 7-9 April visit of Prime Minister Sheikh Hasina to India.”

 

Similarly, Indian media and websites gave much coverage to an article, published by German TV Channel (Which also publishes online news items) under the title “India Nips at China’s Heels in Race to Collect Lanka Port Assets” written by Iain Marlow and Saket Sundria, April 26, 2017.

 

Iain Marlow and Saket Sundria wrote, “India is looking to invest in a colonial-era Sri Lankan oil-storage facility as it seeks to further its naval interests in the Indian Ocean and push China back in the process. A unit of state-owned Indian Oil Corp., the country’s largest refiner, is set to help fund the $350 million development of an 84-tank facility at the strategically located Trincomalee port on Sri Lanka’s east coast. India and Sri Lanka are also discussing setting up a refinery in the island nation, according to Shyam Bohra, managing director of Indian Oil’s subsidiary Lanka IOC. The talks come before a meeting between Indian Prime Minister Narendra Modi and Sri Lankan Prime Minister Ranil Wickremesinghe in New Delhi. Still, India’s interests in the Sri Lankan port are probably more strategic than economic, part of its effort to displace hefty investment coming into the country from China and preserving a key gateway to the Indian Ocean. China is expanding both militarily and economically in the region, and its submarines have docked previously in Colombo. Lanka IOC is managing the 15 tanks and a lubricant blending unit. The governments of India and Sri Lanka have agreed in principle to jointly develop part of the tank farm…The Sri Lankan government has suggested that Lanka IOC retain 74 of the 84 reconstructed tanks through an equal joint venture with Ceylon Petroleum Corp., Chandima Weerakkody, Sri Lanka’s minister of petroleum resources development said by phone. The other 10 would be handed back to Ceylon Petroleum, he said… Shyam Bohra, managing director of Indian Oil’s subsidiary Lanka IOC said…Lanka IOC is open to the joint development of the tank farm. Something should definitely happen because we are very keen to see to it that the facility is developed, However, Weerakkody…the minister compared India’s investments unfavourably to China’s. India should expedite their projects that they engage in, he said. Chinese investments—they are pretty quick. India’s foreign ministry was not immediately available for comment. If India’s investments materialize, the historic but relatively obscure port could become a hub for New Delhi, whose navy must go around Sri Lanka as it crosses from ports on India’s west coast in the Arabian Sea to those on the east coast in the Bay of Bengal. But New Delhi’s plans would almost certainly be worth far less than Beijing’s ambitious infrastructure-building in Sri Lanka. China has already built a port at Hambantota in Sri Lanka’s south in a move that alarmed Indian observers.”

 

Iain Marlow and Saket Sundria further wrote, “Beijing has also invested heavily in Gwadar, a port in Pakistan that serves as the terminus of the China-Pakistan Economic Corridor.

 

As regards Nepal, on Nov 28, 2016, a memorandum was forwarded by the Greater Nepal Nationalist Front (GNNF) to the UN General Secretary Ban Ki-moon on facts, which disqualify India for attaining permanent membership of the UN Security Council (UNSC). The memorandum pointed out that “these days India is vying for a permanent United Nations Security Council (UNSC) seat. Greater Nepal Nationalist Front (GNNF) would like to register…reservations against Indian candidature for a permanent seat in the esteemed UNSC.”

 

It said, “Nepal has been a victim of Indian hegemonic and high handed mentality. India imposed a blockade against Nepal…why was India annoyed with Nepal? Because the people of Nepal did not heed Indian advise on promulgating a Nepalese Constitution. India refused to accept the mandate of the people of Nepal as the constitution was approved by more than 90% vote of the Constituent Assembly. India continues to illegally occupy 60000 square Kilo Meters of Nepalese territory.”

 

 

 

 

 

 

 

 

In this context, on March 25, 2017, ABC News conducted a talk programme/interview with Mr Phanidra Nepal (Mr PN) Chairman of Greater Nepal Nationalist Front, and Dr Bishnu Dahal. In the programme, the discussion was carried out on the need to change Nepal’s foreign policy so that Kathmandu can maintain an equal level of relations with both Beijing and New Delhi. Mr PN said, “Border blockade, unrest in Madhesh, growing anti-India sentiments, excessive Indian interference in internal affairs of Nepal is largely the consequence of our faulty foreign policy and diplomacy…None of the current crises being faced by Nepal is an overnight development, rather these were expected long time ago due to India dependent policies of our country, but Nepalese leaders have failed to read the writing on the wall. China has never opposed maintaining good relations with India but India always managed to alienate Nepal from China. Most of the Nepalese leaders are guided by selfish motives and they try to climb an easy ladder to power through India. This is one of the main reasons that Nepal is subjected to undue Indian pressures, harassments and humiliations. Nepal will have to bear some economic hardship in the short term, but it can lessen all difficulties and achieve a sustainable growth in the long term if it adopts Chinese funded mega projects especially OBOR [China’s One Belt One Road] to reduce dependency on a single country, i.e. India. India is worried about visits of Greater Nepal’s campaigner Phanindra Nepal to China and through diplomatic channels may express her concerns.”

 

In this connection, in an article, under the caption, “Nepal leader vows to revive Chinese dam project, open to review pact over Nepalese soldiers in India”, Debasishroy Chowdhury wrote on February 25, 2018: “The campus was a US$350 million gift from China, which built it in two years and handed it over last year to the paramilitary force, which plays an important role in checking Tibetan refugees from entering Nepal. “Apart from the bricks and mortar, they brought everything from China. All the fittings, the furniture, everything,” says a visibly impressed Shrestha as he points to the overhead projector and the desks in one of the many classrooms. “This entire campus in just two years, imagine the level of efficiency…As a new government takes power in Kathmandu, this widening rift puts it on the cusp of a geopolitical transformation as Nepal seeks a hedge in China to counterbalance India’s traditional dominance.”

 

Nevertheless, India’s endeavour to alienate Nepal from China will not succeed, as a majority of the Nepalese is aware of this duplicity of New Delhi.

 

Regarding the Maldives, David Brewster pointed out on February 8, 2018: “Maldives opposition leaders, such as former president Mohamed Nasheed, are pushing for India to again intervene to restore democracy. However, Delhi’s biggest worry about the Maldives is not the current threat to democracy, but its tilt towards China, especially the possibility that Beijing may establish a naval and airbase there.” 

 

In the recent past, under the title, “Cold War between China and India”,  Jamshed wrote,

“Evidently the relationship between China and India has been strained due to border disputes and economic competition…However, both the countries are in the race to influence the region due to its geo-strategic location…The Global Times said in a recent editorial, “India has a strong desire to control all South Asian countries. It regards the region as its backyard. New Delhi is particularly sensitive to any endeavour by small South Asian states toward independence and autonomy, especially ties with other major powers. All small South Asian nations want to extricate themselves from India’s excessive leverage.” Particularly in the case of the Maldives, India has some very alarming type of fears and apprehensions with reference to the increasing Sino-Maldivian closeness. On request of the Maldivian government, China has consented on doing co-operation in the construction of a port in Northern Atoll. Moreover, last year on 8th December 2017 a Free Trade Agreement (FTA) was also signed between the Maldives and China during Maldivian President Abdulla Yasmeen’s four-day visit to Beijing. By signing this agreement, the Maldives became the second South Asian country after Pakistan to sign an FTA with China. This deal also proved a ‘stunning blow’ for India. Earlier in August 2017, the Maldives permitted three Chinese warships to visit the country, though India had expressed its strong resentment over the decision. Same is the approach of India towards the countries like Nepal, Sri Lanka, Bhutan and Myanmar and even towards Bangladesh. Whereas, China also wants to have its presence as well as influence in the region.”

 

An analyst wrote, Nepal maintains cordial ties with all its neighbours. Since it is one of the less developed countries in the region, it is interested in seeking investment for its economic development. Kathmandu intends to diversify its economic interdependence and develop its reliance on all the South Asian countries for resources and development. Nepal and Bhutan can be a big source of hydropower for neighbours. Bhutan and Maldives view regional economic cooperation as a strategy to bring about economic self-reliance and mutual prosperity. Bhutan aims to improve air links and telecommunication between member states. The Maldives, on the other hand, is interested in joint economic ventures, and in achieving greater liberalization of its economy. China’s observer status in SAARC was a product of the push from Nepal, Bangladesh and Pakistan. China is investing in several infrastructure projects such as the China-Pakistan Economic Corridor (CPEC) and Bangladesh-China-India-Myanmar (BCIM) Corridor in South Asia. It is also investing in mega projects in Sri Lanka and the Maldives and enjoys cordial relations with Nepal.”

 

Besides, as part of the double game, based in Afghanistan, CIA-led Indian RAW and Israeli Mossad are also destabilizing Afghanistan and Pakistan through terrorism-related attacks and are giving a greater setback to the collective efforts of Russia, China and Pakistan which want peace and stability in Afghanistan.

 

Nonetheless, China is successfully countering Indian influence in South Asia. New Delhi will have to understand that maintaining hegemony in the region through negative planning is a bad idea in the 21St century. If India has to create a positive role, she will have to lend a hand to its Chinese investment in Bangladesh and other South Asian countries.

 

Sajjad Shaukat writes on international affairs and is the author of the book: the US vs Islamic Militants, Invisible Balance of Power: Dangerous Shift in International Relations

 

Email: sajjad_logic@yahoo.com

 

 

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Debunking Myths on CPEC by Ahsan Iqbal, Minister for Planning & Development

Ahsan Iqbal is the most capable minister in the mediocre and incompetent Nawaz Sharif. In the dark cloud of corruption, Mr.Iqbal is a silver lining. This is a well written article debunking propaganda originating from enemies of CPEC, China, and Pakistan. Here Ahsan Iqbal gives CPEC, a Reality Check. Editor, PTT

 

Debunking Myths on CPEC    

by

Ahsan Iqbal,

Pakistan Minister for Planning & Development

Recently, quite a few stories have appeared on the China-Pakistan Economic Corridor (CPEC) in both local and international publications. A lot of traction was gained by the cynics of CPEC by reporting factually incorrect information. Consequently, myth spurring on CPEC is on the rise. I am going to take this opportunity to debunk these myths by stating the facts.

A pointless controversy was created on the Long Term Plan (LTP) by a recent article featured in a local English-language newspaper. The report published as ‘LTP’ in that article was an initial draft by the China Development Bank (CDB) and not a part of the agreed LTP. That article basically cherry-picked information from different sources to present a distorted picture of the LTP. The fact is that the government of Pakistan has prepared its own plan after multiple stages of consultation with provinces, federal ministries and their respective technical groups. The LTP has been prepared to develop Pakistan in line with the seven pillars of Vision 2025 which are predicated on the notion of inclusive and sustainable development. The main pillars of LTP are connectivity, energy, industries and industrial parks, agricultural development and poverty alleviation, tourism, cooperation in areas concerning people’s livelihood and financial cooperation. It was shared with the Chinese authorities following approval by the cabinet.

The Chinese side has given its approval in principle, however, its formal approval is expected by the end of this month, as our Chinese counterparts were occupied by the Belt Road Forum. As soon as we get the official approval from the Chinese side, we will put the LTP on the CPEC website.

One of the biggest myths propagated on CPEC is that Pakistan might become a colony/province of China. Any historian would tell you that colonialism and imperialism are legacies of countries of the global north. China has never invaded any country nor harboured any imperial designs. Cynics point out towards rising trade deficit with China as a reason to show concern on CPEC. The reality is that China’s competitiveness in exports is universal and not idiosyncratic to Pakistan. Pakistan’s current trade deficit with China is $6.2 billion. In comparison, India’s trade deficit with China stands at $47 billion. The US trade deficit with China is $347 billion. Based on these trade deficit numbers, is it appropriate to infer that the US or India are becoming colonies/provinces of China? Certainly not. Similarly, it is ludicrous to make such claims about the Pakistan-China relationship. Both countries respect the sovereignty of each other and CPEC is based on the shared vision of both countries: Vision 2025 and OBOR.

At present, only a few thousand Chinese nationals are living in Pakistan and making a positive contribution towards our economy, the majority of them fall in the category of temporary labour migrants who will return back upon completion of the projects. In contrast, around 8 million Chinese are living in Malaysia, 400,000 in France; 600,000 in Japan; 900,000 in Canada and over 2.5 million are living in the US. Therefore, to say that Chinese are overtaking Pakistani society is nothing but a farce. Chinese nationals working in Pakistan are our national guests as they are helping us to build a developed Pakistan.

Another myth spread on CPEC is that China is dictating terms to Pakistan and the federal government is not consulting the provinces. The reality is quite the opposite. China and Pakistan work jointly in making an overall planning for a unified development of CPEC projects. In this regard, the Long Term Plan, Transport Monographic Study and respective MoUs guide the policy for CPEC.

All provinces have been consulted and invited to all meetings within Pakistan and abroad for their recommendations and review of CPEC projects. Earlier this month, the chief ministers of all four provinces under the leadership of PM Sharif attended OBOR Summit in China. On 29th December 2016, all CMs participated in the 6th JCC meeting which was held in Beijing. For institutional arrangement and development of CPEC, the National Development and Reform Commission (NDRC) of China along with the Planning, Development & Reform Ministry of Pakistan have constituted subsidiary working groups of the Joint Cooperation Committee (JCC) on planning, transport infrastructure, energy, Gwadar and industry cooperation.

Since the signing of the MoU in July 2013, six meetings of the JCC have been held. The highest officials of every provincial government are represented in JCC meetings. It is impossible to hide or misrepresent any information on CPEC from provinces. Information on ongoing and agreed CPEC projects is available on the official website of CPEC. Moreover, the planning ministry is always available to address any queries regarding CPEC. All the Chinese companies involved in CPEC projects are nominated by their government. Therefore, there is no question of favouritism on the part of the government of Pakistan.

Another myth propagated around is that Pakistan is not going to gain any economic benefits from CPEC and it is tantamount to the 2006 Free Trade agreement (FTA) with China. First of all, let me explain that an FTA works out on the basis of demand and supply of market forces. China enjoys a competitive edge in exports vis-à-vis all other economies of the world, including Pakistan, whereas CPEC is qualitatively different from an FTA. It provides necessary stimulus to kickstart the processes of industrialisation in Pakistan. Without sufficient electricity and adequate infrastructure, it is not possible to carry out industrialisation.

CPEC brings $35 billion investments in energy projects. Alongside coal, clean and renewable energy projects are part of the CPEC energy portfolio. The existing energy policy was made before the CPEC MoU was signed between China and Pakistan. Prior to CPEC, nobody was interested in making investments in our energy sector. At that crucial time, China took a lead and demonstrated to the world that Pakistan is a reliable and secure destination for foreign investments. Energy investments under CPEC will remove a major bottleneck that is in the way of realising high economic growth. It will reinforce the main grid structure, power transmission, distribution network, and improve power supply. Currently, 14 energy projects are in the implementation stage. Through CPEC projects, 10,000MW of electricity will be added to the national grid. Only 16,000MW was added to the national grid from 1947 to 2013. Moreover, energy projects under CPEC are not funded by Chinese loans instead they are undertaken in the IPP mode regulated as per NEPRA tariffs. Average cost of these projects is lower than the current cost of production of energy.

Under CPEC, new road and rail networks are to be built in all four provinces to enhance and improve connectivity within Pakistan. In addition to economic benefits of connectivity, social and regional cohesion will increase within Pakistan and in the region. Once energy and infrastructure bottlenecks are addressed, it is estimated that GDP will at least increase by more than 2 per cent from its current trend.

Similarly, one of the important components of the CPEC framework is industrial cooperation. Nine industrial zones were included in it with equal representation of all provinces. The cost of production is steadily increasing for many industries in China due to increase in wages. It is estimated that 85 million jobs will be relocated and countries in the Far East, Asia and Africa are competing for these jobs. Pakistan wants to secure a big share of the relocation of these industries and jobs. Once relocated, this will create a huge demand for labour in Pakistan and enormous employment opportunities will be available for Pakistanis.

In the current projects of CPEC, two thirds of the workforce is Pakistani and only a critical mass of labour force comes from China. This is a great opportunity for the Pakistani workforce to learn and update their skills from their Chinese counterparts. Already a boom in steel, cement and construction industries has created multiplier effects in the overall economy.

Economic benefits of CPEC are net positive for Pakistan. CPEC is a golden opportunity for Pakistan to undo the mistakes of the past and we, as a nation, cannot afford to be complacent about it.

Published in The Express Tribune, May 25th, 2017.

Jointly Shoulder Responsibility of Our Times,
Promote Global Growth

Keynote Speech by H.E. Xi Jinping
President of the People’s Republic of China
At the Opening Session
Of the World Economic Forum Annual Meeting 2017

Davos, 17 January 2017

President Doris Leuthard and Mr. Roland Hausin,
Heads of State and Government, Deputy Heads of State and Your Spouses,
Heads of International Organizations,
Dr. Klaus Schwab and Mrs. Hilde Schwab,
Ladies and Gentlemen,
Dear Friends,

I’m delighted to come to beautiful Davos. Though just a small town in the Alps, Davos is an important window for taking the pulse of the global economy. People from around the world come here to exchange ideas and insights, which broaden their vision. This makes the WEF annual meeting a cost-effective brainstorming event, which I would call “Schwab economics”.

“It was the best of times, it was the worst of times.” These are the words used by the English writer Charles Dickens to describe the world after the Industrial Revolution. Today, we also live in a world of contradictions. On the one hand, with growing material wealth and advances in science and technology, human civilization has developed as never before. On the other hand, frequent regional conflicts, global challenges like terrorism and refugees, as well as poverty, unemployment and widening income gap have all added to the uncertainties of the world.

Many people feel bewildered and wonder: What has gone wrong with the world?

To answer this question, one must first track the source of the problem. Some blame economic globalization for the chaos in the world. Economic globalization was once viewed as the treasure cave found by Ali Baba in The Arabian Nights, but it has now become the Pandora’s box in the eyes of many. The international community finds itself in a heated debate on economic globalization.

Today, I wish to address the global economy in the context of economic globalization.

The point I want to make is that many of the problems troubling the world are not caused by economic globalization. For instance, the refugee waves from the Middle East and North Africa in recent years have become a global concern. Several million people have been displaced, and some small children lost their lives while crossing the rough sea. This is indeed heartbreaking. It is war, conflict and regional turbulence that have created this problem, and its solution lies in making peace, promoting reconciliation and restoring stability. The international financial crisis is another example. It is not an inevitable outcome of economic globalization; rather, it is the consequence of excessive chase of profit by financial capital and grave failure of financial regulation. Just blaming economic globalization for the world’s problems is inconsistent with reality, and it will not help solve the problems.

From the historical perspective, economic globalization resulted from growing social productivity, and is a natural outcome of scientific and technological progress, not something created by any individuals or any countries. Economic globalization has powered global growth and facilitated movement of goods and capital, advances in science, technology and civilization, and interactions among peoples.

But we should also recognize that economic globalization is a double-edged sword. When the global economy is under downward pressure, it is hard to make the cake of global economy bigger. It may even shrink, which will strain the relations between growth and distribution, between capital and labor, and between efficiency and equity. Both developed and developing countries have felt the punch. Voices against globalization have laid bare pitfalls in the process of economic globalization that we need to take seriously.

As a line in an old Chinese poem goes, “Honey melons hang on bitter vines; sweet dates grow on thistles and thorns.” In a philosophical sense, nothing is perfect in the world. One would fail to see the full picture if he claims something is perfect because of its merits, or if he views something as useless just because of its defects. It is true that economic globalization has created new problems, but this is no justification to write economic globalization off completely. Rather, we should adapt to and guide economic globalization, cushion its negative impact, and deliver its benefits to all countries and all nations.

There was a time when China also had doubts about economic globalization, and was not sure whether it should join the World Trade Organization. But we came to the conclusion that integration into the global economy is a historical trend. To grow its economy, China must have the courage to swim in the vast ocean of the global market. If one is always afraid of bracing the storm and exploring the new world, he will sooner or later get drowned in the ocean. Therefore, China took a brave step to embrace the global market. We have had our fair share of choking in the water and encountered whirlpools and choppy waves, but we have learned how to swim in this process. It has proved to be a right strategic choice.

Whether you like it or not, the global economy is the big ocean that you cannot escape from. Any attempt to cut off the flow of capital, technologies, products, industries and people between economies, and channel the waters in the ocean back into isolated lakes and creeks is simply not possible. Indeed, it runs counter to the historical trend.

The history of mankind tells us that problems are not to be feared. What should concern us is refusing to face up to problems and not knowing what to do about them. In the face of both opportunities and challenges of economic globalization, the right thing to do is to seize every opportunity, jointly meet challenges and chart the right course for economic globalization.

At the APEC Economic Leaders’ Meeting in late 2016, I spoke about the necessity to make the process of economic globalization more invigorated, more inclusive and more sustainable. We should act pro-actively and manage economic globalization as appropriate so as to release its positive impact and rebalance the process of economic globalization. We should follow the general trend, proceed from our respective national conditions and embark on the right pathway of integrating into economic globalization with the right pace. We should strike a balance between efficiency and equity to ensure that different countries, different social strata and different groups of people all share in the benefits of economic globalization. The people of all countries expect nothing less from us, and this is our unshirkable responsibility as leaders of our times.

Ladies and Gentlemen,
Dear Friends,

At present, the most pressing task before us is to steer the global economy out of difficulty. The global economy has remained sluggish for quite some time. The gap between the poor and the rich and between the South and the North is widening. The root cause is that the three critical issues in the economic sphere have not been effectively addressed.

First, lack of robust driving forces for global growth makes it difficult to sustain the steady growth of the global economy. The growth of the global economy is now at its slowest pace in seven years. Growth of global trade has been slower than global GDP growth. Short-term policy stimuli are ineffective. Fundamental structural reform is just unfolding. The global economy is now in a period of moving toward new growth drivers, and the role of traditional engines to drive growth has weakened. Despite the emergence of new technologies such as artificial intelligence and 3-D printing, new sources of growth are yet to emerge. A new path for the global economy remains elusive.

Second, inadequate global economic governance makes it difficult to adapt to new developments in the global economy. Madame Christine Lagarde recently told me that emerging markets and developing countries already contribute to 80 percent of the growth of the global economy. The global economic landscape has changed profoundly in the past few decades. However, the global governance system has not embraced those new changes and is therefore inadequate in terms of representation and inclusiveness. The global industrial landscape is changing and new industrial chains, value chains and supply chains are taking shape. However, trade and investment rules have not kept pace with these developments, resulting in acute problems such as closed mechanisms and fragmentation of rules. The global financial market needs to be more resilient against risks, but the global financial governance mechanism fails to meet the new requirement and is thus unable to effectively resolve problems such as frequent international financial market volatility and the build-up of asset bubbles.

Third, uneven global development makes it difficult to meet people’s expectations for better lives. Dr. Schwab has observed in his book The Fourth Industrial Revolution that this round of industrial revolution will produce extensive and far-reaching impacts such as growing inequality, particularly the possible widening gap between return on capital and return on labor. The richest one percent of the world’s population own more wealth than the remaining 99 percent. Inequality in income distribution and uneven development space are worrying. Over 700 million people in the world are still living in extreme poverty. For many families, to have warm houses, enough food and secure jobs is still a distant dream. This is the biggest challenge facing the world today. It is also what is behind the social turmoil in some countries.

All this shows that there are indeed problems with world economic growth, governance and development models, and they must be resolved. The founder of the Red Cross Henry Dunant once said, “Our real enemy is not the neighboring country; it is hunger, poverty, ignorance, superstition and prejudice.” We need to have the vision to dissect these problems; more importantly, we need to have the courage to take actions to address them.

First, we should develop a dynamic, innovation-driven growth model. The fundamental issue plaguing the global economy is the lack of driving force for growth. Innovation is the primary force guiding development. Unlike the previous industrial revolutions, the fourth industrial revolution is unfolding at an exponential rather than linear pace. We need to relentlessly pursue innovation. Only with the courage to innovate and reform can we remove bottlenecks blocking global growth and development.

With this in mind, G-20 leaders reached an important consensus at the Hangzhou Summit, which is to take innovation as a key driver and foster new driving force of growth for both individual countries and the global economy. We should develop a new development philosophy and rise above the debate about whether there should be more fiscal stimulus or more monetary easing. We should adopt a multipronged approach to address both the symptoms and the underlying problems. We should adopt new policy instruments and advance structural reform to create more space for growth and sustain its momentum. We should develop new growth models and seize opportunities presented by the new round of industrial revolution and digital economy. We should meet the challenges of climate change and aging population. We should address the negative impact of IT application and automation on jobs. When cultivating new industries and new forms models of business models, we should create new jobs and restore confidence and hope to our peoples.

Second, we should pursue a well-coordinated and inter-connected approach to develop a model of open and win-win cooperation. Today, mankind has become a close-knit community of shared future. Countries have extensive converging interests and are mutually dependent. All countries enjoy the right to development. At the same time, they should view their own interests in a broader context and refrain from pursuing them at the expense of others.

We should commit ourselves to growing an open global economy to share opportunities and interests through opening-up and achieve win-win outcomes. One should not just retreat to the harbor when encountering a storm, for this will never get us to the other shore of the ocean. We must redouble efforts to develop global connectivity to enable all countries to achieve inter-connected growth and share prosperity. We must remain committed to developing global free trade and investment, promote trade and investment liberalization and facilitation through opening-up and say no to protectionism. Pursuing protectionism is like locking oneself in a dark room. While wind and rain may be kept outside, that dark room will also block light and air. No one will emerge as a winner in a trade war.

Third, we should develop a model of fair and equitable governance in keeping with the trend of the times. As the Chinese saying goes, people with petty shrewdness attend to trivial matters, while people with vision attend to governance of institutions. There is a growing call from the international community for reforming the global economic governance system, which is a pressing task for us. Only when it adapts to new dynamics in the international economic architecture can the global governance system sustain global growth.

Countries, big or small, strong or weak, rich or poor, are all equal members of the international community. As such, they are entitled to participate in decision-making, enjoy rights and fulfill obligations on an equal basis. Emerging markets and developing countries deserve greater representation and voice. The 2010 IMF quota reform has entered into force, and its momentum should be sustained. We should adhere to multilateralism to uphold the authority and efficacy of multilateral institutions. We should honor promises and abide by rules. One should not select or bend rules as he sees fit. The Paris Agreement is a hard-won achievement which is in keeping with the underlying trend of global development. All signatories should stick to it instead of walking away from it as this is a responsibility we must assume for future generations.

Fourth, we should develop a balanced, equitable and inclusive development model. As the Chinese saying goes, “A just cause should be pursued for common good.” Development is ultimately for the people. To achieve more balanced development and ensure that the people have equal access to opportunities and share in the benefits of development, it is crucial to have a sound development philosophy and model and make development equitable, effective and balanced.

We should foster a culture that values diligence, frugality and enterprise and respects the fruits of hard work of all. Priority should be given to addressing poverty, unemployment, the widening income gap and the concerns of the disadvantaged to promote social equity and justice. It is important to protect the environment while pursuing economic and social progress so as to achieve harmony between man and nature and between man and society. The 2030 Agenda for Sustainable Development should be implemented to realize balanced development across the world.

A Chinese adage reads, “Victory is ensured when people pool their strength; success is secured when people put their heads together.” As long as we keep to the goal of building a community of shared future for mankind and work hand in hand to fulfill our responsibilities and overcome difficulties, we will be able to create a better world and deliver better lives for our peoples.

Ladies and Gentlemen,
Dear Friends,

China has become the world’s second largest economy thanks to 38 years of reform and opening-up. A right path leads to a bright future. China has come this far because the Chinese people have, under the leadership of the Communist Party of China, blazed a development path that suits China’s actual conditions.

This is a path based on China’s realities. China has in the past years succeeded in embarking on a development path that suits itself by drawing on both the wisdom of its civilization and the practices of other countries in both East and West. In exploring this path, China refuses to stay insensitive to the changing times or to blindly follow in others’ footsteps. All roads lead to Rome. No country should view its own development path as the only viable one, still less should it impose its own development path on others.

This is a path that puts people’s interests first. China follows a people-oriented development philosophy and is committed to bettering the lives of its people. Development is of the people, by the people and for the people. China pursues the goal of common prosperity. We have taken major steps to alleviate poverty and lifted over 700 million people out of poverty, and good progress is being made in our efforts to finish building a society of initial prosperity in all respects.

This is a path of pursuing reform and innovation. China has tackled difficulties and met challenges on its way forward through reform. China has demonstrated its courage to take on difficult issues, navigate treacherous rapids and remove institutional hurdles standing in the way of development. These efforts have enabled us to unleash productivity and social vitality. Building on progress of 30-odd years of reform, we have introduced more than 1,200 reform measures over the past four years, injecting powerful impetus into China’s development.

This is a path of pursuing common development through opening-up. China is committed to a fundamental policy of opening-up and pursues a win-win opening-up strategy. China’s development is both domestic and external oriented; while developing itself, China also shares more of its development outcomes with other countries and peoples.

China’s outstanding development achievements and the vastly improved living standards of the Chinese people are a blessing to both China and the world. Such achievements in development over the past decades owe themselves to the hard work and perseverance of the Chinese people, a quality that has defined the Chinese nation for several thousand years. We Chinese know only too well that there is no such thing as a free lunch in the world. For a big country with over 1.3 billion people, development can be achieved only with the dedication and tireless efforts of its own people. We cannot expect others to deliver development to China, and no one is in a position to do so. When assessing China’s development, one should not only see what benefits the Chinese people have gained, but also how much hard effort they have put in, not just what achievements China has made, but also what contribution China has made to the world. Then one will reach a balanced conclusion about China’s development.

Between 1950 and 2016, despite its modest level of development and living standard, China provided more than 400 billion yuan of foreign assistance, undertook over 5,000 foreign assistance projects, including nearly 3,000 complete projects, and held over 11,000 training workshops in China for over 260,000 personnel from other developing countries. Since it launched reform and opening-up, China has attracted over $1.7 trillion of foreign investment and made over $1.2 trillion of direct outbound investment, making huge contribution to global economic development. In the years following the outbreak of the international financial crisis, China contributed to over 30 percent of global growth every year on average. All these figures are among the highest in the world.

The figures speak for themselves. China’s development is an opportunity for the world; China has not only benefited from economic globalization but also contributed to it. Rapid growth in China has been a sustained, powerful engine for global economic stability and expansion. The inter-connected development of China and a large number of other countries has made the world economy more balanced. China’s remarkable achievement in poverty reduction has contributed to more inclusive global growth. And China’s continuous progress in reform and opening-up has lent much momentum to an open world economy.

We Chinese know only too well what it takes to achieve prosperity, so we applaud the achievements made by others and wish them a better future. We are not jealous of others’ success; and we will not complain about others who have benefited so much from the great opportunities presented by China’s development. We will open our arms to the people of other countries and welcome them aboard the express train of China’s development.

Ladies and Gentlemen,
Dear Friends,

I know you are all closely following China’s economic development, and let me give you an update on the state of China’s economy. China’s economy has entered what we call a new normal, in which major changes are taking place in terms of growth rate, development model, economic structure and drivers of growth. But the economic fundamentals sustaining sound development remain unchanged.

Despite a sluggish global economy, China’s economy is expected to grow by 6.7 percent in 2016, still one of the highest in the world. China’s economy is far bigger in size than in the past, and it now generates more output than it did with double-digit growth in the past. Household consumption and the services sector have become the main drivers of growth. In the first three quarters of 2016, added value of the tertiary industry took up 52.8 percent of the GDP and domestic consumption contributed to 71 percent of economic growth. Household income and employment have steadily risen, while per unit GDP energy consumption continues to drop. Our efforts to pursue green development are paying off.

The Chinese economy faces downward pressure and many difficulties, including acute mismatch between excess capacity and an upgrading demand structure, lack of internal driving force for growth, accumulation of financial risks, and growing challenges in certain regions. We see these as temporary hardships that occur on the way forward. And the measures we have taken to address these problems are producing good results. We are firm in our resolve to forge ahead. China is the world’s largest developing country with over 1.3 billion people, and their living standards are not yet high. But this reality also means China has enormous potential and space for development. Guided by the vision of innovative, coordinated, green, open and shared development, we will adapt to the new normal, stay ahead of the curve, and make coordinated efforts to maintain steady growth, accelerate reform, adjust economic structure, improve people’s living standards and fend off risks. With these efforts, we aim to achieve medium-high rate of growth and upgrade the economy to higher end of the value chain.

— China will strive to enhance the performance of economic growth. We will pursue supply-side structural reform as the general goal, shift the growth model and upgrade the economic structure. We will continue to cut overcapacity, reduce inventory, deleverage financing, reduce cost and strengthen weak links. We will foster new drivers of growth, develop an advanced manufacturing sector and upgrade the real economy. We will implement the Internet Plus action plan to boost effective demand and better meet the individualized and diverse needs of consumers. And we will do more to protect the ecosystem.

— China will boost market vitality to add new impetus to growth. We will intensify reform efforts in priority areas and key links and enable the market to play a decisive role in resources allocation. Innovation will continue to feature prominently on our growth agenda. In pursuing the strategy of innovation-driven development, we will bolster the strategic emerging industries, apply new technologies and foster new business models to upgrade traditional industries; and we will boost new drivers of growth and revitalize traditional ones.

— China will foster an enabling and orderly environment for investment. We will expand market access for foreign investors, build high-standard pilot free trade zones, strengthen protection of property rights, and level the playing field to make China’s market more transparent and better regulated. In the coming five years, China is expected to import $8 trillion of goods, attract $600 billion of foreign investment and make $750 billion of outbound investment. Chinese tourists will make 700 million overseas visits. All this will create a bigger market, more capital, more products and more business opportunities for other countries. China’s development will continue to offer opportunities to business communities in other countries. China will keep its door wide open and not close it. An open door allows both other countries to access the Chinese market and China itself to integrate with the world. And we hope that other countries will also keep their door open to Chinese investors and keep the playing field level for us.

— China will vigorously foster an external environment of opening-up for common development. We will advance the building of the Free Trade Area of the Asia Pacific and negotiations of the Regional Comprehensive Economic Partnership to form a global network of free trade arrangements. China stands for concluding open, transparent and win-win regional free trade arrangements and opposes forming exclusive groups that are fragmented in nature. China has no intention to boost its trade competitiveness by devaluing the RMB, still less will it launch a currency war.

Over three years ago, I put forward the “Belt and Road” initiative. Since then, over 100 countries and international organizations have given warm responses and support to the initiative. More than 40 countries and international organizations have signed cooperation agreements with China, and our circle of friends along the “Belt and Road” is growing bigger. Chinese companies have made over $50 billion of investment and launched a number of major projects in the countries along the routes, spurring the economic development of these countries and creating many local jobs. The “Belt and Road” initiative originated in China, but it has delivered benefits well beyond its borders.

In May this year, China will host in Beijing the Belt and Road Forum for International Cooperation, which aims to discuss ways to boost cooperation, build cooperation platforms and share cooperation outcomes. The forum will also explore ways to address problems facing global and regional economy, create fresh energy for pursuing inter-connected development and make the “Belt and Road” initiative deliver greater benefits to people of countries involved.

Ladies and Gentlemen,
Dear Friends,

World history shows that the road of human civilization has never been a smooth one, and that mankind has made progress by surmounting difficulties. No difficulty, however daunting, will stop mankind from advancing. When encountering difficulties, we should not complain about ourselves, blame others, lose confidence or run away from responsibilities. We should join hands and rise to the challenge. History is created by the brave. Let us boost confidence, take actions and march arm-in-arm toward a bright future.

Thank you!

CHINA-PAKISTAN ECONOMIC CORRIDOR MAPS & STRATEGIC IMPORTANCE

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