Posts Tagged ‘china’
The news that China and Russia have signed a $400 billion deal through which Gazprom will supply China National Petroleum Corp with 30 years of natural gas is the clearest illustration yet that Russia will be looking east, not west, for international funding.
Last week, in Will China Save Russia With Investment?, I reported a series of new Russia-China deals were about to be launched by the two countries’ sovereign wealth funds, the Russian Direct Investment Fund and China Investment Corporation. Those deals have since been announced: they involve Vcanland, a developer of tourism infrastructure and senior living communities; the first ever railway bridge over the Amur River on the Russia-China border; and logistics services investment.In dollar terms, they may have involved as much as $1 billion of investment, but while the number itself is insignificant compared to the outflows Russia is experiencing, the trend is very important – and is underlined by the new gas deal.
Russia’s central bank says that $63.7 billion of money left Russia in capital outflows in the first quarter of this year; the IMF is forecasting $100 billion of outflows for the full year. Others think those numbers conservative. Russian access to the international capital markets has dried up, and with vast infrastructure needs – just think of the FIFA World Cup, coming up in 2018 – that is a problem. So what to do? It can’t get those sorts of portfolio flows anywhere else, but it can bolster its foreign direct investment, or other forms of international trade. And China, which does not share the west’s sense of outrage about Russia’s behaviour in Ukraine, is the perfect candidate.
Dung’s comments, given in a written response to questions from Reuters, were the first time he has suggested Vietnam would take legal measures, and drew an angry response from China, which insisted the rig was in its sovereign waters.
“Vietnam is considering various defense options, including legal actions in accordance with international law,” Dung said in an email sent late on Wednesday, while on a visit to Manila. He did not elaborate on the other options being considered.
“I wish to underscore that Vietnam will resolutely defend its sovereignty and legitimate interests because territorial sovereignty, including sovereignty of its maritime zones and islands, is sacred,” he said.
China accused Vietnam of stoking regional tensions.
The armed hunters gather in Maiduguri. Photo: AP
A must read about the possibility of Cyber – war and China please read: Threat Vector by Tom Clancy~rockingjude
By Patrick Martin
Global Research, May 20, 2014
A federal grand jury has indicted five officers of the Chinese Peoples Liberation Army on computer hacking, economic espionage and other charges, officials of the US Department of Justice announced at a press conference Monday morning.
The indictment is unprecedented under international law, as it aims to criminalize actions allegedly carried out not by individual hackers, or “rogue” elements, but by serving officers in the armed forces of a major country. It is calculated to provoke a confrontation between the US and Chinese governments.
“These represent the first ever charges against known state actors for infiltrating US commercial targets by cyber means,” Attorney General Eric Holder said at the press briefing, emphasizing that the Obama administration was undertaking a major escalation in its anti-China policy. “The range of trade secrets and other sensitive business information stolen in this case is significant and demands an aggressive response.”
The five men, named as Wang Dong, Sun Kailiang, Wen Xinyu, Huang Zhenyu, and Gu Chunhui, are said to be officers in Unit 61398 of the Third Department of the Chinese People’s Liberation Army, based in Shanghai. Each faces 31 counts of computer and economic crimes. While none is in US custody, the charges would carry lengthy prison sentences.
The alleged targets of the hacking include Westinghouse Electric Co., United States Steel, Alcoa Inc., Allegheny Technologies Inc. (ATI), U.S. subsidiaries of SolarWorld AG, and the United Steel Workers union, which represents some workers at those companies.
Westinghouse is the major US builder of nuclear power plants, and built four such facilities in China in 2010-2011. The other companies entered into production agreements with Chinese companies during that time, or were engaged in trade litigation, as was the USW. The Chinese officers supposedly used cyber-warfare techniques to gain access to internal e-mails and other confidential materials at all six organizations.
Russian currency: The Ruble (Photo credit: Wikipedia)
Tyler Durden on 05/14/2014 10:47 -0400
That Russia has been pushing for trade arrangements that minimize the participation (and influence) of the US dollar ever since the onset of the Ukraine crisis (and before) is no secret: this has been covered extensively on these pages before (see Gazprom Prepares “Symbolic” Bond Issue In Chinese Yuan; Petrodollar Alert: Putin Prepares To Announce “Holy Grail” Gas Deal With China; Russia And China About To Sign “Holy Grail” Gas Deal; 40 Central Banks Are Betting This Will Be The Next Reserve Currency; From the Petrodollar to the Gas-o-yuan and so on).
But until now much of this was in the realm of hearsay and general wishful thinking. After all, surely it is “ridiculous” that a country can seriously contemplate to exist outside the ideological and religious confines of the Petrodollar… because if one can do it, all can do it, and next thing you know the US has hyperinflation, social collapse, civil war and all those other features prominently featured in other socialist banana republics like Venezuela which alas do not have a global reserve currency to kick around.
Or so the Keynesian economists, aka tenured priests of said Petrodollar religion, would demand that the world believe.
However, as much as it may trouble the statists to read, Russia is actively pushing on with plans to put the US dollar in the rearview mirror and replace it with a dollar-free system. Or, as it is called in Russia, a “de-dollarized” world.
Voice of Russia reports citing Russian press sources that the country’s Ministry of Finance is ready to greenlight a plan to radically increase the role of the Russian ruble in export operations while reducing the share of dollar-denominated transactions. Governmental sources believe that the Russian banking sector is “ready to handle the increased number of ruble-denominated transactions”.
According to the Prime news agency, on April 24th the government organized a special meeting dedicated to finding a solution for getting rid of the US dollar in Russian export operations. Top level experts from the energy sector, banks and governmental agencies were summoned and a number of measures were proposed as a response for American sanctions against Russia.
Chinese Premier Li Keqiang has promised his country’s assistance in providing robust infrastructure transformation for Nigeria and other African states.
To signal how seriously China, the world’s second-largest economy, takes its growing ties with Africa, Keqiang announced new funding commitments of $12 billion to Africa and Nigeria, the biggest economy on the continent.
“We will add $10 billion to our already committed credit lines to reach a total of $30 billion and put an extra $2 billion into the China-Africa Development Fund to reach $5 billion,” said Keqiang in a powerful speech at the first plenary session of the World Economic Forum (WEF), Africa yesterday.
“We will provide 18,000 scholarships to Africa and train 30,000 professionals of various types. The Chinese government means what it says, our co-operation with Africa will be based on mutual benefit,” Keqiang said.
Keqiang is visiting Nigeria with a 100-man delegation for the WEF Africa.
The Chinese and African economies are complementary to each other, according to Keqiang, with Africa needing investments, and China having surplus.
To realise inclusive growth, which is the theme of the WEF, infrastructure, especially transportation, must be at the fore front, and China would assist Africa in building high-speed rail networks, Keqiang said.
Africa currently has 23 percent of the world’s landmass, but only 7 percent of global rail lines.
China would also provide assistance for building and expanding Africa’s express and motorways, as well as build out a regional aviation network for the continent.
“China proposes a China-Africa regional aviation plan through an aviation joint venture with African partners,” Keqiang said. China will also support the movement of labour-intensive Chinese industries and enterprises to Africa to help with job creation.
What it means for global gold owners
Michael J. Kosares – GoldSeek.com
Editor’s Note: This issue of Review & Outlook is based on a series of posts I made at the USAGOLD blog over the course of the past month. China has imported an unprecedented amount of gold bullion in 2013. So much so, that if it were to maintain the current pace, it would import nearly the equivalent of global production for the year. When the news first filtered out of China on the amounts of gold being mobilized through its Shanghai Gold Exchange, the numbers seemed too large to be believed. The obvious question became “What is the source of this extraordinary amount of gold bullion?” It was only in October when Reuters reported that much of that gold had been shipped from London-based exchange traded funds to Switzerland for refining into smaller Asia-friendly bars and then on to Hong Kong and Shanghai that the full picture came into focus and the extraordinary numbers gained credibility.
Below I detail how the China gold trade mechanism works, the reasons for it, and why China’s interest in gold is likely to remain of paramount importance to the global market for many years to come. I have updated the original statistics from recently posted reports at the Koos Jansen website based in the Netherlands — a research source specializing in the China gold trade. To stay abreast of the China situation as well as other developments in the gold market on a daily basis, I invite you to visit our blog page linked above.
Part One – The London-Zurich-Hong Kong-Shanghai gold conduit
According to a recent Reuters report, the United Kingdom’s gold exports to Switzerland jumped from 85 tonnes to 1,016 tonnes in the first eight months of 2013 — a twelve times increase. Some bullion market watchers attribute the huge increase to withdrawals or sales from exchange traded funds (ETFs) — an explanation that covers only half the story…….if that. When one learns where this gold ended up and why it went there, the true importance of this unusually large deployment begins to take shape.
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Global Research, May 15, 2013
US$ dollars have been flooding the financial markets ever since Bernanke launched quantitative easing allegedly to turnaround the US economy. These huge amounts of US$ toilet paper are mainly in financial markets (and in central banks) outside of the United States. A huge chunk is represented as reserves in central banks led by China and Japan.
If truth be told, the real value of the US$ would not be more than a dime and I am being really generous here, as even toilet paper has a value.
That the US dollar is still accepted in the financial markets (specifically by central banks) has nothing to do with it being a reserve currency, but rather that the US$ is backed/supported by the armed might and nuclear blackmail of the US Military-Industrial Complex. The nuclear blackmail of Iran is the best example following Iran’s decision to trade her crude in other currencies and gold instead of the US$ toilet paper.
If the United States were not a military threat and a global bully that can blackmail with impunity the oil exporting countries in the Middle East, the global financial system which hinges on the US$ toilet paper would have collapsed a long time ago.
The issue is why has the US$ not collapsed as it should have by now?
When we apply common sense and logic to the state of affairs, the answer is so simple and it is staring at you.
But, you have not been able to see the obvious because the global mass media, specifically the global financial mass media controlled mainly from London and New York, has created a smokescreen to hide the truth from you.
Let’s analyse the situation in a step by step manner, and apply common sense.
1. The US is the world’s biggest debtor. The biggest creditors are China and Japan, followed by the oil exporting countries in the Middle East. With each passing day, the value of the US$ toilet paper is worth less and less. Like I said earlier, even toilet paper has some intrinsic value. It reaches zero value when everyone has to carry a wheelbarrow of US$ to purchase anything.
2. For the US$ toilet paper creditors, they cannot admit the fact that they have been conned by the global Too Big To Fail Banks (TBTFs) acting in concert with the FED and the Bank of England to accept US$ toilet papers. The central bankers of these countries have a reputation to preserve (not that there is in fact any reputation, for their so-called financial credibility is also part of the scam) and the political leaders that relied on them is in a bigger bind. How can the political leaders be so very stupid to trust these central bankers (who have stashed away in foreign tax havens huge US$ toilet papers as a reward for their complicity). This is the current state of affairs in plain English. They are having sleepless nights worrying if and when the citizens would wise up to this biggest con in history i.e. the promotion and acceptance of fiat currencies, the US$ being the ultimate fiat currency.