MALAYSIA Tanah Tumpah Darahku


Sunday, June 30, 2019

Trump - Xi Xinping's 80 Minute Summit Yields Dividends

This is from Reuters.

Above :  Body language - Xi Xinping's super 
confidence of having 1.5 billion people to work with

Below : Trump's power handshake. When the wind is strong 
the bamboo yields. When the wind tires the bamboo stands strong. 
(an old Chinese saying that I just made up).

Trump says China trade talks 'back on track,' new tariffs on hold

US and China agreed Sat to restart trade talks 
Trump offered concessions including no new tariffs 
easing restrictions on Huawei 

China agreed to purchase U.S. farm products 
return to negotiating table
No deadline set for deal

Financial markets cheer truce
Washington Beijing slapped tariffs on billions of imports
threatening slowing global economy

China says joint interests with U.S. greater than differences
“We’re right back on track,” Trump said 
after 80-minute meeting with President Xi Jinping at G20 

“We’re holding back tariffs, they’re going to buy farm products” Trump said

U.S. president threatened $300b Chinese goods if meeting unsuccessful

China sincere about negotiations with US
but negotiations should be equal, mutual respect,” Xi said 

Trump offered olive branch to Xi on Huawei
Trump said not fair to U.S. suppliers, upset by the move
Trump would study in next few days to take Huawei off banned list 
China welcomed the step

U.S. microchip makers also applauded move
Financial markets worldwide eager relief from U.S.-China trade war

Conclusion :

It is becoming more important to understand the mindset of mainland China and what they want.  They have intertwined seeking prosperity and spreading prosperity around the world.

The detractors scream loudly about how Sri Lanka is indebted to China.  Err . . .. isnt that called borrowing money? Who asked you to borrow the money? Did anyone point a gun at your head and force you to borrow money ? From anyone?

But didnt the entire Third World borrow  money from the World Bank, the IMF etc?    All the World Bank loans in the world have not elevated a single Third World country out of poverty.  If any of them have progressed it is not because of any IMF or World Bank loans. 

China lends money or invests money that results in mega projects and massive infrastructure being built in all sorts of Allah forsaken places around the world. Myanmar, Sri Lanka, Gwadar port etc. China's greatest contribution to development is Africa. 

Even the most hellish place on earth ie Mogadishu in Somalia is picking itself up and moving along helped by Chinese investment in building roads and infrastructure.

                                                   Mogadishu picking itself up

And here is some copy paste about that port in Sri Lanka that has been leased to the Chinese operators for 99 years.

(Well no one complained when Hong Kong was leased to the Brits for 99 years.)  

The first phase of Port of Hambantota consists of two 600m berths, bunkering facility and tank farm.

A US$550 million tax-free port zone set up outside the port.
In 2016 a 15,000 acre Special Economic Zone was announced.
Project provide indirect employment to over 50,000 people.

The second phase (completed) container terminal, cost US$750 million.
The third phase - a dockyard.

Port covers 4,000 acres (16 km2) 
Can accommodate 33 vessels at any given time
Making it the largest port in South Asia.

Vehicle transhipment 

Japanese, South Korean and Indian car makers have begun transshipping increasing numbers of vehicles through the port. 

In 2014, number of vehicles handled at Hambantota crossed 100,000 mark, more than 300% increase over 2013.

The biggest user of the port is Hyundai plant near Chennai while Tata and Maruti vehicles also come from Mumbai. 

In April 2017, world's largest car and truck carrier (PCTC), MV Hoegh Trigger, arrived at the Port of Hambantota.

The Chinese built port has made Sri Lanka a vehicle transhipment hub.

Sr Lankan locals getting used to a four lane highway in Hambantota

The government of Sri Lanka kept the ownership of the port and leased it for 99 years. The deal gave the Sri Lankan government $1.4 billion.

Now here is why the western media is so angry at the Chinese and Sri Lanka.  When the port was leased to the Chinese, the Chinese paid US$1.4 Billion. Sri Lanka used a huge part of this US$1.4 billion to pay off external debts owed to the West (banks, agencies etc).

Western banks and agencies hold about 85% of Sri Lanka's external debt. This debt bears an interest rate in excess of 6% per annum. And they are payable in SEVEN years or less - placing much stress on the Sri Lankan government.

In contrast the majority of Chinese state funds lent to Sri Lanka from 2001-2017 (including two-thirds of the Hambantota port loans) were at 2% and mostly repayable over 20 years.

In brief the Chinese are bringing huge amounts of prosperity around the world. Hence Xi Xinping's super confidence.

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