China's Xi pledges $20 billion in loans to revive Middle East

 

Chinese President Xi Jinping and Kuwait's Emir Sheikh Sabah Al-Ahmad Al- Jaber Al-Sabah arrive at a China Arab forum at the Great Hall of the People in Beijing, China, July 10, 2018. REUTERS/Thomas Peter

 

BEIJING (Reuters) - Chinese President Xi Jinping on Tuesday pledged a package of $20 billion in loans, and about $106 million in financial aid, to Middle East nations, as part of what he called an "oil and gas plus" model to revive economic growth in the region.

 

Beijing has ramped up engagement in the Middle East in recent years as Arab nations play an important role in Xi's signature Belt and Road foreign policy plan for strong trade routes linking China with central and southeast Asia.

 

Development was key to resolving many security problems in the Middle East, Xi told a gathering with representatives of 21 Arab nations in the Chinese capital.

 

"We should treat each other frankly, not fear differences, not avoid problems, and have ample discussion on each aspect of foreign policy and development strategy," he said.

 

China would offer aid worth 100 million yuan ($15 million) to Palestine to support economic development, besides providing a further 600 million yuan ($91 million) to Jordan, Lebanon, Syria and Yemen, he added.

 

A consortium of banks from China and Arab nations, with a dedicated fund of $3 billion, will also be set up, he said.

 

It was unclear what the relationship between the bank consortium, financial aid and the overall loan package would be.

 

The loans will fund a plan of "economic reconstruction" and "industrial revival" that would include cooperation on oil and gas, nuclear and clean energy, Xi said.

 

He urged "relevant sides" to respect the international consensus in the Israel-Palestine dispute, and called for it to be handled in a just manner, so as to avoid regional disruption.

 

China, which traditionally played little role in the Middle East conflicts or diplomacy, despite its reliance on the region for energy supplies, has been trying to get more involved in resolving long-standing disputes.

 

China says it sticks to a policy of "non-interference" when offering financial aid and deals to developing countries, which, coupled with development, can help resolve political, religious and cultural tension.

 

It applies this pattern of economic support, as well as a strict security regime, to its restive western region of Xinjiang. But rights groups have criticised the approach, saying the clampdown has further stoked, not eased, tension between the Muslim Uighur minority and the ethnic Han majority.

 

($1=6.6033 Chinese yuan renminbi)

 

(Reporting by Christian Shepherd; Editing by Clarence Fernandez)

 

-- © Copyright Reuters 2018-07-10

With loans like China gives, who needs enemies. Would be nice if all the countries sucked the Chinese banks dry and then defaulted on payment. Nothing good ever comes from taking their money. Just a way for them to try to own you.

And $15 million to the Palestinians. Have the Israeli's been warned that new rockets should be incoming?

55 minutes ago, webfact said:

$20 billion

 

That's a lot of UN general assembly votes.

 

The Middle Earth is a backward and violent region beyond salvation.

2 hours ago, Bassosa said:

And $15 million to the Palestinians. Have the Israeli's been warned that new rockets should be incoming?

I was waiting for someone in the pro-israel brigade to post something ridiculous like this, and you are the first clown to do so. It is not going to happen Bassosa.

As the U.S. has become known for its immense military budget and raining death and destruction, here we have the relatively newly enriched Peoples Republic of China, ready and willing to offer loans or outright aid. For all countries on the receiving end, I would advise caution. Look where taking loans or outright aid from the earlier growing western powers have gotten countries. The U.S. has willingly moved away from the direction of reaching for its ideals as an example of what might be achieved. Now it has reqressed to the earlier "Robber Baron" era. Caste dispersions on China's growing into its new power, if you choose, but in large measure it has been brought about by the willingness of the older, receding powers and is on the ascendance.

 

1 hour ago, Elfin said:

I was waiting for someone in the pro-israel brigade to post something ridiculous like this, and you are the first clown to do so. It is not going to happen Bassosa.

Well, there's precedent. Foreign aid, gift used for warfare, tunnel building, terrorism.

 

Not that unlikely then?

4 hours ago, holy cow cm said:

With loans like China gives, who needs enemies. Would be nice if all the countries sucked the Chinese banks dry and then defaulted on payment. Nothing good ever comes from taking their money. Just a way for them to try to own you.

Explain....

I think this is great idea

 

May slow migrant flows if ME economies take off

 

Forget the USA, they won't help anyone unless there's money to be made

1 hour ago, Elfin said:

I was waiting for someone in the pro-israel brigade to post something ridiculous like this, and you are the first clown to do so. It is not going to happen Bassosa.

Not pro Israeli just pro democracy and anti islamofascism

4 hours ago, holy cow cm said:

With loans like China gives, who needs enemies. Would be nice if all the countries sucked the Chinese banks dry and then defaulted on payment. Nothing good ever comes from taking their money. Just a way for them to try to own you.

What codswallop!

I hope China does a deal with Iran

Troll post removed.

43 minutes ago, Bassosa said:

Well, there's precedent. Foreign aid, gift used for warfare, tunnel building, terrorism.

 

Not that unlikely then?

Nope. The Chinese will ensure that the donated money goes to exactly what it was meant for.

21 minutes ago, Grouse said:

I think this is great idea

 

May slow migrant flows if ME economies take off

 

Forget the USA, they won't help anyone unless there's money to be made

 

Yes, because the Chinese are doing this simply from the kindness of their heart. Everyone knows they are an altruistic bunch.

 

I doubt this would have any quick effect on ME economies, or one which would directly translate into "slow migrant flow".

21 minutes ago, Grouse said:

What codswallop!

 

https://www.thaivisa.com/forum/topic/1047637-chinas-xi-pledges-20-billion-in-loans-to-revive-middle-east/?tab=comments#comment-13160531

20 minutes ago, Grouse said:

I hope China does a deal with Iran

 

Which deal would that be? As in, from those already in place or those planned?

 

 

6 minutes ago, Elfin said:

Nope. The Chinese will ensure that the donated money goes to exactly what it was meant for.

 

Does China have a great track record on that? (specifically, in the ME).

The planet will shortly need to consider a name change, to something along the lines of Planet China.

 

Of course, China could spend all this money buying up half the globe, only for international investors to demand their money back.

7 hours ago, holy cow cm said:

With loans like China gives, who needs enemies. Would be nice if all the countries sucked the Chinese banks dry and then defaulted on payment. Nothing good ever comes from taking their money. Just a way for them to try to own you.

And what difference with American money? Recipients had to supply military bases or agree to import American goods. The US destroyed what was left of the African farming industry. They purposely gave rice and grain  to the Africans at a fraction of the price that the Africans could grow it, not too long after the local farming effort collapsed as nobody bought locally grown stuff just going for the dirt cheap US stuff. After the farming capability collapsed the US then upped the price of it's grain and rice back to normal. The result is an assurance of keeping Africa poor as long s possible.

 

The Chinese are doing this now to turn the thumb screws on Trump and his sanctions. The whole world will see China good - USA bad. China will get preferential supply of oil and Gas in the ME countries it helps. China is also moving quickly ahead with doing new trade deals with Europe and Canada. As yet another example they have just stopped buying all US Lobsters and are moving the trade to Canada. Trump has frakked up in spades.  

 

Trump is being given a masterclass into how to really screw someone over that tries to take you head on. Watch and weep. Neither Xi or any of his politicians are worried about the next election.

2 hours ago, Morch said:

 

Which deal would that be? As in, from those already in place or those planned?

 

 

China should buy Iranian oil but not in USD

2 hours ago, Morch said:

 

Yes, because the Chinese are doing this simply from the kindness of their heart. Everyone knows they are an altruistic bunch.

 

I doubt this would have any quick effect on ME economies, or one which would directly translate into "slow migrant flow".

Better than bombing the whole place I'm sure.

6 minutes ago, Andaman Al said:

And what difference with American money? Recipients had to supply military bases or agree to import American goods. The US destroyed what was left of the African farming industry. They purposely gave rice and grain  to the Africans at a fraction of the price that the Africans could grow it, not too long after the local farming effort collapsed as nobody bought locally grown stuff just going for the dirt cheap US stuff. After the farming capability collapsed the US then upped the price of it's grain and rice back to normal. The result is an assurance of keeping Africa poor as long s possible.

 

The Chinese are doing this now to turn the thumb screws on Trump and his sanctions. The whole world will see China good - USA bad. China will get preferential supply of oil and Gas in the ME countries it helps. China is also moving quickly ahead with doing new trade deals with Europe and Canada. As yet another example they have just stopped buying all US Lobsters and are moving the trade to Canada. Trump has frakked up in spades.  

 

Trump is being given a masterclass into how to really screw someone over that tries to take you head on. Watch and weep. Neither Xi or any of his politicians are worried about the next election.

 

Doubt the Chinese leadership is nearly as confident or nonchalant about dealing with Trump as some imagine. It's one thing to not like the US, and/or Trump. Quite another to dismiss the US even in its supposed "diminished" stature.

2 minutes ago, Grouse said:

China should buy Iranian oil but not in USD

 

They can just as well buy it from other ME players. Only reason they'd risk buying from Iran is getting favorable terms, and/or getting their way on other deals. What you're on about isn't much to do with the OP, but with your usual US bash fantasies.

4 minutes ago, Grouse said:

Better than bombing the whole place I'm sure.

 

The US didn't "bomb the whole place", other than in your fantasies. And regardless, just a deflection. Bottom line the Chinese do it for the same reasons - profit and promoting interests. Bash away.

Troll post removed.  

19 minutes ago, Morch said:

 

They can just as well buy it from other ME players. Only reason they'd risk buying from Iran is getting favorable terms, and/or getting their way on other deals. What you're on about isn't much to do with the OP, but with your usual US bash fantasies.

Thanks to Trump I am indeed rather anti USA right now.

 

I support the Iranians and if they do a deal with China good.

 

I see China acting in the ME for multiple reasons but partly to poke Trump in the eye.

 

I do believe that assisting with ME and African economic development may help reduce the flow rate of economic migrants.

 

These people won't expect any help from the USA any time soon

 

 

2 hours ago, Morch said:

 

Which deal would that be? As in, from those already in place or those planned?

 

 

They could agree to buy a lot more Iranian oil.

Of course, there is Trump to make the Chinese look good by comparison. The US was about to disburse 200 million to people in Raqqa, its environs and other places to help repair the massive damage caused by the eviction of ISIS. At the very last minute, Trump reneged on the deal. Something he's gifted at.