[ad_1]
When criticism of China’s rise in power mounts around the world, Beijing barely notices its path to strategically important countries in the Muslim world. The fate of the Uighurs in China’s Xinjiang province does not appear to stand in the way of this advance. At the center are Pakistan, the closest ally of the communists in the region, and Iran, which is suffering from Washington’s political offensive and economic sanctions. China’s leadership is now taking advantage of the crisis in both countries.
Christoph Hein
Business Correspondent for South Asia / Pacific based in Singapore.
The Indian Ocean will become the next stage in a conflict between the great powers China, India and America and their partners after the South China Sea.
Two blocs clash along the Indian-Pakistani border: here India, which joins Washington more closely in hopes of progress in development, military aid, and investment. There Pakistan and Iran, supported by India’s regional rival, China. The Indian Ocean continues to gain importance. There is already more trade through it than across the Atlantic.
Problems with the Saudis
Beijing’s chance to gain a foothold in the region came through clashes between Muslims. In essence, it was about the solidarity of Islamic countries with Kashmir, which Pakistan was asking for. The province, which both India and Pakistan alike claim, is run by New Delhi under Prime Minister Narendra Modi with an iron fist. Islamabad lost the expected support of the Saudis in its efforts to change that. But they didn’t want to spoil it with India. When the expected solidarity did not materialize, Pakistan repaid the Saudi government loans and China stepped in as a donor.
Saudi Arabia had just started its economic offensive in Pakistan. In light of the looming balance of payments crisis in the country of 220 million people, Saudi Arabia reached out to Pakistanis in 2018, to the surprise of many. A $ 6.2 billion aid package; $ 3 billion in loans, $ 3.2 billion in oil shipments.
In February 2019, Crown Prince Muhammad Bin Salman signed letters of intent in Pakistan for investments of another $ 20 billion; the connection between the two states appeared to be sustainable. But when Pakistan wanted to force the Islamic world in August to take a stand against India on the Kashmir issue at a meeting of the foreign ministers of the 57 member states of the Organization for Islamic Cooperation (OIC), Riyadh blew it. Given their billions in investments and oil shipments to India, the Saudis could not afford to take that step. Pakistan had to pay for the aid it had previously received from the Saudis. China provided the funds for this. But that had a price.
Beijing promised Pakistan about 70 billion
China is now building an economic corridor called CPEC through Pakistan, and this will give the Middle Kingdom access to the Arabian Sea through the port of Gwadar. Furthermore, large investments in farms, coal mining and even resorts should open up the country to the Chinese in the long run. Beijing promised Pakistan about $ 70 billion in aid for further development, particularly the construction of the CPEC.
The second country in the region, often referred to as the pariah state, Iran, is also closing in on China. Under pressure from the boycott promoted by Washington and the rampant Corona catastrophe, Tehran is turning to the communists with its pockets full: In July, Iran’s Foreign Minister Jawad Zarif declared the strategic partnership that Iran’s president , Hassan Rohani, and his Chinese counterpart, Xi Jinping, had at the beginning. Completed in Tehran in 2016 will be revived. It is said to have a trade and investment volume of $ 600 billion; little is known about the details.
