Xi Jinping’s visit to the UAE was the first trip of a Chinese leader to the country in three decades. Reuter’s article [Xi’s visit to UAE highlights China’s rising interest in Middle East] reports on the 13 financial, business and trade agreements and memoranda of understanding that came out of this trip. The two leaders approved the setting up of the first Chinese state-owned financial services firm in Abu Dhabi Global Market. UAE matters for China in terms of energy, finance, and global trade. It is “the gateway for about 60 per cent of China’s exports to the Middle East”. This trip signifies how seriously China looks at the Middle East in general and the UAE in particular as a strategic partner in the context of the Silk Road.
Pakistani Parliamentary elections (marred by violence) that are being held today (July 25) bear on the future of China Pakistan Economic Corridor (CPEC), the most developed corridor of the Silk Road (with 62 billion dollar commitments made by China). Unlike other corridors, it is about much more than just infrastructure projects. The BeltandRoad.venture article [Pakistan-China post-election] points to likely post-elections scenarios for this corridor. CPEC penetrates many aspects of Pakistani economy, society, and public life. It therefore plays an important role in the elections today. Most of the Pakistani society holds a positive view of CPEC and the Silk Road. The article predicts that regardless of the outcome, the new administration will “continue to champion engagement with China”. However, the slowing economic growth and mounting debt in Pakistan are mentioned as potential major hurdles. The new administration might have to “prioritize controlling the current account deficit over enabling growth”.
M. Forough
The next issue of Silk Road Headlines will be dated 8 August 2018
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