Volume 2, Number 5 Newsletterissi.org.pk/wp-content/uploads/2018/07/Newsletter_May... · 2019. 12. 31. · Development 2018-2028” Editor Dr Ahmad Rashid Malik Contact: The China-Pakistan

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Volume 2, Number 5

THE CHINA-PAKISTAN STUDY CENTRE (CPSC)The Institute of Strategic Studies Islamabad (ISSI)

IN THIS ISSUE1 China Wants To Take Ties With Pakistan To

A New Height

2 Russia Waiting For Formal Invitation To

Invest In CPEC Projects

3 Direct Flights To Gwadar Become Operational

4 China To Launch New Earth Observation

Satellite In May

5 China-Pakistan Economic Corridor Starts

To Deliver Benefits To Pakistani People

6 Pakistan, China Journalists Look Forward

To Enhance Cooperation For CPEC’s Success

7 Bilateral Dialogue With Center For

Strategic Research In Ankara, Turkey

8 Seminar On “The International Decade

For Action: Water For Sustainable

Development 2018-2028”

Editor

Dr Ahmad Rashid MalikContact:The China-Pakistan Study Centre (CPSC)Institute of Strategic Studies IslamabadSector F-5/2 - Islamabad 44000Email : [email protected] : +92-51-9204423-4, 9214729Web : www.issi.org.pk

China Wants To Take Ties With Pakistan To A New Height

Appreciating major progress in strategic partnership between Pakistan and China since his visit to Islamabad in 2015, Chinese President Xi Jinping has said that China wants to take relations with Pakistan to a new height, which should serve as a great example of bilateral cooperation under Belt and Road initiative. President Xi said this in a meeting with Prime Minister Shahid Khaqan Abbasi on the side-lines of Boao Forum on April 10, 2018. What China most wants to see is stable development and prosperity in Pakistan, Xi said. China firmly supports Pakistan in its

efforts to safeguard sovereignty, territorial integrity, and legitimate rights and interests. China opposes interference from any country in Pakistan’s internal affairs, and firmly supports Pakistan in maintaining its national unity and the fight against terrorism, the president said. The Chinese President also said as the regional and international scenario is undergoing massive changes today, the cordial and friendly relations between Pakistan and China carry much importance, Radio Pakistan reported. He assured China’s cooperation to accomplish development projects under CPEC, including Gwadar Port, industrial zones, and power houses.

PM Abbasi said Pakistan is an iron friend of China and their friendship has been further strengthened by China-Pakistan Economic Corridor. He said Pakistan intends to promote cooperation with China in finance, energy, agriculture, infrastructure and human development sectors.

He said China’s Belt and Road Initiative has become an international product for global development in the 21st century. Shahid Khaqan Abbasi said Chinese reforms and open policy are no threat to any country, Radio Pakistan reported.

The News International (Rawalpindi), April 10, 2018

CPEC To Revolutionise Trade Among South, Central Asia, China

Minister for Planning and Development Ahsan Iqbal on 11th April 2018 said that completion of China-Pakistan Economic Corridor (CPEC) would revolutionise trade ties between the Asian states by linking South and Central Asia, and China. He expressed these views while meeting with Meng Fengchao, chairman of China Railway Construction Corporation in Beijing.

The minister said that his government prioritises projects linking Gwadar to rest of the country and establishment of rail links from Quetta to Peshawar. Infrastructure projects would transform these remote areas into new urban centres, ensuring inclusive growth across Pakistan, he added.

Iqbal urged China Railway to ensure participation of Pakistani institutions in infrastructure projects. “China Railway

Corporation should utilise existing industrial base and local production capabilities in railways and infrastructure projects,” he maintained.

The minister maintained that Pakistan and China have agreed to upgrade and dualize Pakistan Railway’s main line (ML-1) from Karachi to Torkham, which would support

Continued on Page 2

Russia Waiting For Formal Invitation To Invest In CPEC Projects

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Volume 2, Number 5 May 2018

Pakistan, China Ink MoU On Gas Pipeline, Refinery

Acting ambassador of Russian Federation on this Monday said that Russia was eagerly waiting for a formal invitation from China and Pakistan to invest in CPEC related projects. Vladimir Berezyuk also said that a delegation of Russian businessmen will visit Pakistan very soon to explore new opportunities for investment.

Addressing the members of the Faisalabad Chamber of Commerce & Industry (FCCI) on April 16, 2018, he mentioned the Russian cooperation in the development of Pak economy and told that Karachi Steel Mills and Gudhu Power Plant are examples of our mutual and highly productive cooperation.

He said that a delegation of Russian businessmen will also visit Pakistan, which will open new avenues of direct cooperation between the businessmen of two countries. Expressing satisfaction over the promotion of bilateral trade between the two countries, Vladirmir Berezyuk said that it is growing at a much faster pace. During 2015-17, Russian exports recorded an increase of 96 percent while a phenomenal growth of 209 percent was recorded in Pakistani exports to Russian Federation. However, he stressed the need to diversify the trade to fully capitalize potentialities available in the two countries.

Bank of China has been allowed by the State Bank of Pakistan to establish Chinese yuan settlement and clearing setup in Pakistan for payments in Chinese currency and strengthening trade relations between both countries. The SBP underscored in a statement that the policy measures had been continuously taken in order to ensure imports, exports and transaction financing with China were denominated in yuan.

Previously, the SBP had signed an agreement related to currency swap with the People’s Bank of China. The objective of signing that agreement was mainly for the purpose to promote bilateral trade and financing direct investment between the two countries in their respective local currencies.

The Bank of China can also provide yuan liquidity to the interbank ket for the settlement of transactions. Earlier, in 2015, the SBP has already allowed the Industrial and Commercial Bank of China (ICBC) to offer same services in Pakistan.

“These steps are part of efforts to encourage trade with China in yuan and eventually in the respective local currencies. This settlement

and clearing mechanism is expected to reduce costs and increase efficiency for the local banking system in transacting in Chinese yuan, enhance market liquidity and facilitate settlement of growing trade and investment transactions between China and Pakistan in yuan,” stated by the State Bank of Pakistan.

SBP hoped the step will benefit long-term benefits for China-Pakistan relationship in general and Pakistan’s economy and banking system in particular.

The Nation (Islamabad), April 12, 2018 (Condensed)

Prime Minister Shahid Khaqan Abbasi and Li Yanming, Vice President of Power China Limited witnessed signing of a Memorandum of Understanding (MoU) between Inter-State Gas Systems (ISGS) of Pakistan and Power China for laying of North-South Gas Pipeline at Sanya (China) on 9th April, 2018. “The pipeline would serve as a secure and continuous supply of affordable gas in areas currently showing increased demand for power generation and industrial use,” a press release issued from the PM Office said.The prime minister also witnessed signing of another MoU between Pakistan State Oil (PSO) and Power China for construction of up-country deep conversion oil refinery and laying of crude oil pipeline. This project will help in reducing costs of petroleum products currently being transported via road from refineries in southern parts and also ensure uninterrupted supply. Foreign Minister Khawaja Muhammad Asif, Pakistan’s Ambassador to China Masood Khalid, Chinese Ambassador to Pakistan Yao Jing and senior officials were present on the occasion.The News International (Rawalpindi), April 9, 2018 (Condensed)

From Page 1fast-moving trains in future. The first phase of the project is expected to hit the ground this year. The upgradation of the ML1 would not only improve existing railway infrastructure but would double the current speed and facilitate huge cargo transportation. Earlier, while addressing the CEOs at Boao Forum on April 9, the minister said that CPEC is proving to be oxygen for Pakistan as the country’s economic growth increased due to the huge investment being made in infrastructure and energy sectors under the mega project. Iqbal said under the CPEC, nine industrial zones were being constructed across the country which will create numerous new jobs.

GEO News, April 12, 2018 (Condensed)He also identified railways, communication, construction, refinery and other major sectors in which two countries could further expand their collaboration in the coming years. However, he said that after concerted efforts by the two governments, the businessmen of Pakistan and Russia should also play a proactive role to strengthen their mutual relations. Later, Inam Afzal Khan offered vote of thanks while acting president FCCI Farooq Yusuf presented FCCI shield to Vladirmir Berezyuk, acting ambassador of the Russian Federation. The Russian ambassador also reciprocated and presented a gift to Farooq Yusuf while Mirza Tauseef Ahmad presented FCCI shield to Vadim Zaetcov, visa officer of the Russian Federation.

The Nation (Islamabad), April 17, 2018 (Condensed)

Bank Of China Allowed To Establish Chinese Yuan Settlement Setup In Pakistan

China’s Long March-11 carrier rocket, carrying five satellites, was launched from the Jiuquan Satellite Launch Center in the north-western province of Gansu at 12:42 pm on April 26. This has broken China’s record in the number of satellites launched at the same orbital plane. The satellites, named Zhuhai-1, are expected to provide global big data in sectors including agriculture, forest, natural resources, environmental protection, transportation and modern finance. The launch was the 272nd mission of the Long March rocket series.China Plus, April 26, 2018 (Condensed)

China Launches Record-Breaking Five Satellites Into Orbit

3 Newsletter The China-Pakistan Study Centre

A private-owned airline, GwadarAir, has started local flights to Gwadar with the first flight having landed in Gwadar from Lahore on 17 April.

A prominent businessman of Gwadar, Majid Abdullah was there to receive the flight. CEO GwadarAir Naeem Ghumman and prominent

business personality Pir Fakhar-uz-Zaman were present in the flight among others. This is a big breakthrough in light of China Pakistan Economic Corridor(CPEC), reducing distances significantly. In a press conference, Mr. Naeem Ghumman said “We’ve launched this operation with two aircrafts.

In the future, we also plan to start flights from Quetta to Gwadar since every passenger has to go through Karachi and by road; the duration of the journey from Karachi to Gwadar is around 15 to 16 hours.” Initially, 2 flights will go every week from each city with a maximum time of 3 to 3.5 hours.

ARY News (Karachi), April 17, 2018 (Condensed)

China’s first space lab, Tiangong I, re-entered the Earth’s atmosphere on April 20 ,2018. and fell into the central part of the South Pacific Ocean, according to the China Manned Space Agency.

During the re-entry process, most of the spacecraft’s body burnt out, it said in a statement. Tiangong I was launched on September 29 2011 and ended service in March 2016 after completing its mission. It has docked with Shenzhou VIII, Shenzhou IX and Shenzhou X spacecraft and undertaken a series of tasks, making important contributions to China’s manned space cause.

China Daily (Beijing) , April 2, 2018 (Condensed)

Exploring The Universe: The Journey Of Tiangong I

Direct Flights To Gwadar Become Operational

Volume 2, Number 5 May 2018

Federal government has expedited work on the establishment of Mohmand Industrial Estate in Mohmand Agency under China Pakistan Economic Corridor (CPEC). In an

interview with Radio Pakistan, Manager Planning and Development FATA Development Authority Ghous-ur-Rehman said the project would be completed at a cost of more than seven billion rupees.

He said a grid station had been installed to ensure uninterrupted supply of electricity to the estate while a road leading to the site had also been completed. The project will generate more than 18000 jobs in the area.

The Nation (Islamabad), April 7, 2018 (Condensed)

Work Expedited On Mohmand Industrial Estate

Work on the 285-kilometre section of Western Route of China- Pakistan Economic Corridor (CPEC) is in full swing and is expected to be completed by end of the current fiscal year (2018).

According to the latest data of Planning Commission, the government has released over Rs30 billion for construction of Hakla on Motorway M-1 to Yarik (Dera Ismail Khan) expressway under this year Public Sector Development Programme (PSDP).

To ensure timely completion of the project the expressway has been divided into five packages and phase one of the projects comprises Yarik-Rehmani Khail section. Similarly, under Package-II, 72 km section from Rehmanikhel to Mianwali would be constructed while a 52-kilometre section of package-III from Mianwali to Tarap has already been completed. The package-IV comprises 50 KM section from Tarap to Pindi Gheb and consists of the 63-km long section from Pindi Gheb to Hakla.

Daily Pakistan Global (Karachi), April 1, 2018 (Condensed)

Work On 285km Motorway Under CPEC To Be Completed In June 2018

China Southern Airlines To Start Kunming-Islamabad Fights

The China Southern Airlines Co. Ltd will be starting flights between Kunming and Islamabad from mid of this year. This was underlined in a meeting of the Airline’s Executives with Pakistan’s Consul General to Chengdu, Muhammad Mudassir Tipu.

The delegation of the airlines on April 17 ,2018 met the CG in Kunming, capital of Yunnan province, and included Hu Yaohui, Director International Marketing, Ma Yun Deputy Manager and airline’s staff. Hu Yaohui in the meeting underscored that, ‘given the depth and breadth of China-Pakistan

relations, Pakistan’s strategic location, it’s tourism potential, as well as Pakistan’s economic growth the China Southern had been planning to start three-day-a-week flights from June this year. The flight will fly on Guangzhou-Kunming-Islamabad route. The Kunming-Islamabad route’s flight time will be nearly four hours while the return flight will take five hours’.

The Consul General, Muhammad Mudassir Tipu welcomed the start of the flight and emphasized that it was a clear demonstration that Pakistan’s relations with China were vigorously expanding in a host of areas. The CG hoped that as a consequence of CPEC and OBOR initiatives, as well as Pakistan’s growth trajectory, wider economic and commercial opportunities will be generated necessitating enhanced connectivity between Pakistan and the western China.

The News International (Rawalpindi), April 17, 2018 (Condensed)

4 Newsletter The China-Pakistan Study Centre Volume 2, Number 5 May 2018

China To Launch New Earth

Observation Satellite In May

China’s First Home-Built Icebreaker In Production

China is to launch Gaofen-5, a hyperspectral imaging satellite for Earth observation, at the beginning of May, 2018.

The new satellite, capable of obtaining spectral information from ultraviolet to long-wave infrared radiation, can be used to survey inland waters and mineral resources, said Tong Xudong, director of the Earth Observation System and Data Center, China National Space Administration (CNSA), at a conference on April 24,2018.

The satellite can also monitor air pollutants, greenhouse gases and aerosol particles, Tong said. To make the best use of observational data and serve countries covered by the Belt and Road Initiative, the CNSA released an international cooperation plan for Gaofen-5, specifying fields that will be open for cooperation and commercial service. The administration also plans to launch Gaofen-6 this year, so as to form a constellation with other Gaofen satellites in orbit.

Since the Gaofen project began in 2010, China has had an increasingly clearer view of the planet. Launched in April 2013, Gaofen-1 can cover the globe in just four days. Gaofen-2, sent into space in August 2014, is accurate to 0.8 meters in full colour and can collect multispectral images of objects greater than 3.2 meters in length. Gaofen-4, launched in late 2015, is China’s first geosynchronous orbit high-definition optical imaging satellite. Gaofen-3, launched in August 2016, is China’s first Synthetic Aperture Radar (SAR) imaging satellite.

China Daily (Beijing), April 27, 2018 (Condensed)

China State Shipbuilding Corp started assembling China’s first self-developed icebreaker at a shipyard in Shanghai, which is expected to start its first scientific expedition to the Antarctica in year 2019. At a building berth of the Jiangnan Shipyard, Xuelong 2 – Snow Dragon 2 – will be built by connecting sections.

According to the schedule, Snow Dragon 2 will leave the berth in August 2018 after procedures such as interior decoration, equipment and system adjustment and mooring experimentation. It is expected to be commissioned in the first half of 2019 to team up with the country’s sole current icebreaker, Xuelong, to conduct scientific research missions in polar areas.

The newly built vessel will considerably improve performance in icy zones, as it can break ice using either its bow or stern. It will be the world’s first icebreaker for scientific exploration in polar areas to use two-way icebreaking technology. The ship will be able to break ice 1.5m thick and endure temperatures of -30C. It has good mobility and incorporates strict environmental protection measures. It can quickly change direction in icy zones,

greatly improving safety in the complicated conditions of Antarctic offshore areas. The basic design of Snow Dragon 2 is Finnish, but detail design, production design and reviews were performed by domestic institutions and companies. “The project is not simply purchasing the designs and drawings from foreign companies this time,” Wu Gang, chief designer of Snow Dragon 2, said.

The State Council said in 2015 that the icebreaker project was “collaboratively designed by domestic and foreign experts, but independently built at home”. China owns the intellectual property rights of Snow Dragon 2, according to Wu.

The Telegraph, April 13, 2018 (Condensed)

China’s Xiaomi Promises To Cap Hardware Income Margin Ahead Of IPO

Chinese smartphone and smart device maker Xiaomi will cap income from its hardware business at 5 percent of after-tax profits this year, as it looks to position itself as an internet services provider ahead of a highly anticipated

IPO Xiaomi - which makes dozens of internet-connected products including scooters, water purifiers and televisions - it was said in a statement on April 25 that any profits from hardware exceeding the 5 percent quota will be distributed among users, without giving specific details.

The promise comes as the company is looking to market its internet services business to investors ahead of an IPO that could potentially value the smartphone maker at $100 billion.

Reuters (United Kingdom), April 25, 2018 (Condensed)

Shanghai Gets Automated Bank With VR, Robots, Face Scanning

A bank in Shanghai has opened an automated branch equipped with face-scanning software, a virtual reality room and talking robots. The outlet hasbeen opened by Beijing-based China Construction Bank in Shanghai’s Huangpu district in third week of April, 2018 and has been dubbed China’s first “unmanned bank.”State-owned China Const-ruction Bank says it’s meant to make banking more convenient and efficient. Analysts are sceptical, saying it’s a gimmick that does little to automate banking beyond the usual ATM and online banking services. The bank is attracting throngs of curious observers with its cutting-edge equipment.The Lewiston Morning Tribune (Idaho), April 22, 2018 (Condensed)

5 Newsletter The China-Pakistan Study Centre Volume 2, Number 5 May 2018

China-Pakistan Economic Corridor Starts To Deliver Benefits To Pakistani PeopleThe completion of some of the China-Pakistan Economic Corridor (CPEC) projects has brought great benefits to local people, but “it is just a beginning of CPEC and a big change is taking place around,” Shaukat Paracha, a senior Pakistani journalist said.

Paracha told Xinhua during his recent visit to Port Qasim Coal-fired Power Plant, the first unit of which started to generate clean and cheap electricity to the energy-thirsty country last year, marking the second of the major energy projects under CPEC.

The 1,320-megawatt power plant in full operation could provide enough power to about 4 million local families a year. Ziaul Amin, a reporter from the Associated Press of Pakistan, has reported CPEC for a long time, but had never before visited Gwadar, another major CPEC project.

After the recent Gwadar visit organized by the Chinese Embassy in Pakistan and the country’s ministry of planning and development, Amin said local people were very happy over the hospital and training center facilitated under CPEC.

From a small, remote and less developed fishing village, Gwadar port now is embracing its new identity of Pakistan’s “Shenzhen” with fully functional port terminal, free zone, business center and, more importantly, a visible future of development and prosperity.According to the China Overseas Ports Holding Co., the operator of Gwadar port, some 30 companies in different businesses such as hotel, bank, logistics and fish processing have already joined the Gwadar free zone

with expectations of generating 790.5 million U.S. dollars annually after full operation. In January 2018, Pakistani Prime Minister Shahid Khaqan Abbasi inaugurated the first phase of Gwadar Port’s Free Zone, expecting that the free zone will improve Pakistan’s TRADE with regional and global partners under CPEC to bring dividends of free trade to Pakistani economy and betterment in people’s lives.

Yasir Rehman, an anchor from the official Pakistan Television, explained that “when infrastructure is developed, it brings stimulus to the economy, creates jobs and improves businesses by starting a constructive process.”“Uninterrupted power supply from CPEC energy projects will help Pakistani industries increase production creating an ideal atmosphere for Pakistan’s economy.

And with the functionalized Gwadar port for its regular commercial cargo, CPEC will leave significant improvements at every common Pakistani.”Rehman also appreciated the Chinese companies working on CPEC for

fulfilling their corporate social responsibilities.“I saw local girls studying in a school established with Chinese support in Gwadar, and if it would not have been established, these girls could not have any possibility to go to any other area for studies due to local taboos,” said Rehman, adding that education is the right prescription to eliminate poverty.Hospitals, schools and vocational training centers were a dream in once a small fishing town of Gwadar, but now the youngsters from Gwadar are being provided with the ideal facilities to study in and have a chance to change their lives.

“A chance of development is coming to Pakistan, and we all together including political, military and intellectual leadership should grab it. We should make collective efforts so that CPEC can become a collective benefit for the whole region,” Paracha told Xinhua.

New China (Xinhua), April 24, 2018 (Condensed)

Baidu Raises More Than US$1.9 Billion For Artificial Intelligence-Powered Finance Arm

Baidu Inc. has raised more than US$1.9 billion for its newly spun-off financial services division from TPG, Carlyle Group and other investors, creating one of China’s best-funded fintech companies. Taikang Group and other backers also joined the funding round for the newly formed company, which will be called “Du Xiaoman Financial” and use artificial intelligence to provide short-term loans and investment services. Baidu Senior Vice President Zhu Guang will run the business as an independent entity, according to a statement Saturday. The news comes a day after Baidu said it planned to sell a majority stake in the business, without providing a timetable.

Baidu announced plans to spin off the unit in July 2018, to help it obtain domestic financial services licenses and reduce drag on the parent, China’s most popular search engine. Moody’s Investors Service put the company’s

credit rating under review last year over risks related to its loans business. E-commerce giant JD.com Inc. completed a similar spin-off in 2017. In its earnings release, Baidu said the financial services unit had assets of $7.5 billion and liabilities of $6.6 billion but added that there was no assurance of a sale. Baidu has spent the past year selling or spinning off a series of costly business units to refocus on its core services. Its loss-making food delivery service Waimai was sold to a rival

now controlled by Alibaba Group Holding Ltd. called Ele.me, while the Netflix-like streaming video service iQiyi Inc. listed this year.

The moves are designed to help sustain the business until big bets on artificial intelligence pay off. It’s hoping that AI products like autonomous vehicles and Siri-like personal assistants will be its next big source of revenue and profits. But while its open-sourced driverless car platform, named Apollo, now has over 100 partners, fully-autonomous passenger sedans aren’t expected for mass-production until at least 2020. The “PKU-Baidu fund” will be used to support frontier research in AI-related subjects such as information science, medicine, economics, communication, psychology, and sociology, according to Xinhua.

South China Morning Post (TECH), April 29, 2018 (Condensed)

6 Newsletter The China-Pakistan Study Centre Volume 2, Number 5 May 2018

Pakistan, China Journalists Look Forward To Enhance Cooperation For CPEC’s Success

A delegation of All Pakistan Newspaper Society (APNS) has been on a visit to China where journalists from both countries would deliberate over enhancing cooperation for the success of China-Pakistan Economic Corridor (CPEC).

Pakistani media delegation participated in a seminar about the Belt and Road initiative in Beijing on Tuesday highlighting the importance of China-Pakistan Economic Corridor (CPEC), which is not only beneficial for both the counties but also successful a model for the world.

The seminar on ‘Belt and Road and building a community with shared future for China and Pakistan’ was jointly organised by Guangming Daily and Jang Media Group. Pakistani media delegation arrived in China on April 16, 2018 as part of efforts to promote cooperation

between the media industries of the two countries. During its four-day stay in China, the Pakistani delegation will attend ‘China-Pakistan Media Forum’ and interact with Chinese media. The delegates will also visit Shanghai. Masroor Ahmed, Jang Media Group director emphasized the significance of CPEC in developing relations between China and Pakistan. He expressed a need to accelerate the implementation of CPEC projects as opponents of this mega project had been hatching conspiracies for its delay.

Mumtaz Zahra Baloch, deputy head of mission at Pakistan Embassy in Beijing, said that Belt and Road initiative was a model for win-win cooperation. She said that relations between Pakistan and China were based on equality, mutual trust, and harmonious coexistence, and had progressed over the years. Zhang Zheng, editor-in-chief of Guangming Daily, said the media should take responsibility to further strengthen economic cooperation between the two countries. All China Journalists Association and All Pakistan Newspapers Society also signed an agreement of Belt and Road News Communication and Cooperation.

Geo News (Karachi), April 17, 2018 (Condensed)

Government Allocates Rs.198 Billion For CPEC Projects

The government has allocated Rs198 billion in the development budget for various projects under the China Pakistan Economic Corridor (CPEC) in fiscal year 2018-19 including Rs25 billion for construction of western route from Burhan-Hakla on Motorway-1 to Dera Ismail Khan.

According to Public Sector Development Programme (PSDP) for 2018-19, new projects costing Rs835 billion will be added in the CPEC and its supporting projects. Thirty-one projects for development of Gwadar are part of the PSDP for 2018-19 with an estimated cost of Rs137 billion.

For modernizing Mailine-1 (ML-1) phase-1 of Pakistan Railways and establishment of dry port at Havelian, the government has allocated just Rs5 billion against total estimated cost of Rs380.8 billion. The funding has been allocated mostly for ongoing projects in the PSDP for 2018-19.

The government has allocated funding for projects outside the CPEC as well which include Rs45 billion for Multan-Lahore (M3 section) of Karachi-Lahore Motorway. Out of total cost of Rs110.208 billion for completion of western route from Burhan to DI Khan, the government projected to utilise Rs52.392

billion up to June 30, 2018. Of remaining throw forward standing at Rs57.815 billion, the government allocated Rs25 billion in the budget 2018-19, so this project required at least another year and would be completed by 2019-20.

For construction of Karakorum Highway (KKH) Phase-II, Havelian-Thakot 118.057km as part of CPEC (revised), the government has allocated Rs25 billion. Out of Rs136.659 billion cost of this project, the expenditure projected to be incurred on it was Rs63.881 billion. Against total throw forward of Rs72.778 billion for completion of this project, the government allocated Rs25 billion.

For construction of KKH between Thakot-Raikot section including Tatapani Bypass under CPEC, the government made it part of new projects of the National Highway Authority (NHA) and allocated Rs1 billion

against total estimated cost of Rs8.150 billion.For five GD water desalination plants in Gwadar, the government has allocated Rs150 million in the budget against total estimated cost of Rs3.042 billion. For upgradation of 50-bed hospital to 300-bed hospital in Gwadar, the government allocated Rs100 million against total funding requirement of Rs9.9 billion.

An allocation of Rs6.035 billion has been made for construction of Eastbay Expressway under CPEC, Rs194 million has been allocated for feasibility study on construction of breakwater, Rs625.583 million for Pak-China Vocational Institute in Gwadar and Rs100 million for chapel dredging of berthing area for additional terminal against estimated total cost of Rs2.8 billion.

The News International (Rawalpindi), April 28, 2018

Alibaba Sets Plans For ThailandThe Chinese e-commerce giant Alibaba has agreed to step up investments in Thailand as competition between online retailers heats up in fast-growing Southeast Asia. The founder of the online shopping giant, Jack Ma, met with Thailand’s prime minister, Prayuth Chan-Ocha, on 19th April and later signed several agreements, including one to help set up a “smart digital hub” in a showcase project called the Eastern Economic Corridor, to facilitate trade between Thailand, China, Laos, Myanmar, Cambodia and Vietnam. Both Ma and Prayuth sought to allay concerns that Alibaba’s growing involvement might increase Chinese influence without benefiting Thailand. Across the region, such concerns have deepened as Beijing expands investments in a slew of projects that help expand transportation and supply chain networks linked to China. Alibaba and Amazon both have been expanding in Southeast Asia, an increasingly affluent region of more than 600 million people. E-commerce still accounts for less than 3 percent of retail sales in the region but is growing quickly. In March 2018, Alibaba announced it was investing another $2 billion in regional online retailer Lazada Group, doubling its stake in the company that it gained control of in 2016.

ABC News, April 19, 2018 (Condensed)

7 Newsletter The China-Pakistan Study Centre Volume 2, Number 5 May 2018

Bilateral Dialogue With Center For Strategic Research In Ankara, Turkey

Center for Strategic Research together with Institute of Strategic Studies Islamabad (ISSI) organized a round table meeting in Ankara, on 16th April 2018. This was the latest of the subsequent dialogues initiated with the Memorandum signed in 2003 in Ankara. The former ISSI-SAM dialogue had been held last year in İslamabad.

During the productive meeting, Turkey-Pakistan bilateral relations, latest regional developments particularly in the Middle East

and Asia were discussed by ISSI delegates, academics and MFA officials. ISSI Chairman Khalid Mahmood addressed to a group of academics and students at a seminar entitled “70 years of Pakistan-Turkey Relations” at Social Sciences University of Ankara. The delegation also visited Foundation for Political, Economic and Social Research (SETA) in Istanbul on April 18, 2018. This meeting revolved around CPEC and its impact on the progress of Pakistan.

Report by Uroosa Khan (CPSC)

China Developing ReusableSpace Rocket

China aims to recover the first stage of the Long March-8 carrier rocket, which is still under development and is expected to make its maiden flight around 2021, according to a Chinese rocket expert. It was part of China’s endeavors to develop reusable space vehicles, Long Lehao, chief designer of carrier rockets at the China Academy of Launch Vehicle Technology, told a space conference in Harbin, capital of northeast China’s Heilongjiang Province.

The Long March-8 rocket will have two stages and two boosters: the first stage and boosters are expected to be retrieved through vertical landing, said Long, who is also an academician of the Chinese Academy of Engineering. If successful, the new rocket would provide commercial launch services to customers around the globe, Long said.

Bao Weimin, director of the Science and Technology Commission of the China Aerospace Science and Technology Corporation and an academician of the Chinese Academy of Sciences, said China’s reusable carrier vehicle will use technologies different from those of U.S. commercial space firm SpaceX.

“As the current Long March 2, 3, 4 series rockets are fueled by toxic propellants, they cannot be recycled. But we are developing technologies to precisely control the fall of the rocket remains to ensure safety,” Long said. That effort is important as residents in possible landing areas have to be evacuated at every launch. As China’s aerospace activities become more frequent, with 36 launches planned this year, precise control of falling rocket remains could save a lot of trouble. Long also introduced the development roadmap for China’s space transportation system.

Around 2025, reusable suborbital carriers will be successfully developed and suborbital space travel will be realized. Around 2030, rockets with two reusable stages will be developed. Around 2035, carrier rockets will be completely reusable which could realize the dream of space travel for ordinary people. A future generation of carrier rockets will be put into use around 2040 and hybrid-power reu0sable carriers will be developed. Space vehicles will be more diverse, intelligent, reliable, low-cost, efficient and convenient.

China Technology News, April 30, 2018 (Condensed)

China’s Tech Billionaires Donate To Universities Amid Calls To Prioritise Innovation

The CEOs at Baidu and JD.com and their spouses pledged millions to China’s two top universities amid calls by President Xi Jinping for the country’s businesses to pick up the pace in mastering core technologies to drive development. Baidu CEO Robin Li Yanhong, his wife Melissa Ma and the company jointly donated 660 million yuan (US$104 million) to Peking University to commemorate the institution’s 120th ann The donation will set up a Peking University Baidu Fund and support cutting-edge research into areas that complement the company’s artificial intelligence technologies, such as information management, medicine, economics, communications and sociology.

JD CEO Richard Liu Qiangdong and his wife Zhang Zetian gave 200 million yuan to Tsinghua University for research into AI, logistics and other uses, according to a statement. The pledges by two of the country’s leading technology companies took place as President Xi Jinping reiterated his call for companies to speed up the gaining of key technologies amid

rising trade tensions with the US.

“Businesses must unceasingly make breakthroughs in core technology, mastering more key technologies with self-owned intellectual property rights and building up the ability to dominate industrial development. The country needs you to pick up the pace,” Xi said during an inspection tour of chip makers in Wuhan, Hubei province in second last week of April.

The comments come after ZTE Corp, China’s biggest publicly traded telecommunications equipment maker, was banned for seven years by the US government from buying components from American companies, a move that the Shenzhen-based company said has sent it into a “state of shock”. The move shone a light on China’s dependence on imported technologies and called into question the viability of its stated intention to become a technology power. Huawei has been building its substitute to Android for a rainy day.

Baidu’s Liu graduated from Peking University’s Department of Information Management in 1991. Liu’s wife Zhang Zetian was a Tsinghua alumnus. Liu himself graduated from Renmin University, to which he donated 300 million yuan last June in celebration of its 80th anniversary.

South China Morning Post, April 30, 2018 (Condensed)

8 Newsletter The China-Pakistan Study Centre

Designed by Sajid Zaidi

Volume 2, Number 5 May 2018

Seminar On “The International Decade For Action: Water For Sustainable Development 2018-2028”

“Achievement of sustainable development would only be possible by building effective cooperation through mutual trust and involvement of all stake holders. This will translate into a genuine partnership.” This was indicated by Mr. Nizomuddin Zohidi, First Deputy Minister of Foreign Affairs, Republic of Tajikistan during his address at a Seminar on “The International Decade for Action: Water for Sustainable Development 2018-2028” organized by the Institute of Strategic Studies Islamabad (ISSI) on April 26, 2018.

Other speakers at the seminar included: H.E. Sherali Jononov, Ambassador, Republic of Tajikistan; Mr. Ghafurzoda Taghaimurod, Head of Department of Water Resource, Ministry of Energy & Water Resources, Republic of Tajikistan; Dr. Muhammad Ashraf, Chairman of Pakistan Council of Research in Water Resources (PCRWR) and Mr. Babur Suhail, Vice President of the Center for Global & Strategic Studies (CGSS).

H.E. Mr. Jononov underlined that Tajikistan is one of the leaders in advancing water resources at an international level and wishes at using its water resources to not only meet national needs, but also to create regional balance. Water, he said, is a key element not only for social growth, but also for safeguarding peace, constancy and development.

Mr. Taghaimurod spoke on how water is a strategic resource of Tajikistan and is the basis of social and economic development and even national security, which is why the country is trying to find a good position on the international scene in addressing one of the key issues of global warming.Dr. Ashraf on the topic of water scarcity, said that Pakistan is only storing 10 per cent of its waters and with the increase in population and as a result of agricultural activities there is huge pressure on the ground water. The way forward includes increasing storage through construction of dams, introducing a ground water regulatory framework and controlling population.

Mr. Suhail said that if water is the present then its conservation is the future. Hence, the government should announce ancillary policies to its existing ones. With reference to the political and legal components, he said that existing legislature needs to be implemented and all stake holders needs to be engaged for a more transparent decision making process. Furthermore, being a lower riparian nation, Pakistan needs to focus on out-of-box water storage policies to be implemented at all levels.

Earlier, in his welcome remarks, Chairman ISSI, Ambassador Khalid Mahmood lauded the President of the Republic of Tajikistan, H.E Mr. Emomali Rahmon who has been the moving spirit behind various international initiatives on water security. He said that being a lower riparian country to India, Pakistan is dependent upon the upstream ecosystems to provide the water supply for irrigation, drinking and generating hydropower so it is important that the Indus Water Treaty is followed in letter and spirit and its Dispute

Resolution mechanism does not become dysfunctional. In his concluding remarks he said that existing water threat is a dire threat to all human activity which is why it is imperative that this issue be addressed as soon as possible. The best way is to raise awareness and find ways and means to find better ways to conserve water as soon as possible. Hence, we should all make every effort to mitigate the impact of water scarcity, and in fact, to reverse this trend with participation at all levels.Report by Uroosa Khan (CPSC)

In-house Meeting With An 8-member Chinese Delegation On Cultural Issues

The Institute of Strategic Studies Islamabad (ISSI) hosted an In-House Meeting on April 16, 2018, with an 8-member Chinese delegation dealing with cultural issues. The delegation included: Prof. Duan Qing, School of Foreign Languages, Peking University; Prof. Li Xiao, School of Chinese Classics, Renmin University of China; Mr. Zhou Zhibong, Deputy Director of Specialized Committee on Bronze Ware, China Cultural Relics Academy and various other distinguished Research Fellows and professors from China. Besides the researchers at ISSI, the event was also attended by Syed Jamal Shah, Director General, Pakistan National Council of Arts (PNCA) Ambassador (R) Ali Sarwar Naqvi, Executive Director, Center for International Strategic Studies Islamabad (CISS). Dr. Azhar Ahmad, Head of Social Sciences and Humanities, Bahria University and many other respected intellectuals. Mr. Ali Haider, Research Associate at ISSI, briefed the participants on the historical and modern dimensions of the cultural engagements between the two countries. The presentation covered the period when the Old Silk Road influenced the exchange of ideas and goods between the people,

and also the modern era where both countries have actively promoted cultural exchanges through various platforms. Sharing his views, Syed Jamal Shah emphasized that art and culture has the ability to engage individuals and make them more conscious of the surroundings. He added that we are fortunate to have a rich cultural heritage. He also appraised the delegation about the Cultural Caravan that was initiated by PNCA in 2017. Amb. (R) Ali Sarwar Naqvi stressed upon the requirement of greater projection of Chinese culture in Pakistan. Mr. Anwar ul Haq briefed the guests about the role and activities of Lok Virsa. Dr. Azhar Ahmad expressed his disappointed at the fact that Pakistan has not done enough to hold on to its culture. He believed that Pakistan should learn from China in this regard. Prof. Duan Qing agreed with the fact that there is still much work to be done. She furthered that both sides should work collectively in producing joint material such as documentaries to showcase Pakistan and Chinese culture. Other members of the delegation said that they were eager to work with their Pakistani counterparts. Concluding the meeting, Mr. Najam Rafique, Director Research at ISSI stated that culture is the glue and oxygen of civilizations. He commended the ideas proposed by the Chinese delegation for enhancing cultural ties between the two countries, and remarked that now is the time that we start taking practical steps in this direction. Report by Ali Haider, CPSC