China Politics Weekly No. 80- January 25, 2016

Xi clearly very eager to show China’s goodwill towards the Iranians. Was the second head of state to visit post-sanctions (after Pakistani Prime Minister Nawaz Sharif, who was there on Tuesday).

China and Iran upgraded their ties to a comprehensive strategic partnership and agreed to increase bilateral trade more than 10-fold to USD600 billion in the next decade. They have agreed to set up an annual meeting mechanism between their foreign ministers to deepen mutual strategic trust. China supported Iran’s application for full membership of the SCO. The two countries also signed cooperation deals in various fields such as energy, finance, investment, media and climate change.

Officials signed 21 deals that could ramp up Chinese investments in Egypt, spanning development and infrastructure. The two countries are planning 15 projects in electricity, infrastructure and transport.

Full text of his speech (in Chinese).

Latest instance of “new style international relations” as Xi presents China as offering alternative to US (and Russia): “Instead of looking for proxies, China promotes peace talks in the Middle East; instead of seeking any sphere of influence, China calls on all nations in the region to take part in the Belt and Road Initiative; and instead of attempting to fill any ‘vacuum,’ China aspires to build a network of mutually beneficial partnerships”.

Checkbook diplomacy also in full effect: China will set up funds with the UAE and Qatar worth $20 billion to invest in conventional energy, extend contracts to buy oil from the region and dedicate $300 million to helping train police.

The article was titled “Work Together for a Bright Future of China-Iran Relations”. Full text of the article (in English).

China and Egypt signed a memorandum of understanding on boosting cooperation in the Belt and Road Initiative. They also agreed to promote people-to-people exchanges, expand bilateral cooperation in trade, finance, space technology, development and security. The two sides also signed other cooperation agreements covering electricity, space, infrastructure, trade, energy, finance, media and climate change. Xi invited al-Sisi to attend the G20 summit in Hangzhou in September.

The two countries upgraded relations to a comprehensive strategic partnership in 2014.

Xi encouraged Chinese enterprises to participate in large-scale projects in Egypt and proposed that the two sides make efforts to link their development strategies, step up coordination within the Belt and Road Initiative and strengthen coordination in international affairs.

The Yasref oil refinery is a joint venture between Aramco and Sinopec.

First state visit by a Chinese president to Saudi Arabia in seven years.

The two leaders lifted bilateral ties to a comprehensive strategic partnership. At the talks, they decided to establish a high-level committee to guide and coordinate bilateral cooperation. They also signed MOUs on industrial capacity cooperation and to build a high-energy nuclear reactor. They also signed cooperation deals across many sectors including energy, communications, and science and technology. The two countries signed a joint statement stressing the need for continuation of aid and relief to Syrian refugees.

Xi called for efforts to broaden cooperation, promote dialogue between Chinese and Islamic civilizations and establish a China-GCC free trade area.

Said that “new normal” is an inevitability. Sounded a bit like he was trying to excuse the leadership from any blame for slower growth, while also trying to lay the groundwork for slower growth ahead.

The meeting discussed a draft of the annual Government Work Report and a draft of the 13^th FYP.

The meeting discussed key work for this year, including the need to cultivate new growth engines, reform traditional industries and implement supply-side reforms.

They discussed further promoting ties and increasing high-level exchanges.

Xi addressed the symposium.

The meeting discussed establishing regulations for the express delivery industry, calling for better regulation of courier services, standardizing the sector and protecting customers’ rights.

China Politics Weekly aims to keep business leaders, investors, diplomats, scholars and other China hands up to date on important trends in China. It is produced by Trey McArver, a London-based consultant providing advice and intelligence to firms and investors engaged in China and the region. You can find out more about Trey and CPW in this interview.

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