Sunday, September 16, 2018

New 'World-System' Being Put In Place - Russia And China Lead

Escobar: Greater Eurasia Is Coming Together In The Russian Far East

The Eastern Economic Forum in Vladivostok has become a crucial part of strategic integration between China, Russia and other countries in northeast Asia, a graduation assimilation set to transform the current world system...

Last year, on the sidelines of the forum, Moscow and Seoul delivered a bombshell: a trilateral trade platform, crucially integrating Pyongyang, revolving around a connectivity corridor between the whole Korean peninsula and the Russian Far East.

Then there was integration between Russia and ASEAN – beyond current infrastructure, agricultural, and shipbuilding projects to energy, agro-industry sector and forestry, as outlined by Ivan Polyakov, chairman of the Russia-ASEAN Business Council.
Essentially this is all about the simultaneous build-up of a growing East-West and also North-South axis. Russia, China, Japan, the Koreas and Vietnam, slowly but surely, are on their way to solid geoeconomic integration.
Arguably the most fascinating discussion in Vladivostok was Crossroads on the Silk Road, featuring, among others, Sergey Gorkov, Russian deputy minister of economic development; Wang Yilin, chairman of China’s oil giant CNPC, and Zhou Xiaochun, vice-chairman of the board of directors of the essential Boao Forum.
Moscow’s drive is to link the New Silk Roads or Belt and Road Initiative (BRI) with the Eurasian Economic Union (EAEU). Yet the ultimate geoeconomic target is even more ambitious; a “Greater Eurasian partnership”, where BRI converges with the EAEU, the Shanghai Cooperation Organization (SCO) and ASEAN. At its core lies the Russia-China strategic partnership.
The roadmap ahead, of course, involves striking the right chords in a complex balance of political interests and management practices amid multiple East-West projects. Cultural symbiosis has to be part of the picture. The Russia-China partnership is increasingly inclined to reason in go (weiqi, the game) terms, a shared vision based on universal strategic principles.

It all comes back to the basics and the evolving Russia-China strategic partnership. Xi and Putin are implicated to the core. Xi defines the partnership as the best mechanism to “jointly neutralize the external risks and challenges”. For Putin, “our relations are crucial, not only for our countries, but for the world as well.” It’s the first time ever that a Chinese leader has joined the Vladivostok discussions.
China is progressively interconnecting with the Russian Far East. International transport corridors – Primorye 1 and Primorye 2 – will boost cargo transit between Vladivostok and northeast China. Gazprom is about to complete the Russian stretch of the massive Power of Siberia gas pipeline to China, in agreement with CNPC. Over 2,000 kilometers of pipes have been welded and laid from Yakutia to the Russian-Chinese border. Power of Siberia starts operating in December 2019.

In Vladivostok, Putin and Xi once again agreed to keep increasing bilateral trade on yuan and rubles, bypassing the US dollar – building upon a mutual decision in June to increase the number of yuan-ruble contracts. In parallel, Economic Development Minister Maksim Oreshkin advised Russians to sell US dollars and buy rubles.

Putin and Xi once again reaffirmed they will continue to work in tandem on their inter-Korean roadmap based on “dual freeze” – North Korea suspends nuclear tests and ballistic missile launches while the US suspends military drills with Seoul.

Without understanding the Big Picture enveloping debates such as the annual gathering in Vladivostok, it’s impossible to understand how the progressive integration of BRI, EAEU, SCO, ASEAN, BRICS and BRICS Plus is bound to irreversibly change the current world-system.

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