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Afghanistan seeks foreign investment for economy self-sufficiency

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From day one, the Taliban were pining high hopes on China, Russia, and Iran to invest in Afghanistan in different fields.  Taliban seized power in August 2021 and the leadership had repeatedly said they want to have good ties with the world, especially with the neighbors and regional countries. The Taliban is also willing to have more contribution from Pakistan but the country itself is marred with so many economic difficulties.

Afghanistan under the Taliban is indeed suffering from immense economic trouble. Poverty has reached its peak with almost zero-jot opportunities. Over half of the estimated 35 million populations are living below the poverty line.

The US also froze some $9 billion in Afghan assets as what Washington describes to save the money from the hand of Taliban. But, on a monthly basis, the Taliban administration has been receiving some $10 million on a weekly basis, making it $40 million in a month. However, some unconfirmed reports say that this money has not been transformed to the Taliban in the past three weeks. Meanwhile, the Taliban has been looking for alternative and other business models to help improve its fragile economy.

Oil extrication agreement

The Taliban has signed a contract with China’s CAPEIC (Xinjiang Central Asia Oil and Gas Company) to extract oil from northern Afghanistan’s Amu Darya basin. This agreement is an apparent attempt to bolster Afghanistan’s increasingly impoverished and isolated economy. The agreement with CAPEIC is the first major international energy extraction deal the Taliban has signed since taking control of the country in 2021.

The contract was signed in the capital Kabul in the presence of Taliban’s Deputy Prime Minister for Economic Affairs Mullah Abdul Ghani Baradar and the Chinese ambassador to Afghanistan, Wang Yu.

Speaking in the signing ceremony, Baradar said several projects were approved by the Economic Commission, and with their undertaking, fundamental steps will be taken assuming the prosperity of the country and public welfare.

Calling the oil extraction contract as a crucial step towards the country reaching self-sufficiency, he called on the Chinese company to work in accordance with international standards and to provide local people with public benefits.

Amu Darya basin is located in Sar-e-Pul province, and Baradar seemed happy that the project will provide jobs to the people to improve their economic situation.

Taliban’s Minister of Mines and Petroleum, Sheikh Shahabuddin Delawar said oil will be extracted from an area covering 4,500 square kilometers across parts of Sar-e-Pul, Jawzjan and Faryab provinces.

“At least 3,000 people would get work opportunities once the extraction work starts,” according to a statement by the Taliban. It said that 200 tons of oil would be extracted initially in a day and the quantity would increase to 1,000 tons a day gradually.

$150 million investment for initial period

Indeed, such an agreement will boost the economic situation and a good step toward further improving relations between Kabul and Beijing. “This contract is important for the economic growth and self-sufficiency of Afghanistan,” China’s Ambassador to Afghanistan, Wang Yu said as he sees the agreement as a good illustration of alliance and interaction between the two countries.

Taliban spokesman, Zabihullah Mujahid said that the Chinese company will invest $150 million a year in Afghanistan under the contract, and its investment would increase to $540 million in three years. The contract period is for the 25-year.

As per the estimates, the Amu Darya basin holds over 80 million barrels of crude oil and in 2012, China’s state-owned company National Petroleum Corp (CNPC) signed a contract with Afghanistan’s previous government to extract oil from the basin.

The fresh contract came at a time when Afghanistan is in desperate need to boost its economy as international funding has remained largely frozen since the Taliban returned to power.

China opens for investment despite security threat

Already facing a lack of formal recognition and sanctions hampering the country’s banking sector, investors are faced with growing security concerns, especially after the Islamic State (IS) aka Daesh terrorist group attacked on foreign targets in Kabul.

This month, three unidentified armed men opened fire inside the multi-storey Kabul Longan Hotel, a residency popular with Chinese nationals, in central Kabul, wounding five Chinese. Taliban forces gunned down all the three attackers.

“We are happy that China did not stop investment after the hotel attack,” said an official at the Interior Ministry. Speaking to Harici, the official said that there was fear that the attack could prompt some re-thinking among the Chinese investors. “We are happy to see that China signed the agreement and we are ready to work day and night to maintain security for such investments,” he said, wishing anonymity.

Taliban’s Acting Commerce Minister, Haji Nooruddin Azizi had recently said that they will support any project which can help Afghanistan to reach self-sufficiency.

“We will start a national self-sufficiency program, we will encourage all government administrations to use domestic products, and we will also try to encourage people through mosques to support our domestic products,” Azizi said in an interview with Reuters. “

Referring to the hotel attack, Azizi said that they take every step to protect the businessmen from any harm. “The attack hasn’t had any bad impact, but if it happened constantly, yes it might have a bad impact,” he said, referring to the investment environment.

Azizi furthered that countries including Iran, Russia and China were interested in trade and investment in Afghanistan, adding that some of the projects under discussion were Chinese industrial parks and thermal power plants, with involvement from Russia and Iran.

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Chinese, Russian troops hold joint exercise targeting cross-border terrorism

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China and Russia have held a joint military exercise focusing on cross-border terrorism, amid growing concern over terrorist attacks in Moscow.

The drill was held on 25 June in a river area near the Heilongjiang Bridge linking Russia’s Blagoveshchensk and China’s Heihe, the Chinese military’s official media outlet PLA Daily reported on Tuesday.

It was the first joint counter-terrorism drill between the neighbouring countries since Russia’s intervention in Ukraine.

It came just days after terrorist attacks in Russia’s southern region of Dagestan on 23 June, in which at least 22 people were killed in shootings at two synagogues, two Orthodox churches and a police station.

In March, more than 140 people were killed in an attack on a concert hall in Moscow, the deadliest terrorist attack in Russia for almost two decades. The Khorosan branch of ISIS claimed responsibility for the attack.

According to the PLA Daily, last week’s joint exercise simulated ‘terrorists trying to cross the border’ to launch an attack.

Chinese and Russian troops used aerial reconnaissance, maritime interception and land ambush to intercept and capture the terrorists during the exercise.

The exercise, which focused on improving intelligence sharing and operational coordination, showed the “firm determination” of both militaries to take effective measures to “combat all forms of terrorism, separatism and extremism” while jointly securing border areas, the report said.

The report also said that the two sides discussed further deepening border cooperation.

This is not the first time the two countries have held joint counter-terrorism exercises. In 2019, China’s People’s Armed Police took part in an exercise with the Russian National Guard in Russia.

According to Tass, Russian Foreign Minister Sergei Lavrov reaffirmed the two countries’ ongoing cooperation in the fight against terrorism, including on multilateral platforms, during a meeting with his Chinese counterpart Wang Yi in April.

Aiming to strengthen law enforcement cooperation

Last week’s joint exercise follows an agreement between Chinese and Russian leaders during Russian President Vladimir Putin’s visit to Beijing in May to strengthen cooperation in law enforcement and defence, including by expanding joint training and exercises.

The Chinese and Russian coast guards also signed a memorandum of understanding on maritime law enforcement cooperation in April last year.

In March, China and Russia organised a naval exercise with Iran focusing on anti-piracy efforts. China and Russia also held joint naval and air exercises in the Sea of Japan, or East Sea, in July last year.

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Controversial military operations and ethnic dynamics in Pakistan’s fight against terrorism

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In a recent high-level meeting, the federal government of Pakistan announced its intention to launch a new military operation against terrorist organizations. This decision is aimed at eradicating militancy under the banner of Azm-i-Istehkam. Surprisingly, the military leadership has remained silent on this proposed operation, leaving the advocacy to political figures, notably Defense Minister Khawaja Asif of the Pakistan Muslim League (PML-N).

The Pakistan People’s Party (PPP), a significant coalition partner in the federal government, has maintained a conspicuous silence on the matter. Meanwhile, despite the approval from Khyber Pakhtunkhwa’s Chief Minister Ali Amin Gandapur, factions within Pakistan Tehreek-e-Insaf (PTI) and the Sunni Ittehad Council have openly opposed the operation. This divergence in political opinion highlights the complex dynamics at play in Pakistan’s approach to counter-terrorism.

The opposition from various regional and ethnic parties, including the Pashtun Protection Movement (PTM), Pakhtunkhwa Milli Awami Party (PkMAP), and the Awami National Party (ANP), stems from deep-seated concerns about the operation’s focus and its implications. Historically, PTI and PkMAP have not been staunchly anti-Taliban. PTI’s leader, Imran Khan, has consistently opposed military actions against Taliban militants, advocating instead for dialogue. Similarly, PkMAP leader Mehmood Khan Achakzai, while ostensibly opposing terrorism, is perceived to have friendly relations with the Taliban, as evidenced by the relative safety of his party members from Taliban attacks.

Significant religious-political entities have complex stances on militancy in Pakistan

The relative safety of certain political groups, like PTM and the National Democratic Movement, from Taliban violence raises questions. Critics argue that this perceived immunity could suggest covert alliances or understandings, casting doubt on the motivations behind their opposition to the military operation.

Jamiat Ulama-e-Islam (JUI-F) and Jamaat-e-Islami (JI), both significant religious-political entities, have complex stances on militancy. JUI-F’s position has been ambiguous since the Soviet invasion of Afghanistan in 1979. In contrast, JI, having reaped substantial benefits from the Afghan war, now finds itself sidelined and is striving to reassert its relevance by attempting to align with nationalist sentiments.

The media and sections of the government, particularly those influenced by Punjabi and Urdu-speaking elites, have often portrayed the Taliban as predominantly Pashtun. This narrative has led to the proposed military operation being focused on Pashtun-majority areas, such as Khyber Pakhtunkhwa and Balochistan. Defense Minister Khawaja Asif’s statement that the operation will target these regions reinforces this perception.

Pashtun-dominated regions reject the notion that terrorism is a Pashtun phenomenon

However, leaders from Pashtun-dominated regions, like Khan Muhammad Wazir of the ANP, reject the notion that terrorism is a Pashtun phenomenon. Wazir points to the involvement of non-Pashtun militants in numerous terror attacks across Pakistan. He highlights the role of Punjabi militants in groups like the Punjabi Taliban, Lashkar-e-Jhangvi, and Jamaat-ul-Ahrar, who have orchestrated some of the deadliest attacks in recent years. Wazir’s argument underscores the ethnic diversity of militant groups in Pakistan, challenging the stereotype of the Pashtun terrorist.

Wazir’s emotional plea for an operation starting in Punjab, rather than Pashtun areas, aims to shift the focus to the diverse origins of militancy. He names several key figures from Punjab involved in terrorist activities, such as Tariq Lahori of Daesh and Maulana Qasmi of Jamaat-ul-Ahrar. By highlighting these figures, Wazir seeks to demonstrate that terrorism in Pakistan is not confined to any single ethnic group.

Doubt on the narration of the proposed military operation “Azm-i-Istekham”

The insistence on a military operation in Pashtun regions, driven by a media narrative dominated by Punjabi and Urdu-speaking elites, risks alienating the Pashtun community. Wazir’s call for international intervention by entities like China, the United States, Russia, the United Nations, and the Organization of Islamic Cooperation (OIC) underscores the severity of this perceived ethnic targeting. If the government and media continue to frame terrorism as a predominantly Pashtun issue, it may lead to increased ethnic tensions and further marginalize the Pashtun population.

The proposed military operation “Azm-i-Istehkam” and the political dynamics surrounding it reveal deep-seated ethnic and regional tensions within Pakistan. While the operation aims to eradicate terrorism, its focus on Pashtun areas risks reinforcing harmful stereotypes and overlooking the broader ethnic diversity of militant groups. A more equitable approach, recognizing the involvement of non-Pashtun militants and addressing the root causes of militancy across all regions, is crucial for fostering national unity and effectively combating terrorism. Only through such an inclusive strategy can Pakistan hope to achieve lasting peace and stability.

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Huawei Harmony aims to end China’s reliance on Windows and Android

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While Chinese tech giant Huawei’s recent smartphone launches have been closely watched for signs of progress in China’s chip supply chain, the company has also developed expertise in sectors vital to Beijing’s vision of technological self-sufficiency, from operating systems to car software.

Chinese President Xi Jinping told the CPC Politburo last year that China must fight hard to localise operating systems and other technologies “as soon as possible” as the US restricts exports of advanced chips and other components.

OpenHarmony, developed by Huawei, is widely promoted in China as the “national operating system”.

“This strategic move is likely to erode the market share of Western operating systems such as Android and Windows in China as local products gain traction,” Sunny Cheung, an associate fellow at the Jamestown Foundation, a US defence policy group, told Reuters.

In the first quarter of 2024, Huawei’s own version of the HarmonyOS operating system overtook Apple’s iOS to become the second best-selling mobile operating system in China after Android, according to research firm Counterpoint. It has not yet been released on smartphones outside China.

“Harmony has created a strong core operating system for the future of China’s devices,” Richard Yu, president of Huawei’s consumer business group, said at the opening of a developer conference last week.

Self-sufficiency

Huawei first introduced Harmony in August 2019, three months after Washington imposed trade restrictions over alleged security concerns. Huawei denies that its equipment poses a risk.

Since then, China has stepped up its self-sufficiency efforts, pulling out of the main code-sharing centre Github and supporting a local version, Gitee.

China banned the use of Windows on government computers in 2014 and now uses mostly Linux-based operating systems.

Microsoft derives only 1.5 per cent of its revenue from China, its chief executive said this month.

Originally built on an open-source Android system, Huawei this year released the first “pure” version of HarmonyOS, which no longer supports Android-based apps, further separating China’s app ecosystem from the rest of the world.

Huawei said in its 2023 annual report that OpenHarmony was the fastest-growing open source operating system for smart devices last year, with more than 70 organisations contributing to it and more than 460 hardware and software products produced in the financial, education, aerospace and industrial sectors.

Visited by Reuters, Charlie Cheng, deputy director of the Harmony Ecosystem Innovation Centre, said the aim of making it open-source was to replicate Android’s success in eliminating licensing costs for users and provide companies with a customisable springboard for their own products.

“Harmony will definitely become a mainstream operating system and give the world a new choice of operating systems besides iOS and Android,” he said.

Google, Apple and Microsoft did not respond to requests for comment.

China’s previous efforts to build large open source projects have struggled to gain traction among developers, but Huawei’s growing smartphone market share and extra work to develop a broader ecosystem gives Harmony an edge, analysts said.

Huawei’s Yu said this month that more than 900 million devices, including smartphones, watches and car systems, were running HarmonyOS and that 2.4 million developers were coding in the ecosystem.

“OpenHarmony will need more time and iterations for these developers to feel more confident about working with OpenHarmony,” Emma Xu, an analyst at research firm Canalys, told Reuters, adding: “But the reputation, behaviour and trust that HarmonyOS has achieved will certainly have a positive impact.”

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