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China promotes peace and work for economic stability in Afghanistan

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China has been the main supporter of Afghanistan since decades. Even during the invasion of Afghanistan, China had played a key role in promoting peace and initiated several infrastructure projects to uplift the fragile economic situation of the country. Moreover, a new chapter has been opened in relation between Afghanistan and China as well as between Afghanistan and Pakistan after the regime changed. The ties between the three neighbors seemed unprecedentedly boosted after the victory of the Taliban in August 2021 when the foreign troops accepted defeat and made a hasty withdrawal after 20 years of presence.

China as an important neighbor to Afghanistan and a powerful country in the world has often extended helping hands to Afghanistan and exhibited a strong intention to help improve the country’s security and economy.  To reach that goal, China didn’t freeze its diplomatic mission in Kabul after the collapse of the previous government and at the same time did not recognize the Taliban government officially. The point is that China understands the gravity of the situation and it wants to help the Afghan people at the most difficult time caused by the chaotic and irresponsible drawdown of foreign forces.

Beijing has never stopped supporting Afghanistan with a population of an estimated 35 million, who are going through extreme poverty due to the flop policy of the western countries, especially the US on top of that.

Someone needs to ask the US that what was the outcome of 20 years of presence in Afghanistan and where the billions of dollars had been spent? There is no need to touch on the political arena but in economic aspects, the US must come up to the fore with a clear explanation.  Surely, the US has no reasonable clarification and would never be able to put in plain words what has exactly happened in Afghanistan and why the economy is so bad.

It is worth mentioning that Afghanistan is not a poor country as it has three billion dollars underground resources only and other billions of precious capitals.  Afghanistan is also called the “Heart of Asia” and geo-politically it is located in the most strategic quarter.

Nevertheless, Afghanistan still has a strong country on its side and that is China. Afghanistan needs China and Beijing as a neighbor has been making all out efforts to make Afghanistan stand on its own feet.

China will always stand firmly with Afghan people

China Foreign Minister Qin Gang met with Afghan Foreign Minister Amir Khan Muttaqi in Islamabad, Pakistan, where he said that “China and Afghanistan are traditionally friendly neighbors connected by mountains and rivers.”

He said that both the countries have been supporting, understanding and trusting each other. “No matter how international and regional situations evolve, China will always stand firmly with the Afghan people and support Afghanistan in pursuing a development path that suits its national conditions,” he added.

Qin furthered that “China will, as always, respect Afghanistan’s sovereignty, independence and territorial integrity, deepen China-Afghanistan cooperation in various fields, and help Afghanistan realize self-reliance, peace, stability, development and prosperity at an early date.”

Belt and Road Initiative to Afghanistan

The Afghan Foreign Minister Muttaqi during a meeting with his Chinese counterpart said that Afghanistan attaches great importance to developing relations with China and will never allow any force to use the Afghan territory for anti-China activities.

The Taliban also expressed eagerness to be part of the Belt and Road Initiative (BRI) to Afghanistan, potentially drawing in billions of dollars to fund infrastructure projects in the country.

“Afghanistan hopes to strengthen cooperation with China in such fields as economy, trade, cultural and people-to-people exchanges and infrastructure development within the framework of the Belt and Road Initiative to safeguard the common interests of the two sides and benefit the two peoples,” Muttaqi told Qin Gang.

He added that Afghanistan hopes to live in harmony with China, Pakistan and other neighboring countries and is ready to actively promote Afghanistan-China-Pakistan trilateral cooperation to promote regional stability and prosperity.

During the meeting, Qin Gang emphasized that Afghanistan should earnestly fulfill its commitment to fighting terrorism, resolutely crack down on terrorist forces, including the East Turkistan Islamic Movement, and ensure the safety and security of Chinese personnel and institutions in Afghanistan.

“China will continue to advance the China-Afghanistan-Pakistan trilateral dialogue and cooperation based on the principles of equal consultation, practical cooperation and friendship, mutual benefit and win-win results,” he added.

China invests $2b since two years in Afghanistan

China has signed $2 billion contracts on several economic projects since the return of the Taliban to power in August 2021, and these investments are mainly in areas of extraction of mines, services at airports and industrial parks.

A spokesman for the Ministry of Industry and Commerce Abdul Salam Jawad said that there are several Chinese companies that are also active in Afghanistan where 21 of them are only based in Kabul, the capital city. Jawad said that a number of Chinese investors held a meeting with the deputy Minister of Industry and Mines and discussed important aspects on the investment sites.

There is also an expectation that China will include Afghanistan in China-Pakistan Economic Corridor (CPEC) and rename the project to China-Afghanistan-Pakistan Economic Corridor (CAPEC). There is no official confirmation on the news, but apparently China is working to include Afghanistan in all big projects as part of regional connectivity, improve cross-border trading, enhance the economic integration and achieve sustainable development. CPEC is a $60 billion project and China’s foreign minister vowed to work for reconstruction of Afghanistan including its inclusion in BRI which CPEC is part of that.

Three neighbors agree to boost security and economic cooperation

On Saturday, China, Afghanistan and Pakistan agreed to deepen ties and enhance cooperation in counter-terrorism and economic cooperation to boost regional stability.  The foreign ministers of the three sides made the pledge at the 5th China-Afghanistan-Pakistan Foreign Ministers’ Dialogue in Islamabad, where China’s Qin Gang, Afghan’s Muttaqi and Pakistan’s Bilawal Bhutto Zardari seemed happy on the outcome of the meeting as they vowed more cooperation in different fields.

The fifth China-Afghanistan-Pakistan Foreign Ministers’ Dialogue was held in Islamabad, Pakistan.

During the session, Qin said that China has been attaching great importance to the friendship with Afghanistan and Pakistan, and is willing to work with the two sides to implement the “Global Development Initiative, the Global Security Initiative and the Global Civilization Initiative,” share development opportunities, jointly meet security challenges, and promote regional stability and prosperity.

Qin also asked Afghanistan and Pakistan to further strengthen the security measure for Chinese people working in the two countries. He also stressed the importance of anti-terrorism cooperation, saying China firmly opposes any form of terrorism and is ready to step up cooperation in fighting terrorism under regional multilateral frameworks including the coordination and cooperation mechanism among Afghanistan’s neighboring countries.

China also expressed readiness to strengthen development cooperation, share development opportunities and increase cultural and people-to-people exchanges with Afghanistan and Pakistan.

Afghanistan and Pakistan agree on bilateral cooperation

On their parts, Muttaqi and Bilawal agreed that the trilateral cooperation mechanism is of great significance to regional peace and prosperity, and both sided pledged to actively promote the trilateral cooperation, formulate a roadmap for political, security and economic cooperation to safeguard the common interests of the three countries, achieve mutual benefit, and bring benefits to the people of the three countries and other countries in the region.

Afghanistan foreign ministry spokesman Hafiz Zia Ahmad said that Muttaqi and Bilawal held a bilateral meeting in Islamabad, and both sides discussed political-economic, commercial, transit relations and the necessary aspects to provide facilities between the two countries.

He also said that both sides held a detailed discussion on the situation of Afghan refugees in Pakistan, and facilitated easy round trips for traders across the borders.

Relations between Afghanistan and Pakistan have never been easy and both sides accused each other of cross border shelling and terroristic activities. Since the return of the Taliban in 2021, there have been several clashes between the border guards of Afghanistan and Pakistan.

China presses for inclusive government in Afghanistan

China on Saturday pressed for the establishment of the inclusive government in Afghanistan, and called on the Taliban officials to pursue a moderate police force and have friendly relations with all the neighbors.

Speaking to reporters in Islamabad, Qin Gang called on the Taliban leaders to take bold steps in the fight against terrorism and take seriously the security concerns of its neighboring countries.

But the Taliban says they were able to establish an inclusive government and also there is no major threat posed to the neighbors from the soil of Afghanistan.

Taliban deputy spokesman, Bilal Karimi said that no one will be allowed to pose a threat to other countries from Afghanistan. He also said that the infrastructure of the government under the Taliban leadership is inclusive.

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Afraid of the gun; Taliban supreme leader fears of a coup

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Hibatullah Akhundzada, the supreme leader of the Taliban, has ordered the security institutions that without his permission, “no one can distribute or use the military equipment registered by the ministries of defense and interior, the directorate of intelligence and other independent institutions.”

Experts and analysts have considered this move by Hibatullah as last resort to weaken the position of defense minister, Yaqoob Mujahid, interior minister, Sirajuddin Haqqani and the head of Taliban intelligence, Abdul Haq Wasiq in order to prevent a possible internal coup that was initiated by these three top officials.

In the first article of the order, it is mentioned that no person can distribute military equipment registered in the reserves of the ministries of defense, interior and intelligence, or issue an order to distribute it without the order of Hibatullah.

This decree titled “Regarding the distribution, protection and supervision of registered military equipment”, specifies that whenever an Emirate entity (Taliban-related entity) needs weapons, ammunition, night vision cameras, telecommunications and other military equipment” must receive the approval order from the leader of the Taliban.

Also, in the second article of this decree, it is stated that whenever one of the military departments of the Taliban needs military equipment, it must send its request to Hibatullah’s office in Kandahar.

In the third article of the decree, it is emphasized that if the military equipment was distributed or used without the permission of the Taliban leader before the issuance of this decree, they must be returned to the reserves.

Ministries of defense, interior and head of intelligence department are banned from disturbing military weapons.

According to this article, Hibatullah entrusted the ministries of defense and interior, as well as the general directorate of Taliban intelligence, with the responsibility to report the list of available military equipment to the directorate of registration, and protection of military equipment.

This order of the Taliban leader has been considered as another step in the direction of concentrating more power in the hands of Mullah Hibatullah in Kandahar. Many have seen it as a sign of Hibatullah’s increasing distrust of senior Taliban officials in Kabul. Previously, some senior Taliban officials, including Sirajuddin Haqqani, have openly disobeyed Hibatullah’s order to prohibit photography and filming and have not followed the order of their supreme leader.

(R) Defense Minister Mullah Yaqoob Mujahid and (L) Interior Minister Sirajuddin Haqqani.

Previously, several reports have been published about the sale of military equipment left over from the US troops and Afghan security forces during the republic government. Even the US-elected president Donald Trump, repeatedly mentioned this issue during his election campaigns. Not long ago, the government of Pakistan also announced that the Pakistan security forces have discovered and confiscated a car carrying US weapons smuggled from Afghanistan.

Pakistani media reported that this equipment included M4 assault rifles, night vision cameras and thousands of rounds of ammunition, which were transported in a truck carrying vegetables. Pakistani security officials have estimated the total value of weapons smuggled from Afghanistan in this truck to be 126,354 US dollars.

The cost of US’s remaining equipment in Afghanistan estimated over 7 billion US dollars

The Pentagon has already announced that after the withdrawal of US forces from Afghanistan, about 7 billion dollars of military equipment fell into the hands of the Taliban. This equipment reached the hands of the Taliban after the fall of Afghanistan on 15 August, 2021.

It has been reported that when the US forces left Afghanistan, there were 78 US-made aircrafts in the country, whose value reached 1 billion dollars. According to CNN, with the end of the US military presence, a total of more than 9,000 air-to-ground munitions worth more than six and a half million dollars have remained in Afghanistan.

The report also states that out of a total of 96,000 military vehicles, more than 40,000 units, including 12,000 Humvees (armored tanks), fell into the hands of the Taliban. Moreover, out of a total of more than 400,000 weapons that the US gave to the forces of the former Afghan government, about 300,000 remain in the country.

Almost all “communications equipment, including mobile base stations, portable and hand-held commercial and military radio systems, and associated transmitters and encryption devices, all remain in Afghanistan,” according to the report.

The report added that “almost all” of the equipment for night vision cameras, surveillance, biometric and positioning equipment,” a total of nearly 42 thousand pieces of specialized equipment, remained in Afghanistan.

Meanwhile, Five Mi 17 helicopters of the then Afghan army, which were transferred to Ukraine for repair before the collapse of the government, have also returned to Afghanistan and now are used by the Taliban.

It should be noted that the internal rivalries in the Taliban, especially among the different factions of this group, is one of the important reasons for Mullah Hibatullah’s distrust of some Taliban officials. Some officials, including interior minister Sirajuddin Haqqani and defense minister Mohammad Yaqub Mujahid, gained a lot of power, especially during the Taliban’s war against foreign forces, and Mullah Hibatullah may be worried that these officials are trying to expand their power, which is a clear threat to his position as the Taliban leader.

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China’s BYD prepares to launch latest SUV, the Sealion 07, in Europe despite EU tariffs

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BYD, the world’s largest electric vehicle (EV) maker, is set to launch its latest SUV, the Sealion 07, in Europe, undeterred by recent tariff increases on Chinese-made electric vehicles. This strategic move highlights BYD’s commitment to expanding overseas sales despite economic barriers.

Deliveries of the Sealion 07 are scheduled to begin in 2025, marking BYD’s seventh all-electric model in the European market, the company announced on Wednesday. Additionally, BYD plans to enter the South Korean market next year, adding to its existing presence in 95 countries worldwide.

This European expansion comes on the heels of the European Union’s decision last month to impose new tariffs—ranging from 17% to 35.3%—on Chinese electric vehicles following an anti-subsidy investigation. BYD’s EVs are subject to a 17% tariff, in addition to the standard 10% tariff applied to all pure electric cars imported from China. These tariffs, which took effect last month, will remain in place for five years. Meanwhile, U.S. tariffs on Chinese-made EVs increased from 25% to 100% as of September, citing similar concerns.

Despite the added costs, BYD’s vehicles continue to hold strong appeal in export markets. “BYD’s vehicles remain attractive even after the additional tariffs, so it’s not really a big problem for the company,” said Chen Jinzhu, CEO of Shanghai Mingliang Auto Service, a leading industry consultancy. “The Sealion 07 exemplifies how BYD’s cost advantage enables it to counteract such trade barriers in key export markets.”

Shenzhen-based BYD has yet to disclose the European pricing for the Sealion 07. On the mainland, the SUV—featuring a range of 450 kilometers—starts at 189,800 yuan (approximately US$26,272), with deliveries beginning in May.

According to a report last year from UBS analysts, BYD has a sustainable cost advantage of 25% over traditional European brands.

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Singles’ day promotions target overseas Chinese as China’s domestic demand slows

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After last year’s Singles’ Day shopping festival in China was dubbed the “quietest in history,” China’s e-commerce platforms focused on a new strategy this year.

For this year’s Singles’ Day event, major e-commerce companies such as Alibaba, JD.com, and Pinduoduo invested heavily in expanding overseas markets, targeting the estimated 100 million Chinese living abroad with offers like discounts and free or low-cost shipping.

The central question, however, is not whether these efforts will succeed in the short term, but rather if this shift can help platforms grow their user bases as online sales growth in China reaches a bottleneck.

“Domestic consumption is quite weak right now, and every company is certainly considering new ways to drive growth for Singles’ Day,” said an executive at a leading online retailer, who requested anonymity. “The overseas market is widely seen as a promising source for additional growth,” he added in an interview with Nikkei Asia.

Singles’ Day, a one-day sales event launched by Alibaba in 2009 as a celebration for singles, has since evolved into a month-long campaign with special offers and deep discounts, culminating on or around November 11.

This year, China aimed to revitalize its retail sector with the event. Total consumer goods sales rose by 3.3% year-on-year in the first three quarters of 2024, though high-end consumer spending remained stagnant. Cosmetics sales fell by 1%, while gold and silver jewelry sales declined by 3.1% year-on-year.

Last month, Alibaba’s Taobao launched a significant marketing campaign in Hong Kong and Taiwan, flooding subway stations with advertisements for “free shipping on orders over 99 yuan,” among other offers. According to the company, the campaign cost 2 billion New Taiwan dollars ($61.7 million) in Taiwan and 1 billion yuan ($138 million) in Hong Kong.

Following Alibaba’s move, JD.com announced it had invested 1.5 billion yuan to offer discounted product prices and cheaper shipping to Hong Kong shoppers. Bargain platform Pinduoduo took it a step further, offering free shipping via courier SF Express for Hong Kong shoppers, regardless of the item’s price. All products on these platforms are shipped from mainland China.

A spokesperson from Alibaba’s International Digital Commerce Group noted that since the overseas initiative launched in October, Taobao Hong Kong has achieved double-digit growth in both orders and gross merchandise value (GMV)—a metric that excludes canceled orders—on both a monthly and year-on-year basis.

The platforms are also targeting Chinese shoppers in Malaysia, Thailand, and Singapore.

This year, unlike in previous years, shoppers could combine online discounts with a subsidy program introduced by the Chinese government to boost domestic consumption, primarily for home appliances and household products. Analysts suggest these incentives will likely boost sales for JD.com, which is known for selling high-quality large appliances and offering after-sales services.

While JD.com has yet to release sales or GMV figures for home appliances during the shopping festival, it is expected to share its June-September results, along with Alibaba, later this week.

Last year, data provider Syntun estimated that total GMV on major e-commerce platforms grew by only 2.1% to 1.14 trillion yuan, falling short of the 2.9% growth forecast for 2022. Similarly, consultancy Bain predicted that Singles’ Day sales would reach 1.15 trillion yuan in 2023.

On Tuesday morning, Alibaba announced “strong GMV growth” and a “record number” of active shoppers for this year’s Singles’ Day event.

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