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‘Non-Western lingo was used to show that relations with China are considered independent of the West’

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The visit of Chinese Foreign Minister Wang Yi to Turkey, who met with Foreign Minister Hakan Fidan and then President Erdoğan in Ankara yesterday, can be seen as an opportunity to put relations back on track after they were strained by the domestic political agenda during the election period. In particular, Wang’s emphasis on the need to encourage more Chinese companies to invest and do business in Turkey seems to have pleased Ankara, which is seeking foreign investment in the midst of an economic crunch.

Indeed, the center of gravity of the meeting was the Central Corridor from Beijing to London, with Turkey at its center. While President Erdoğan expressed his desire to accelerate cooperation in the context of harmonizing the Belt and Road Initiative and the Central Corridor, Wang Yi, who is also a Politburo Member of the Central Committee of the Communist Party of China Central Committee and Director of the Central Commission for Foreign Affairs, stated that “they are ready to enhance mutual strategic trust and deepen cooperation with Turkey”.

The Chinese Foreign Minister emphasized that they support Turkey to play an important role in the regional and international arena and that they oppose any foreign interference in Turkey’s internal affairs.

Chinese media also highlighted President Erdoğan’s telling Wang that they “do not support NATO’s increasing activities in the Asia-Pacific” and emphasizing their commitment to the “one-China” principle.

The Uighur issue, seen as one of the most critical problems in the relations between the two countries, was glossed over with a sentence such as “The situation of Uighur Turks was also discussed on the occasion of the visit”, once again showing that the emphasis and statements made on the ‘Uighur issue’ during the election period were handled in the context of domestic politics.

‘Economy and trade dynamics are catalysts in Turkey-China relations’

Commenting on the visit to Harici, Istanbul Gedik University ASEAN Center Director Dr. Sibel Karabel pointed out the importance of timing conjuncturally and said the following:

“First of all, it is necessary to briefly evaluate the state of Turkey-China relations in the current conjuncture and the extent of economic and trade relations. The strategic partnership of the two countries should also be emphasized in this context. In 1971, diplomatic relations were established and as President Erdoğan and Foreign Minister Hakan Fidan stated in the meeting, Turkey has been adhering to the ‘one China’ policy since then. In 2010, a strategic partnership was established. In 2015, Turkey officially joined the Belt and Road Initiative with a memorandum of understanding. And mutual commitments have been made to continuously increase the volume of bilateral trade and engagement between the two countries in the regional and global context.”

Stating that economic and commercial dynamics are “the catalyst” in Turkey-China relations, Karabel listed the following data: “When we evaluate the background of the Belt and Road Initiative, a target was set for the mutual trade volume between the two countries to reach 50 billion dollars as of 2015. We are talking about a trade volume of 33 billion dollars. On the other hand, Turkey’s foreign trade deficit against China, which unfortunately increases rapidly every year, especially between 2019 and 2022, is an important issue. In fact, in this context, the Belt and Road initiative is both an initiative that will highlight Turkey’s potential to become a center for transit trade and an initiative that has the caliber that can cure this problem. In other words, the investments made and planned to be made in the Belt and Road initiative have the potential to turn these trade dynamics between Turkey and China a little more in Turkey’s favor.”

Pointing out that Turkey is currently lagging behind this potential, Karabel summarizes the dynamics of the current commercial relationship as follows: “We know that the total investment of Chinese companies in the Belt and Road Initiative between 2013 and 2022 is approximately 1.4 trillion dollars. And in the same period, we see that the investments allocated to Turkey are 5.11 billion dollars. So our share in total investments is around 1.3 percent. And especially when we look at the trade balance between Turkey and China between 2019 and 2022, we see that imports have doubled. In other words, by nature, semi-finished goods are imported from China and processed and re-exported to the European Union countries. This is the dynamic of the trade relationship.”

Central Corridor emphasized

Sibel Karabel noted that the Belt and Road Initiative and the Middle Corridor were particularly emphasized in the talks, and that Foreign Minister Hakan Fidan drew attention to different energy fields, aviation fields, different sectors, and mentioned “improving the Belt and Road Initiative’s ability to respond to global threats and global challenges”.

Underlining the importance of Wang Yi’s emphasis on “developing strategic mutual trust and deepening cooperation mechanisms”, Karabel said, “Wang Yi even talked about a future-oriented and broad-targeted relationship dynamic in his meeting with President Erdoğan.”

‘A relationship within its own dynamics separate from the West’

On the other hand, drawing attention to President Erdoğan’s emphasis on the ‘One China policy’ and the fact that China’s development is not perceived as a threat by Turkey, Karabel stated that the expression “China’s development is perceived as a threat” is a Western jargon, and that it is a matter of how the West sees China: “The West perceive China’s development as a threat when evaluated from the realist paradigm in the context of the relative balance of power on the global level.”

In this context, Karabel said that Erdoğan’s statement that “they do not see China’s development as a threat” can also be considered as a “tacit reference” to NATO documents and commented as follows “In fact, there is a tacit emphasis here that Turkey’s relations with China are independent from the West and have their own dynamics. This is an important emphasis.”

The importance of the Central Corridor and Turkey increased after the Ukraine crisis

Karabel also touched upon the importance of the Ukraine issue in the bilateral relations and discussed this in the context of Turkey’s growing importance in the Belt and Road Initiative and the Middle Corridor:

“The Belt and Road Initiative is actually a very dynamic initiative and is being pursued under the direction of the National Planning Commission in China. It is not only a matter of combining the plans, projects and infrastructure lines that were declared in 2013 and have been rigidly and rigidly implemented since then, but also the articulation of previous mechanisms and projects into the Belt and Road Initiative. Therefore, the Central Corridor, where Turkey is located, is actually more prominent in the context of Ukraine. As a matter of fact, one of the biggest trademarks of the Central Corridor is that it is more advantageous than the Northern Corridor and the Southern Corridor. On the trade route from China to Europe, it has a cost advantage because it stops at fewer countries. There is also a very serious saving in time. It significantly reduces the number of days of transportation. In fact, before Ukraine, the route that China tended to use more was the Northern route. Now there are more countries on the Southern route. There are countries subject to sanctions etc. So now, after the Ukraine incident, the importance of the Middle Corridor has increased a bit more for China.”

The course of relations with the US, EU and China reflects the new era of Turkish foreign policy

On the other hand, evaluating the visit together with the NATO summit, Karabel points out that events and sectors are intertwined with each other and that this situation reflects the new era of Turkish foreign policy:

“At the NATO summit, the F-16s came to the fore, especially in the Swedish issue, and on the other hand, Turkey’s integration with the European Union and the European Union membership negotiation process were brought back to the agenda. The revival of Turkey’s full membership negotiations with the EU is a step towards revitalizing the almost frozen relationship. Turkey’s relations with the European Union do not only consist of membership negotiations. That is an important part, but there are also acute issues. For example, the Customs Union, modernization of the Customs Union negotiations, visa liberalization. In fact, there are a number of acute mini-sectoral issues. Therefore, on the one hand, there is an effort to revitalize these, and on the other hand, there is an effort to carry out relations with the United States in a way to develop relations on a more common ground, such as the F-16 issue.

On the other hand, as a result of the conjunctural developments in relations with China and Asia, we observe that Turkey’s leverage is actually increasing, especially in issues such as being an epicenter of transportation and turning this structural trade balance in its relations with China more in its favor. These are indeed conjunctural and historical opportunities, important opportunities.”

DIPLOMACY

US overtakes China as Germany’s biggest trading partner

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The United States overtook China as Germany’s most important trading partner in the first quarter of this year, according to Reuters calculations based on official data from the Federal Statistical Office.

According to the data, Germany’s trade with the United States, the sum of exports and imports, totalled 63 billion euros ($68 billion) in the January-March period, while the figure for China was just under 60 billion euros.

With a volume of 253 billion euros, China was Germany’s largest trading partner for the eighth time in a row, a few hundred million dollars ahead of the US.

“While German exports to the US continued to rise due to the strong economy there, both exports to and imports from China fell,” said Commerzbank economist Vincent Stamer, explaining the change in the first quarter.

“China has moved up the value chain and is increasingly producing more complex goods itself, which it used to import from Germany. German companies are also increasingly producing locally instead of exporting goods from Germany to China,” Stamer said.

Germany has said it wants to reduce its trade with China, citing political differences and accusing Beijing of “unfair practices”. But Berlin has yet to take any major steps towards a policy of reducing dependency.

German imports of goods from China fell by almost 12 per cent in the first quarter from a year earlier, while German exports to China fell by just over 1 per cent, according to Juergen Matthes of the German economic institute IW.

“The fact that the US economy exceeded expectations, while the Chinese economy performed worse than many had hoped, probably contributed to this,” Matthes said.

Sales to the US currently account for around 10 percent of German goods exports. China’s share, on the other hand, has fallen below 6 per cent, Matthes said.

On the other hand, Dirk Jandura, head of the BGA trade association, said: “If the White House administration changes after the US elections in November and moves further in the direction of closing markets, this process could come to a standstill,” pointing out that the trend of Germany’s trade route shifting across the Atlantic could stop.

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BOTAŞ signs LNG deal with ExxonMobil

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Turkey’s Energy Minister Alparslan Bayraktar said state-owned gas network operator BOTAŞ signed an LNG trade agreement with ExxonMobil on Wednesday in a bid to diversify its sources.

Bayraktar said in a statement on social media platform X: “The US is one of the important countries from which we already receive LNG. With this agreement, which is intended to be long-term, we will take another step towards diversifying our resources,” Bayraktar said, adding that the agreement was signed in Washington.

Noting that Turkey is among the few countries in the world with its gasification capacity, the minister said, “We will continue to contribute to the energy security of our country and our region.

Bayraktar gave no further details of the deal. The energy ministry did not respond to a Reuters request for comment.

In an interview with the Financial Times in late April, Bayraktar said Turkey wanted to “build a new supply portfolio” in energy procurement and said it was in talks with US fossil fuel giant Exxon Mobil for 2.5 million tonnes of liquefied natural gas (LNG) worth about $1.1 billion.

Bayraktar said Turkey was also in talks with other US natural gas producers for LNG deals, stressing that Turkey wanted to “diversify” its natural gas supplies before some of its contracts with Russia expire in 2025 and with Iran in 2026.

In addition to Russia, Azerbaijan and Iran, Turkey imports LNG from Algeria, Qatar, the US and Nigeria.

Russia is the country’s largest gas supplier. Last year, more than 40 per cent of its consumption was met with gas from that country.

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The World Bank’s ‘climate plan’: More expensive meat and dairy, cheaper chicken and vegetables

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A new paper published by the World Bank suggests that the billions of dollars spent by rich countries on CO2-intensive products such as red meat and dairy products should be redirected towards more ‘climate-friendly’ options such as poultry, fruit and vegetables.

The bank argues that this is one of the most cost-effective ways to save the planet from ‘climate change’.

According to POLITICO, the ‘politically sensitive’ proposal is one of several the World Bank has put forward to reduce pollution from the agriculture and food sector, which it says is responsible for nearly a third of global greenhouse gas emissions.

We have to stop destroying the planet while we feed ourselves,’ Julian Lampietti, the World Bank’s director of global practice for agriculture and food, told POLITICO.

The work comes at a strategic diplomatic moment, as signatories to the Paris Agreement to limit global warming to 1.5 degrees Celsius prepare to update their climate plans by the end of 2025.

While the world needs to accelerate emissions cuts to meet the Paris Agreement’s goals, the World Bank wants officials to pay more attention to the agriculture and food sector, which it says has long been neglected and underfunded.

To be serious about achieving zero emissions by 2050 – a common goal for developed economies – countries need to invest $260 billion a year in these sectors, the report says. That is 18 times more than countries are currently investing.

The World Bank argues that governments could partially close this gap by redirecting subsidies for red meat and dairy towards lower-carbon alternatives. The Bank argues that this shift is one of the most cost-effective ways for rich countries to reduce demand for highly polluting foods, which are estimated to produce around 20 per cent of global agri-food emissions.

As a result, the climate impact will be reflected in the cost of food, he adds.

Full-cost pricing of animal-based foods to reflect their true planetary costs would make low-emissions food options more competitive,” the report says, suggesting that switching to plant-based diets could save twice as much planet-warming gases as other methods.

Meat and dairy production account for nearly 60 percent of agri-food emissions, according to the World Bank.

Lampietti warns against focusing too much on “what not to do” and suggests paying more attention to “what to do”. Food is a ‘deeply personal choice’, Lampietti said, adding that he fears the debate, which should be data-driven, could turn into a culture war.

The biggest concern is that people start using this as a political football,” he said.

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