Thanks My Ladies for letting us share from your private chatroom!
Late Friday Night:
SSS: ML are we still thinking all these pending important laws will be seen in our rear view mirror?
MY LADIES: YES I DON'T THINK ANY OF THESE LAWS HAVE ANY RELEVANCE TO THE BANKING SYSTEM WE ARE WATCHING COME IN.
SSS: even the anti- money laundering law?
MY LADIES: WELL YES YOU NEED MONEY IN ORDER TO LAUNDER IT
IQD NOVA: I AGREE ML!!!!
....
Late Friday Night:
SSS: ML are we still thinking all these pending important laws will be seen in our rear view mirror?
MY LADIES: YES I DON'T THINK ANY OF THESE LAWS HAVE ANY RELEVANCE TO THE BANKING SYSTEM WE ARE WATCHING COME IN.
SSS: even the anti- money laundering law?
MY LADIES: WELL YES YOU NEED MONEY IN ORDER TO LAUNDER IT
IQD NOVA: I AGREE ML!!!!
....
Sager: But the fact that they will be trading internationally is absolutely massive in itself… it’s something so tangible and something I personally haven’t seen in my 5 years in this venture…..That is, if the CBI follows through :)
MY LADIES: OH FOR SURE!
PrincessDD: Sure hope so Sager
Sager: Same here. They haven’t missed a beat yet in everything they have stated, and I don’t expect them to change now……Things are looking absolutely awesome for us right now…..When it comes from the CBI, and it’s an official statement with signatures and all, it’s pretty much a done deal… but we’ll know for sure on Sunday/Monday
************
Saturday Morning:
MY LADIES: GOOD MORNING EVERYONE
THIS IS AN EXCITING WEEKEND FOR US. WE KNOW THE BONDS ARE GOING TO CROSS BORDERS TOMORROW AND I AM BEYOND ANXIOUS TO SEE HOW THEY DO IT.
I WILL GO TAKE A TOUR AROUND IRAQ AFTER WE LOOK AT CHINA AND THE ONE BELT. THIS ONE BELT AND GLOBAL TRADE IS THE ENGINE THAT DRIVES THE NEW SYSTEM.
WE HAVE ONLY 5 MONTHS LEFT IN 2015 AND THIS YEAR WILL BE MARKED HISTORIC FOR ALL THE REASONS WE STUDY EVERYDAY.
LET’S TAKE A LOOK AT THE BELT AND ROAD STRATEGY ONE MORE TIME JUST SO I KNOW YOU ALL UNDERSTAND HOW THIS IS THE START OF THE NEW BANKING AND TRADE SYSTEM GLOBAL WIDE.
WE ARE GOING TO TAKE A LOOK AT WHAT MOODY’S INVESTOR SERVICE HAS TO SAY ABOUT THE PROCESS AND ABOUT THE POSITIVE CREDIT THIS BELT WILL GENERATE.
WE CAN SEE THE NEW INFRASTRUCTURE FOR THE CREDIT SYSTEM STARTING TO FORM.
THIS IS A THE TOPIC TO STUDY OVER THE NEXT FEW MONTHS I CAN NOT STRESS THIS ENOUGH WE WILL GO INTO DEEPER DETAIL AS UNDERSTANDING GROWS.
Announcement: Moody's: China's Belt and Road Strategy -- Credit Positive for Emerging Market Sovereigns
http://ift.tt/1MZYuEQ
Singapore, July 28, 2015 -- Moody's Investors Service says that China's (Aa3 stable) new silk roads -- through which it seeks to deepen economic integration with more than 40 participating countries across three continents -- are credit positive for the emerging market sovereigns involved.
Moody's expects that the Silk Road Economic Belt and 21st Century Maritime Silk Road, which China refers to as its "Belt and Road" strategy, or "One Belt, One Road," will mostly benefit smaller sovereigns with relatively low per-capita incomes, financing constraints on their current account positions, and low investment rates.
Moody's conclusions were contained in its just-released report, "China's Belt and Road Strategy -- Credit Positive for Emerging Markets."
Moody's rates about two-thirds of the sovereigns across the Belt and Road. Of these, more than half are sub-investment grade. Other common threads linking these countries are that they have relatively underdeveloped economies with large infrastructure gaps, and tend to have modest per-capita incomes.
Their natural resource wealth has fueled dynamic growth, and although the recent collapse in commodity prices clouds the economic outlook for these countries, they exhibit fairly strong growth potential.
In this context, the new silk roads could have a transformational impact for smaller, infrastructure-impoverished countries in South and Southeast Asia, by spurring investment and boosting economic growth potential.
Among Moody's rated sovereigns, Bangladesh (Ba3 stable), Cambodia (B2 stable), Pakistan (B3 stable) and Vietnam (B1 stable) are likely to be the biggest beneficiaries of infrastructure investment.
But infrastructure financing could put pressure on the government balance sheets of participating economies.
Moody's also expects bilateral trade flows to receive a boost, particularly in Central Asia, bolstered by infrastructure development. Kazakhstan (Baa2 stable) and Mongolia (B2 negative) are among the rated sovereigns that will benefit from improved trade linkages.
Still, Moody's believes that Belt and Road projects face numerous challenges. Most participating governments face considerable institutional and political challenges and risks in project implementation that could slow execution.
For China itself, the new silk roads have tangible benefits as they will help counteract the country's economic slowdown by jump-starting investment. They will also boost exports and provide the access to commodities necessary for China to sustain strong economic growth.
**********
MY LADIES: PUBLIC –PRIVATE PARTNERSHIPS AND INFRASTRUCTURE FUNDING THIS IS VERY GOOD TO READ FOR EVERYONE.
Benefits of PPP infrastructure funding in China will take time to materialize
http://ift.tt/1VTi4bW
Sydney, July 21, 2015 -- Moody's Investors Service says that the use of public-private partnerships (PPPs) in infrastructure funding could reduce the reliance by Chinese regional and local governments (RLGs) on public sector leverage, a credit positive.
But the large-scale participation of state-owned enterprises (SOEs) in such contracts could hinder the intended transfer of public infrastructure liabilities to the private sector.
"PPPs can be credit positive for Chinese RLGs, reducing public sector leverage and exposure to local government financing vehicle (LGFV) debt, provided any additional financial commitments are limited and transparently recorded," says Nicholas Zhu, a Moody's Vice President and Senior Analyst.
"But in contrast to most other countries, private participation in Chinese PPP projects can include SOEs," adds Zhu. "High participation by such entities in PPPs means that infrastructure-related debt is simply reshuffled from RLG balance sheets to SOE balance sheets, without reducing the public sector's overall leverage."
Moody's conclusions were contained in its just-released report "Sub-Sovereign: Benefits of PPP Infrastructure Funding in China Will Take Time to Materialize".
**********
MY LADIES: NOW THIS IS WHAT WE HAVE BEEN TALKING ABOUT. AS THE NEW BANKING SYSTEM GROWS WE WILL SEE COMMODITIES MARKETS GROW STRONG WITH REAL VALUE.NOT RESTRICTED VALUE OR MANIPULATED VALUE LIKE NOW.
THIS WILL TAKE 5+ YEARS TO ACCOMPLISH BUT IT WILL BE A MUCH BETTER SYSTEM. SO LET’S SEE WHAT WE HAVE HERE.
China paves a silk road for commodities
http://ift.tt/1MZYuEU
The Silk Road might conjure images of Marco Polo and ancient Chinese empires, but its infrastructure-driven 21st century version could be a long-term savior for commodity prices.
China's plan to spend billions of dollars on transportation links to Europe via western Asia – primarily railways and highways but also ports – is finally under way and starting to attract international attention.
The Silk Road initiative announced by Chinese President Xi Jinping in 2013 and implemented, beginning this year, contemplates so vast an investment in highways, ports and railways that it will transform the ancient Silk Road into a ribbon of gold for the surrounding countries," Yale Professor Valerie Hansen, writing in The Indian Express earlier in July, said.
REOPENING OF EURASIA
If China can pull this off – and many countries want China to succeed because they need it – it's going to change the geoeconomic, geostrategic map of Asia," Mr Yeo told the FutureChina Global Forum 2015.
Part of China's motivation in doing so to was to "correct internal imbalances", making use of spare capacity for production of materials such as steel and concrete, which could easily be used to build infrastructure, he said.
Moody's Investors Service released a report last week, "China Credit: One Belt, One Road is credit positive, despite rising overseas risk exposure", that gave the project the thumbs up, while pointing out some shortcomings.
"Companies operating in industries such as steel, building materials, maritime transportation, power and construction will benefit most from the initiative, which will help develop new export outlets overseas," the report said. "The plan will also be credit positive for companies that use natural resources, such as oil and gas or agricultural players, as well as construction and railway companies."
Another benefit would be the internationalisation of the China's currency, the renminbi.
***********
MY LADIES: LET’S TAKE THE SILK ROAD DIGITAL
An Internet economic community could be formed to benefit each country
Web companies asked to support 'digital Silk Road'
Chinese tech firms are being urged to expand e-commerce, industrial networks and Internet banking abroad to help build a “digital Silk Road
http://ift.tt/1VTi2AZ
Internet-based businesses and media have been asked to actively engage in the Belt and Road Initiative by building a “digital Silk Road” and helping to upgrade traditional industries within and beyond China’s borders.
The country should expand e-commerce, industrial networks and Internet banking abroad, a senior official said. This would enable it to serve more than a billion Internet users, businesses and investors along the Silk Road Economic Belt and the 21st Century Maritime Silk Road.
**********
MY LADIES: CHINA’S NEW ONE BELT ONE ROAD IS REFRESHING ALLIANCES AND BRINGING SOME OF THE TOUGHEST BICKERING COUNTRIES TOGETHER FOR THE BETTER GOOD.
CHINA, IRAN AND RUSSIA ARE PLAYING PEACE MAKERS IN THEIR REGIONS AND THE RESULTS SO FAR ARE INCREDIBLE. WHEN THERE ARE NO BA BULLIES THINGS GO SMOOTHLY.
China Muscles Way Into the Indian Ocean Through Its Silk Road Link With Pakistan
http://ift.tt/1HaSRyN
LONDON -- In most countries, governments change and policy follows. In China, where the Communist Party is determined to stay in power for perpetuity, the government can lay down policies and carry them out over the long haul. The long-term policy can be upgraded as the economy and technology permit.
This is happening with China's ambitious "One Belt, One Road" project, and its all-weather alliance with Pakistan, the latest example being active involvement in helping Islamabad bring the Afghan government and the Taliban to the negotiating table officially for the first time.
After the 1962 Sino-India War, Chairman Mao Zedong decided to contain India's regional clout by forging an alliance with its rival Pakistan, even though the latter was then firmly in the "imperialist" camp of the United States. This alliance is now being given a new varnish as part of the modern Silk Road network aimed at extending China's economic-strategic influence to the Indian Ocean region.
************
MY LADIES: SO LET’S PUT IT ALL TOGETHER AND SEE WHAT WE HAVE.
THIS BELT IS ALREADY MUCH FURTHER DOWN THE ROAD THAN WE REALIZE AND THIS IS THE NEW CHANGE IN SO MANY AREAS THAT WE ALL HAVE BEEN NEEDING AND WAITING ON.
What Does China's Silk Road Policy Mean In Practice?
http://ift.tt/1KRRyuI
The Silk Road is one of the world’s most powerful brands, perhaps even bigger than Disney or Coca-Cola KO +1.27%. In my conversations across the region, whether speaking with a Chinese policy official or Egyptian taxi driver, simple mention of the Silk Road brings immediate recognition.
By adopting the concept to explain China’s own regional ambitions, President Xi Jinping has leveraged the brand at little cost. And his early November announcement that China would fund a $40 billion Silk Road Fund rightly caught news headlines around the world.
And yet trying to decipher the implications of China’s strategic ambition is less straightforward. What does it mean in practice?
Scale matters when it comes to China
There is speculation that China’s Silk Road policy, more popularly known as ‘One Belt, One Road’, is intended to support the country’s GDP growth at a time of slowing domestic activity. But that isn’t going to happen; China is simply too big and most of the Silk Road’s economies too small.
Just consider that China’s five largest provincial economies would rank among the Silk Road’s 10 largest economies; or the fact that Bangladesh, Cambodia, Laos, Mongolia, Myanmar, Pakistan, and Tajikistan collectively have a GDP smaller than southern Guangdong province.
To be fair, the policy will benefit individual Chinese firms, especially smaller and midsized firms. But it’s critical to recognize that the benefits to national GDP from China’s One Belt, One Road policy are more likely to be felt by the country’s neighbors rather than by China itself.
Are you aligned with government policy?
I’ve heard concerns from multinationals that foreign companies will be squeezed out from bidding on construction projects in many Silk Road countries as a result of the policy. This is always a risk, but CEOs should always be considering the political benefits to aligning themselves with China.
The opportunities lie in the reality that many Chinese companies, aside from the largest, lack truly global operations and so may struggle to realize the government’s ambitions. Many may find it helpful to collaborate with foreign companies in areas where they lack capabilities.
This would result in not only financial gains, but also political gains. It’s a common practice for local and foreign companies to align themselves with Beijing’s policy priorities. Being helpful to China is a strategy that can reap rewards and the One Belt, One Road policy offers similar opportunity.
A public versus private Silk Road
For all the tendency to focus on China’s biggest state-firms building out infrastructure, it’s the country’s private sector that will ultimately determine whether the policy is a success at home as they make the most of improved market access and distribution.
There are early signs of success, such as in India where Chinese smartphone makers are already seeing strong market share gains: Xiaomi talks of investing in local research and development capabilities and Gionee recently sponsored Bollywood’s annual music awards extravaganza.
And yet, they are also in the minority. Speaking with C-level executives across a range of foreign multinationals in Southeast Asia earlier this year, I was struck by the number who said they aren’t yet bumping up against serious Chinese competition. They can see it coming eventually, but not just yet.
Infrastructure isn’t just about capital
There are signs that China is already having an impact on the region’s infrastructure. Speaking with Karachi-based industrialists a few weeks ago, I heard reports of Chinese construction companies widening roads in Sindh and building small hydroelectric dams in Punjab.
The Silk Road Fund and Asian Infrastructure Investment Bank will only add to the momentum as they provide much needed capital, technical expertise, and possibly an intention to take a light touch with respect to the environmental and social safeguards that slow down the World Bank’s capacity to invest.
And yet the region’s infrastructure shortfalls aren’t just capital related. Corruption, bureaucracy, and litigation are equally important and it’s not clear whether the Silk Road Fund or AIIB will be any more successful in forcing projects through where delays aren’t purely capital or expertise related.
MY LADIES: OH FOR SURE!
PrincessDD: Sure hope so Sager
Sager: Same here. They haven’t missed a beat yet in everything they have stated, and I don’t expect them to change now……Things are looking absolutely awesome for us right now…..When it comes from the CBI, and it’s an official statement with signatures and all, it’s pretty much a done deal… but we’ll know for sure on Sunday/Monday
************
Saturday Morning:
MY LADIES: GOOD MORNING EVERYONE
THIS IS AN EXCITING WEEKEND FOR US. WE KNOW THE BONDS ARE GOING TO CROSS BORDERS TOMORROW AND I AM BEYOND ANXIOUS TO SEE HOW THEY DO IT.
I WILL GO TAKE A TOUR AROUND IRAQ AFTER WE LOOK AT CHINA AND THE ONE BELT. THIS ONE BELT AND GLOBAL TRADE IS THE ENGINE THAT DRIVES THE NEW SYSTEM.
WE HAVE ONLY 5 MONTHS LEFT IN 2015 AND THIS YEAR WILL BE MARKED HISTORIC FOR ALL THE REASONS WE STUDY EVERYDAY.
LET’S TAKE A LOOK AT THE BELT AND ROAD STRATEGY ONE MORE TIME JUST SO I KNOW YOU ALL UNDERSTAND HOW THIS IS THE START OF THE NEW BANKING AND TRADE SYSTEM GLOBAL WIDE.
WE ARE GOING TO TAKE A LOOK AT WHAT MOODY’S INVESTOR SERVICE HAS TO SAY ABOUT THE PROCESS AND ABOUT THE POSITIVE CREDIT THIS BELT WILL GENERATE.
WE CAN SEE THE NEW INFRASTRUCTURE FOR THE CREDIT SYSTEM STARTING TO FORM.
THIS IS A THE TOPIC TO STUDY OVER THE NEXT FEW MONTHS I CAN NOT STRESS THIS ENOUGH WE WILL GO INTO DEEPER DETAIL AS UNDERSTANDING GROWS.
Announcement: Moody's: China's Belt and Road Strategy -- Credit Positive for Emerging Market Sovereigns
http://ift.tt/1MZYuEQ
Singapore, July 28, 2015 -- Moody's Investors Service says that China's (Aa3 stable) new silk roads -- through which it seeks to deepen economic integration with more than 40 participating countries across three continents -- are credit positive for the emerging market sovereigns involved.
Moody's expects that the Silk Road Economic Belt and 21st Century Maritime Silk Road, which China refers to as its "Belt and Road" strategy, or "One Belt, One Road," will mostly benefit smaller sovereigns with relatively low per-capita incomes, financing constraints on their current account positions, and low investment rates.
Moody's conclusions were contained in its just-released report, "China's Belt and Road Strategy -- Credit Positive for Emerging Markets."
Moody's rates about two-thirds of the sovereigns across the Belt and Road. Of these, more than half are sub-investment grade. Other common threads linking these countries are that they have relatively underdeveloped economies with large infrastructure gaps, and tend to have modest per-capita incomes.
Their natural resource wealth has fueled dynamic growth, and although the recent collapse in commodity prices clouds the economic outlook for these countries, they exhibit fairly strong growth potential.
In this context, the new silk roads could have a transformational impact for smaller, infrastructure-impoverished countries in South and Southeast Asia, by spurring investment and boosting economic growth potential.
Among Moody's rated sovereigns, Bangladesh (Ba3 stable), Cambodia (B2 stable), Pakistan (B3 stable) and Vietnam (B1 stable) are likely to be the biggest beneficiaries of infrastructure investment.
But infrastructure financing could put pressure on the government balance sheets of participating economies.
Moody's also expects bilateral trade flows to receive a boost, particularly in Central Asia, bolstered by infrastructure development. Kazakhstan (Baa2 stable) and Mongolia (B2 negative) are among the rated sovereigns that will benefit from improved trade linkages.
Still, Moody's believes that Belt and Road projects face numerous challenges. Most participating governments face considerable institutional and political challenges and risks in project implementation that could slow execution.
For China itself, the new silk roads have tangible benefits as they will help counteract the country's economic slowdown by jump-starting investment. They will also boost exports and provide the access to commodities necessary for China to sustain strong economic growth.
**********
MY LADIES: PUBLIC –PRIVATE PARTNERSHIPS AND INFRASTRUCTURE FUNDING THIS IS VERY GOOD TO READ FOR EVERYONE.
Benefits of PPP infrastructure funding in China will take time to materialize
http://ift.tt/1VTi4bW
Sydney, July 21, 2015 -- Moody's Investors Service says that the use of public-private partnerships (PPPs) in infrastructure funding could reduce the reliance by Chinese regional and local governments (RLGs) on public sector leverage, a credit positive.
But the large-scale participation of state-owned enterprises (SOEs) in such contracts could hinder the intended transfer of public infrastructure liabilities to the private sector.
"PPPs can be credit positive for Chinese RLGs, reducing public sector leverage and exposure to local government financing vehicle (LGFV) debt, provided any additional financial commitments are limited and transparently recorded," says Nicholas Zhu, a Moody's Vice President and Senior Analyst.
"But in contrast to most other countries, private participation in Chinese PPP projects can include SOEs," adds Zhu. "High participation by such entities in PPPs means that infrastructure-related debt is simply reshuffled from RLG balance sheets to SOE balance sheets, without reducing the public sector's overall leverage."
Moody's conclusions were contained in its just-released report "Sub-Sovereign: Benefits of PPP Infrastructure Funding in China Will Take Time to Materialize".
**********
MY LADIES: NOW THIS IS WHAT WE HAVE BEEN TALKING ABOUT. AS THE NEW BANKING SYSTEM GROWS WE WILL SEE COMMODITIES MARKETS GROW STRONG WITH REAL VALUE.NOT RESTRICTED VALUE OR MANIPULATED VALUE LIKE NOW.
THIS WILL TAKE 5+ YEARS TO ACCOMPLISH BUT IT WILL BE A MUCH BETTER SYSTEM. SO LET’S SEE WHAT WE HAVE HERE.
China paves a silk road for commodities
http://ift.tt/1MZYuEU
The Silk Road might conjure images of Marco Polo and ancient Chinese empires, but its infrastructure-driven 21st century version could be a long-term savior for commodity prices.
China's plan to spend billions of dollars on transportation links to Europe via western Asia – primarily railways and highways but also ports – is finally under way and starting to attract international attention.
The Silk Road initiative announced by Chinese President Xi Jinping in 2013 and implemented, beginning this year, contemplates so vast an investment in highways, ports and railways that it will transform the ancient Silk Road into a ribbon of gold for the surrounding countries," Yale Professor Valerie Hansen, writing in The Indian Express earlier in July, said.
REOPENING OF EURASIA
If China can pull this off – and many countries want China to succeed because they need it – it's going to change the geoeconomic, geostrategic map of Asia," Mr Yeo told the FutureChina Global Forum 2015.
Part of China's motivation in doing so to was to "correct internal imbalances", making use of spare capacity for production of materials such as steel and concrete, which could easily be used to build infrastructure, he said.
Moody's Investors Service released a report last week, "China Credit: One Belt, One Road is credit positive, despite rising overseas risk exposure", that gave the project the thumbs up, while pointing out some shortcomings.
"Companies operating in industries such as steel, building materials, maritime transportation, power and construction will benefit most from the initiative, which will help develop new export outlets overseas," the report said. "The plan will also be credit positive for companies that use natural resources, such as oil and gas or agricultural players, as well as construction and railway companies."
Another benefit would be the internationalisation of the China's currency, the renminbi.
***********
MY LADIES: LET’S TAKE THE SILK ROAD DIGITAL
An Internet economic community could be formed to benefit each country
Web companies asked to support 'digital Silk Road'
Chinese tech firms are being urged to expand e-commerce, industrial networks and Internet banking abroad to help build a “digital Silk Road
http://ift.tt/1VTi2AZ
Internet-based businesses and media have been asked to actively engage in the Belt and Road Initiative by building a “digital Silk Road” and helping to upgrade traditional industries within and beyond China’s borders.
The country should expand e-commerce, industrial networks and Internet banking abroad, a senior official said. This would enable it to serve more than a billion Internet users, businesses and investors along the Silk Road Economic Belt and the 21st Century Maritime Silk Road.
**********
MY LADIES: CHINA’S NEW ONE BELT ONE ROAD IS REFRESHING ALLIANCES AND BRINGING SOME OF THE TOUGHEST BICKERING COUNTRIES TOGETHER FOR THE BETTER GOOD.
CHINA, IRAN AND RUSSIA ARE PLAYING PEACE MAKERS IN THEIR REGIONS AND THE RESULTS SO FAR ARE INCREDIBLE. WHEN THERE ARE NO BA BULLIES THINGS GO SMOOTHLY.
China Muscles Way Into the Indian Ocean Through Its Silk Road Link With Pakistan
http://ift.tt/1HaSRyN
LONDON -- In most countries, governments change and policy follows. In China, where the Communist Party is determined to stay in power for perpetuity, the government can lay down policies and carry them out over the long haul. The long-term policy can be upgraded as the economy and technology permit.
This is happening with China's ambitious "One Belt, One Road" project, and its all-weather alliance with Pakistan, the latest example being active involvement in helping Islamabad bring the Afghan government and the Taliban to the negotiating table officially for the first time.
After the 1962 Sino-India War, Chairman Mao Zedong decided to contain India's regional clout by forging an alliance with its rival Pakistan, even though the latter was then firmly in the "imperialist" camp of the United States. This alliance is now being given a new varnish as part of the modern Silk Road network aimed at extending China's economic-strategic influence to the Indian Ocean region.
************
MY LADIES: SO LET’S PUT IT ALL TOGETHER AND SEE WHAT WE HAVE.
THIS BELT IS ALREADY MUCH FURTHER DOWN THE ROAD THAN WE REALIZE AND THIS IS THE NEW CHANGE IN SO MANY AREAS THAT WE ALL HAVE BEEN NEEDING AND WAITING ON.
What Does China's Silk Road Policy Mean In Practice?
http://ift.tt/1KRRyuI
The Silk Road is one of the world’s most powerful brands, perhaps even bigger than Disney or Coca-Cola KO +1.27%. In my conversations across the region, whether speaking with a Chinese policy official or Egyptian taxi driver, simple mention of the Silk Road brings immediate recognition.
By adopting the concept to explain China’s own regional ambitions, President Xi Jinping has leveraged the brand at little cost. And his early November announcement that China would fund a $40 billion Silk Road Fund rightly caught news headlines around the world.
And yet trying to decipher the implications of China’s strategic ambition is less straightforward. What does it mean in practice?
Scale matters when it comes to China
There is speculation that China’s Silk Road policy, more popularly known as ‘One Belt, One Road’, is intended to support the country’s GDP growth at a time of slowing domestic activity. But that isn’t going to happen; China is simply too big and most of the Silk Road’s economies too small.
Just consider that China’s five largest provincial economies would rank among the Silk Road’s 10 largest economies; or the fact that Bangladesh, Cambodia, Laos, Mongolia, Myanmar, Pakistan, and Tajikistan collectively have a GDP smaller than southern Guangdong province.
To be fair, the policy will benefit individual Chinese firms, especially smaller and midsized firms. But it’s critical to recognize that the benefits to national GDP from China’s One Belt, One Road policy are more likely to be felt by the country’s neighbors rather than by China itself.
Are you aligned with government policy?
I’ve heard concerns from multinationals that foreign companies will be squeezed out from bidding on construction projects in many Silk Road countries as a result of the policy. This is always a risk, but CEOs should always be considering the political benefits to aligning themselves with China.
The opportunities lie in the reality that many Chinese companies, aside from the largest, lack truly global operations and so may struggle to realize the government’s ambitions. Many may find it helpful to collaborate with foreign companies in areas where they lack capabilities.
This would result in not only financial gains, but also political gains. It’s a common practice for local and foreign companies to align themselves with Beijing’s policy priorities. Being helpful to China is a strategy that can reap rewards and the One Belt, One Road policy offers similar opportunity.
A public versus private Silk Road
For all the tendency to focus on China’s biggest state-firms building out infrastructure, it’s the country’s private sector that will ultimately determine whether the policy is a success at home as they make the most of improved market access and distribution.
There are early signs of success, such as in India where Chinese smartphone makers are already seeing strong market share gains: Xiaomi talks of investing in local research and development capabilities and Gionee recently sponsored Bollywood’s annual music awards extravaganza.
And yet, they are also in the minority. Speaking with C-level executives across a range of foreign multinationals in Southeast Asia earlier this year, I was struck by the number who said they aren’t yet bumping up against serious Chinese competition. They can see it coming eventually, but not just yet.
Infrastructure isn’t just about capital
There are signs that China is already having an impact on the region’s infrastructure. Speaking with Karachi-based industrialists a few weeks ago, I heard reports of Chinese construction companies widening roads in Sindh and building small hydroelectric dams in Punjab.
The Silk Road Fund and Asian Infrastructure Investment Bank will only add to the momentum as they provide much needed capital, technical expertise, and possibly an intention to take a light touch with respect to the environmental and social safeguards that slow down the World Bank’s capacity to invest.
And yet the region’s infrastructure shortfalls aren’t just capital related. Corruption, bureaucracy, and litigation are equally important and it’s not clear whether the Silk Road Fund or AIIB will be any more successful in forcing projects through where delays aren’t purely capital or expertise related.
Bandito Rox:General Administration of Customs proceed with the application of tariff
08/01/2015 15:38
Tomorrow Press / Baghdad: The General Authority for Customs revealed that she began Saturday, the application of the tariff in ports, airports and border crossings land according to the law enacted by the House of Representatives.
http://ift.tt/1DhWfgd
He added that "the Commission directed its outlets in ports, airports and border crossings wild including those in Kurdistan that the province apply the law," noting that "the Commission has completed all administrative and accounting preparations to amend the fees rates in accordance with the pricing of the tariff law in all customs centers."
************
MY LADIES: OK SO TARIFFS ARE IMPLEMENTED AND THE RATE IS 1166 FACINATING!!
CAN WE BE DONE WITH THE TARIFF HYPE NOW!
Sager: True Mary but if I may, cbi hasn't updated yet. :) It will update tomorrow I think yes? But main focus is bonds
MY LADIES: SAGER AND BANDITO IF I MAY, I AM NOT INTERESTED IN WHETHER OR NOT THE CBI UPDATES.
I AM INTERESTED IF THE ENTIRE SITE REDIRECTS US TO THE NEW ACTIVELY MOVING SITE!
THE TAX ON MY CABLE AND CELL PHONE WENT UP, BUT THE POWER OF MY DOLLAR STAYED THE SAME.
FOLLOW THE MONEY PLEASE, TAXES AND TARIFFS ARE THE LEGENDS DINAR LAND LIVES FOR AND HAS HYPED ABOUT FOR THE PAST 5 YEARS.
(music) LET IT GO (music) (music) LET IT GO (music)
http://www.youtube.com/watch?v=L0MK7qz13bU&feature=youtu.be
**********
Sager: I always thought taxes was money but now I know. I see the light!
MY LADIES: STUDY THE PROGRESS OF MONEY, LOOK AT WHAT THIS ONE BELT ONE ROAD IS DOING, LOOK AT THE NEW CREDIT SYSTEM FORMING IN FRONT OF YOUR EYES!
UNDERSTAND THAT IRAQ HAS TO COME AROUND NO MATTER WHAT THE HECK THE TAXES ARE DOING OR THE TARIFFS OR THE LAWS.
THEY ARE GOING TO COME TO THE NEW SYSTEM… I'M ALMOST SURE OF IT, SO WATCH THAT.
08/01/2015 15:38
Tomorrow Press / Baghdad: The General Authority for Customs revealed that she began Saturday, the application of the tariff in ports, airports and border crossings land according to the law enacted by the House of Representatives.
http://ift.tt/1DhWfgd
He added that "the Commission directed its outlets in ports, airports and border crossings wild including those in Kurdistan that the province apply the law," noting that "the Commission has completed all administrative and accounting preparations to amend the fees rates in accordance with the pricing of the tariff law in all customs centers."
************
MY LADIES: OK SO TARIFFS ARE IMPLEMENTED AND THE RATE IS 1166 FACINATING!!
CAN WE BE DONE WITH THE TARIFF HYPE NOW!
Sager: True Mary but if I may, cbi hasn't updated yet. :) It will update tomorrow I think yes? But main focus is bonds
MY LADIES: SAGER AND BANDITO IF I MAY, I AM NOT INTERESTED IN WHETHER OR NOT THE CBI UPDATES.
I AM INTERESTED IF THE ENTIRE SITE REDIRECTS US TO THE NEW ACTIVELY MOVING SITE!
THE TAX ON MY CABLE AND CELL PHONE WENT UP, BUT THE POWER OF MY DOLLAR STAYED THE SAME.
FOLLOW THE MONEY PLEASE, TAXES AND TARIFFS ARE THE LEGENDS DINAR LAND LIVES FOR AND HAS HYPED ABOUT FOR THE PAST 5 YEARS.
(music) LET IT GO (music) (music) LET IT GO (music)
http://www.youtube.com/watch?v=L0MK7qz13bU&feature=youtu.be
**********
Sager: I always thought taxes was money but now I know. I see the light!
MY LADIES: STUDY THE PROGRESS OF MONEY, LOOK AT WHAT THIS ONE BELT ONE ROAD IS DOING, LOOK AT THE NEW CREDIT SYSTEM FORMING IN FRONT OF YOUR EYES!
UNDERSTAND THAT IRAQ HAS TO COME AROUND NO MATTER WHAT THE HECK THE TAXES ARE DOING OR THE TARIFFS OR THE LAWS.
THEY ARE GOING TO COME TO THE NEW SYSTEM… I'M ALMOST SURE OF IT, SO WATCH THAT.
via Dinar Recaps - Our Blog http://ift.tt/1VTi2B0
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