One Belt One Road Initiatives in the Neighbourhood & Beyond Monthly Roundup

SECTION 1 – NEIGHBOURHOOD

Pakistan

1. The USD 1.7 billion 660kV Matiari–Lahore high-voltage direct current line has been completed under CPEC.ⁱ

2. Ning Jizhe, deputy head of the National Development and Reform Commission (NDRC), wrote that CPEC is entering a new stage of high-quality development, the establishment of “five corridors” will be enhanced for building a closer China-Pakistan community of shared future.ⁱⁱ

3. On 14 July, nine Chinese engineers and four Pakistanis were killed when a coach carrying them to a construction tunnel site of the 4300 MW Dasu hydropower project exploded. Pakistan’s Interior Minister hintedⁱⁱⁱ that the Dasu incident might be an attempt to sabotage projects under CPEC. Furthermore, China has dispatched criminal investigation experts to Pakistan to assist in the investigation of the incident.^iv

4. Foreign Minister Shah Mahmood Qureshi visited China from 23-24 July, reportedly to discuss the progress of CPEC and the Dasu incident.^v

5. Chinese Ambassador Nong Rong called on Minister for Finance and Revenue Shaukat Tarin and both parties underscored the importance of expediting the establishment of special economic zones (SEZs) for creating investment and employment opportunities.^vi

6. The Pakistan government has decided to extend the Western Route of CPEC to Gilgit via Swat, Chitral and Shandur.^vii

Afghanistan

7. Afghanistan and China are reportedly discussing the construction of the Peshawar-Kabul motorway as an extension of CPEC.^viii

Sri Lanka

8. The Chinese-built Hambantota Port is expected to become fully functional as a multi-purpose port by the next year.^ix

9. Sri Lanka's Coordinating Secretary to the Prime Minister, Geethanath Kassilingham, has denied the accusation by Tamil National Alliance (TNA) MP Sivagnanam Sritharan that land in Jaffna is being sold to China.^x

SECTION II – BEYOND THE NEIGHBOURHOOD

Southeast Asia

1. Malaysia.

(a) The Malaysian government has awarded Sweden's Ericsson an USD 2.6 billion contract to design and build its 5G telecommunications network, snubbing Huawei.^xi

(b) A 60 percent equity deal for the Bandar Malaysia mixed commercial project involving the government, developer Iskandar Waterfront Holdings (IWH) and China Railway Engineering Corp (CREC) will not proceed by mutual agreement.^xii

West Asia

2. Iraq. Iraq has picked China's state-run CNCEC to build an oil refinery at the port of Fao on the Gulf. The refinery in Fao will have a 300,000 barrel-per-day capacity and will include a petrochemical plant.^xiii

3. Saudi Arabia. During a meeting with his counterpart on 15 July, Foreign Minister Wang Yi assured Saudi Arabia of continued assistance in fighting the Covid-19 pandemic as well as support for various Saudi initiatives including Vision 2030.^xiv

4. Syria. Foreign Minister Wang Yi told Syrian President Bashar al-Assad that China will step up cooperation with Damascus on OBOR projects and combating terrorism.^xv

Eurasia

5. Russia. In a joint statement issued after a virtual summit between President Xi Jinping and his Russian counterpart Vladimir Putin, the two sides pledged to deepen cooperation on cyberspace; agreed to strengthen collaboration on the use of the Northern Sea Route on the basis of mutual benefit and respect for the interests of the littoral state; and infrastructure.^xvi

6. Ukraine. China and Ukraine have signed an agreement to strengthen cooperation in the infrastructure sector.^xvii

Europe

7. United Kingdom. The British government is reportedly exploring ways to remove China's state-owned nuclear energy company, China General Nuclear, from all future power projects in the UK, including the consortium planning to build the new $27.5 billion Sizewell nuclear power station in Suffolk.^xviii The Chinese Embassy in Britain said that the cooperation between China and Britain on nuclear energy is mutually beneficial, and any suspension of such cooperation will hurt Britain's own interests.^xix

8. European Union. EU foreign ministers agreed to launch “A Globally Connected Europe”, a global infrastructure plan linking Europe to the world.^xx

9. Bosnia. A Chinese-backed deal to help Bosnian utility EPBiH expand its Tuzla coal-fired power plant has run into problems following General Electric's withdrawal from the project.^xxi EPBiH picked China Gezhouba Group and Guandong Electric Power Design in 2014 to build a 450 megawatt (MW) unit in Tuzla at a cost of USD 1.1 billion to replace three ageing units at the 715 MW plant.

10. Malta. Foreign Minister Wang Yi held talks with visiting Maltese Foreign Minister Evarist Bartolo. Wang Yi said China is willing to sign an implementation plan for the joint construction of OBOR with Malta.

Oceania

11. Australia.

(a) China's Mineral & Metals Group Ltd has halted land clearing measures in a wilderness area on Australia's southern island Tasmania after legal action by protesters concerned about the environment. Australia's environment minister said this week that the project must undergo a full environmental impact assessment before going ahead.^xxii

(b) Telstra Corp, Australia’s biggest communications provider, said it is considering buying the mobile networks in Papua New Guinea, Fiji, Nauru, Samoa, Tonga and Vanuatu, and that the Australian government would help pay for the acquisition - a move that analysts say is designed to block China from buying the strategically important assets.^xxiii

12. Nauru. After rejecting a World Bank-led cable tender, due to concerns the contract would be awarded to the former Huawei Marine, Nauru is reportedly in discussions to connect to an Australian undersea communications network.^xxiv

Africa

13. Zambia. Zambian President Edgar Lungu launched a power plant in Chikankata district in the southern part of the country, where China’s hydropower engineering and construction company Sinohydro is the main contractor of the project. He said it showed the government’s commitment and resilience in ensuring that the country’s electricity needs were secured.^xxv

14. Zimbabwe. The Industrial and Commercial Bank of China (ICBC) reportedly said it would not fund a USD 3 billion coal-fired power plant in Zimbabwe after pressure from green groups. ICBC is yet to make an official statement on the issue but Go Clean ICBC, a coalition of 32 environmental activists, confirmed that the lender committed not to fund the controversial 2,800-megawatt Sengwa coal project in northern Zimbabwe.^xxvi