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The risk of military use of the facility, fueled by confidentiality clauses, fuels discussion in Argentina and suspicions in Washington.

China's arrival on the far side of the Moon has highlighted Chinese space advances. For this new degree program, Beijing has a tracking and observation station in Patagonia, the first of its own territory. In Argentina there has been extensive discussion about possible unacknowledged purposes of these facilities and alleged secret clauses negotiated at the time by the Kirchner Administration. The government of Mauricio Macri guarantees the peaceful uses of the station, but the controversy has not ceased.

Chinese space station in Argentina's Neuquén province

▲ Chinese space station in the Argentine province of Neuquén [Casa Rosada].

article / Naomi Moreno Cosgrove

After years of gradual economic penetration, which has led it to become the leading trading partner of several South American countries and a major lender and investor throughout the region, China's incursion into Latin America is no longer silent. The influence achieved in several nations - for example, it acquires almost 90% of the oil exported by Ecuador and its credits have been essential for the subsistence of Venezuela or certain Brazilian public companies - means that China's activities are attracting special attention and its expansion is becoming increasingly clear.

China's growing power in Latin America is especially observed by the United States, although its own neglect of the region, sometimes presented as a consequence of its shift towards Asia, has contributed to national governments seeking other reference letter partners to meet its needs reference letter

Already suspicious of this growing Chinese presence in the American continent, any activity in strategic fields, such as security, arouses particular suspicion in Washington. This has also been the case with moves made by Moscow, such as the siting of a station for the Russian Global Navigation Satellite System (Globalnaya Navigatsionnaya Sputnikovaya Sistema or GLONASS) in Managua (Nicaragua). The secrecy surrounding the operation of the facilities has caused mistrust among the population itself, raising suspicions as to whether their use is really intended only to provide a higher quality of the Russian navigation system or whether there is the possibility of strategic exploitation by the Russian aerospace defense forces.

Negotiation

Suspicions about the so-called Far Space Station, the Chinese National Space Administration (CNSA) station in Patagonia, in the province of Neuquén, stem from entrance fact that it was negotiated at a time of particular disadvantage for Argentina, due to the financial weakness of Cristina Fernández de Kirchner's government and its need for urgent credits. When Argentina was out of the international credit markets for having defaulted on the payment of close to 100 billion dollars in bonds, the Asian country was a blessing for the then president.

In 2009, in the midst of the financial crisis, China sent representatives to the Latin American country to discuss an issue that had little to do with currency fluctuations: Beijing's space interests. This was due to China's desire to have a center in the other hemisphere of the globe that could support its space activity, such as the expedition to the far side of the Moon.

After months of negotiation under great discretion, the Chinese government and the government of the province of Neuquén signed an agreement in November 2012, whereby China obtained the right to use the land - rent-free - for fifty years. The technical agreement was signed by China's state-owned satellite safety and control business (CLTC) and Argentina's National Commission for Space Activities (CONAE).

Enormous in size, the larger of the two circular antennas - it is twelve stories high, weighs 450 tons and has a large diameter - and visible from a great distance due to its location in the middle of a desert plain, the station soon became an ideal target for controversy and suspicion. The fear that, in addition to the declared civilian use, it might also have a military use and be used to gather information by intercepting communications in that part of South America, fueled the controversy.

After becoming Argentine president in 2015, Mauricio Macri entrusted then Foreign Minister Susana Malcorra and the Argentine ambassador in Beijing, Diego Guelar, with the task of negotiating that the agreement should include the specification that the station would only be used for peaceful purposes, something the Chinese accepted.

In spite of everything, the discussion about the risks and benefits of the Chinese base is still alive in the Argentine public opinion. Politicians of the civil service examination in Neuquén consider that "it is shameful to renounce sovereignty in your own country", as Congresswoman Betty Kreitman said when provincial legislators learned about the project.

Beyond Argentina's borders, White House officials have called the project a "Trojan Horse," reflecting U.S. concern about the initiative, according to sources quoted by The New York Times. Even apart from any strategic dispute with the United States, some Latin American leaders have doubts and regrets about the ties established with China, as they are concerned that previous governments have subjected their countries to excessive dependence on the Asian power.

Confidentiality

The main questioning of the Chinese base, then, has to do with its eventual military use and with the possible existence of secret clauses. The latter have been the main cause of international suspicion, since Macri himself came to validate the existence of these clauses, when they became a weapon against the Kirchner government, and promised to reveal them when he became president, something he has not done. However, the Argentine space authorities themselves deny any secret section .

Perhaps the misunderstanding can be found in the fact that the contract signed between the Chinese CLTC and the Argentine CONAE states that "both parties will maintain confidentiality regarding technology, activities and monitoring programs, control and dataacquisition". Although confidentiality with respect to third parties in relation to technology is a common internship , in this case it contributes to public distrust.

Given that the CLTC depends on the Chinese People's Army, it is difficult to deny that the data it obtains will pass into the domain of the Defense hierarchy and end up having a military use, although not necessarily ordered to a warlike action. Experts also say that antennas and other equipment used in support of space missions, similar to those the Chinese have in Patagonia, are likely to increase China's information-gathering capabilities. "A giant antenna is like a huge vacuum cleaner. It sucks up signals, information, all subject of things," Dean Cheng, an expert on China's national security policy, was quoted as saying in the NYT.

Categories Global Affairs: Security and defense Articles Latin America Space

Opportunities and challenges in Sino-Panamanian relations, one year after the establishment of diplomatic relations

In June 2016, Panama inaugurated the expansion of its Canal. In June 2017, the Panamanian government decided to establish diplomatic relations with China (Central America has been a traditional ally of Taiwan), thus giving rise to the flow of new Chinese investments in a Canal revitalized with the expansion. On the one-year anniversary of the establishment of relations, here is a review of the opportunities and challenges posed by the increased Chinese presence in the isthmus.

Chinese shipping line COSCO container ships, making transit issue 2,000 in the expanded Canal, in September 2017 [Panama Canal].

▲Container ship of Chinese shipping line COSCO, making transit issue 2,000 in the expanded Canal, in September 2017 [Panama Canal].

article / Ximena Barria

In the last decade, the People's Republic of China has made efforts to increase its presence in different regions of the world. China's projection as a global power has meant that no region is alien to it and there are hardly any countries that do not actively seek commercial exchange with the Asian giant. Therefore, it is not surprising that China has wanted to increase its activity around the Panama Canal, and that this Central American country has established diplomatic relations with Beijing, breaking the traditional relationship with Taiwan.

Panama's privileged geography and its rapid economic growth in the region are two important aspects taken into account by China. The Panama Canal offers advantageous access to the Atlantic and Pacific oceans and about 6% of global maritime trade passes through it. At times there has been talk of Chinese interest in building a canal in Nicaragua, something that was never really on Beijing's diary . China sees Panama as an important geostrategic point from which to project its foreign policy in Latin America, which undoubtedly unsettles Washington.

On June 13, 2017, the Republic of Panama and the People's Republic of China announced the establishment of diplomatic relations. With this, Panama recognized the government of Beijing as the legitimate Chinese government and broke the previous diplomatic relations established with Taipei. The new Sino-Panamanian relations gave way to 19 agreements in various areas.

Chinese projects in the isthmus

In a country as open to trade and transactions of all subject as Panama is, the Chinese population has always had a relative presence. The Chinese community in Panama is made up of some 135,000 people, which represents 4% of its 4 million inhabitants.

Since 1911, Panama had maintained diplomatic relations with China. However, after the defeat of the Chinese Nationalist Party and the victory of Mao Zedong's communism, the Panamanian State decided to maintain diplomatic relations with Taiwan, due to its capitalist stance, during the Cold War. Since 1949, Panama remained one of Taiwan's major allies until its rupture in 2017.  

Despite the recognition of Taipei, trade relations between Panama and the People's Republic of China have been increasing in recent years, generating an exchange Issue greater than that recorded between the Central American country and Taiwan.

Panama's most important economic engine is the Canal, which links the Atlantic and Pacific oceans and constitutes one of the most important routes for world trade. Canal revenues generate one third of Panama's Gross Domestic Product. Over the years, China has become an important customer of the Canal, becoming its second largest Username after the United States. The first ship to cross the expanded Canal, at the inauguration held in June 2016, was a vessel of the Chinese shipping company COSCO, which was awarded the honor by lottery.

China is the largest provider the Colon Free Zone (CFZ), located on the Caribbean coast of Panama, next to the northern mouth of the Canal. It is the most important free zone in the Americas and the second largest in the world, with an annual import and re-export Issue of $16.16 billion. In the first semester of 2017, the FTZ imported $1.344 billion worth of goods from China. Likewise, important Chinese companies have sought to establish themselves in the FTZ, taking advantage of the strategic advantages it offers.

China has also announced the construction of a container port in the Colon area , which will have facilities for receiving liquefied natural gas. The planned construction is estimated to cost $900 million. The construction will result in the first container terminal designed to handle Neopanamax ships, which have the maximum dimensions to transit the canal.

In the area of communications, the People's Republic of China expressed its interest in building a railway infrastructure connecting the capital of Panama and the province of Chiriqui, covering a distance of 400 kilometers. As for air transportation, the Air China airline committed to operate the Panama City-Beijing route twice a week. Panama has the most important air hub in Latin America and having a direct flight to Beijing represents an important opportunity to bring Asian markets closer to Latin America.

In addition, Panama has an important and diversified financial center that is attractive to Chinese banks as a strategic gateway to establish themselves in the region. The presence of Bank of China, with more than 30 years in the country, and future establishments of other entities such as Banco Industrial y Comercial, Exim Bank and China Development Bank will contribute to increase the flow of Chinese capital to Panama. This, in turn, will diversify and make Panama's banking sector increasingly dynamic.

The Panamanian challenge to seize the opportunity

Ensuring that this increased relationship with China and the Asian market structurally benefits Panama and does not degenerate into a future dependency status presents important challenges for a country that is in the process of development. Panama must increase productivity in sectors such as agriculture and industry, train more staff and create a transparent framework of financial institutions.

The agricultural sector presents marketing difficulties and a lack of agricultural policies to produce and sell crops at fair prices. In recent years, there has been a shortage of land for crop marketing purposes as a result of droughts and floods. Another challenge is food imports, since many imported foreign products are cheaper and this causes a drop in the prices of domestic products, which makes their production unprofitable for the farmer.

The increase in industrial productivity goes hand in hand with the effort to training better human capital. Currently, in the Panamanian Republic there is a lack of preparation of people who can manage important companies. In 2015, the issue of people enrolled in universities reached only a meager 160,000 students. The Panamanian government should promote technical training projects and scholarships to increase this issue so that in the long term there will be more qualified staff for the new companies that will arrive.  

The Panamanian financial structure should also be prepared to create new legislation that will contribute to legal certainty. In order to harmonize the financial sector with international anti-money laundering conventions, the Panamanian government should establish tax reforms that promote fiscal transparency. The entry of foreign banks should be regulated more effectively. The discussion of considering tax evasion as a tax crime will present an important challenge for the country to consider.

Categories Global Affairs: Logistics and infrastructure Articles Latin America

It generates many of the raw materials needed for global technology production.

China not only has significant reserves of mineral resources, but also leads the world in the production of many of them. This gives it a geopolitical B as a source of essential resources for global technological production.

Satellite image

▲Satellite image [NASA].

article / Gabriel Ros Casis [English version] [English version].

With a vast territory like China's, it is obvious that it possesses a wealth of raw materials and natural resources. Throughout China's history, this has become a strong geopolitical asset, not only for the country's own development , but also for its trading partners through exports. Today, when we talk about these raw materials, China stands out in two main groups: base metals and technological elements.

The base metals group essentially comprises five metals from the periodic table, namely iron, copper, aluminum, magnesium and zinc (sometimes lead and tin are also included). There is no need to recall that we can find all these metals in everyday objects, and that they have been the backbone of industry for a long time. Therefore, every country needs them, placing those with the largest deposits of these metals at a strategic advantage. But a country's mineral wealth is not always given by this condition, as it can also be measured by the ease and feasibility of extracting the product. In the case of China, both arguments would be valid, since the country has the largest deposits of many of these minerals, with magnesium leading the way (79% of global extractions) followed by tin (43%) and zinc (31%).

As far as technological metals are concerned, it is important to note that they include various minerals, such as rare earths, precious metals, as well as semiconductors. From a quantitative approach , the required amount of these metals is minimal, even though their availability is crucial for the production of today's technology. For example, some of the most common technological metals include lithium, yttrium, palladium, cerium and neodymium, which can easily be found in cell phone batteries, medicines, magnets or catalysts. Once again, China leads the way with the largest deposits of several of these elements, especially tungsten (83%), followed by rare earths (78%) and molybdenum (38%).

From this we can conclude that China not only has the largest deposits, but is also the world's largest exporter. In addition to extraction, this country also refines and manufactures components with minerals such as aluminum, copper and certain rare earths, and in some cases even manufactures the final product.

Therefore, it must be taken into account that extraction brings with it certain consequences. Environmentally, extraction always has an impact on the land, perhaps less in China compared to other countries (due to the size of its territory), but equally significant. From an economic approach , these extractions entail a great cost, but which, properly managed, can generate an immense benefit. In the political scenario, they are seen as an important geopolitical advantage, creating dependence on the demand of other countries.

As a conclusion, it can be drawn from this that China has great power in terms of raw material resources, but this carries with it a great responsibility, since a substantial part of the raw materials used for almost all the world's technology production depends on this country, which provides the resources, but also manufactures them.

Categories Global Affairs: Asia Energy, resources and sustainability Articles

One Belt-One Road' project aims to consolidate China's rise as a superpower

The ambitious initiative launched by Xi Jinping to connect China with the rest of the Eurasian continent may prove costly and difficult. But unlike the overland route through the Central Asian republics, the sea route may not take long to become a reality on certain stretches, as China has already built some ports on part of the route.

▲The land and sea lanes of the Chinese initiative [yourfreetemplates].

article / Jimena Puga Gómez [English version].

Following Chinese President Xi Jinping's 2013 speech on the revitalization of the ancient Silk Road, the initiative that started out as just an idea has become the Beijing government's biggest economic challenge: a revolution that, if carried out, will change the Asian continent's passenger, freight and hydrocarbon transport infrastructure, as well as high-tech. Dubbed OBOR-OneBelt-One Road, the plan is intended to be the core topic of China's rise as a regional superpower.

The OBOR initiative is a grand plan to redesign China's strategic environment, project Beijing's economic power, secure the communist country's access to energy and mineral supplies, and boost economic growth in the west of the People's Republic. OBOR seeks to achieve these goals by fostering greater and faster connectivity between China and Europe through intermediate points in Central, West and South Asia, as well as with Russia.

For its part, the maritime route that will form one of the core topic of the OBOR initiative, also known as the Silk Road of the 21st century, counts on the fact that seven of the ten largest ports in the world are in China and, as is well known, these infrastructures make the Asian giant an important exporter of port management services. 

The Eastbound Maritime Silk Road will start in Fujian province and pass through Guangdong, Guangxi and Hainan, before heading south to the Strait of Malacca. From Kuala Lumpur, the Route will continue to Kolkata and Colombo, then cross the rest of the Indian Ocean towards Nairobi. From there, it will travel along the Horn of Africa, seeking to cross the strategic Gulf of Aden until it reaches the Red Sea. Beijing's plan aims to create sufficient infrastructure to enable Chinese ships to safely reach the Mediterranean after sailing through the Suez Canal. But the ambition of the People's Republic does not stop at the gates of the European Union, since China wants to reach Athens by sailing the Aegean and from there to Venice, where it will look for land routes that will make it possible to move its goods throughout the Union. Chinese investment has focused, among other things, on the port of Piraeus, with a new logistics center, and on the development of a network of logistics infrastructures through the Balkans and Hungary.

The South Pacific has also been included in this strategic map of routes devised in Beijing. Thus, the maritime Silk Road has two routes. The first, as mentioned above, originates on the east coast of China and, via the South China Sea, aims to establish strategic control of the Spratley Islands, the Strait of Malacca and the entire Indo-Pacific area, including the Bay of Bengal, in order to reach the heart of Europe. The second sea route will also cross the South China Sea to direct its ships to the coastal ports of the South Pacific. With this, China would also control the routes of the essential raw materials that come from Latin American countries.

Although this is a long-term economic project , the Chinese government has already begun the construction of certain infrastructures and the necessary negotiations with various countries. A clear example is Germany. The European Union is China's largest trading partner , while the People's Republic is the Union's second-largest provider . Germany, for sample , not only enjoys an excellent reputation as a reliable partner for China, but is also regarded as "Europe's trade gateway". test of this is that, at a meeting in Duisburg, the world's largest inland port and an important transport and logistics hub in Europe, Chinese President Xi Jinping proposed to Germany "to work together to realize the ambitious project of the revival of the economic belt of the new Silk Road of the 21st century". Germany and China are currently connected by the Chongqing-Xinjiang-Duisburg international railroad line.

The ports built by China at Hambantota and Colombo in Sri Lanka; the China-Suez Economic and Trade Cooperation Zone in Egypt; Kazakhstan's negotiation of the right to clear its imports and exports through the Chinese port of Lianyungang; and a new alliance between ports in China and Malaysia are additional examples of China's ability to leverage its newfound skill as a port modernizer and manager to support its strategy.

The New Silk Road initiative is a project that will require multi-billion dollar investments in order to build smooth, safe and efficient transport infrastructures. The effects of this economic network ensure benefits not only for China, the leader of the OBOR initiative, but also for all the countries affected by it. However, the financing of the project is still an unknown quantity that should be clarified.

Categories Global Affairs: Asia Economics, Trade and Technology Logistics and Infrastructure Articles

The busy passage, decisive in the strategies of the two countries to counteract each other

The Strait of Malacca, a core topic for the connection between the northern part of the Indian Ocean and the Asia-Pacific region, will be a thermometer for measuring the future balance of power between China and India. India is responding to the further expansion of Chinese maritime interests, which are forcing Beijing to pay close attention to Malacca, by advancing its positions towards the western mouth of the strait.

▲Map of the Indo-Pacific [US DoD].

article / Alejandro Puigrefagut [English version].

Maritime routes are the basis for trade and communication between more than 80% of the world's countries. This fact makes the natural geographic location of states of great strategic importance. A particularly important point for maritime traffic is the Strait of Malacca, a core topic for trade in the most populated region of the world.

The Strait of Malacca, which links the South China Sea with the Burma Sea en route to the Bay of Bengal, is the busiest commercial passage in the world and is therefore a strategic location. Approximately 60% of the world's maritime trade passes through this corridor that surrounds the western coast of the Malaysian peninsula and the Indonesian island of Sumatra, with more than 150 ships per day, and it is the main oil supply route for two of Asia's main consumers: the People's Republic of China and Japan. This geographical point is a core topic for the entire Indo-Pacific region, so ensuring the free movement of ships is strategic. This is why many states in the region, including China and the United States, see the protection of this passage as necessary in order to be able to supply themselves, export their goods and not be blocked by the control of a third country over this area.

With regard to China, it is not easy to imagine that a blockade of its supplies due to problems in the Strait of Malacca would happen. For this to happen, an armed conflict of extraordinary dimensions would have to be generated, leading to such a blockade by a subject that could control -and potentially interrupt- the passage to the other countries in the region. This potential risk, which today can only be generated by the US Navy, forces China to be alert and to develop sufficient military capabilities to protect what it considers its territories in the South China Sea and, by extension, the supply of vital resources that must necessarily cross the Strait of Malacca.

 

 

The Asian giant's positions and presence in the South China Sea and in the areas around the Strait of Malacca have increased in recent years in order to increase its influence over the states in the region. Moreover, in order to defend its oil and natural gas supplies (from the Persian Gulf), China has extended its presence as far as the Indian Ocean, although this is not enough. The reality is that in this area there is a great skill between two of the most influential Asian powers in the region: China and India. Due to the growing presence and influence of the People's Republic in the Indian Ocean, India has been forced to take proactive steps to enhance peace and stability in the region by mobilizing and expanding its presence from its east coast to the vicinity of the Strait in order to rebalance the regional balance of power. In this way, India can dominate the western access to the Strait and, consequently, have greater reaction time to maneuver in the Indian Ocean as well as in the Strait itself and even gain more agile access to the waters of the South China Sea.

At the same time, India's growing closeness to the South China Sea is viewed with concern in Beijing, and some analysts even see India as a threat in the event of a hypothetical conflict between the two regional powers and India blocking the Strait and, therefore, China's access to certain raw materials and other resources. For this reason, over the past three years China has carried out various military maneuvers jointly with third states in the Strait of Malacca, especially with Malaysia. During the first exercises in the area, the Ministry of Defense of the People's Republic of China concluded that bilateral relations with Malaysia in terms of security and defense cooperation were strengthened and that "joint response capability to security threats was enhanced". Moreover, for China the protection of the Strait is a priority because of its great strategic value and because countries such as the US and Japan also wish to control it.

Categories Global Affairs: Asia Security and defense World order, diplomacy and governance Articles