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China + Russia > U.S.? November 2, 2009

Posted by hslu in China, Economics, Energy, Global Affair.
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China in Closer Tie with Russia

 

With words like:  “China would like to work more closely with Russia to enhance political trust and strategic coordination.” from China’s President Hu Jintao during Putin’s visit to China, the collaboration between China and Russia appeared closer than ever in the past 60 years.

Hu Jintao also said that “Let’s work together to take strategic partnership of coordination to a higher level.”

Russia has tons of black gold. China has tons of green backs. Both countries smell money and the acrimony between two countries has largely given way to closer ties in the new era.

They have signed an oil-for-loan agreement last month in which China has agreed to provide Russia with $25 billion loan in exchange of 300 million tonnes of oil (about 200 b/d for 20 years) through pipelines to China from 2011 to 2030. The pipeline is being built and is scheduled to be operational by the end of 2010.

Another agreement being worked now calls for allowing Russia’s Rosneft to build as many as 500 gas stations in China.

China needs oil from Russia badly. But I think that this is not the only reason for the closer tie between two countries. Is there is deeper agenda that we do not know of? Is there a military component in the talk between the presidents of two countries? For sure the closer relationship will undermine the importance of  United States and its sinking currency. A new economic superpower is slowly emerging in the East which will surpass United States soon if Japan is attracted to the union of China and Russia.

Omitted in the headline everywhere is this:

China + Russia > US in military and in economics. It may not happen now. But it soon will be.

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