The Pandemic — Day by Day

Moscow Takes Offence at Beijing’s Pragmatism

 

 

The pandemic coronavirus is affecting the relationship of the leading geopolitical countries — China and Russia — in one way or another. This is confirmed by Moscow’s eloquent and rather emotional reaction to such relationship. Thus, the moderate in its political analyzes Russian Novaya Gazeta on April 28, 2020 published the article about some changes in relations between Chinese affiliates and some leading Russian companies owned by billionaire Oleg Deripaska. The material includes leading figures of Russia’s current political and business establishment, who influence not only the Russian economy, and politics, but the market economy of the world. The Russian financial structures’ relations with China characterize the general trends in the distribution of spheres of influence and geopolitical priorities of these countries, but over time visible became metamorphoses unexpected for Moscow. Chinese assurances of a “traditionally strong” friendship with Russia have been called into question because, as it turned out, it was nothing more than a disguise, which in reality was covering the predatory interests of the Celestial Empire. That is, the Chinese friendship with neighbouring Russians has its own clearly defined boundaries and is set exactly where China’s great geopolitics begins.

Note:

Oleg Deripaska is a Russian businessman of Ukrainian Cuban origin, owner of the “Basic Element” Holding, billionaire.

In the portfolio of his core group, the “Basic Element”, there are the Russian economy’s flagships: “GAZ” (Russia’s second-largest carmaker), “Ingosstrakh” (the country’s oldest and largest insurance company), “Eurosibenergo” (operates the two largest in Siberia companies-energy producers), “Glavmosstroy” (the largest construction holding company in Moscow and Moscow region), “Bank Soyuz” (one of the 30 largest Russian banks by assets).

Describing the general situation that arose in the world during the epidemic of the coronavirus, the Russian newspaper reports that today in Russia, as in other countries, the material support of hospitals and their equipment with modern technological equipment is being checked, the effectiveness of national virology and pharmacology is being analyzed. That is, countries and their health care systems are being tested for infrastructural and functional efficiency.

…The Chinese friendship with neighbouring Russians has its own clearly defined boundaries and is set exactly where China’s great geopolitics begins…

As for the closure of productions and interstate borders in the world, it has struck a blow to the globalization of economies, severed the supply chain, affected the processes of value creation. First of all, in China. Of course, if spare parts from quarantine-closed factories in Hubei are not sent to production facilities, conveyors in other countries will automatically stop.

Speaking about the coronavirus testing, for all states, it is, first of all, a test of their ability to make comfortable the lives and health of their citizens. And it is nothing more than a test of trust, both between members of the society and the state, and between states, reminds Novaya Gazeta.

As for the aforementioned bilateral relations, the article states that billionaire O. Deripaska has been considered one of the most active supporters of Russian relations with China for the last 20 years. In many international forums, from Davos to APEC, he defended China’s priorities and acted as the main Russian partner for the Chinese in Asia. The newspaper stresses though, that already then, many influential Russian moderate politicians and economists insisted that Russia should choose some other strategic partner in the region — South Korea or Japan, or even India.

Following the introduction of the USA’s economic sanctions against Russia in 2018, Chinese business, on the urgent recommendation of their authorities, began without hesitation to break business ties with Russian partners. For the Russian side, it came as a shock: business cooperation on the Chinese initiative stopped the very next day after the announcement of the said sanctions. At the same time, not a single Russian company, not a single Russian bank could access credit lines in China. The Chinese attributed this to fears of secondary sanctions on Washington’s part, and Chinese counterparts transparently hinted to their Russian colleagues that the Chinese leadership was targeting the US market with access to US finance and technology.

…China was first of all interested in Russia as a strong military power that could in some ways geopolitically pressure Washington…

As part of the well-known strategic triad on the export of scientific ideas, people and capital, in the pre-pandemic times, China was sending 300–400,000 students, graduate students and researchers to US universities every year. Russia is uncompetitive in this regard, as compared with the United States. Therefore, China’s policy is quite rational, pragmatic, but it, in the Russia’s view, cannot be considered a partnership. China was first of all interested in Russia as a strong military power that could in some ways geopolitically pressure Washington, which is beneficial for Beijing with its activity in the South China Sea.

In the view of the Russian newspaper, the strategic plans and calculations of the Chinese leadership have largely failed to materialize. After all, for the last three years, D. Trump’s administration has been waging a fairly successful trade and economic war with China. The USA has imposed a 350 billion US dollars duty on Chinese goods, banned Chinese electronics purchases, and blocked exports of high-tech components to the Chinese economy.

In parallel, Washington has unleashed a real ideological war against the Communist Party of China (CPC), accusing it of concealing credible information about the Wuhan tragedy. The English-language resources of the world today are calling COVID-19 the CPC virus, hinting on the Chinese leadership’s involvement in the global spread of the virus and the fact that it has hidden the truth about the early stages of the Wuhan epidemic.

Assistant to the US President Peter Navarro reminded that Beijing, being already aware of the pandemic disaster, in January–February 2020 bought around 2 billion packs of medical masks worldwide at a price of 50–60 cents. This caused a shortage of masks in many countries. And today, Beijing sells them to the same countries, but at a price of 6–7 US dollars.

Note:

Peter Navarro — an American economist, Professor of Economics at the Paul Merage School of Business, University of California, Irvine. Advisor to the President of the United States, Director of the White House’s Office of Trade and Industrial Policy. Member of the US Democratic Party.

In early April, the authoritative Voice of America reported that in January and February 2020 P. Navarro in his official notes was warning the US administration about disastrous consequences of a possible coronavirus outbreak in the USA. Today they have been published by several American editions.

In late January 2020, when more than 4,000 people in the Chinese city of Wuhan were infected with the virus, P. Navarro suggested that 543,000 Americans could die from the COVID-19 outbreak. A month later, he wrote another memo warning of the likelihood of more casualties — 1 to 2 million Americans.

…Back to the relations between Russia and China in the face of overcoming the pandemic and the inevitable recession of the economy. As you know, the Russian side has aired some discontent to China. In particular, it calls the current state of economic and political relations nothing more than a test of the strength of Beijing’s true partnerships with foreign businesses. Like the Russian proverb has it: “a friend in need is a friend indeed”.

But the reason for the Russian billionaire’s discontent was China’s selling medical masks, glasses, isolation gowns and other special protective equipment to his enterprises in Russia. Namely, the Chinese partners have tripled the price as compared with the contract price. After the Russians paid the new price for the purchased goods and loaded them on board the plane, the Chinese demanded an additional tax, which was “just established” to prevent the export of extremely important goods from China.

Most of all the Russians were outraged by China’s peremptory actions and tough financial demands to “brotherly” Russia, not to its economic and geopolitical enemy — the United States. The Chinese did not even try to justify themselves, but simply referred to “critical times”.

The publication ends with a hidden threat to China. Probably, Moscow wants the Chinese “brothers” not to forget that hard times are ahead, and all countries will have to overcome the “long distance” due to the common disaster — coronavirus. The latter will show “who is who” in this world and the true weight of diplomatic talks about strategic goals and true values of modern states, China and Russia included.

…China keeps imitating good neighborly relations with Russia, while gradually incorporating its Far Eastern territories and Siberia…

As for Russia’s prospects in case of a sudden deterioration in relations with China, they can be catastrophic, given the Russians’ having nearly lost their Far East and Siberia. In the event of a worsening military and political situation in those regions and the threat of a military conflict, Russia will hardly be able to find an adequate response to Chinese expansion. These regions are already populated mainly by the Chinese and are economically tied to China.

The PRC keeps imitating good neighborly relations with Russia, while gradually incorporating its Far Eastern territories and Siberia. Which can hardly save Russia’s “imperial” lands from disintegration. During the pandemic, the Chinese authorities have taken tough measures against Russia without sentiment, having shattered Russians’ hope for friendly interstate relations.

 

Схожі публікації