Britain’s ban on China’s global television network is a hostile and misguided move that will lead to retaliation from Beijing
By Tom Fowdy | RT | February 4, 2021
The UK communications regulator Ofcom has revoked the license of China Global Television Network (CGTN), banning it from broadcasting in the country. The channel, which was due to set up its new European headquarters in London, is accused of being editorially controlled by the country’s ruling Communist Party and thus violating broadcasting rules.
The UK has overplayed its hand with this vindictive action that demonstrates it is intent on following America’s anti-China foreign policy. When the strikeback comes, it will be more than just the BBC in Beijing’s crosshairs.
Just minutes after the Ofcom ban came through, China’s Foreign Ministry has asked the BBC to “apologise” for a report concerning Covid-19. This is a sign of things to come. In fact, it mirrors the same pattern of events from a year ago when Mike Pompeo, then US secretary of state, announced restrictions on Chinese media operating in the United States. This resulted in China expelling American journalists after having asked the Wall Street Journal to apologize for its coverage. The move, however, is clearly a political one, and undoubtedly a huge provocation in UK-China ties, and one which is bound to have enormous consequences, especially for the BBC’s content and coverage within China itself. The announcement comes conspicuously just a week after Beijing had declared non-recognition of UK British National Overseas (BNO) passports over controversy surrounding a migration plan for Hong Kongers.
And here’s what Britain doesn’t seem to realize. Whilst it is true that the media environment within China is tightly controlled, reciprocity matters nonetheless. The BBC is still operating and broadcasting in China, even if its reports are subject to some censorship. As a result, it is almost guaranteed that Beijing will take some form of reciprocal action, and given the BBC’s incredibly politicised coverage of China of late, it seems untenable that they wouldn’t.
Pompeo last year launched an assault on Chinese media operating in the United States. He implemented visa restrictions, demanded they reduce their numbers and made them register as diplomatic overseas missions. What even he didn’t do, however, despite his fanatical approach to Beijing, was kick them out completely or deny them a presence in America. He understood at the very least that freedom of speech was a staple of American values and that irrespective of differences between political systems, how a country’s media was treated was a medium of diplomacy. Therefore reciprocity, the idea of “tit for tat,” matters. Pompeo knew if he pushed too hard, American journalism within China, already walking on eggshells, would be finished altogether.
Not surprisingly, China retaliated. However, its diplomatic style was indirect, as opposed to explicit. Not long after Pompeo’s announcement, Beijing took issue with the Wall Street Journal, over a headline describing the country as “the sick man of Asia,” which it deemed to be derogatory, and demanded the publication apologise. The Journal did not, and so Beijing expelled a number of its reporters as punishment.
The timing of this UK-Sino row is not a coincidence. Beijing is already frustrated with the BBC behind the scenes, but because of diplomatic considerations chose to do nothing about it. As the above illustrates, a nation cannot simply expel journalists without justification – even China knows this. To do so is to violate a norm. History is already repeating itself.
However, Beijing is increasingly unhappy with the BBC. The broadcaster has been persistent in driving forwards the narrative on issues such as Xinjiang, including commissioning a report on allegations of forced labour which led to US sanctions against the cotton sector, and then yesterday producing a graphic set of interviews whereby Chinese authorities were accused of systematic sexual abuse of the Uyghur minority. For the sake of its relationship with London, Beijing has to date acted with restraint.
However, because the UK has acted first, China now has a political casus belli to take retaliatory actions targeting journalists who consistently broadcast unfavourable or misrepresentative stories about its internal affairs. The BBC is unquestionably on the top of that list, and Beijing’s demand for an apology from it shows what lies ahead.
Inevitably, the BBC will refuse and insist that its coverage is accurate and impartial, as it always does. Thus, like what happened with the Wall Street Journal a year ago, Beijing will close the doors on them in some way, reciprocating Britain’s action in banning CGTN. This may involve expelling a correspondent or removing the BBC’s right to appear on Chinese television altogether.
It is likely to go a lot wider than tit-for-tat media strikes. This sets UK-China relations on a collision course, affirming a growing view in Beijing that the UK is now a hostile country, intent on following America’s anti-China foreign policy. This will inevitably involve China subjecting Britain to the same harsh treatment it has meted out to Australia and Canada, involving sanctions on goods and the like.
Given that there were other options before banning, the UK has definitely overplayed its hand with this. Even Pompeo, of all people, knew better than to ban CGTN completely.
Tom Fowdy is a British writer and analyst of politics and international relations with a primary focus on East Asia.
Beijing hopes Washington will follow China’s lead and invite WHO to the US in search for origin of Covid-19
RT | February 2, 2021
The Chinese Foreign Ministry has urged Washington to invite the WHO to conduct traceability testing in the US, citing the fact the American authorities found Covid-19 antibodies in blood donations as early as December 2019.
Speaking on Friday, Chinese Foreign Ministry spokesman Wang Wenbin told reporters that Beijing has always maintained close communication and cooperation with the World Health Organization (WHO) on Covid-19 traceability, and he said it was time the US followed suit.
“I hope that the United States will adopt a positive, scientific, and cooperative attitude on traceability issues, as well as maintain transparency, like China, and invite WHO experts to the United States to conduct traceability research and make positive contributions to international anti-epidemic cooperation and scientific traceability.” Wang said.
The spokesman told reporters that traceability testing was a very complex issue, with many clues, reports and studies needing to be taken into account.
“I will give you an example. According to a research report by the US Centers for Disease Control and Prevention, there were antibodies to the new coronavirus in some American blood donations in December 2019. This means that the new coronavirus may have appeared in the United States at that time, earlier than the official US report,” Wang stated, reinforcing Beijing’s call for Washington to invite the WHO to America.
Wang continued to point out that China has conducted multiple rounds of in-depth exchanges and shared a lot of information and research results with international partners, including the WHO.
WHO experts are currently in China investigating the source of Covid-19, and they visited a wet market in Wuhan on Sunday. It has been widely suggested that a Chinese wet market was the environment where Covid-19 first passed to humans.
Scientists are still exploring a number of theories relating to the origins of the virus.
Military coup in Myanmar a blow against the Biden regime
By Lucas Leiroz | February 2, 2021
This week, news of a coup in Myanmar shocked international society. Official statements by the UN and several Western governments condemning the attitude of the Burmese military in overthrowing Aung San Suu Kyi and its allies are sharing space in public opinion with neutral statements that only call for the country’s stabilization, as was the Chinese position. Between having been dangerous to democratic institutions or merely changing the government by armed means, there is a range of different possibilities, making the case worthy of a technical and impartial analysis.
The events of February 1, 2021 can be summarized as follows: Burmese State Adviser Aung San Suu Kyi, who heads the country’s government, and President Win Myint were detained by the Burmese army, under extremely obscure circumstances. Previously, tensions between the government and the military of this Asian country had been growing, generating fears of a coup in some sectors of Burmese society – however, such a quick and incisive attitude on the part of the military was not expected by the population.
The root of the conflict of interest between the government and the military was, in short, the last electoral process, which the Army classified as fraudulent and illegal. As a result of the crisis, the country’s political leader was arrested, in what was considered a coup by the media and some foreign governments. Some regional ministers were also captured by the military, as well as several other government’s allies. Citizens’ reports attest that military personnel are spread throughout the country’s streets, carrying out patrolling services and avoiding possible riots.
The military’s distrust of the electoral process is due to several factors. The election was held on November 8 and was the second general election since the end of the military government in 2011. Since the fall of the military, a scenario of tension of interests has been established among the civil political elite, interested in the preservation of democratic institutions, and the military elite, interested in conserving their power and continuing their national project. The country’s ruling party, the National League for Democracy (NLD), led by Aung San Suu Kyi, won by an immense advantage, getting 396 seats out of a total of 476. On the other hand, the Union, Solidarity and Development Party, supported by the Army, took the minimum number of seats in Parliament, which further aggravated the rivalry.
The speech of the Burmese military since the elections was unique in stating that there was large-scale electoral fraud. For this reason, the military had been demanding for months that the government postpone the summons to Parliament, which was scheduled for February 1 – which did not occur, resulting in the coup. Before that, representatives of the Burmese Government and Army met to resolve the conflict but were unable to reach an agreement of common interest.
Previously, in the midst of such fears of a possible anti-democratic coup, the country’s military has on several occasions denied the intention to do anything in this sense, categorically claiming that these accusations were unfounded and disseminated by a pro-government media. However, there are reports that the commander of the armed forces, Min Aung Hlaing, said on January 27 that the national constitution could be repealed if the laws were not properly implemented – and this in fact happened.
However, it would be naïve to believe that this event has no sign of external interference. In fact, a polarized political scenario has been outlined in Myanmar for years. Historically, the military has sympathy with China and Democrats sympathize with the West. Last month, Min Aung Hlaing and the head of Chinese diplomacy, Wang Li, met to discuss the Burmese political crisis and the chief of the armed forces alleged electoral fraud in the November process.
Chinese interest in Myanmar is clear. Maintaining an allied government in a border country is extremely strategic for Beijing and avoids a greater degree of Western influence in its continental zone. Bilateral trade between China and Myanmar has always been intense, but it has declined with the rise of the recently overthrown government, whose pro-Western positions have weakened ties with Beijing. Also, due to the latest events of ethnic conflict and persecution of the majority Buddhist military against Islamic minorities, the West has imposed several sanctions on the Burmese military, which have been consented by the civilian government. It does not seem to be by chance that the Chinese reaction to the coup was limited to a request for both sides to resolve their differences, without any condemnation against the military.
If Chinese influence is real, the military coup in Myanmar can be interpreted as a test and a warning against Washington. Losing space on the Chinese border is unpleasant for American interests but, in the midst of a strong internal crisis, will Biden really react strongly or will his response be limited to mere notes of repudiation?
Lucas Leiroz is a research fellow in international law at the Federal University of Rio de Janeiro.
Russia ramps up natural gas supplies to China via Power of Siberia mega-pipeline
RT | February 1, 2021
Russian energy major Gazprom pumped more gas to China in January via the Power of Siberia pipeline than it had initially planned, boosting daily supplies by as much as 2.5 percent.
“The export of gas to China through the Power of Siberia gas pipeline continues to grow. Supplies regularly exceed Gazprom’s daily contractual obligations,” the company said in a statement, adding that the volume of gas delivery last month “was 2.9 times higher than in January 2020.”
The 3,000km (1864 mile) cross-border pipeline started official deliveries of Russian natural gas to China in 2019. The so-called eastern route’s capacity is 61 billion cubic meters of gas per year, including 38 billion cubic meters for export.
The agreement on gas supplies via the Power of Siberia pipeline was reached in 2014, with Russia’s energy giant Gazprom and the China National Petroleum Corporation (CNPC) inking a 30-year contract. It is Gazprom’s biggest-ever agreement and the first natural gas pipeline between Russia and China.
Gazprom exported some 2.3 billion cubic meters of gas along the route during the first eight months of 2020. It plans to boost exports by an additional six billion cubic meters.
Russia is set to further increase supplies of piped gas to China, including via the Power of Siberia 2 project. The latter pipeline entered the design stage last year, and will be capable of delivering as much as 50 billion cubic meters of gas once finished.
Gazprom intends to become China’s biggest supplier, making up more than 25 percent of gas imports by 2035.
Iraq grants $20bn projects to Chinese companies
MEMO | January 17, 2021
Iraq has given construction projects worth $20 billion in the southern province of al-Muthanna to a consortium of Chinese companies, an Iraqi official said on Sunday, Anadolu Agency reports.
“The projects include the construction of a power station and a factory for floors and porcelain with a production capacity of 32,000 m2 per day, and a factory for ceramic walls and façades with a capacity of 36,000 m2 per day,” Adel Al-Yasiri, the head of the al-Muthanna Investment Authority, said in a statement.
He added that an initial approval has been granted to establish the projects.
“The first phase of the projects amounts to $2 billion where two sites have been prepared near the Samawah refinery for the companies to complete the remaining procedures,” he said.
Other projects include the construction of a sanitary ware factory with a capacity of 360 m3 per day, a ceramic factory for accessories with a capacity of 108,000 m2 per month, and a factory for papers and 125 million cardboards per month.
China to strengthen military coordination with Russia
By M. K. BHADRAKUMAR | Indian Punchline | December 24, 2020
The joint aerial strategic patrol held by the air forces of Russia and China on December 22 over the Sea of Japan and the East China Sea makes a big statement in the geopolitics of the Asia-Pacific region. Chinese experts have hinted that such events could become “routine” in future.
The Chinese and Russian defence ministries made a joint announcement on the occasion Tuesday. China sent four nuclear-capable H-6K strategic bombers “to form a joint formation” with two of Russia’s famous Tu-95 bombers (NATO reporting name: “Bear”) to conduct the joint patrol as “part of annual military cooperation plan” between the two countries.
The announcement said the joint patrol “aims to further develop the China-Russia comprehensive strategic partnership of coordination in the new era, and enhance the level of the two militaries’ strategic coordination and joint operational capability to jointly safeguard global strategic stability.”
Curiously, only a month ago, on November 6, two Tupolev Tu-95MS strategic missile-carrying bombers of Russia’s Aerospace Force had performed a scheduled 8-hour flight over the neutral waters of the Sea of Japan and the north-western Pacific. Russia’s Defense Ministry said “At some sections of the route, the strategic missile-carrying bombers were escorted by Su-35S fighters.”

Russia’s Tu-95MS Strategic Bomber (Filephoto)
Clearly, the joint patrol with China was not an absolute must from the perspective of Russia’s national defence. But its optics and messaging mattered. This has everything to do with the regional setting with the US and its partners stepping up.
On Dec. 19, USS Mustin conducted a transit through the Taiwan Strait; on Dec. 20, Taiwan conducted a live-fire drill in the Pratas Islands (approx. 300 kms from mainland China) and plans to conduct another on Dec. 27. Pratas Islands are strategically located near the gateway to the South China Sea and are a waypoint for oil tankers and Chinese vessels en route to the Pacific Ocean.
Last week, Taiwan launched its first missile corvette, which the Taiwanese press described as an “aircraft carrier killer”, even as PLA Navy’s first Chinese-made aircraft carrier, the Shandong, completed its third sea trial in a 23-day transit in the Bohai Sea.
Also this month, a US Navy Amphibious Ready Group (ARG) consisting of the USS Makin Island and USS Somerset (LPD 25) patrolled the South China Sea and conducted “unscripted” live-fire drills. The Chinese state-run newspaper Global Times angrily called the ARG “US muscle-flexing actions” that “could damage regional stability,” and commented that “China should be prepared to confront the US in the South China Sea and the Taiwan Straits no matter who sits in the White House.”
Japan has bestirred itself lately, inviting like-minded Western countries to send military units to the Far East signalling that they are united in seeking a free and open Indo-Pacific region. The US, French and Japanese navies conducted integrated exercises in the Philippine Sea in December focusing on anti-submarine warfare; another joint military exercise is planned for May on an outlying Japanese island; the UK plans to send an aircraft carrier strike group to conduct joint exercises with the US Navy and Japanese Maritime Self-Defense Force (JMSDF) early next year.
The Japanese Defense Minister Nobuo Kishi held talks last week with his German counterpart Annegret Kramp-Karrenbauer where he “expressed hope that a German vessel” would join exercises with the JMSDF in 2021 and “suggested it would assist the international community’s efforts to ensure the right of passage of vessels through the South China Sea if the German warship would traverse waters” over which Beijing claims jurisdiction.

Taiwan Navy’s first stealth ‘carrier killer’ corvette Tuo Jiang
Amidst all this, the US’ Naval Service released an integrated maritime strategy designed to take a “more assertive (approach) to prevail in day-to-day competition (with China) as we uphold the rules-based order and deter our competitors from pursuing armed aggression.” Also, the US secretary of the Navy has called for the reestablishment of the 1st Fleet, a numbered Navy fleet, “in the crossroads between the Indian and the Pacific oceans.”
On Dec. 18, the US began building on the second Quad Foreign Ministers’ Meeting in October by organising a virtual “Quad” meeting of senior diplomatic officials from the US, Australia, India and Japan. The US State Department readout said the four countries discussed “practical ways … to coordinate efforts to support countries vulnerable to malign and coercive economic actions in the Indo-Pacific region.”
There is much speculation about how the [prospective] Biden administration will approach the Indo-Pacific. So far, Biden has not mentioned Quad, but he uses the phrase “Indo-Pacific.” But instead of discussing a “free and open” Indo-Pacific (as Trump does), Biden uses the phrase “secure and prosperous.”
To be sure, given the high stakes involved, China and Russia will not take chances. Their joint aerial patrol Tuesday reflects common concern over the region’s strategic stability. Both countries take note of growing interference by extra-regional powers inciting frictions, potentially posing a major threat to regional peace. Meanwhile, the US is deploying anti-missile systems and keeps talking about a NATO-like military alliance in Asia.
In sum, the joint patrol signals that China and Russia are “the linchpins of peace and stability in the Asia-Pacific region and Eurasia. They have no intention to challenge the regional order. They are propelled to respond to external powers which threaten regional security”, as a prominent think tanker at the Institute of Russian, Eastern European and Central Asian Studies under the Chinese Academy of Social Sciences, Yang Jin, put it.
Chinese pundits have discussed the pros and cons of a Sino-Russian military alliance, the consensus opinion being that in the prevailing security environment, the existing format of strategic partnership serves the purpose of meeting common challenges while giving flexibility to serve the self-interests each side. Having said that, military alliance also remains “a last option for the worst situation – when the US or another country launches a war that forces China and Russia to fight side by side” — to quote Yang.
An editorial in the Chinese Communist Party daily Global Times noted, “China and Russia have no intention of forming a military alliance because it cannot resolve the comprehensive challenges the two countries have to face” but the pressure from the US and its allies have “provided an important external impetus” to the strengthening of the comprehensive strategic cooperation as such, including military cooperation.
“As long as they cooperate strategically and jointly deal with challenges, they can generate effective deterrent, form a joint force to deal with specific problems, resist the attempts to suppress the two countries and curb the US’ international misconduct,” the editorial said.
The US-Russia-China triangle is sure to transform under the [prospective] Biden presidency if Washington sets sights on Moscow as the biggest threat to the US national security. Unsurprisingly, Beijing is signalling that the China-Russia strategic partnership should remain close and continue to be strengthened to handle increasing pressure from the US, even if Biden might ease tensions with Beijing.
This strategic emphasis is the leitmotif of an unusually lengthy report by Xinhua in the People’s Daily on the phone conversation between the State Councilor and Foreign minister Wang Yi with his Russian counterpart Sergey Lavrov on December 22.
Washington vetoes aid to Sri Lanka and paves the way for Chinese expansion
By Lucas Leiroz | December 22, 2020
Sri Lanka has become the scene of a new battle in the trade war between China and the US. The growth of the Chinese presence in the country has led Washington to a strong concern, materialized in Mike Pompeo’s visit to Colombo in October. But even the strong American pressure was not enough to prevent the advance of Chinese investments and this is taking the American government to a drastic measure: to cancel the development aid that it had promised to Sri Lanka.
The official statement about the end of the aid program came through the US Embassy in Colombo on Thursday, December 17. The Embassy confirmed that the Millennium Challenge Corporation (MCC) fund that had been approved for aid to Sri Lanka will now be redirected to other strategic partners. According to Washington, Sri Lanka showed a lack of involvement and interest in the alliance – which is due to the fact that it continued to cooperate economically with China, in parallel with the US.
This agreement was part of a cooperation program between the US and Sri Lanka established during the previous government of Ranil Wickremesinghe in the last year of his term. At the time, Wickremesinghe faced strong resistance at the congress due to the lack of transparency about the nature of the agreement. Its critics say the terms are unclear and claim that the program could simply be an excuse to guarantee American military advance in the region. The MCC, however, says it is a cooperation program whose sole purpose is to help reduce poverty in the Asian country, without any political or military interest related to it. Currently, MCC has partnerships of this type with approximately 30 countries in different regions of the planet, totaling more than 13 billion dollars invested in these programs. In the case of Sri Lanka, the agreement provided for an investment of 480 million dollars.
Although Washington denies the political nature of the agreement, it is clear that it is a financial aid in exchange for political support and international alignment. The very end of the agreement proves this: simply because Sri Lanka has ties with China, Washington canceled the agreement. As we can see, the interest in “alleviating poverty” seems quite secondary to the interest in isolating China economically in the global trade war.
Relations between the US and Sri Lanka have deteriorated greatly over the past few months. Gotabaya Rajapaksa’s government has been characterized by a moderately pro-Chinese stance, which was enough to irritate Americans. The Trump Administration went to the extreme of banning the entry of Sri Lankan Army Chief, General Shavendra Silva, into American territory. Shavendra Silva is considered a national hero in his country but has entered the Washington blacklist due to alleged human rights violations that would have been committed on the battlefield during the civil war. Obviously, it is fair to punish someone for violating human rights, but strangely this denunciation by Washington only appeared after the beginning of the deterioration of relations between the two countries.
The definitive point of tensions occurred in October, when Washington tried to “recover” Sri Lanka by sending Secretary of State Mike Pompeo to Colombo. During a 12-hour visit, Pompeo met with local authorities and made several public statements attacking China, saying that the only way for Sri Lanka to become a strong and sovereign country is through strategic cooperation with the US. On the same occasion, Pompeo said that Chinese behavior is “predatory”.
Also in October, US Principal Deputy Assistant Secretary Dean Thompson said that Sri Lanka needs to make some choices that would be necessary, albeit difficult – and said that such choices would be the only way to guarantee the country’s economic development. In other words, Thompson said that Sri Lanka needs to abdicate from relations with China in order to develop, which is absolutely unrelated to reality. China has already invested nearly 8 billion dollars in infrastructure projects in Sri Lanka. Colombo Port City and Hambantota Port are Chinese developments. Still, Beijing has been providing billionaire loans to Sri Lanka since 2005, with long repayment terms and even forgiving some debts. This is not the typical “predatory” behavior, much less seems that Sri Lanka’s abdication from ties with Beijing is a condition for development.
What happens, however, is that Washington continues to act with a war mentality. Sri Lanka accepts cooperation agreements with Washington and Beijing simply because it is a sovereign country with its own interests and does not want to take part in a trade conflict that does not concern it. Sri Lanka’s stance is sovereign and not aligned and the country will continue to make deals with any power that helps to deal with its main social problems. Washington will certainly put Sri Lanka on its blacklist from now on and impose sanctions and blockades, but it is the Americans who have the most to lose from it. Without American help, Colombo will seek even more Chinese support and Beijing will have a geographically strategic ally on its side, further reducing the American presence in Asia.
Lucas Leiroz is a research fellow in international law at the Federal University of Rio de Janeiro.
Iran, Pakistan open 2nd border crossing for trade surge
Press TV | December 19, 2020
Iran and Pakistan have inaugurated the second official border crossing for the transfer of goods and passengers.
The border point opened during a ceremony on Saturday, with Iran’s Minister of Roads and Urban Development Mohammad Eslami and the Pakistani Minister for Defense Production Zubaida Jalal attending the event.
The gateway connects Rimadan, located in Dashtyari country of Iran’s southeastern Sistan and Baluchestan Province, with Pakistan’s Gabd.
The Rimadan border crossing has a capacity for exporting and importing goods and transporting Pakistani pilgrims and tourists.
The border’s 70-kilometer distance with Gwadar port also enables Pakistani citizens to reach Iran’s strategic Chabahar port, from where they can travel by plane or train to Iran’s religious cities and tourist sites.
The connection of the Rimadan border with Pakistan’s Karachi port would pave the way for linking China and Southeast Asian countries to Eastern Europe.
In an interview with IRNA news agency, Iran’s Ambassador to Pakistan Mohammad Ali Hosseini said there was only one crossing, Mirjaveh-Taftan, on the 900-kilometer border between the two neighboring states.
So, he added, Iranian and Pakistani officials decided to open two more border gateways, Rimadan-Gabd and Pishin-Mand.
The envoy also stressed that the inauguration of Rimdan-Gabd border point will increase economic and trade cooperation between Tehran and Islamabad, reduce smuggling and improve the livelihood of border residents as well as the security situation along the common frontier.
Strategic Victory For China? US Drops Key Project Amid Sri Lanka’s Unrelenting Security Concerns
By Rishikesh Kumar – Sputnik – 17.12.2020
US Secretary of State Mike Pompeo paid a visit to Sri Lanka in October to coax the Gotabaya Rajapksa government to sign the Millennium Challenge Cooperation Agreement. A controversy erupted ahead of Pompeo’s visit, as the US called upon Colombo “to make difficult but necessary decisions” to pick sides between Beijing and Washington.
In a major setback amid the growing Chinese presence in the Indian Ocean Region, the US has decided to discontinue a proposed $480 million development assistance programme in Sri Lanka due to “lack of partner country engagement”.
The US Embassy in Colombo on Thursday informed through a press statement that the Millennium Challenge Corporation (MCC) board has decided that the approved fund for Sri Lanka will now be made available to other eligible partner countries.
The Millennium Challenge Cooperation Agreement was approved by the previous government of Ranil Wickremesinghe in the last year of his tenure, but he was unable to get approval from parliament, evoking widespread resistance among people who believed it compromised the nation’s sovereignty and national security.
Nevertheless, the US has once again reiterated that the programme, also facing resistance in another South Asian nation, Nepal, is transparent in nature.
“Country ownership, transparency, and accountability for grant results are fundamental to MCC’s development model”, the statement reads.The MCC has been dubbed a “development project aimed at poverty alleviation” by the US, but many people in Sri Lanka consider it a tool to expand military outreach in the Indian Ocean.
The MCC has partnered with nearly 30 countries worldwide on 38 grant agreements, totalling nearly $13.5 billion.
Ties between the two countries soured under the Gotabaya Rajapaksa government as the Trump administration considered it biased in favour of China. The Trump administration also introduced a ban on the entry of Sri Lanka’s Army Chief Lt. Gen. Shavendra Silva – who is considered a war hero in the 30-year battle against Tamil militancy – into the United States on charges of human rights violations.
In October this year, US Principal Deputy Assistant Secretary Dean Thompson urged Sri Lanka to make “difficult but necessary choices” to secure its economic independence instead of choosing opaque practices in an apparent reference to China deepening its relations with the South Asian country. Beijing reacted to the remark and asked the US to shun a “Cold War” mentality. China has invested nearly $8 billion in infrastructure projects in Sri Lanka, with Colombo Port City and the Hambantota Port Projects being the two major ones.
Pakistan returns $1 bln of Saudi Arabia’s loan over Kashmir dispute
MEMO | December 16, 2020
Pakistan has returned $1 billion to Saudi Arabia as a second installment of a $3 billion soft loan, as Islamabad reaches out to Beijing for a commercial loan to help it offset pressure to repay another $1 billion to Riyadh next month, officials said on Wednesday according to a report by Reuters.
Analysts say it is unusual for Riyadh to press for the return of money. But relations have been strained lately between Pakistan and Saudi Arabia, historically close friends.
Saudi Arabia gave Pakistan a $3 billion loan and a $3.2 billion oil credit facility in late 2018. After Islamabad sought Riyadh’s support over alleged human rights violations by India in the disputed territory of Kashmir, Saudi Arabia has pushed Pakistan to repay the loan.
With the $1 billion flowing out, Pakistan – which has $13.3 billion in central bank foreign reserves – could face a balance of payments issue after clearing the next Saudi installment.
“China has come to our rescue,” a foreign ministry official told Reuters. A finance ministry official said Pakistan’s central bank was already in talks with Chinese commercial banks.
“We’ve sent $1 billion to Saudi Arabia,” he said. Another $1 billion will be repaid to Riyadh next month, he said. Islamabad had returned $1 billion in July.
Although a $1.2 billion surplus in its current account balance and a record $11.77 billion in remittances in the past five months have helped support the Pakistani economy, having to return the Saudi money is still a setback.
Pakistani army chief General Qamar Javed Bajwa, who visited Riyadh in August to ease the tensions, met the Saudi ambassador in Islamabad on Tuesday.

