Al-Qaeda declares holy war on China over repression of Uighurs

According to this Bloomberg article, Abu Yahya al-Libi, the alleged successor to Osama Bin Laden has declared a holy war against the Chinese state for its repression of its Uighur.

Abu Yahya al-Libi has been quoted saying:

“The state of atheism is heading to its fall.”

“China will suffer the same fate as the “Russian bear.”

How China is going to deal with this new threat remains to be seen. Also, how Abu Yahya al-Libi plans to wage this holy war is far from clear. Foreign policy buffs describe some obvious concerns such as the growth of the Xinjiang-based East Turkistan Islamic Movement, which is based in the Taliban-rules areas of Pakistan.

This declaration of sorts comes on the heels of The July riots in the capital of Xinjiang which were the deadliest in China in decades. Bloomberg writes, “Al-Libi’s speech, entitled ‘East Turkistan, the Forgotten Wound,’ echoed complaints of the Uighurs that decades of government-sponsored migration to the province is making them a minority in their homeland.”

Personally, this blogger feels a threat such as a Pakistan based, anti-Chinese (Han) movement is not a major problem in the short-term, but it will no less force China to become more involved over the future of Afghanistan and Pakistan.

All eyes will be watching next week when members of Shanghai Cooperation Organization meet in Shanghai to discuss regional issues. This group includes China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan. Xinjiang, or East Turkistan, as many in the Muslim world refer to it lies at the heart of this grouping of Central Asian countries.

Click here to access Bloomberg’s article on this topic

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October fire sale! Russian credit & Rubles accepted

Rigzone reported today that a Russian oil consortium would not have the pay the $1 billion usd Venezuela had previously requested as a down payment in order to partake in tapping Venezuela’s Orinoco oil fields.

Instead, the Russian consortium will only have to pay $600 million usd. Sounds like a nice 40% bargain to this blogger. It’s a nice deal if you ask me, which coincidentally comes on the heels of Venezuela’s securing a large credit line from Russia to buy military equipment.

Orinoco Belt Regions – [Rigzone, 10-6-09]

According to this Dow Jones Newswire published by Rigzone,

The Chavez-led government has talked about plans for nearly $70 billion in oil investments over the coming years as this oil-rich nation seeks to ramp up dwindling production numbers and boost its sagging economy.

But so far, nearly all those plans are based only on memorandums of understanding, with no solid investment commitments from foreign oil companies.

Sounds like Venezuela is becoming increasingly hungry not only for foreign investment, but also to cement its relations with a geopolitical power like the Russian Federation.

Click here to read the newswire article from Rigzone, which I must admit does a far better job at detailing the situation than the concise, and slightly cynical analysis published here at China South America (CSA).

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Sinopec’s profit soars; announces plans to boost oversea expansion

Sinopec’s (a.k.a China Petroleum & Chemical Corp.) net income rose at least tenfold to 22 billion yuan ($3.22 billion usd) in the second quarter according to this Bloomberg article.

The company has also announced it is planning a “rapid” overseas expansion in order to secure energy supply adequate to feed Chinese demand.

[Sinopec I passed on a bus ride to Shanxi, October – 2006]

The announcement, along with the company’s record gains in profit come as other global giants in the energy industry such as Royal Dutch Shell and Exxon Mobil have seen their earnings decline as prices plummeted and demand waned when the global slowdown ensued at the end of 2008.

According to Bloomberg, Sinopec supplies 80% of China’s fuel needs and is China’s largest refiner of crude oil. The company is looking for new foreign partners, expand its refining capacity and reduce operational costs. The company expects demand will remain strong in China and that oil prices will continue to rise throughout the second half of the year.

Here are a few highlights from the Bloomberg article, “Sinopec to Boost Expansion Abroad After Profit Surges to Record,” which you can access in full by clicking here.

“Sinopec’s main business is refining and it needs to increase its oil reserves and reduce its reliance on other oil producers,” said Larry Grace, an independent oil analyst based in Hong Kong. “There’s a government directive to increase overseas oil and gas assets.”

…

Sinopec gets almost all its revenue from refining and the sale and distribution of fuels. Oil production accounted for just over 2 percent of sales, according to its 2008 annual report. The company imports about 80 percent of the crude it processes.

…

Su said the company will accelerate its “go global” strategy.

Parent company China Petrochemical Corp. said on Aug. 18 it had concluded the C$8.3 billion ($7.7 billion) acquisition of Addax Petroleum Corp. to secure reserves in Iraq and Africa. China Petrochemical has assets in Russia, Angola, Ecuador, Australia, Canada, Kazakhstan and Myanmar.

Sinopec’s parent completed the purchase of Tanganyika Oil Co. for about $1.8 billion in December. Vancouver-based Tanganyika holds stakes in two Syrian production-sharing agreements covering the Oudeh and Tishrine/Sheikh Mansour blocks after expanding from Tanzania in 1996.

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Newswire: South-South / Emerging Market Cooperation

[China – ASEAN] – China to Boost Cooperation With Asean on Investments – Bloomberg

China wants to boost cooperation with members of the Association of Southeast Asian Nations to develop trade and increase investment, said Chinese Commerce Minister Chen Deming.

[ASEAN] – Five Asean Nations May Form Rice-Trade Body, Thai Official Says – Bloomberg

Five Southeast Asian nations may set up a rice-trade association next year to cooperate in stabilizing rice prices, a Thai official said.

Thailand, Vietnam, Cambodia, Laos and Myanmar will also cooperate on other issues related to food security and production, said Chiya Yimvilai, a spokesman at a meeting of Asean economic ministers in Bangkok. The countries would also work together on developing rice products, he said.

[Venezuela – Russia] – PDVSA, Russian Group to Start $30 Billion Oil Venture – Bloomberg

Petroleos de Venezuela SA and a group of Russian oil companies plan to spend $30 billion on a joint venture in Venezuela’s Orinoco region.

The 40-year venture will seek to produce crude in the Junin 6 area and may expand to other Orinoco blocks, Russian Deputy Prime Minister Igor Sechin told reporters in St. Petersburg today after meeting with Venezuelan Vice President Ramon Carrizalez. Russian investors will include OAO Gazprom, OAO Rosneft, OAO Lukoil, TNK-BP and OAO Surgutneftegaz. The venture will be signed “in the coming months,” Sechin said.

[Mexico – Uruguay] – Mexico/Uruguay sign strategic association accord and advance trade – MecroPress

Mexico president Felipe Calderón and Uruguay’s Tabare Vazquez signed on Friday in Montevideo a Strategic Association accord to strengthen political dialogue and bilateral trade relations in the framework of the 2004 free trade agreement.

[Mexico – Colombia – Venezuela – Ecuador] – Mexico offers to mediate between Colombia and Venezuela and Ecuador – MecroPress
Mexican president Felipe Calderón on an official visit to Colombia offered his country’s mediation in the conflict between Bogotá and neighbouring Ecuador and Venezuela.

[Peru – Brazil] – Brazilian President to visit Peru to strengthen strategic alliance – Andina
The next arrival to Lima of Brazilian President Luiz Inacio Lula da Silva will contribute to create a new strategic alliance to face Asian markets when signing several trade agreements, the President of Peru-Brazil Integration Chamber Miguel Vega Alvear.

“The arrival of Brazilian President will strengthen the progress achieved up to now in this Peru-Brazil strategic alliance and it will create a new stage in which both countries can face Asia-Pacific markets,”

a2a_linkname=”Newswire – South South Emerging Market Cooperation”;a2a_linkurl=”http://chinasouthamerica.blogspot.com/2009/08/newswire-south-south-emerging-market.html”;

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Newswire: South-South Cooperation

[Peru – Brazil] – Eletrobrás sets sights on Peruvian generator – BNAmericas

Brazilian federal power holding company Eletrobrás (NYSE: EBR) is planning to buy a Peruvian generator to participate in an upcoming hydro auction in Peru, company CEO José Antonio Muniz Lopes told journalists. The executive declined to say which generator Eletrobrás was looking to acquire but said the purchase was essential for the Brazilian holding group to operate in Peru.

[Peru – Brazil] – Brazil, Peru Work Out Details of Hydro Plants – Latin American Herald

Energy ministers from Brazil and Peru announced details of plans for several hydroelectric plants to be built in the Andean nation, saying after a meeting that 80 percent of the energy generated by the stations would go to Brazil and the rest to Peru.

Both partners will have the right to sell their respective energy quotas to other South American countries, Brazilian Mines and Energy Minister Edison Lobao said Friday after a meeting in Rio de Janeiro with his Peruvian counterpart, Pedro Sanchez.

The first five power stations – to be built in Peru’s eastern lowlands at a cost of between $12-15 billion – will generate a combined total of 6,000 megawatts annually once they come on stream in 2015.

[Peru – South Korea] – Peru, S Korea examine tomorrow progress of APEC bilateral agreements – Andina

Peru and South Korea examine on Wednesday the progress of the bilateral agreements achieved by Presidents Alan Garcia and Lee Myung-bak during the summit of leaders of the Asia Pacific Economic Cooperation (APEC) held in Lima in November 2008, the Korean Embassy reported. “The agreement achieved last year includes mutual cooperation in oil, mineral and natural gas sectors”, the Ambassy reported.

[Peru – Japan] – Peru, JICA to invest US$ 23.3 million in 6 new docks in Peru – Andina

Peru’s Government and the Japan International Cooperation Agency (JICA) will invest 70 million soles (around 23.7 million dollars) in the construction of 6 new docks located along the Peruvian coast, reported today Production Minister Mercedez Araoz.

[Venezuela – Russia] – Russia Promotes “Energy Alliance” with Venezuela – Latin American Herald

Prime Minister Vladimir Putin said Tuesday he was ready to promote an “energy alliance” of global oil giants Russia and Venezuela, and confirmed his willingness to study Caracas’ requests for additional arms purchases.

Putin told Venezuelan Energy Minister Rafael Ramirez that Russia will employ “the most modern equipment and technologies” to carry out plans for cooperation with Venezuela in the oil and gas sector.

[Venezuela – Brazil] – Brazil To Export Coffee Immediately to Venezuela – Latin American Herald

The accord was struck by representatives of the ministry and the state-run firm Cafe Venezuela last Friday and represents $4.1 million in revenue for small producers and family cooperatives in southeastern Brazil.

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Newswire: South-South Cooperation

[Russia – Brazil] — Russia, Brazil to Buy $20 Billion IMF Bonds, Diversify Reserves

Russia and Brazil, seeking to reduce their dependence on the dollar, announced plans to buy $20 billion of bonds from the International Monetary Fund and diversify foreign-currency reserves.

[Brazil – Russia – IMF] — Brazil (and possibly Russia)to Buy $10 Billion of IMF Bonds, Mantega Says

Brazil will buy $10 billion of bonds issued by the International Monetary Fund to help the Washington-based lender provide financing to countries hurt by the financial crisis, Finance Minister Guido Mantega said.

“This is an investment that Brazil is doing with part of its reserves and making available financing so that the IMF may help emerging countries, especially developing countries which today face a shortage of capital because of the global financial crisis,” Mantega said.

Russia’s central bank said today it may cut investments in U.S. Treasuries, currently valued at as much as $140 billion, a week after China said it may reduce reliance on the dollar and U.S. bonds. Treasuries fell after Alexei Ulyukayev, first deputy chairman of Bank Rossii, said some reserves may be moved into IMF debt.

[China – Afghanistan] — Afghanistan to boost economic, security ties with China: Afghan FM

“Since the beginning of the new era in Afghanistan in late 2001,China has been among our most committed and generous friends,” Spanta, who is here for an official visit, told a seminar on Afghanistan’s role in the region.

China has been instrumental in regional consensus and international solidarity with Afghanistan, he said, noting China is also the largest investor in the war-hit country.

[China – Cameroon] — China vows to enhance friendly military co-op with Cameroon

The Chinese armed forces are willing to advance friendly cooperation with Cameroon, Chinese Defense Minister Liang Guanglie said here Wednesday.

The Chinese armed forces attach importance to its relations with Cameroon, said Liang, adding China is ready to work together with Cameroon to raise bilateral military ties of friendly cooperation to a higher level.

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Russia to host summit of BRIC countries

[South-South Cooperation]

Russia will host the first summit of leaders from the BRIC countries of Brazil, Russia, India and China – the largest four emerging economies of the developing world.

The meeting represents a important milestone for the BRIC countries which have been at the forefront of global growth and foreign direct investment in emerging market in recent years.

As developed nations work to repair the crumbling global financial system, the BRIC countries will be financing their deficits, this is especially the case for the United States. Naturally, the BRIC countries are demanding a bigger role in the process of rebuilding the global financial system.

”This trip will expand mutual trust, work toward solutions on how to tackle the financial crisis, and solidify economic ties among the BRIC nations,” Li said, using the common term that is an acronym of the first letters of the four countries’ names.

“Goooooooo Team!” — BRIC Leaders

Other highlights in the realm of South-South Cooperation which will come to pass in Russia next week during this little get together of the BRIC countries include:

– The 60th Anniversary of China-Russia Cooperation

– China and Russia will sign a variety of economic, trade and cultural cooperation deals during the visit

– The Shanghai Cooperation Organization, a China and Russia led organization of Central Asian States. The group includes the nations of Kazakhstan, Tajikistan, Kyrgyzstan and Uzbekistan.

Western observers, as reported by AP in this article, assert the group has served as a vehicle for Moscow and Beijing to limit Western influence in energy-rich Central Asia.

Personally, I don’t think Kazakhstan and Uzbekistan or any of those other countries mentioned above in Central Asia where at the top of the U.S. “to-do” list to woo until the war in Afghanistan. The comment no less holds true considering that times have changed.

– Leaders from Afghanistan, Mongolia, Pakistan and India have been invited and will attend the Shanghai Cooperation Organization as “observers”

That pretty much sums it up. Check back next week for more updates on this topic as the meet and greets begin in Russia. ChinaSouthAmerica will be keeping up to date and bring you all the drama as it unfolds.

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Newswire: Commodities with a added bit of South-South Energy Cooperation

[Uranium] — India Bids for Stakes in Russian, Kazakh Uranium Mines to Fuel Reactors
Nuclear Power Corp. of India is bidding for stakes in uranium mines in Russia and Kazakhstan, and offered to build reactors in central Asia, Chief Executive Officer S.K. Jain said.

“We’re trying to achieve stakes in mines,” Jain said today in an interview at a Moscow nuclear forum organized by Rosatom Corp., the country’s nuclear holding company. The company is discussing buying into sites including the untapped Elkon deposit in Russia’s Far East, he added.

India, which suffers peak power shortages of as much as 17 percent, needs uranium to fuel 28 planned reactors and meet a target of adding 40,000 megawatts of nuclear generation by 2020. The second most-populous nation will seek an annual 1,500 metric tons of uranium for 60 years to fuel new reactors, Jain said.

“We’re exploring the possibility of a long-term partnership and not only for uranium supplies,” he said. India proposed building 220- to 500-megawatt reactors in Kazakhstan, which doesn’t yet have any nuclear power plants, he added.

[Crude Oil] — Crude Oil Advances as U.S. Consumer Confidence Increases, Equities Climb
Crude oil rose to a six-month high after a report showed that U.S. consumer confidence jumped to the highest level since September, signaling demand may rebound.

[Copper] — Copper Climbs in N.Y. as U.S. Consumer Sentiment Jumps Most in Six Years
Copper prices rose in New York and London after a report showed U.S. consumer sentiment jumped this month to the most positive since September.

[Gold] — Gold May Climb to Record $1,250, Standard Bank Says: Technical Analysis
Gold may target a record $1,250 an ounce as a continuation head-and-shoulders pattern may be forming within a longer-term trend, Standard Bank Group Ltd. said, citing trading patterns.

[Platinum, Palladium] — Platinum, Palladium Fall in New York on Weak Auto-Industry Demand Outlook
Platinum fell the most in two weeks in New York on concern that auto-industry demand for the metal will take longer to recover than other parts of the economy. Palladium futures also declined.

[Corn] — Corn Falls as Dry Spell Allows U.S. Farmers to Accelerate Delayed Planting
Corn fell, erasing an earlier gain, on speculation that Midwest farmers accelerated plantings delayed by rain, improving prospects for output in the U.S., the world’s largest exporter.

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Democracy in Mongolia — Opposition wins elections

The transition of power in democratic countries is not always peaceful. That’s why ChinaSouthAmerica has taken a great interest in Mongolia’s presidential elections. Mongolia’s opposition Democratic Party candidate Tsakhiagiin Elbegdorj has won the presidential election, according to both sides in the campaign, reports Reuters.

** click here to view video (problems with embed)

Mongolia’s democracy is a mere 20 years old, so lets give this country sandwiched between communist China and Putin’s Russia, a nice round of applause.

*applause for Mongolia*

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Voters head to the polls in Mongolia

Mongolia is a country sandwiched between Asiatic giants of the People’s Republic of China and the Russian Federation. A tight race for president is underway. President Enkhbayar Nambaryn, the the incumbent from the Mongolian People’s Revolutionary Party is fighting for his political survival, against Elbegdorj Tsahia from the rival Mongolian Democratic Party

[CIA Factbook Background]

The Mongols gained fame in the 13th century when under Chinggis KHAN they established a huge Eurasian empire through conquest. After his death the empire was divided into several powerful Mongol states, but these broke apart in the 14th century.

The Mongols eventually retired to their original steppe homelands and in the late 17th century came under Chinese rule. Mongolia won its independence in 1921 with Soviet backing and a Communist regime was installed in 1924. The modern country of Mongolia, however, represents only part of the Mongols’ historical homeland; more Mongols live in the Inner Mongolia Autonomous Region in the People’s Republic of China than in Mongolia.

Following a peaceful democratic revolution, the ex-Communist Mongolian People’s Revolutionary Party (MPRP) won elections in 1990 and 1992, but was defeated by the Democratic Union Coalition (DUC) in the 1996 parliamentary election. The MPRP won an overwhelming majority in the 2000 parliamentary election, but the party lost seats in the 2004 election and shared power with democratic coalition parties from 2004-2008. The MPRP regained a solid majority in the 2008 parliamentary elections but nevertheless formed a coalition government with the Democratic Party. The prime minister and most cabinet members are MPRP members.

Mongolia has large deposits of copper, uranium and other commodities. Naturally, the question of how to spread the benefits of foreign investment in their countries natural resources is at the top of both candidates respective messages to the voters.

According to article from AP, about 50 election observers from 11 international organizations and embassies such as the U.S., Sweden and Japan monitored the balloting.

In this Reuters video, voters express their sense of frustration from shanty towns on the outskirts of are is heading to the polls

Hopefully things will progress a lot smoother than they did last year when Elbegdorj’s Democrats lost and he claimed fraud by election committees, which coincidentally are dominated by the ruling party. What followed was a “vodka-fueled riot that left five dead and 300 injured.” — AP

Click here to access a Reuters video which gives you a good overview of the situation.

This is the 5th election is for the new democracy which experienced a relatively peaceful uprising that brought down the pro-Soviet Union government in 1990. Internationally the country has come to be seen as a success story for democracy in a region dominated by authoritarian governments, reports AP.

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