Thursday, July 14, 2005

The 2nd Cold War Continues

Looks like China is winning the Second Cold War against the USA and its ally Japan, scoring at least 3 more points:

(1) Both Japan and China have lobbied Russia to direct its Siberian oil pipeline to their countries (for Japan, the Pacific coastline of Russia). In fact late year Russia had agreed to the Japanese request after Tokyo offered to extend some $12 billion to help finance the project.

But cash-rich and oil-thirsty China raised the ante and offered Moscow more than $13 billion. It appears that was only one factor that cinched the deal. The other has been a closing of ranks by China and Russia as both see the USA and Japan as the opposition.

So Russian President Vladimir Putin was fairly upfront with Russian strategic proclivity by saying after the G8 Summit that he will prioritize China over Japan as the recipient of oil supplies with the eastern Siberian pipeline. Tokyo had been fairly worried that the oil supplies would go to China first. Its fears are now realised.

China will get 20 million tons per annum while Japan will receive half of that. Japan is sulking by stating that it may not help finance the project.

(2) China has signed a fairly lucrative oil deal with Nigeria – for details read this.

(3) Promoting a regional bloc known as the Shanghai Cooperation Organisation (SCO), comprising China, Russia, Khazakhstan, Tajikistan, Uzbekistan and Kyrgyzstan, China intends to prevent the US from encircling her, and keep American influence away from the strategically important central Asian region. Five of the members are oil-rich, which makes China a very happy member.

Already Uzbekistan and Kyrgyzstan, both of which have US military presence currently, have pointedly told the Ameicans to buzz off. The Chinese and Russians intend to keep the USA out of central Asia.

Related posts:
The Second Cold War
(2) US Ambassador for Oil
(3) Strategically Important Krygyzstan
(4) China – One Hell of a Market!
(5) US Laying Grounds for Kurdistan?
(6) USA vs China – The Fight for Black Gold

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