China has a significant comparative advantage in green energy. Growing incentives for Central Asian countries to diversify their energy mix are creating opportunities for Chinese companies, with significant implications for Russia, as well as the U.S. and EU.
A note for Access newsletter readers from Jeremy Goldkorn.
The war in Ukraine provides an opportunity for the Middle Corridor to become an alternative to the Russian route. Initially, China has been hesitant to embrace the idea, but as the war protracts, the calculus is changing, and the Middle Corridor may be finally getting China’s attention.
Despite its greater presence in Central Asia, China will not displace Russia anytime soon.
Chinese Foreign Minister Qin Gang met with top officials from Central and South Asia last week. While China’s influence in the region is growing, so are its security concerns.
After months of speculation about a call between Xi Jinping and Volodymyr Zelenskyy, the two leaders finally talked today. The conversation was moral support for Ukraine, but Xi gave no indication that China’s tacit support for Putin would change.
China and Russia lauded the strength of their military cooperation this past week. But whether or not Beijing will offer military aid to Moscow in its war on Ukraine hinges on whether it serves China’s interests.
China, Russia, Pakistan, and Iran are losing trust in the Taliban’s ability to stop the expansion of militant groups in Afghanistan. For Beijing, its biggest fear is that instability will spill over into Xinjiang.
Russia, Saudi Arabia, Brazil, and even France are using the Chinese currency for international deals. But there are no signs of an end to dollar dominance.