Trade Archive

France has suddenly and shockingly found itself in the middle of the Iraq maelstrom that it had managed up until now to avoid. With its armed forces engaged in the U.S.-led air campaign against the Islamic State group and a French citizen killed by the group’s sympathizers in retaliation, Paris’ policy in Iraq and the region beyond is being put to the test. In a recent statement, as succinct as it was scathing, Abu Muhammad al-Adnani, the spokesman for the Islamic State group (also known as ISIS), called on the group’s recruits and supporters to target France and its citizens […]

Earlier this month, the United Kingdom and China announced the upcoming issuance of a U.K. government bond denominated in yuan, making the U.K. the first Western government to borrow in China’s currency. British and Chinese authorities noted that the funds raised by the bond will be used to add yuan to the U.K.’s foreign exchange reserves. While there was no indication as to how much London was looking to borrow, the move alone is a significant milestone for Beijing. Five years ago, the yuan had virtually no presence outside of China’s borders. But each year since, the currency has taken […]

On his visit to Vietnam in mid-September, Indian President Pranab Mukherjee assured his hosts that India would always be their “all-weather friend.” While some may read too much into the timing of that statement, delivered on the eve of Chinese President Xi Jinping’s trip to India, agreements signed by India and Vietnam on energy and defense during Mukherjee’s visit are certain to get Beijing’s attention. After all, they come at a time when China and Vietnam have renewed negotiations over their maritime disputes in the South China Sea and as India pushes back against China’s plans for maritime expansion across […]

In July, just days before a New York court ruling put Argentina in default on a $539 million payment to creditors, Argentine President Cristina Fernandez de Kirchner signed an agreement with Chinese President Xi Jinping whereby China would loan Argentina $11 billion worth of yuan, which the latter could use to either bolster its currency reserves or pay for imported Chinese goods. The first installment of $1 billion is expected by year’s end, according to the Buenos Aires daily La Nacion. The currency swap deal, as well as a secretive deal for a Chinese satellite-tracking station in Argentina, have drawn […]

China pledged investments worth $20 billion to India and the two neighbors signed more than a dozen agreements and committed to settling their contentious border disputes during Chinese President Xi Jinping’s maiden official visit to India, which began Wednesday and ends today. Over the next five years, China promised to help India upgrade its rail system and put in place high-speed train corridors. It has also promised to invest in roads and two industrial parks in Gujarat and Maharashtra states, and to give more market access to products from India. The two nations called for better people-to-people ties and more […]

Thanks to its comprehensive democratization and its “Miracle on the Han,” which transformed the Republic of Korea into a developed country, South Korea has realized its aspirations to become a major international player. Nonetheless, the persistent threat from a perennially belligerent North Korea, along with the challenge of having three of the world’s most powerful countries as neighbors, continues to constrain South Korea’s global opportunities. Foreign Policy Although South Korean foreign policy cannot ignore its northern neighbor, the absence of any real movement in bilateral ties has meant that Seoul’s relations with Washington, Beijing and Tokyo have seen the most […]

China’s initiative to establish a “Maritime Silk Road,” which would connect China to Europe through new and upgraded ports and maritime infrastructure, received a boost this week when Singaporean Prime Minister Lee Hsien Loong backed the plan. In an email interview, Geoffrey Wade, visiting fellow at the Australian National University College of Asia and the Pacific, discussed China’s goals for the Maritime Silk Road initiative. WPR: What is the proposed route of China’s Maritime Silk Road, and how have potential partners responded to the plan? Geoffrey Wade: The “21st-century Maritime Silk Road” is a rhetorical construct promoted by China since […]

Indian Prime Minister Narendra Modi’s visit to Japan in the first week of September generated huge expectations in both New Delhi and Tokyo. During Modi’s first bilateral visit outside the subcontinent, Tokyo and New Delhi agreed to upgrade their annual strategic dialogue to the level of foreign and defense ministers. Tokyo also lifted its ban on six Indian firms involved in defense research and development, which dated back to India’s 1998 nuclear weapons tests, paving the way for the transfer of Japanese military technology to India. Japanese Prime Minister Abe also assured Modi that Japan will invest around $35 billion […]

Last week, Cuba announced significant restrictions on the number of goods travelers can bring into the country. In an email interview, William LeoGrande, professor of government in the School of Public Affairs at American University, discussed the recent Cuban import restrictions. WPR: What is the motivation behind Cuba’s recent implementation of import restrictions? William LeoGrande: Cuba’s new import regulations limiting the goods that travelers can bring into the country in their luggage are aimed at preventing what used to be imports for private consumption—gifts for family and friends—from becoming imports for commercial businesses. In the past two years, the rapid […]

Australian Prime Minister Tony Abbott’s visit to India last week highlighted the two countries’ increasingly complementary geoeconomic objectives. The visit saw the conclusion of a much-delayed bilateral civil nuclear cooperation agreement that paves the way for uranium exports from Australia’s high-quality mines to fuel India’s ambitious nuclear energy plans. While in value terms future Australian uranium exports may not seem like much, they will actually enable India to undertake its next wave of industrialization in a more carbon-competitive manner, and that in turn will fuel massive demand for other Australian mineral exports. The strategic nature of the India-Australia alignment is […]

In late July, State Grid Corporation of China—the world’s largest state-owned electric utility company—bought a 35 percent stake in Italy’s CDP Reti for $2.8 billion. CDP Reti, itself a state-owned energy holding company, has its own 30-percent controlling stake in the Italian natural gas giant Snam and power grid company Terna, giving the Chinese company major interests in Italy’s energy market. State Grid’s Italian purchase added to a portfolio that includes a 25 percent stake in Portugal’s REN, which controls the two main Portuguese power grids. The purchases were the latest sign that Europe has become a battlefield for China, […]