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China under pressure to financially support Turkey
8:51PM AUGUST 15, 2018
China is under increasing pressure to provide more financial support for Turkey following calls for aid from President Erdogan as he defends his country’s economy from the fall out of its dispute with the US.
China has been seeking closer ties with Turkey including advancing loans for development.
But it has been cautious so far in becoming publicly involved in the latest dispute between Turkey and the US, possibly wary of further inflaming its own trade war tensions with the Trump Administration.
As the Turkish lira has plummeted and its stock market has been under pressure, President Erdogan said on the weekend that Turkey was looking for new economic alliances with other countries including China, Russia, Iran and some European countries.
The US has imposed sanctions on Turkey for not releasing an American Protestant minister being held on charges of helping terrorists.
Turkey’s refusal prompted President Trump to double the tariffs on US imports of Turkish steel and aluminium, a move which sparked off a plunge in its currency.
Russia’s Foreign Minister, Sergey Lavrov, visited Ankara this week, declaring that Turkey and Russia would take steps to “enhance strategic partnership”.
China’s President Xi met Prime Minister Erdogan on the sides of the recent BRICS summit in South Africa.
Turkish commentators have been open about the fact that they hope to see more investment and financial support from China.
“Turkey expects, and rightfully so, to have China as a major source of investment and technology for its own economy,” Altay Atli, a Turkish expert on the Asia Pacific Region at Sabanci University in Istanbul told Reuters recently.
“On the other hand, Turkey is important for China too, because it is located right at the heart of the Belt and Road initiative,” he said.
“It is a case of mutual benefits and both sides are eager to develop this further into the future.”
But commentators in Asia believe President Xi Jinping will stop short of any public bailout of the Turkish economy for fear of further angering the US.
Turkish media reported last week that the Bank of China’s subsidiary in Turkey would help issue loans to the government dominated in Chinese yuan before the end of the year.
This follows news that China’s state owned Industrial and Commercial Bank of China agreed to provide a $US3.6 billion loan package for the Turkish energy and transport sector.
China’s state owned shipping company, COSCO, owns 65 per cent of Turkey’s third largest port.
Writing in Asia Times this week, commentator David Goldman, predicted that Turkey’s economic problems will allow Chinese interests to expand their investments in the country cheaply at a low cost.
He predicted that Turkey would seek to raise more funds by selling off stakes in more assets including ports and other transport infrastructure.
“China has the opportunity to undertake the Sinification of Turkey at a low cost,” he said.
https://www.theaustralian.com.au/ne...y/news-story/d974d4c093dc0cc77731eaef18039157
8:51PM AUGUST 15, 2018
China is under increasing pressure to provide more financial support for Turkey following calls for aid from President Erdogan as he defends his country’s economy from the fall out of its dispute with the US.
China has been seeking closer ties with Turkey including advancing loans for development.
But it has been cautious so far in becoming publicly involved in the latest dispute between Turkey and the US, possibly wary of further inflaming its own trade war tensions with the Trump Administration.
As the Turkish lira has plummeted and its stock market has been under pressure, President Erdogan said on the weekend that Turkey was looking for new economic alliances with other countries including China, Russia, Iran and some European countries.
The US has imposed sanctions on Turkey for not releasing an American Protestant minister being held on charges of helping terrorists.
Turkey’s refusal prompted President Trump to double the tariffs on US imports of Turkish steel and aluminium, a move which sparked off a plunge in its currency.
Russia’s Foreign Minister, Sergey Lavrov, visited Ankara this week, declaring that Turkey and Russia would take steps to “enhance strategic partnership”.
China’s President Xi met Prime Minister Erdogan on the sides of the recent BRICS summit in South Africa.
Turkish commentators have been open about the fact that they hope to see more investment and financial support from China.
“Turkey expects, and rightfully so, to have China as a major source of investment and technology for its own economy,” Altay Atli, a Turkish expert on the Asia Pacific Region at Sabanci University in Istanbul told Reuters recently.
“On the other hand, Turkey is important for China too, because it is located right at the heart of the Belt and Road initiative,” he said.
“It is a case of mutual benefits and both sides are eager to develop this further into the future.”
But commentators in Asia believe President Xi Jinping will stop short of any public bailout of the Turkish economy for fear of further angering the US.
Turkish media reported last week that the Bank of China’s subsidiary in Turkey would help issue loans to the government dominated in Chinese yuan before the end of the year.
This follows news that China’s state owned Industrial and Commercial Bank of China agreed to provide a $US3.6 billion loan package for the Turkish energy and transport sector.
China’s state owned shipping company, COSCO, owns 65 per cent of Turkey’s third largest port.
Writing in Asia Times this week, commentator David Goldman, predicted that Turkey’s economic problems will allow Chinese interests to expand their investments in the country cheaply at a low cost.
He predicted that Turkey would seek to raise more funds by selling off stakes in more assets including ports and other transport infrastructure.
“China has the opportunity to undertake the Sinification of Turkey at a low cost,” he said.
https://www.theaustralian.com.au/ne...y/news-story/d974d4c093dc0cc77731eaef18039157
