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China's Hambantota Deal Is Bad News For Both Pakistan And India

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AUG 2, 2017 @ 03:35 AM 29,857 12 Stocks to Buy Now
China's Hambantota Deal Is Bad News For Both Pakistan And India

Panos Mourdoukoutas
, CONTRIBUTOR
signed early last week, which gives China Merchants Ports Holdings—an arm of the Chinese government--70 percent stake in the Indian Ocean’s prominent outpost.

The Hambantota port expansion begun with loans from China. But when Shri Lanka could not pay back the loans, Beijing converted these loans to equity, in essence turning Sri Lanka into a "semi-colony," as was the case with China’s own Southern ports after she lost a war with European powers--though in a subtle way.

The taking over of Hambantota by Beijing is bad news for both Pakistan and India -- for different reasons.

For Pakistan, the deal will serve as a model for the future of CPEC (China–Pakistan Economic Corridor), a huge transportation network connecting China to the Arabian Sea at Pakistan’s Gwadar Port. Like Hambantota, CPEC started with loans that will eventually be converted into equity, as it seems very unlikely Pakistan will ever be in a position to pay them back. This means that Beijing will one day own CPEC, and collect tolls from every vehicle that makes use of it.

For New Delhi, the Hambantota deal is bad news because it’s one more step to encircle and pacify India by Beijing. China’s enormous investment in CPEC, and port infrastructure in the Indian Ocean, serves much more than trade. It advances Beijing’s “String of Pearls” strategy, as well as its unofficial agenda to encircle India through its arch-rival, Pakistan.


To be fair, the Hambantota port will make it easier for India to trade with Sri Lanka. But it could also be used as a naval station for China should the two countries ever engage in a full-scale war.

Meanwhile, China’s growing presence in Sri Lanka undermines India’s efforts to influence the foreign policy of the country.

That could explain India’s efforts to contain China’s Indian Ocean agenda by forming alliances with US and Japan, and by performing a joint naval exercise in the Malabar in the Bay of Bengal last July.

Still, the prospect of a Pakistan debt problem or an open confrontation between India and China are very unlikely, at least for the time being. That’s why investors in the region have chosen to focus more on market fundamentals rather than on the geopolitics of the region, driving shares in all three country markets higher recently.

But that could change, if tensions between China and India’s new allies, America and Japan, continue to flare.

Index/Fund

12-month Performance

2-year Performance

IShares China (FXI)

19.19%

7.87.32%

Global X MSCI Pakistan (PAK)

2.12%

1.88

iShares S&P India 50 (INDY)

21.78

18.48%

Source: Finance.yahoo.com 7/28/2017

My recent book The Ten Golden Rules Of Leadership is published by AMACOM, and can be found here.
https://www.forbes.com/sites/panosm...ews-for-both-pakistan-and-india/#3d8410a1715b
 
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IMHO, hambantota won't be a mess like today if the sri lankan government didn't flip flop on the deal. The Chinese investors pretty pissed off when they keep delaying the already agreed deal just for political infighting, meanwhile, the debt keep incurring interest cost all while they delayed the project. It is like you borrow money from bank to open shop, but when you already have the money, you instead debating how best to use the money. Do you think the bank will stop counting the interest while you daydreaming on what to do with the money?
 
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Huh??? When did i ask you to report to me??? Or are you using a translator??? Who are you to decide i am relevant or not? Did you read the article??? If you read did you understand it???
He means No comment.
Of course.You should ask Chinese officials for questions.
For the Chinese.The government told us it was a trade route.
 
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AUG 2, 2017 @ 03:35 AM 29,857 12 Stocks to Buy Now
China's Hambantota Deal Is Bad News For Both Pakistan And India

Panos Mourdoukoutas
, CONTRIBUTOR
signed early last week, which gives China Merchants Ports Holdings—an arm of the Chinese government--70 percent stake in the Indian Ocean’s prominent outpost.

The Hambantota port expansion begun with loans from China. But when Shri Lanka could not pay back the loans, Beijing converted these loans to equity, in essence turning Sri Lanka into a "semi-colony," as was the case with China’s own Southern ports after she lost a war with European powers--though in a subtle way.

The taking over of Hambantota by Beijing is bad news for both Pakistan and India -- for different reasons.

For Pakistan, the deal will serve as a model for the future of CPEC (China–Pakistan Economic Corridor), a huge transportation network connecting China to the Arabian Sea at Pakistan’s Gwadar Port. Like Hambantota, CPEC started with loans that will eventually be converted into equity, as it seems very unlikely Pakistan will ever be in a position to pay them back. This means that Beijing will one day own CPEC, and collect tolls from every vehicle that makes use of it.

For New Delhi, the Hambantota deal is bad news because it’s one more step to encircle and pacify India by Beijing. China’s enormous investment in CPEC, and port infrastructure in the Indian Ocean, serves much more than trade. It advances Beijing’s “String of Pearls” strategy, as well as its unofficial agenda to encircle India through its arch-rival, Pakistan.


To be fair, the Hambantota port will make it easier for India to trade with Sri Lanka. But it could also be used as a naval station for China should the two countries ever engage in a full-scale war.

Meanwhile, China’s growing presence in Sri Lanka undermines India’s efforts to influence the foreign policy of the country.

That could explain India’s efforts to contain China’s Indian Ocean agenda by forming alliances with US and Japan, and by performing a joint naval exercise in the Malabar in the Bay of Bengal last July.

Still, the prospect of a Pakistan debt problem or an open confrontation between India and China are very unlikely, at least for the time being. That’s why investors in the region have chosen to focus more on market fundamentals rather than on the geopolitics of the region, driving shares in all three country markets higher recently.

But that could change, if tensions between China and India’s new allies, America and Japan, continue to flare.

Index/Fund

12-month Performance

2-year Performance

IShares China (FXI)

19.19%

7.87.32%

Global X MSCI Pakistan (PAK)

2.12%

1.88

iShares S&P India 50 (INDY)

21.78

18.48%

Source: Finance.yahoo.com 7/28/2017

My recent book The Ten Golden Rules Of Leadership is published by AMACOM, and can be found here.
https://www.forbes.com/sites/panosm...ews-for-both-pakistan-and-india/#3d8410a1715b
Pakistan is different.
1. 200 million people is a big deal.
2. Pak military is very trustable friend of China
3. CPEC is corridor to central asia
4. Pak is Chinese gate to muslim world
it is stupid to compare Sri Lanka to Pak.
None of these above is applied to Sri Lanka
 
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Bad news for India perhaps. But please keep Pakistan out. Pakistan China relations are at another strategic level. Enough said.
You are doing huge mistake by trusting Chinese. They are trapping you in loans.
Pakistan will pay huge price for this.
You already sold a part of Kashmir land to them in 60s.

Bad news for India perhaps. But please keep Pakistan out. Pakistan China relations are at another strategic level. Enough said.
You are doing huge mistake by trusting Chinese. They are trapping you in loans.
Pakistan will pay huge price for this.
You already sold a part of Kashmir land to them in 60s.
They really don't love Muslims.
 
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