There are people in the West who think that time is on their side in all aspects including the economy. There are also divisions within the American Continent as the majority of the governing classes return to medieval concepts such as the Cold War, the Old Left, the Old Right, Racism, and Trade Barriers. The majority of these people have underestimated China and the gradual formation of a new Eurasian Trade Zone. At the present time, the Shanghai Conference is part of this new Eurasian Trade Zone which comprises of The People’s Republic of China, Russia, Uzbekistan, Tajikistan, Kazakhstan, Kyrgyzstan, and is including Turkmenistan. It is a business based on mutual respect and trust. It is also built on pooling natural resources. The Shanghai Conference is also based on increased trade which will gradually include North Korea, South Korea, Myanmar, India, Thailand, Laos, Cambodia, Vietnam Azerbaijan, Armenia, Georgia, Iran, with the rest of Europe and Asia. Many examples exist but the three principal examples have been the presence of Sinopec and Petrochina as well as the increasing trade between the People’s Republic of China and the Russian Federation.
Sinopec [which is the Chinese Petroleum Company] have invested in Central Asia especially Kazakhstan which has helped increase trade between the two countries. According to the China Daily with the date of the 12th of March 2003, Sinopec has been participating in the North Caspian Sea Project whose purpose is to find oil for use by the members of the Shanghai Conference. Sinopec has also launched a takeover bid for Kazakhstan’s Imperial Company. Sinopec has also signed agreements with Iran with regards to development of the Yadavaran oil field which will guarantee a high return rate with no exploration costs. Sinopec with Rosneft [A Big Oil Producer in Russia] run the UdmurtNeft oil producing company in Siberia and Sakhalin-3 Veninsk exploration block in the Sakhalin Islands in the Russian Far East. While many have made false accusations against the People’s Republic of China using epithets such as «imperialism», Sinopec is governed under the rules of the Code of Corporate Governance for Listed Companies as issued by the China Securities and Regulatory Commission of the State Economic and Trade Commission of the People’s Republic of China. Sinopec has also acted in an environmentally friendly way when they do business in the emerging Eurasian Trade Zone.
Petrochina under the motto of Energize, Harmonize, and Realize have managed to establish contacts with other companies which are environmentally friendly with countries such as Kazakhstan, Uzbekistan, and Turkmenistan. Petrochina is working on the Central Asia Gas Pipeline with Uzbekneftegaz [Uzbekistan] as well as boosting pre existing oilfields in the Fergana Region in Uzbekistan. With the Central Asia Gas Pipeline, there are plans to pump petroleum and natural gas both ways from China to Turkmenistan. Petrochina is also working on the same project in cooperation with Turkmengaz [in Turkmenistan]. I would like to wish the best for Sinopec and Petrochina in their endeavors.
China and Russia have decided to increase trade relations within the Shanghai Conference and the New Eurasian Trade Zone. It is surreal that China and Russia were not talking to each other during the era of the Cold War. At the present time, trade between Russia and China increased from $6.83 billion in 1996 to $48 billion in 2007. The first two trading partners for Russia are the European Union and the People’s Republic of China. Russia exports crude oil, oil products, and timber to China. The Russian Exports are about 5.2% from Russia while China’s exports are 9.4 % of Russia’s total imports. China and Russia are hoping to increase bilateral trade by $60 to $80 Billion by the year 2010. In the middle half of 2007, Chinese Investments in Russia were $940 Million while Russian Investments in China were $610 Million. In addition to the increased trade between Russia and China, it should be added that sanctions against Belarus by the European Union are not working since trade between Belarus and China have increased with the target for bilateral trade relations reaching $500 Million.
If the American Continent does not want to wake itself up from the concepts of old and its self indulgence, the Eurasian Trade Zone may be the wave of the future and may be a positive aspect in the world.
REFERENCE:
http://english.sinopec.com/investor_center/corporate_governance/
Petrochina: «Construction commences of Central Asia Gas Pipeline’s Uzbek section»
http://www.newsline.kz/news.php?y=2008&m=08&d=06#2
http://www.reuters.com/article/gc07/idUSL1925439820080519?pageNumber=1&virtualBrandChannel=0
Reuters; WTO (www.wto.org); China Daily (www.chinadaily.com)
El Noticiero de Alvarez Galloso 