By John C. K. Daly

March 9, 2018, the CACI Analyst

In December 2017 during a meeting in Beijing between Chinese Defense Minister Chang Wanquan and Afghan Defense Minister Tariq Shah Bahrami, China’s Central Military Commission vice chairman Xu Qiliang stated that China would build a military facility in Afghanistan’s northeastern Badakhshan province to “strengthen pragmatic cooperation in areas of military exchange and anti-terrorism and safeguard the security of the two countries and the region, making contributions to the development of China-Afghanistan strategic partnership of cooperation.” China’s main motive is to interdict the flow of Uyghur militants to and from Xinjiang, yet the initiative potentially has wider implications for Afghanistan and the region. 

 By Dmitry Shlapentokh

November 15, 2017, the CACI Analyst

At first glance, Turkmenistan’s decision in January 2017 to stop selling gas to Iran was a minor episode in the context of an otherwise friendly relationship between Tehran and Ashgabat, as indicated by several meetings of high Iranian and Turkmen officials following the clash over gas deliveries. However, the tension with Iran could imply serious problems for Turkmenistan and lead to increasing dependence on Beijing, regardless of all Ashgabat’s maneuvering. Turkmenistan’s fallout with Iran also limits the ability of both the West and the South to access Central Asian gas and facilitates an increasing Chinese influence in this part of Eurasia, providing additional opportunities for China’s resurrection of the Silk Road. 

 By Tristan Kenderdine

October 19, 2017, the CACI Analyst

International Capacity Cooperation is China’s policy answer to comparative advantage, a vast state-planning exercise to coordinate China’s trade and investment strategy in external geographies. It is the practical industrial policy matrix allowing industries, local governments, and policy banking to intersect with partner economies as part of the wider geoeconomic Belt and Road strategy. For China’s aluminum sector, which is already heavily state subsidized and widely considered to be dumping on international markets, it represents an opportunity to extend the lifespan of the industrial policy and policy bank model. The formation of an aluminum capacity cooperation enterprise alliance should be a warning signal to the non-ferrous metals industries of China’s trading partners in Central Asia.

 By Stephen Blank

October 16, 2017, the CACI Analyst

The recent Indo-Chinese crisis over the Doklam area has been peacefully resolved for now, yet its repercussions risk spilling over to both South and Central Asia and beyond. The Doklam clash has demonstrated to China that it can no longer push India around, and India immediately registered that lesson in self-confidence by stating that it will play a larger role in Southeast Asia, another area where they both jostle for influence. Similarly, we can expect an expanded rivalry in Central Asia, not least within the framework of the Shanghai Cooperation Organization (SCO) now that India and Pakistan are both members.

 By John C. K. Daly

September 27, 2017, the CACI Analyst

On August 22, after nearly 16 years of war in Afghanistan, U.S. President Donald Trump announced his intention to increase the U.S. military presence there, extending the longest war in U.S. history and adding billions more dollars to its cost, now estimated to over US$ 1 trillion since 2001. In searching for revenue streams to support this outlay an idea that has been around for more than a decade is being revived: exploiting Afghanistan’s rich, underused mineral wealth. Despite the extent of the country’s mineral deposits being well known, many impediments remain to their development despite international interest.