By Sudha Ramachandran

March 14, 2019, the CACI Analyst

In November 2018, Baluch militants, angry with China’s exploitation of their resources through Belt and Road Initiative (BRI) projects, attacked the Chinese consulate in Karachi, Pakistan. This underscored the vulnerability of Chinese nationals and infrastructure projects outside China’s borders to terrorism. In addition, China’s repression of Muslim Uighurs in its Xinjiang province has drawn the ire of Uighur militants and jihadist groups. China will have to find a way to secure its nationals abroad and projects in BRI member-states, without triggering alarm among BRI skeptics.

By Stephen Blank

February 13, 2019, the CACI Analyst

When he announced the withdrawal of U.S. troops from Syria, President Trump also announced the departure of one half (7,000) of America’s troops in Afghanistan.  This abrupt decision both damaged the U.S. position in the Middle East and undermined ongoing negotiations with the Taliban over Afghanistan. It upset all the calculations of the Afghan government, leaving it scrambling for a new negotiating and strategic posture, and undid two years of successful albeit modest U.S. policy of renewed economic and political support for Central Asia. This will allow both Beijing and Moscow to respond by extending their influence in Central Asia at America’s expense and to employ their strongest capabilities for doing so.

 By Tristan Kenderdine

October 30, 2018, the CACI Analyst

In the trade war with the U.S., China has clearly shown that it is willing to reject Pacific trade partners based on political over economic considerations. Beijing’s wider policy to develop industrial and agroindustrial capacity in Central Asia, the Caucasus and the Middle East means that these economies can use short-term structural changes in global trade dynamics to their longer term advantage. Ultimately, all states suffer in a trade war. If Central Asian, U.S. and European producers all had open access to China’s markets, all sides would benefit in the long run. In the short term though, a U.S.-China trade war is a huge opportunity for Central Asian economies to soak up China’s heavy industry outward direct investment despite the risk of a China policy bank debt-trap.

 By Stephen Blank

September 27, 2018, the CACI Analyst

Sri Lanka’s experience with China’s Belt and Road Initiative is a cautionary tale for governments in Eurasia that wish to affiliate with this mammoth project. Chinese investments in the port of Hambantota already in 2004 identified as part of China’s “string of pearls” strategy in the Indian Ocean. However, investments took the form of loans that the Sri Lankan government could not repay. After months of negotiation and heavy pressure, the Sri Lankan government turned the port, including all its structures and capacities, plus 15,000 acres around it to China in late 2017. 

 By Tristan Kenderdine

July 17, 2018, the CACI Analyst

A strategic deployment of trade corridors is taking shape across Afghanistan and Iran as both India and China subvert each other’s trade strategies through key geoeconomic states. Afghanistan’s land corridor to Chabahar port connects it to India by sea, creating a Persian-Gulf to Caspian Sea corridor, while the Afghan air corridor to India provides a parallel, more direct trade route. By contrast, China’s twin economic corridors in the region run perpendicular: north-south through Pakistan to the Gulf, and east-west through Iran to Istanbul. Pakistan’s Gwadar and Iran’s Chabahar are thus effectively in the same geopolitical node, connecting very different Great Game trade strategies.