The Blue Dot Network: a blue smokescreen
BRAmble Daily: 5 news items, 2 comments from me and 1 random musing, book or quote
5 News Items
What is the Blue Dot Network and is it an alternative China's BRI?
China-US rivalry on brink of becoming a ‘financial war’
In Myanmar, China’s BRI Projects Are Old Wine in a New Bottle
China Eastern Airlines announces new routes forcused on BRI
China, Greece plan further for BRI cooperation during Xi's visit?
The Blue Dot of U.S. Hypocrisy
Announced last week in Thailand by the U.S., Australian, and Japan, the Blue Dot Network as "a multi-stakeholder initiative to bring together governments, the private sector, and civil society to promote high-quality, trusted standards for global infrastructure development." So it is a self-proclaimed standards body of sorts, I presume.
BANGKOK — The U.S. Overseas Private Investment Corporation (OPIC), Australia’s Department of Foreign Affairs and Trade (DFAT), and Japan Bank for International Cooperation (JBIC) today unveiled Blue Dot Network—a multi-stakeholder initiative that brings together governments, the private sector, and civil society to promote high-quality, trusted standards for global infrastructure development in an open and inclusive framework.
Blue Dot Network will evaluate and certify nominated infrastructure projects based upon adherence to commonly accepted principles and standards to promote market-driven, transparent, and financially sustainable infrastructure development in the Indo-Pacific region and around the world. - Blue Dot Network Press Release
Contrary to some media speculation, by definition, it does not in any way compare to the Belt and Road Initiative (BRI) was first unveiled by Xi Jinping s in 2013, and by any standard of measure is the largest and most ambitious foreign policy and economic plans in modern history.
So the Blue Dot Network is primarily expected to serve as a "seal of approval," according to the U.S. State Department. The focus apparently is to certify roads, ports, and bridges with a focus on the Indo-Pacific region. If that wasn't ridiculous enough, the White House national security adviser Robert O'Brien likened it to the Michelin Guide — which provides restaurants around the world stars for excellence.
Just this Spring, there was a flurry of coverage about the incredibly poor state of bridges, railways, and roads in the United States. According to according to an analysis of federal data by the American Road & Transportation Builders Association, nearly 235,000, or some 38 percent of all U.S. bridges, are in dire need of repair, replacement, or major refurbishment. To help you visualize that statistic, If placed end-to-end, the length of structurally deficient bridges would stretch nearly 1,100 miles, from Chicago to Houston.
In all likelihood, the Blue Dot Network is nothing more than PR exercise, too little, too late. It won't have any effect whatsoever on future BRI expansion. It certainly won't prevent China-Japan investment partnerships. But if anyone needs a rating system for infrastructure, the Blue Dot Network has it. It just seems like they should have started with U.S. infrastructure first.
What The “Post Tariff” Trade War Might Look Like
According to former China Finance Minister Lou Jiwei the "Post Tariff” Trade War will rely more on capital controls and more targeting of companies in similar fashion to what Huawei and ZTE in the past.
According to former China Finance Minister Lou Jiwei, the "Post Tariff" Trade War will rely more on capital controls and more targeting of companies in a similar fashion to what Huawei and ZTE in the past.
The outspoken former Finance minister was a protege of Premier Zhu Rongji. Lou Jiwei was appointed finance minister in 2013 but was abruptly "demoted" to oversee the social security fund in November 2016. He was reportedly angered by the move and was replaced after just two and one-half years there. Recently he has been speaking in public about his views on the Trade War.
The U.S.’ logic of anti-globalization and sanctions are welcomed by few other countries, Lou said. Disrupting the industrial and supply chains does no good to anyone, he said, adding that the Chinese market remains irreplaceable. - Lou Jiwei
Recently at the Caixin Summit in Beijing, Lou said, “The growing rivalry between China and the United States is at risk of becoming a “financial war”.
One Quote
And we all know how that worked out in the end for Napoleon: a one way ticket to the island of Elba.
Thanks for reading,
James