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WHAT WILL BEIJING DO AFTER WHAT YEREVAN DID TO BRUSSELS?
China has pledged a 16 million dollar loan to Armenia for different
programs. This was stated during the meeting of the prime ministers
of Armenia and China. At the same time, the Chinese prime minister
announced about his country's willingness to make investments in
Armenia, develop tourism to Armenia, as well as place Armenian brandy,
jewelry and other goods on the Chinese market.
The statement is impressive indeed but perhaps things will not go
beyond 16 million dollars. In other words, it will remain as the only
output, like the Chinese tractors and buses which were presented to
Armenia. Armenia is still waiting for the Chinese investments but
they are not coming. Some 500 million dollars were considered when
Fortune Oil, an offshore company, bought the iron mine of Hrazdan
but the project caused serious environmental concerns, and Armenia
does not need obscure offshore investments but real initiatives which
will not only change the social balance but also bring a new culture
of relations.
In this regard, China is a valuable partner but partnership does not
go beyond compliments. Armenia has been facing China for many years.
In the beginning, the focus was on defense. Serzh Sargsyan as minister
of defense had frequent visits to China. Then the visits rose to
the level of the prime minister and president. Robert Kocharyan and
Andranik Margaryan visited Beijing.
By the way, Serzh Sargsyan was informed about the sudden death of
Prime Minister Andranik Margaryan on his way to Beijing and cancelled
the visit and returned home.
Then Serzh Sargsyan visited China as a president. The Armenian
government hailed the participation of Armenia in the international
expo in Shanghai with the assistance of the Chinese side. Armenia
presented a global city model which, according to the Armenian side,
was highly appreciated and noted.
Nevertheless, the key output of mutual visits was donations, not
investments. The Chinese donate tractors and buses to Armenia. They
still do. Instead, the largest investment program was implemented
in China, not in Armenia, where a rubber manufacturing facility was
established jointly with Armenia. Meanwhile, the Chinese were not
interested in the Armenian chemical company Nairit. Either it was
not lucrative or they understood that Nairit has a dark history and
one may lose its way there.
A few years ago official Yerevan came up with a specific proposal to
Chine - the Armenian-Iranian railway. The speaker of the National
Assembly Hovik Abrahamyan conveyed the proposal to China and China
gently turned it down.
After the announcement to join the Customs Union the Chinese priority
is acquiring a new stage for Armenia. It is interesting whether
Armenia equally acquired a new shade for China.
Tigran Sargsyan who said against the Customs Union a few months ago
has announced that Armenia is aspiring for the observer status to
Shanghai Cooperation Organization and seeks China's support.
The organization has six members: Russia, China, Kazakhstan,
Uzbekistan, Tajikistan and Kirgizstan. Observer members are India,
Afghanistan, Mongolia, Pakistan. Belarus, Turkey and Sri Lanka are
partners to the SCO.
The prime minister of China has announced to consider the issue of
granting an observer status to Armenia.
Apparently, Yerevan is thus trying to handle the consequences of
the decision on joining the Customs Union, showing that Armenia
has a broader perspective of the situation, and the Customs Union
is merely one of the milestones of this perspective rather than a
compulsory decision.
The key question is what economic benefits Armenia will have. China
takes interest in the South Caucasus, which is natural, considering
the growing influence of this country in the world. However, China
is mostly interested in Georgia. Recently the role of Armenia in
the Caucasus had risen essentially over the past few years but the
Armenian government successfully stopped the growth by the decision
of September 3, displaying another example of inadequacy.
With the fresh example, is it possible to attract China and expect
serious intentions and initiatives when Beijing saw what happened to
the Western intentions and initiatives relating to Armenia.
Hakob Badalyan 11:34 11/09/2013 Story from Lragir.am News:
http://www.lragir.am/index/eng/0/comments/view/30862
China has pledged a 16 million dollar loan to Armenia for different
programs. This was stated during the meeting of the prime ministers
of Armenia and China. At the same time, the Chinese prime minister
announced about his country's willingness to make investments in
Armenia, develop tourism to Armenia, as well as place Armenian brandy,
jewelry and other goods on the Chinese market.
The statement is impressive indeed but perhaps things will not go
beyond 16 million dollars. In other words, it will remain as the only
output, like the Chinese tractors and buses which were presented to
Armenia. Armenia is still waiting for the Chinese investments but
they are not coming. Some 500 million dollars were considered when
Fortune Oil, an offshore company, bought the iron mine of Hrazdan
but the project caused serious environmental concerns, and Armenia
does not need obscure offshore investments but real initiatives which
will not only change the social balance but also bring a new culture
of relations.
In this regard, China is a valuable partner but partnership does not
go beyond compliments. Armenia has been facing China for many years.
In the beginning, the focus was on defense. Serzh Sargsyan as minister
of defense had frequent visits to China. Then the visits rose to
the level of the prime minister and president. Robert Kocharyan and
Andranik Margaryan visited Beijing.
By the way, Serzh Sargsyan was informed about the sudden death of
Prime Minister Andranik Margaryan on his way to Beijing and cancelled
the visit and returned home.
Then Serzh Sargsyan visited China as a president. The Armenian
government hailed the participation of Armenia in the international
expo in Shanghai with the assistance of the Chinese side. Armenia
presented a global city model which, according to the Armenian side,
was highly appreciated and noted.
Nevertheless, the key output of mutual visits was donations, not
investments. The Chinese donate tractors and buses to Armenia. They
still do. Instead, the largest investment program was implemented
in China, not in Armenia, where a rubber manufacturing facility was
established jointly with Armenia. Meanwhile, the Chinese were not
interested in the Armenian chemical company Nairit. Either it was
not lucrative or they understood that Nairit has a dark history and
one may lose its way there.
A few years ago official Yerevan came up with a specific proposal to
Chine - the Armenian-Iranian railway. The speaker of the National
Assembly Hovik Abrahamyan conveyed the proposal to China and China
gently turned it down.
After the announcement to join the Customs Union the Chinese priority
is acquiring a new stage for Armenia. It is interesting whether
Armenia equally acquired a new shade for China.
Tigran Sargsyan who said against the Customs Union a few months ago
has announced that Armenia is aspiring for the observer status to
Shanghai Cooperation Organization and seeks China's support.
The organization has six members: Russia, China, Kazakhstan,
Uzbekistan, Tajikistan and Kirgizstan. Observer members are India,
Afghanistan, Mongolia, Pakistan. Belarus, Turkey and Sri Lanka are
partners to the SCO.
The prime minister of China has announced to consider the issue of
granting an observer status to Armenia.
Apparently, Yerevan is thus trying to handle the consequences of
the decision on joining the Customs Union, showing that Armenia
has a broader perspective of the situation, and the Customs Union
is merely one of the milestones of this perspective rather than a
compulsory decision.
The key question is what economic benefits Armenia will have. China
takes interest in the South Caucasus, which is natural, considering
the growing influence of this country in the world. However, China
is mostly interested in Georgia. Recently the role of Armenia in
the Caucasus had risen essentially over the past few years but the
Armenian government successfully stopped the growth by the decision
of September 3, displaying another example of inadequacy.
With the fresh example, is it possible to attract China and expect
serious intentions and initiatives when Beijing saw what happened to
the Western intentions and initiatives relating to Armenia.
Hakob Badalyan 11:34 11/09/2013 Story from Lragir.am News:
http://www.lragir.am/index/eng/0/comments/view/30862