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On Belarus and China

Economic and trade cooperation between Belarus and China has been
strengthening, as Belarus’ President Alexander Lukashenko welcomes
massive foreign direct investment from China. Analysts believe that
Belarus needs capital from China to assuage current difficulties
accompanying increased prices on oil imports from Russia. Belarus under
Alexander Lukashenko remains a Soviet-style planned economy. For a
sense of hope, Belarus is looking to the China model, a highly
centralized political system together with an economy marked by high
growth. At the same time, the two countries are building closer
military collaboration.

Economic and trade cooperation between Belarus and China has been strengthening, as Belarus’ President Alexander Lukashenko welcomes massive foreign direct investment from China. Analysts believe that Belarus needs capital from China to assuage current difficulties accompanying increased prices on oil imports from Russia. Belarus under Alexander Lukashenko remains a Soviet-style planned economy. For a sense of hope, Belarus is looking to the China model, a highly centralized political system together with an economy marked by high growth. At the same time, the two countries are building closer military collaboration.

Report from Voice of America on January 9, 2008: [1]
“President Lukashenko of Belarus said on Wednesday that huge potential exists for collaboration with China in areas of the economy, trade, and investment and that Belarus will create the best conditions to welcome investment from China. He added that his country has felt enormous interest from Chinese investors in the Belarusian economy, and that there will be not be a single obstacle to Chinese investment. Lukashenko gave the above speech when meeting with Zhou Xiaochuan, the governor of China’s central bank. President Lukashenko also thanked China for providing support and help. He said that Belarus will become a real fortress for China in Europe. Lukashenko stressed that RMB has become the foreign exchange reserve currency at Belarus’ central bank.

“Russian media reported that after Putin’s government significantly raised the export price of oil and eliminated economic subsidies to Belarus, Belarus has been facing a series of problems. This has lead Lukashenko to actively cooperate with China, Iran, and Venezuela, so as to obtain more resources to procure energy from Russia. Therefore, high-level Chinese official visits are always welcomed and are conducted in a high-profile fashion.

“Former President of Belarus Stanislav Shushkevich criticized Lukashenko for not conducting economic reform and allowing the economy to remain as a Soviet-style planned economy. He added, ‘the leadership of Belarus governs the country as a farmer on collective farms. For many years, the economy is heavily dependent upon cheap energy from Russia. Lukashenko is bringing the whole country to a dead end with an anti-market economic policy.’”

Report from Voice of America on October 26, 2006: [2]

“China and Belarus have been increasing their military cooperation. Belarusian President Lukashenko recently expressed that arms trade between the two countries is very important. On cooperation in military technologies, Belarus signed 210 agreements or contracts with China, with 190 of them implemented. According to the Defense Ministry of Belarus, the size of the bilateral arms trade amounts to 250 million U.S. dollars over the past 10 years. The figure, although very small compared to the arms trade between China and Russia, is very important to Belarus.”
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“In mid-September, Chinese Defense Minister Cao Gangchuan led a large delegation to Belarus. Cao was treated with a high standard of hospitality. President Lukashenko issued a ‘People’s Friendship Medal’ to Cao, complimenting his outstanding contributions in supporting the sharing of military technology between the two countries. During the four-day visit, Belarus displayed for the Chinese delegation everything they wanted to see, including newly developed weaponry. A large group of Chinese experts are also part of the China delegation to Belarus. This is a sign that the two sides are discussing details of arms trade deals. According to Belarusian Defense Minister Leonid Maltsev, Belarus has submitted a package of plans for implementing this military and technological cooperation. Once the China side has responded, the plans can be carried out before the end of next year.”

“Military experts believe that Belarus is more proactive than China on the issue of arms trade.”

“Russian media reported that Belarus is promoting a newly developed super short range air-defense missile system which is used to attack precision cruise missiles in their last leg of flight. … Additionally, the Chinese military is also interested in Belarus’ mobile radar system, automatic power control system, etc.”

“Belarus hopes to alleviate its isolated predicament on the international stage by sharing China’s military technology. The Lukashenko regime is deemed as the last dictatorship on the European continent. The United States and the European Union are imposing various sanctions against Belarus while its key ally, Russia, has recently pressured Lukashenko for political and economic benefits. Under the current situation, Lukashenko announced China as its primary foreign policy target in his spring State of the Union message, delivered earlier this year. He complimented China for supporting Belarus on many issues.”

“During Lukashenko’s visit to China at the end of last year, the two countries agreed to set up a bilateral military equipment and technology coordination commission. The two sides also decided to strengthen cooperation and exchange in military science and technology, including joint R&D on weaponry. At present, dozens of People’s Liberation Army officers are accepting advanced training in Belarus.”

Endnotes:
[1] Voice of America, January 9, 2008
http://www.voanews.com/chinese/w2008-01-09-voa42.cfm
[2] Voice of America, October 26, 2006
http://www.voanews.com/chinese/archive/2006-10/w2006-10-26-voa35.cfm