Xinhua recently published a commentary that offered an opinion on the planned mid-October Washington Leadership Summit which will include the U.S. and eight Arab countries including Saudi Arabia and Egypt. It appears the U.S. is planning to establish a NATO-like defense-oriented organization in the Arab world. However, this dream has three obstacles. First, these Arab countries have a lot of internal disagreements and they are not aligned with the U.S. vision and interests. Second, the relationship between the U.S. and the Arab “allies” is not all that good due to such facts as the U.S. often suspects them of having ties to terrorists. Third, it is very hard for the U.S. to apply control and limits to the function of an “Arab NATO,” especially regarding its relationship with Israel. It would be more realistic if the U.S. were not to  be a member of the organization and would not appoint its military commander. The bottom line is, the U.S. may have a lot to gain in terms of arms sales, but to turn this dream into a profit, it probably has a long way to go.

Source: Xinhua, August 1, 2018
http://www.xinhuanet.com/world/2018-08/01/c_1123207977.htm

On its Chinese Edition site, well-known Russian news agency Sputnik recently reported that the large amount of aid loans China provided South Africa during President Xi Jinping’s visit to that country will probably save two large South African state-owned companies, Eskom and Transnet. The South African newspaper City Press also reported that these two large companies will have significant relief from financial pain and will get their health back. In July, Eskom, as the national energy resource provider, just declared a financial loss of US$174 million and it will receive a US$2.5 billion loan from China Development Bank. Transnet, a major transportation company, will receive a large loan from the Industrial and Commercial Bank of China as well. According to South Africa President Cyril Ramaphosa, President Xi thinks China has significant special interests in Africa, especially in South Africa. President Xi will continue to provide aid to the region. Ramaphosa has been trying to save Eskom for many years. The company was deeply involved in political scandals during the time of the previous administration. Banks later stopped providing loans to Eskom.

Source: Sputnik Chinese Edition, July 26, 2018
http://sputniknews.cn/economics/201807261025969234/

On August 3, the foreign ministers of the 10 member states of the Association of Southeast Asian Nations (ASEAN) and their Chinese counterpart announced agreement on a Single Draft South China Sea Code of Conduct Negotiating Text (SDNT) that will serve as the basis for the adoption of a Code of Conduct in the South China Sea.

Among the proposals that China made, two of them are notable. The first is on cooperation on the marine economy and states that cooperation is to be carried out by the littoral states “and shall not be conducted in cooperation with companies from countries outside the region.” In contrast, Malaysia proposed that nothing in the Code of Conduct (COC) “shall affect… rights or ability of the Parties to conduct activities with foreign countries or private entities of their own choosing.” The marine economy includes aquaculture and oil and gas cooperation, and marine culture.

Another proposal is about joint military exercises. “The Parties shall establish a notification mechanism on military activities and will notify each other of major military activities if deemed necessary. The Parties shall not hold joint military exercises with countries from outside the region unless the parties concerned are notified beforehand and express no objection.”

China’s move is perceived at an attempt to weaken further any U.S. intervention in the South China Sea as the U.S. is considered as being among “countries outside the region.”

Shen Shishun, a scholar from the China Institute of International Studies, made it very clear in his interview with Russian based Sputnik News. “The so-called interference or factors of uncertainty mainly mean that some countries outside the region, out of a cold war mentality, are worried about the rise in influence of other countries in the region, and the decline of their own. They have adopted cold war tactics to provoke dissension among the countries in the region and to disrupt the situation in the South China Sea. It should be said that the interference of external forces is mainly from the United States. The U.S. global strategy is simple. It is to prevent any country from challenging its hegemonic status. The rise of China naturally has become its greatest threat. In fact, what the U.S. is doing does no good for Sino-U.S. relations, nor for regional peace and stability.”

Source: Sputnik News, August 4, 2018
http://sputniknews.cn/opinion/201808041026048188/