China, Pakistan to look at including Afghanistan in $57 bln economic corridor

(L to R) Afghan Foreign Minister Salahuddin Rabbani, Chinese Foreign Minister Wang Yi and Pakistani Foreign Minister Khawaja Asif attend a joint news conference after the 1st China-Afghanistan-Pakistan Foreign Ministers’ Dialogue in Beijing, China, December 26, 2017. (Reuters)
Updated 26 December 2017

China, Pakistan to look at including Afghanistan in $57 bln economic corridor

BEIJING: China and Pakistan will look at extending their $57 billion China-Pakistan Economic Corridor to Afghanistan, Chinese Foreign Minister Wang Yi said on Tuesday, part of China’s ambitious Belt and Road plan linking China with Asia, Europe and beyond.
China has tried to position itself as a helpful party to promote talks between Pakistan and Afghanistan, both uneasy neighbors ever since Pakistan’s independence in 1947.
Their ties have been poisoned in recent years by Afghan accusations that Pakistan is supporting Taliban insurgents fighting the US-backed Kabul in order to limit the influence of its old rival, India, in Afghanistan.
Pakistan denies that and says it wants to see a peaceful, stable Afghanistan.
Speaking after the first trilateral meeting between the foreign ministers of China, Pakistan and Afghanistan, Wang said China hoped the economic corridor could benefit the whole region and act as an impetus for development.
Afghanistan has urgent need to develop and improve people’s lives and hopes it can join inter-connectivity initiatives, Wang told reporters, as he announced that Pakistan and Afghanistan had agreed to mend their strained relations.
“So China and Pakistan are willing to look at with Afghanistan, on the basis of win-win, mutually beneficial principles, using an appropriate means to extend the China-Pakistan Economic Corridor to Afghanistan,” he added.
How that could happen needs the three countries to reach a gradual consensus, tackling easier, smaller projects first, Wang said, without giving details.
Pakistani Foreign Minister Khawaja Asif said his country and China were “iron brothers,” but did not directly mention the prospect of Afghanistan joining the corridor.
“The successful implementation of CPEC (China-Pakistan Economic Corridor) projects will serve as a model for enhancing connectivity and cooperation through similar projects with neighboring countries, including Afghanistan, Iran and with central and west Asia,” he said.
India has looked askance at the project as parts of it run through Pakistan-administered Kashmir that India considers its own territory, though Wang said the plan had nothing to do with territorial disputes.
China has sought to bring Kabul and Islamabad together partly due to Chinese fears about the spread of Islamist militancy from Pakistan and Afghanistan to the unrest-prone far western Chinese region of Xinjiang.
As such, China has pushed for Pakistan and Afghanistan to improve their own ties so they can better tackle the violence in their respective countries, and has also tried to broker peace talks with Afghan Taliban militants, to limited effect.
A tentative talks process collapsed in 2015.
Wang said China fully supported peace talks between the Afghan government and Taliban and would continue to provide “necessary facilitation.”
The Belt and Road infrastructure drive aims to build a modern-day “Silk Road” connecting China to economies in Southeast and Central Asia by land and the Middle East and Europe by sea.


Huawei in early talks with US firms to license 5G platform: executive

Updated 19 October 2019

Huawei in early talks with US firms to license 5G platform: executive

  • Currently there are no US 5G providers and European rivals Ericsson and Nokia are generally more expensive
  • Huawei has spent billions to develop its 5G technology since 2009

WASHINGTON: Blacklisted Chinese telecoms equipment giant Huawei is in early-stage talks with some US telecoms companies about licensing its 5G network technology to them, a Huawei executive told Reuters on Friday.
Vincent Pang, senior vice president and board director at the company said some firms had expressed interest in both a long-term deal or a one-off transfer, declining to name or quantify the companies.
“There are some companies talking to us, but it would take a long journey to really finalize everything,” Pang explained on a visit to Washington this week. “They have shown interest,” he added, saying conversations are only a couple of weeks old and not at a detailed level yet.
The US government, fearing Huawei equipment could be used to spy on customers, has led a campaign to convince allies to bar it from their 5G networks. Huawei has repeatedly denied the claim.
Currently there are no US 5G providers and European rivals Ericsson and Nokia are generally more expensive.
In May, Huawei, the world’s largest telecoms equipment provider, was placed on a US blacklist over national security concerns, banning it from buying American-made parts without a special license.
Washington also has brought criminal charges against the company, alleging bank fraud, violations of US sanctions against Iran, and theft of trade secrets, which Huawei denies.
Rules that were due out from the Commerce Department earlier this month are expected to effectively ban the company from the US telecoms supply chain.
The idea of a one-off fee in exchange for access to Huawei’s 5G patents, licenses, code and know-how was first floated by CEO and founder Ren Zhengfei in interviews with the New York Times and the Economist last month. But it was not previously clear whether there was any interest from US companies.
In an interview with Reuters last month, a State Department official expressed skepticism of Ren’s offer.
“It’s just not realistic that carriers would take on this equipment and then manage all of the software and hardware themselves,” the person said. “If there are software bugs that are built in to the initial software, there would be no way to necessarily tell that those are there and they could be activated at any point, even if the software code is turned over to the mobile operators,” the official added.
For his part, Pang declined to predict whether any deal might be signed. However, he warned that the research and development investment required by continuously improving the platform after a single-transfer from Huawei would be very costly for the companies.
Huawei has spent billions to develop its 5G technology since 2009.