Russia, China Sign Four Billion dollars of Trade Deals

Russia, China Sign Four Billion dollars of Trade Deals

news.yahoo.com

MOSCOW (AFP) - China and Russia signed four billion dollars' worth of trade deals on Tuesday during a visit by Chinese President Hu Jintao focused on securing new energy sources.

The presidents oversaw the signing of 21 contracts, including an agreement by Russian state oil company Rosneft to supply jet fuel to China and long-term export contracts for Russian steel products.

Other agreements were signed between Russian and Chinese banks and space agencies.

(visit the link for the full news article)


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Related AboveTopSecret.com Discussion Threads:
China Shifts to Euros for Iranian Oil
United States Sanctions China! Just in!

[edit on 3/31/2007 by Gools]

China's quest for energy and raw resources continues.

I wonder if this story, their recent change to the Euro to buy oil from Iran and the creating of the world's largest investment fund to spend their US dollar reserves had anything to do with the recent US sanctions? Hmmm?
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news.yahoo.com
(visit the link for the full news article)

[edit on 3/31/2007 by Gools]

That'd work real sweet for everybody but the US. Man are they gettin' dusted at every turn. I guess they felt compelled to retaliate in a limted fashion... they still need to spend the coin before the value declines.

I'd not doubt that Russia won't be the last big deal they sign... with the recent Chinese banking reforms they are certainly in a liquid position, but can they push America any harder without alienating their biggest customer of consumer goods? Maybe, and I believe we'll find out soon... the markets are due for a for a triple witching in the third quarter and we haven't seen a near-crash of any duration since the '80s.

America can't push back too hard financially either, yet must do something. How much money was raised with Victory Bonds in WWII?

I concurr; Hmmm.

How about another military war? Better yet - a new Cold War - that always helps to protect markets and allows one to write-off "bad deals" and such as "us vs them". Can't have a Cold War without a contest tho' - a new race to the moon (translated waeponization of space)?

China and Russia come back to haunt the "West", thanks President Nixon, thanks President Reagan. Damn Kissinger. China and Russia are our friends, partners and competitors? America will have to fight above-her-weight financially to dig out of this situation with no guarantee of success. It won't be pretty.

[edit on 31-3-2007 by V Kaminski]

Originally posted by V Kaminski
America will have to fight above-her-weight financially to dig out of this situation with no guarantee of success. It won't be pretty.

It certainly won't.

What we have been witnessing over the last few years and what seems to be accelerating these days is the slow disintegration of US economic power. No surprise really, people have been writting and speculating about this for a couple of decades.

Mark Twain is quoted as saying that History doesn't repeat but it rhymes.

See if this rhymes with anything:

The pound sterling was the primary reserve currency of much of the world in the 18th and 19th centuries. But perpetual current account and fiscal deficits financed by cheap credit and unsustainable monetary and fiscal policies and the relative decline of Britain from being the world's pre-eminent military and economic power led to the pound losing this status. BrainyEncyclopedia

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[edit on 3/31/2007 by Gools]

hmm i think i remember reading somewhere that right before we invaded iraq they switched to selling oil with the euro russia has deep economic investments in the future of iran and i dont know why but i think china does too

It would appear as if China, Russia and many smaller states .. even potentially India (don't think for an instant they are "friends" of America...) are setting up a sort of alliance, to make America the out cast and create their own world market.. they seek to replace America.. sacrifice a short fault to see America collapse? .. I think that Chinas intentional stock market "bump" may have had other purposes..

Yep.

It's called the BRIC Alliance (wiki), a term coined in a Goldman Sachs analysis paper published in 2003 and includes Brazil, Russia, India and China, the world's four fastest growing economies.

Putin leads BRIC alliance and plays oil trump card

Russian President Putin has nationalized the Yukos oil company – the largest oil producer of Russia. It is evident that the West and BRIC will confront each other during the next ten years on energy. As Russia is pushed back by the Western nations especially America, Putin leads the BRIC alliance and plays the oil trump card.

All said and done, the world is already fighting a cold war on crude oil. As China, India and Brazil, their oil appetite will make them glued to Russia and each other. Venezuela well influenced by Brazil will provide additional oil assets to BRIC.

You also have to keep an eye on the Shanghai Cooperation Organisation also lead by Russia and China:

The Shanghai Cooperation Organisation (SCO) is an intergovernmental organization which was founded on June 14, 2001 by the leaders of the People's Republic of China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan. Except for Uzbekistan, the other countries had been members of the Shanghai Five; after the inclusion of Uzbekistan in 2001, the members renamed the organization.Though not a Military Alliance, many have looked at this organization as a counter to the North Atlantic Treaty Organisation (NATO).

I bet most people have never heard of this NATO counterweight organisation.

And don't forget ASEAN who recently proposed (NYT - May/06) a regional currency called the ACU or Asian Currency Unit. This organisation has held summits with both Russia and China in recent years to discuss the ACU.
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[edit on 3/31/2007 by Gools]

I for one Gools, who tries to stay on top of current events vigerously.. have never heard of that term..

I saw the coming together of the Eastern powers several years ago after Bush issolated America from Russia.. called Putin a tyrant, not the best way to make friend eh?

However, Russia is not a "friend" of China in any way, they can hardly stand eachother.. they have however, made a mutual pact, apparently, to work against 1. American intrest and 2. American economic superiority.. in an effort to bring about a "multipolar economic enviroment" if you will..

Instead of one nation dictating the economic health of the world, and holding so much of the worlds wealth, they would, again apparently, rather that wealth, power and influence divided up. I believe they want an Eastern and a Western power at first, but I believe they are working to completely end American economic superiority..

Now, both are ambitous nations.. I would bet one of them if not both have plans on becoming the next big power.. in the mean time they seem to have adopted "take out America first" then deal with their neighbors..

China and Russia have engaged in Military exercises .. because Russia lost all of its Warsaw allies to practise with.. China has the next best military..

China and Russia have also made regional alliances to work against the West.. China did not mind when Russia declared the Ruble as currency for oil and gas..

India has also joined forces with China and Russia working against the American economy.. even though both NEED America to survive.. I think they feel exploited ..

Then again, if you create another market to replace the existing market, a few years of economic struggle could hypothetically end the American hegmony.

The world did exist at one point with out America.

Well we have to understand that the power of America over the rest of the world have lasted for a long time.

The latest attempts of the US in controlling the middle east has encouraged countries that are not very friendly with the US to bond together in case of a very possible energy war.

US may impose economic sanctions on China

WASHINGTON: The Bush administration, facing heavy pressure to deal with soaring trade deficits, is considering imposing economic sanctions on China in a dispute over government subsidies.

If the administration decides to take action, it would open up a new area in which American companies being battered by a flood of Chinese imports could seek protection and would reverse 20 years of US trade precedent.

Full text: /2x8btz


I think this important US court decision could have profound implications for both the US Dollar, and American consumer. The Dollar initially fell on release of this news...then managed a meek rally with a little help from it's friends.. Should China opt to retaliate...one strategy would have them simply reduce their purchase of US Treasury paper.

Perhaps the politicians supporting this action, should try thinking from the perspective of a tenant owing 10yrs back rent, and poking his landlord in the eye with a stick?

Peace &
Good fortune
OBE1

I think this is a good thing, I think a rising tide lifts all boats.

Why do some of you think the U.S. will lose, if other countries get higher standards of living?

On the contrary, I think these markets will open up both politically and economically that will create governments far more friendly to the U.S. and markets that will become loci of growth for our products and services.

All the goom and doom spouted about rising economic conditions elsewhere reminds me of Malthusian food predictions which never panned out.

As I have said in other threads China is the only smart one. As we slowly make enemies all over the world they are quietly making multi-billion dollar trade deals all over the place from our former customers. While Bush spends the entire treasury on this "Mistaken War" China is building up its own treasure trove. Its a shame we couldn't be more business like they are right now instead of making enemies everywhere..

Originally posted by djohnsto77
I think this is a good thing, I think a rising tide lifts all boats.

I'm more concerned about the water level...should the entire swim team decide to exit the money pool at the same time. lol!

While the expansion of emerging markets represents investment opportunities, the rising US trade deficit tells me that we continue to consume, (import), more than we produce, (export)...with the resulting short-fall in the current account deficit being financed by OC....China comes to mind.

Perhaps we need more focus on domestic industry...especially while trade related trends such as outsourcing, and off-shore production, continue to put pressure on manufacturing, related jobs, and wages here at home. Ironically, some of the imports that negatively affect domestic output...come from US based factories abroad.

We seem to find ourselves in a bit of a complex pickle...with no simple solutions...certainly beyond my grasp anyway.

Granted, a soft landing should benefit the trade deficit, and it's in no country's best interest to see a Dollar crash...but how long will our financial benefactors, our trade partners, continue to be enthusiastic about investing in what appears to be a slowing US economy?...especially if we break with 20yr tradition and go about imposing tariff's & sanctions on them. In regard to Dollar support, could actually we cross an invisible line where the wheels suddenly fall off?

While the punitive sanctions cited in my previous post...are seen as one approach to dealing with the trade imbalance, they could also have unexpected repercussions...several foreign central banks have already (recently) expressed a inclination to hedge their bets by limiting, or reducing their share of US Dollar reserves.


More on topic...I think new Cold War strategic alliances, almost mandate that Russia & China hold their respective noses and trade...and I doubt that the US State Department is any happier about these deals, than they are about the multi-billion dollar Iran-Pakistan-India natural gas pipeline deal.

Anybody else notice which countries have recently denied US access to air bases in the event of an attack on Iran?


Peace &
Good Fortune
OBE1

$4 billion (US) is hardly a significant figure at the international level.

The dollar amount is not the point.

These are two countries who don't necessarily like each other.

Did you notice what kinds of contracts were signed? Energy, Banking, and Aerospace are mentioned.

This should not be brushed-off lightly IMO because it is only one story in a larger pattern of recent geopolitical and economical developments around the world.
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Originally posted by uberarcanist
$4 billion (US) is hardly a significant figure at the international level.

If you go by numbers, no, 4billion may not seem like a lot but added to a recent multi-billion dollar deal in SA as well as other former US trade partners , it adds up. Our loss is their gain. The money used today for trade may very well be used to invade you in the future. Chances are historically lower of being invaded by China. lol When was the last time China invaded anyone it once supported? 70yrs ago?

Well America saved their butts in WWII and in the Korean war they attacked American troops. Does that count? Tibet? They seem to get along a little better now with India, and they still hold a nasty grudge against Japan.

Originally posted by Rockpuck
Well America saved their butts in WWII and in the Korean war they attacked American troops. Does that count? Tibet? They seem to get along a little better now with India, and they still hold a nasty grudge against Japan.

OK and like I said, how long ago did they invade Tibet? The 40's? Like I said its about 70 years since they have invaded anyone. We held a nasty grudge with Iraq and we hold a nasty grudge with Iran as well as Lebanon too. The first one mentioned already happened, Iran is in the works, and Lebanon was by proxy several times by Israel. I still assert that China has a better record then we do.