BRICS & New World Order Thread
- Thread starter Strangelove
- Start date
The advantage for China for expanding BRICS is that US is hostile towards the organization because of its de-dollarization orientation which inevitably will translate into more tense relations between BRICS countries and US which China can capitalize on.
It's exactly how US uses G7/NATO to its advantage. US pushes G7/NATO to criticize and confront China which provokes a reaction from China, which in turn worsens relations between China and EU/NATO countries which US sees beneficial to itself.
So the more countries join BRICS and SCO the better for China, even though BRICS and SCO may not be very effective - they still serve the purpose of worsening relations between US and new joining members.
Sounds like they are putting on a brave face, as they do not know what happening next, and they do not know what they are going to do.
If the world changes, then a place like Singapore should try to be on the right side.
For example, if President Trump returns, then what about Singapore? They should have chosen China more forcefully.
Look at the Saudis. They are not abandoning their American relationship, but they chose China forcefully.
It's not feasible for many countries to just abandon America at will without severely disabling themself in the process. The Saudis, for example, are heavily dependent on the US. In their air force alone, the vast majority of the inventory is American or American-vassal. If they abandon the US, it will be 1979 Iran again: assets immobilized, looking for spare parts on the black market, etc. Sure, they might want to move away, but abandoning former supplier in this way is suicide. Singapore is not much better in military terms, with inventory almost exclusively sourced from the US.Sounds like they are putting on a brave face, as they do not know what happening next, and they do not know what they are going to do.
If the world changes, then a place like Singapore should try to be on the right side.
For example, if President Trump returns, then what about Singapore? They should have chosen China more forcefully.
Look at the Saudis. They are not abandoning their American relationship, but they chose China forcefully.
The Saudis would just buy weapons from China. As long as they have the oil it is doable. They would just switch one patron for another.
Their entire Air Force is composed of obsolete 4th generation aircraft. And it is not like the US seems to be in any rush to sell F-35s to the Gulf countries. You can pretty much bet that once one of the countries in the Gulf starts moving to 5th generation aircraft the rest will follow suit.
Their entire Air Force is composed of obsolete 4th generation aircraft. And it is not like the US seems to be in any rush to sell F-35s to the Gulf countries. You can pretty much bet that once one of the countries in the Gulf starts moving to 5th generation aircraft the rest will follow suit.
In4ser
Junior Member
Yes BRICS is a multilateral institution but no one is calling for China to leave BRICS or stop its efforts there. The problem is if a member in BRICS wants to stymie plans and hinder progress on expansion, then China should find another way which is BRI. It shouldn’t put all its eggs into one basket.
It will be hard for Singapore to do that. Singapore is tiny compared to SA and have much less leverage. Their foreign policy tend to be more or less stable without trying to provoke any of the big powers. The elites ruling and business class there also prefer things to remain the same. They are obviously not happy US MIC is trying to stir up some shit in Asia but they can’t do much except giving some restrained statement on occasions like not wanting to choose sides or peace in the region etc.Sounds like they are putting on a brave face, as they do not know what happening next, and they do not know what they are going to do.
If the world changes, then a place like Singapore should try to be on the right side.
For example, if President Trump returns, then what about Singapore? They should have chosen China more forcefully.
Look at the Saudis. They are not abandoning their American relationship, but they chose China forcefully.
George Yeo is one the few exceptions but he is retired foreign Minster and this able to speak more forcefully in this subject. And he has done it many times along with Kishore the former Singaporean diplomat.
I guess when shit hits the fan, we know whether their way is correct.
Side note , I mentioned this before. I actually know of some rich elite Singaporeans who prefer China submit to US hegemony and maintain the current world order since they are having it good already all this time.
Remember that those retired Singaporean diplomats trained the following generations.
In his writings, Lee Kuan Yew was 80% convinced that one day, China would displace the US military in the Malacca Straits and that Singapore would have to prepare for such a shift.
My guess is that every Singaporean diplomat is familiar with this, as LKY certainly wrote and spoke enough on the topic.
As for those rich elite Singaporeans who prefer China submit to US hegemony, have they never watched the opening scene of Crazy Rich Asians, where the rich Singaporeans face discrimination and racism for being Chinese? Today, you can plainly see the racial dog-whistles from the Republican right-wing.
I would say Singapore should be able to remain neutral in a China-US contest. The vast majority of ASEAN agrees on neutrality, and a combined ASEAN is big enough to resist the USA or China.
Chinese companies should be cautious when investing in politically unstable countries. There is currently a "nationalization wave" in South America，Chinese mining companies lost tens of billions of dollars，because their assets has been nationalized by local government.
Latin America's "nationalization trend" harasses Chinese companies
On the evening of June 24, Ganfeng Lithium issued an announcement, disclosing that it had received an email from the International Centre for Settlement of Investment Disputes (ICSID) "recently", confirming that an earlier arbitration case had been officially registered.
Ganfeng Lithium filed an application with ICSID in May to initiate this arbitration procedure, targeting "a series of laws, regulations and related measures promulgated by Mexico". Ganfeng Lithium believes that "these laws, regulations and related measures effectively nationalize lithium resources, affect project operations, and lead to the cancellation of the mine concession held by the company's Mexican subsidiary".
Lithium is one of the bulk metals that Chinese companies must import to fully meet their production needs. Now Chinese companies generally obtain enough lithium through exploration and mining of overseas lithium mines. The rapid development of China's electric vehicle industry has also pushed up the demand for lithium.
Although Chinese companies have obtained relevant rights and interests in some fine mines overseas through various means by relying on their financial advantages in the early days, as lithium ore has begun to become a strategic asset, the attitudes of lithium mine-owning countries, especially Latin American countries, towards foreign investors have changed significantly. Chinese companies have begun to be subject to various restrictions from the officials of the countries where the mines are located, and have suffered economic losses as a result. Of course, this shift is not only aimed at Chinese companies.
In early May 2023, the Mexican Senate finally completed the revision process of the Mining Law. In a vote in which opponents refused to participate, the amendment to the Mining Law was passed. According to the revised Mining Law, Mexico lists lithium as a strategic mineral, implements a lithium mine nationalization policy, and prohibits the granting of lithium mining concessions to any private individuals.
According to the new law, exploration companies can only obtain the mining rights of minerals if they win the public bidding held by the Mexican Ministry of Economy. The old law stipulates that as long as the company that first applied passes the official qualification certification, it can obtain the mining rights of the minerals there. International investors believe that the revision of this article essentially reserves the right of mining exploration for the Mexican government. After the new law was passed, then-Mexican President Obrador announced that he would review all authorized lithium mining concessions. Soon, the dispute between Ganfeng Lithium and Mexican officials surfaced, and the aftermath has been rippling to this day.
Like Mexico, Latin American countries that hope to seize the opportunity of the surge in global demand for lithium ore and gain more say in the economy and even other fields include Chile, Argentina and other South American countries with abundant and high-quality lithium mines. A coincidence is that, like the Mexican president, Chilean President Gabriel Boric also comes from a left-wing party, and the one who suffered setbacks is also a Chinese company.
In 2018, Tianqi Lithium became the second largest shareholder of Chilean Mining and Chemical Company (SQM) with US$4 billion. SQM's lithium mining in the Ataka Desert in Chile accounts for 20% of the world's production.
There is no way to verify whether Tianqi Lithium set the goal of actually controlling SQM's lithium mining business by acquiring equity in the future when it acquired shares. In fact, it had signed a restriction agreement with SQM. According to this strict agreement, Tianqi Lithium, as a financial investor, cannot exert substantial influence on any decision of SQM's lithium business segment, and can only obtain financial benefits in the form of dividends.
It is reasonable to guess that this is a concession made to dispel the doubts of Chilean officials, but it has caused the wind of lithium mine nationalization to blow to Chile. When the president put forward the requirement that "strategic lithium mining projects should be public-private partnerships or should be transformed into public-private partnerships from the beginning", Tianqi Lithium could not take effective countermeasures in the SQM board of directors through normal channels.
In December 2023, SQM and Chile's National Copper Corporation reached a preliminary agreement that the two would jointly establish a company, and SQM's lithium business would be placed in this joint venture. Chile's National Copper Corporation will become the controlling party by holding 50% plus one share. The establishment of this joint venture "guarantees" that SQM will successfully obtain the next 30-year mining license after its lithium mining license expires in 2030.
Starting from 2025, the joint venture needs to hand over 70% of its operating profits to the Chilean government. Tianqi Lithium, as the second largest shareholder holding 22.16% of SQM's shares, can only obtain profits in proportion to the remaining 30%.
Although Tianqi Lithium does not want to be a silent lamb, it has never been supported at the corporate and judicial levels. On June 18, the Chilean Financial Market Commission (CMF) rejected Tianqi Lithium's application to hold a shareholders' meeting.
Tianqi Lithium submitted an application to the CMF in March, requesting SQM to hold a shareholders' meeting to vote on its cooperation agreement with the Chilean National Copper Company. The transaction can only be approved after two-thirds of the votes of the shareholders' meeting are passed. The main basis for Tianqi Lithium's appeal is that the agreement will affect important assets owned by SQM.
According to the announcement released by CMF on June 18, the content of the "public-private partnership" agreement signed between SQM and Chile's National Copper Corporation did not meet the standards for holding a shareholder meeting because "SQM did not give up a significant part of its business because of the joint venture, because it did not transfer the shares of the subsidiary to any entity or individual."
So far, Tianqi Lithium has exhausted all remedies in Mexico to prevent SQM's "public-private partnership". Chile's National Copper Corporation has always been tough. Before the CMF's ruling, its chairman had announced at a press conference that although Tianqi Lithium may raise questions, the joint venture plan will still be launched as planned in 2025.
There is another coincidence about the public representative of the "public-private partnership" Chile's National Copper Corporation. The predecessor of this Chilean state-owned company was established in 1971 after the Chilean Congress unanimously passed the "Large Copper Mine Nationalization Plan" and 100% of the mines and assets owned and mined by foreign companies in Chile were nationalized. (Fortune Chinese Network)
Latin America's "nationalization trend" harasses Chinese companies
On the evening of June 24, Ganfeng Lithium issued an announcement, disclosing that it had received an email from the International Centre for Settlement of Investment Disputes (ICSID) "recently", confirming that an earlier arbitration case had been officially registered.
Ganfeng Lithium filed an application with ICSID in May to initiate this arbitration procedure, targeting "a series of laws, regulations and related measures promulgated by Mexico". Ganfeng Lithium believes that "these laws, regulations and related measures effectively nationalize lithium resources, affect project operations, and lead to the cancellation of the mine concession held by the company's Mexican subsidiary".
Lithium is one of the bulk metals that Chinese companies must import to fully meet their production needs. Now Chinese companies generally obtain enough lithium through exploration and mining of overseas lithium mines. The rapid development of China's electric vehicle industry has also pushed up the demand for lithium.
Although Chinese companies have obtained relevant rights and interests in some fine mines overseas through various means by relying on their financial advantages in the early days, as lithium ore has begun to become a strategic asset, the attitudes of lithium mine-owning countries, especially Latin American countries, towards foreign investors have changed significantly. Chinese companies have begun to be subject to various restrictions from the officials of the countries where the mines are located, and have suffered economic losses as a result. Of course, this shift is not only aimed at Chinese companies.
In early May 2023, the Mexican Senate finally completed the revision process of the Mining Law. In a vote in which opponents refused to participate, the amendment to the Mining Law was passed. According to the revised Mining Law, Mexico lists lithium as a strategic mineral, implements a lithium mine nationalization policy, and prohibits the granting of lithium mining concessions to any private individuals.
According to the new law, exploration companies can only obtain the mining rights of minerals if they win the public bidding held by the Mexican Ministry of Economy. The old law stipulates that as long as the company that first applied passes the official qualification certification, it can obtain the mining rights of the minerals there. International investors believe that the revision of this article essentially reserves the right of mining exploration for the Mexican government. After the new law was passed, then-Mexican President Obrador announced that he would review all authorized lithium mining concessions. Soon, the dispute between Ganfeng Lithium and Mexican officials surfaced, and the aftermath has been rippling to this day.
Like Mexico, Latin American countries that hope to seize the opportunity of the surge in global demand for lithium ore and gain more say in the economy and even other fields include Chile, Argentina and other South American countries with abundant and high-quality lithium mines. A coincidence is that, like the Mexican president, Chilean President Gabriel Boric also comes from a left-wing party, and the one who suffered setbacks is also a Chinese company.
In 2018, Tianqi Lithium became the second largest shareholder of Chilean Mining and Chemical Company (SQM) with US$4 billion. SQM's lithium mining in the Ataka Desert in Chile accounts for 20% of the world's production.
There is no way to verify whether Tianqi Lithium set the goal of actually controlling SQM's lithium mining business by acquiring equity in the future when it acquired shares. In fact, it had signed a restriction agreement with SQM. According to this strict agreement, Tianqi Lithium, as a financial investor, cannot exert substantial influence on any decision of SQM's lithium business segment, and can only obtain financial benefits in the form of dividends.
It is reasonable to guess that this is a concession made to dispel the doubts of Chilean officials, but it has caused the wind of lithium mine nationalization to blow to Chile. When the president put forward the requirement that "strategic lithium mining projects should be public-private partnerships or should be transformed into public-private partnerships from the beginning", Tianqi Lithium could not take effective countermeasures in the SQM board of directors through normal channels.
In December 2023, SQM and Chile's National Copper Corporation reached a preliminary agreement that the two would jointly establish a company, and SQM's lithium business would be placed in this joint venture. Chile's National Copper Corporation will become the controlling party by holding 50% plus one share. The establishment of this joint venture "guarantees" that SQM will successfully obtain the next 30-year mining license after its lithium mining license expires in 2030.
Starting from 2025, the joint venture needs to hand over 70% of its operating profits to the Chilean government. Tianqi Lithium, as the second largest shareholder holding 22.16% of SQM's shares, can only obtain profits in proportion to the remaining 30%.
Although Tianqi Lithium does not want to be a silent lamb, it has never been supported at the corporate and judicial levels. On June 18, the Chilean Financial Market Commission (CMF) rejected Tianqi Lithium's application to hold a shareholders' meeting.
Tianqi Lithium submitted an application to the CMF in March, requesting SQM to hold a shareholders' meeting to vote on its cooperation agreement with the Chilean National Copper Company. The transaction can only be approved after two-thirds of the votes of the shareholders' meeting are passed. The main basis for Tianqi Lithium's appeal is that the agreement will affect important assets owned by SQM.
According to the announcement released by CMF on June 18, the content of the "public-private partnership" agreement signed between SQM and Chile's National Copper Corporation did not meet the standards for holding a shareholder meeting because "SQM did not give up a significant part of its business because of the joint venture, because it did not transfer the shares of the subsidiary to any entity or individual."
So far, Tianqi Lithium has exhausted all remedies in Mexico to prevent SQM's "public-private partnership". Chile's National Copper Corporation has always been tough. Before the CMF's ruling, its chairman had announced at a press conference that although Tianqi Lithium may raise questions, the joint venture plan will still be launched as planned in 2025.
There is another coincidence about the public representative of the "public-private partnership" Chile's National Copper Corporation. The predecessor of this Chilean state-owned company was established in 1971 after the Chilean Congress unanimously passed the "Large Copper Mine Nationalization Plan" and 100% of the mines and assets owned and mined by foreign companies in Chile were nationalized. (Fortune Chinese Network)
The funny thing is，recently alot of left wing party took control of South America governments. And Chinese media applaud these left wing presidents，because they are seen as "anti West" and “friendly to China”.
But ironically，they actually hurt Chinese economic interests，by nationalize Chinese company asset and impose high tariff on Chinese goods
But ironically，they actually hurt Chinese economic interests，by nationalize Chinese company asset and impose high tariff on Chinese goods