By Boris Ajeganov

January 23, 2017, the CACI Analyst

Foreign investment in Georgia is strengthening the country’s importance in connecting East Asia with Europe, which has positive implications for the broader region. The rise in FDI in commercial and transportation infrastructure in combination with the signing of international free trade agreements will reduce Georgia’s vulnerability in terms of economic and, ultimately, ‘hard’ security. The growing importance of the South Caucasus as node for EU-China trade will weaken Russia’s incentives to undermine its southern neighbors by military, political, and economic means as it has done in the past. Accordingly, Tbilisi’s ability to conduct an independent foreign policy is set to improve despite the absence of Western security guarantees.

By Robert M. Cutler

August 28th, 2016, The CACI Analyst

On June 25, Presidents Vladimir Putin of Russia and Xi Jinping of China met in Beijing, immediately after spending two days together in Tashkent at a summit meeting of the Shanghai Cooperation Organization (SCO). The two countries’ industrial cooperation is dominated by the energy sector, where the several dozen agreements that were signed in Beijing confirmed that in bilateral economic and trade relations China is the agenda-maker and Russia is the agenda-taker. This relationship is now extending itself to the geoeconomic competition between the two in Central Asia and East Central Eurasia generally, as well as into Greater South Asia at a slower pace.

By Sudha Ramachandran

May 26th, 2016, The CACI Analyst

Iran’s location near key trade routes and strategic waterways could make it a major Eurasian trade and transit corridor in the coming decades. China is keen to tap into Iran’s potential. But will Iran’s rise as a trade hub undermine the importance and prospects of the China-Pakistan Economic Corridor (CPEC)? This possibility has raised concerns in Pakistan that China’s commitment to making the Gwadar port a key node in the CPEC could dwindle as Iran’s trade corridors take shape and if Pakistan’s government fails to address China’s security concerns.

By Stephen Blank

May 9th, 2016, The CACI Analyst

China has steadfastly refused to get involved in providing hard, i.e. military, security to Central Asian governments, including Afghanistan. This might now be changing. In a March visit to Kabul, General Fang Fenghui, Chief of Staff of the PLA, announced plans to set up an anti-terror regional alliance with Pakistan, Afghanistan, and Tajikistan. President Ashraf Ghani of Afghanistan reportedly endorsed this proposal. China’s initiative could imply a major new development in Chinese policy and in Central Asia’s overall security, with lasting implications for the region. 

By Sudha Ramachandran (09/02/2015 issue of the CACI Analyst)

By linking Kashgar with Gwadar port through a network of roads and railway lines, the China-Pakistan Economic Corridor (CPEC) project has the potential to inject new life into the region’s economies. While India has expressed strong objections to the CPEC for economic as well as strategic reasons, it could also benefit from the project by opening up an overland route to new markets in Central Asia.