STRATFOR.COM Global Intelligence Update
24 February 2000


Sino-Russian Strategic Alliance Slowed by Internal Issues

Summary

Chinese Foreign Minister Tang Jiaxuan is scheduled to travel to
Moscow Feb. 28 to discuss Sino-Russian relations. He will also
prepare for an anticipated summit between Chinese President Jiang
Zemin and acting Russian President Vladimir Putin - if Putin wins
the March presidential elections. Confusion and ambiguity have
surrounded the potential Putin-Jiang summit, as domestic concerns,
particularly in China, have distracted the countries in their
movement toward a strategic partnership. Unconfirmed reports assert
that China's top leaders were caught off guard by former Russian
President Boris Yeltsin's resignation, demonstrating that while the
two nations may share a strategic interest in creating a multi-
polar world, a disconnect remains between the nations' domestic
interests.

Analysis

Chinese Foreign Minister Tang Jiaxuan will visit Moscow Feb. 28 -
March 1 to deepen "the existing strategic and cooperative relations
between the two countries," according to China's Foreign Ministry.
During the visit, Tang will coordinate bilateral contacts with
Russia, which will likely include "mutual visits of [acting Russian
President] Vladimir Putin and [Chinese President] Jiang Zemin,"
reported ITAR-Tass.

So far, a definitive date has not been set for a Putin-Jiang
summit, though all indications suggest it will occur between the
March Russian presidential elections and the July G8 summit in
Japan. The long-planned Sino-Russian summit, postponed several
times in 1999, took place in name only during a brief visit by
Russia's former president Boris Yeltsin to Beijing in early
December (http://www.stratfor.com/services/giu/120799.asp).
Moscow has indicated that one of the first foreign visits of the
next Russian president will be to China.

While Moscow has planned for Putin to visit China, Beijing has
appeared for the most part aloof to pre-summit preparations.
Although projecting an image of aloofness is not an unusual
negotiating tactic for the Chinese, deeper reasons may exist for
China's apparent lack of interest in the summit.

Despite long preparations for a Sino-Russian summit, China was
apparently caught off guard by Yeltsin's New Year's Eve
resignation. As late as Dec. 30, China's ambassador to Russia was
still talking about prime minister-level talks in spring 2000
between Putin and Zhu Rongji in Beijing, giving no indication of an
imminent power shift. Further, the Hong Kong magazine Kai Fang Feb.
1 cited "well-informed sources in Beijing" who said Jiang and other
upper-level Chinese Communist Party officials were "immensely
shocked" by the news of Yeltsin's resignation.

Not only does this suggest that Moscow was not entirely open with
Beijing, it also demonstrates a severe failure on the part of
Chinese intelligence, if the report is accurate. China's lack of
awareness of a major change of power in Russia - while working on a
strategic partnership to counter U.S. global hegemony - is a clear
sign that Beijing is preoccupied with other issues.

While it was increasingly apparent in fall 1999 that Moscow was
undergoing a change in leadership
[http://www.stratfor.com/SERVICES/GIU/081099.ASP], China was
preoccupied with internal instabilities: the
Falun Gong and the country's 50th anniversary
celebrations, the repercussions of the U.S. bombing of the Chinese
embassy in Belgrade, Taiwan President Lee Teng-hui's declaration of
"state-to-state" relations and World Trade Organization
negotiations.

China's leaders are now trying to understand what is happening in
Russia and whom they are dealing with in Moscow. Despite shared
interest in being able to counterbalance U.S. global reach, both
are concerned that the other will ally with the United States and
both have an interest in maintaining ties with the United States
for economic reasons. Pressing domestic concerns in both countries
further impact the realization of the Sino-Russian strategic
alliance. As China and Russia edge closer to a presidential summit,
China will remain wary of Russia, holding off any formal commitment
until after Moscow's elections.




(c) 2000, Stratfor, Inc. http://www.stratfor.com/

__________________________________________________

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Macdonald Stainsby
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