The government tries for Chinese FDI
Given the SWAP agreement between the Chinese and the Belarusian National Banks does not work (Chinese exporters cannot return the claimed VAT back in Yuan), the Belarusian authorities have proposed to China to establish a joint industrial park in Belarus hoping to attract direct investments worth at least USD 1-1.5 billion.
An agreement concerning the creation of the park between the Economy Ministry of Belarus and the “Chinese Engineering Corporation CAMC” was signed on 11 October 2010 during the visit of Alexander Lukashenko to China. However a draft decree has been prepared only recently.
The increased cooperation and trade with China so far only results in deterioration of the Belarusian trade balance and in the growth of debt in the corporate sector. The government wants to change the type of cooperation with China and benefit from China’s FDI. However it is only dreaming and planning, given the sluggishness of the government officials, the current currency crisis and the fact that Chinese are focused on export of their goods and services rather than investment, ergo, joint industrial park even if it is established, will not be functioning this year. Moreover, the money will be allocated in tranches. All in all, the ongoing Belarusian issue with financing of the deficit will not be solved (also concerning the trade with China) or the more so, the economic crisis.
During searches of social and "green" activists and anarchists, law enforcement has seized computers, mobile phones and publications. The authorities have also exerted additional pressure on supporters of unauthorized street protests and independent lawyers, who represented defendants in the White Legion case. The security services have stepped up the persecution of opponents before the street protests announced by the opposition. Apparently, the Belarusian authorities aspire that participants in street protests would reduce in number and that the low interest of the population to socio-political agenda before the local election campaign would retain.