The processes of the establishment of the Common Economic Space in Eurasia dictates the member-states the need of joint efforts to protect territorial and economic interests of each other. The case is about protection of the states interests in terms of joint use of water resources. Today Russia and Kazakhstan have to face the prospect of deficit of water, which is supplied from transboundary with China rivers. READ MORE

United States plans to link the countries of Central Asia by new rail lines with Afghanistan. At the same time, Washington opposes neither the construction of a railway corridor from Central Asia through Iran, nor Chinese extensions of its national rail system into the area. Nevertheless, according to analysts at the Moscow Strategic Culture Foundation, these overlapping transportation development projects threaten to spark a new “railroad war” in the Central Asian region—one that in the absence of counter-efforts by the Russian Federation is likely to result in a sharp reduction of Moscow’s influence over the countries there. READ MORE

Hopes for reform in China have risen in recent weeks. Xi Jinping’s decision to make Shenzhen the site of his first formal inspection tour as party general secretary spurred predictions that he will seek to assume Deng Xiaoping’s mantle as an economic reformer (“Xi Jinping’s ‘Southern Tour’ Reignites Promises of Reform,” China Brief, December 14, 2012). Similarly, Xi’s speech regarding China’s need for the rule of law—given on the 30th anniversary of the 1982 constitution—gave rise to press speculation that he may pursue legal and political reform (South China Morning Post, December 13, 2012; AFP, December 4, 2012).  READ MORE

This week China’s ruling elite appoints new leaders for the next decade. The incoming president, Xi Jinping, and his colleagues face such fearsome challenges that, in their moment of victory, one almost sympathizes. Understanding their difficulties and calibrating U.S. policy accordingly will be among the biggest tests for the new Obama administration. For everybody’s sake, Beijing and Washington both need to do some rethinking. READ MORE