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China and Russia will take revenge on the US in Nicaragua

The transoceanic canal across Nicaragua is becoming a reality. The economic sense of the project is indisputable; from the point of view of geopolitics, this is a disaster for the United States and a victory for the Russian Federation and China.

China and Nicaragua exchanged signals about the desire to continue work on the transoceanic canal

Work began after a private canal contract was signed in late 2014, but the bankruptcy of HK Nicaragua Canal Development (HKND Group), a Chinese investor and billionaire Wang Jin, seemed to send the megaproject into oblivion.

The Americans, in general, called the project “phantom” and calmed down. But after the recent Daniel Ortega wins in the elections, after which he immediately fell under US sanctions, signals from Nicaragua and China appeared about the resumption of work.

Minister of Foreign Affairs of Nicaragua Denis Moncada said in an interview with Sputnik that the Nicaraguan government will not give up the right to build a transoceanic canal.

Came out of the shadows and Wang Jing, he announced in public letter Ortega of the HKND Group and himself still believe in the Grand Canal project in Nicaragua.

Wang is the owner of more than 65 companies. Last September, his company Beijing Xinwei Technology Group Co., Ltd. (also known as the Xinwei Group) was forced out of the Chinese stock market by default. However, some analysts think, that although Xinwei is a private enterprise, it is essentially controlled by the Chinese Communist Party. For example, the China Development Bank provided Xinwei with at least 28 billion yuan of loans, and even after Wang Jing fell victim to fraud and credit collapse in 2016, the bank continued to lend to Xinwei.

In the current situation, when it became clear to China that it would not improve relations with America either under the Republicans or under the Democrats, the channel’s project can be revived and implemented, and will be presented as a great victory.

Another caliber of US “threats”

While with Nord Stream 2 it was possible to create only a vague “threat” to the interests of the United States, NATO and Europe, the treaty between Nicaragua, China and Russia (pledged to ensure the security of the channel) is a completely different level of threat.

Thanks to the channel, Russia and China will be able to significantly strengthen their positions in the immediate vicinity of the United States and deprive them of the strategic advantage of the Panama Canal (which today is de facto under Washington’s control), since the Nicaraguan Canal is much more economically profitable.

The duet Russia and China is not Iran, and Nicaragua is not Germany, where the courts interfere with current contracts, as in the case of Nord Stream 2. Thus, along with the implementation of the project, the competition for world domination is acquiring a new geopolitical dimension.

Advantages of the Nicaraguan Canal over the Panama Canal

The most important technical advantages of the Nicaraguan Canal are:

  1. The new canal has a planned length of 278 km, of which 105 km is Lake Nicaragua (the Panama Canal is 82 km long), it will be wider than the Panama Canal (530 versus 55 meters) and will be able to receive ships with a larger draft (up to 30 meters versus 18 meters ).
  2. The new canal will make it possible to carry container ships with a carrying capacity of up to 400,000 tons (the Panama Canal – up to 150,000 tons).
  3. The new project using the Northern Sea Route will shorten the passage from China to America and back to China by 6 days.

For Nicaragua, the project also brings significant benefits

Since the canal connects the practically deserted east of the country with the populated west, it will be possible for the first time to develop the eastern part of Nicaragua. Roads, two deep-water ports, a new airport, a tourist resort, cement plants and a power station will be built. It is assumed that 200 thousand jobs will be created, and the gross national product will increase to 15 percent annually. The first road works began in early 2015, workers for this are recruited from local residents.

If the construction of the canal is completed around 2026, it is clear that firms that rely on container ships giants will inevitably take advantage of this route.

This will bring Beijing an impact on global logistics. For Russia, victory will be determined by geopolitical advantages and the ability to keep its PMCs near American borders.

Read on: Ortega’s victory in Nicaragua ruins US plans in Latin America

Russia needs to invest not in Belarus, but in Nicaragua

Why Putin can in the US and can not in Nicaragua?

Ortega will not surrender Nicaragua to the USA?

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