It's official: this month Kunming will launch direct flight services to Dubai, joining a small handful of other Chinese cities with air links to the Middle East.

China Eastern Airlines announced last week that it will launch flight services between Kunming and Dubai on February 22. The thrice-weekly flights include one direct Kunming-Dubai flight and two with stopovers in Dhaka, Bangladesh.

The direct service, MU755/6, will depart Kunming at 4 pm and arrive seven hours later in Dubai. MU2021/2 will also leave Kunming at 4 in the afternoon, arriving in Dubai around eight hours later after stopping in Dhaka.

The new air connection is expected to boost already booming non-oil trade between China and Dubai. Additionally, Yunnan is home to one of China's largest Muslim populations, after Xinjiang, Ningxia and Gansu – which should lead to more Yunnan Muslims visiting the Middle East as leisure and religious tourists.

The addition of flight services to Dubai is another step in Kunming's evolution into an international air hub. Since the end of 2007, Kunming has added flight services to Kolkata, India and Kathmandu, Nepal.

The biggest step forward in Kunming's emergence as an international aviation hub will be the opening of Kunming's new airport. The 12 billion yuan (US$175 million) airport is scheduled to open in 2011.

The airport will be located about 30 kilometers northeast of downtown, just past the town of Dabanqiao (大板桥镇). Considerable progress has been made on the airport since construction began in 2008, with the steel skeleton of the airport terminal nearly completed and base earth layers ready for the runways.

The new airport and other infrastructure projects outlined in Kunming's ambitious 12-year development plan, which was unveiled in 2008, promise to bring major changes to the city. Alongside construction of the airport is a four-lane expressway that will link the new airport with the eastern end of Dongfeng Dong Lu via interchanges at the second and third ring roads.

Also, the timeline for construction of light rail line number six, which will run from downtown Kunming to the new airport, has been pushed forward, with construction beginning next year. The light rail was originally going to be extended to the airport by 2020 and is now projected to be completed within five years.

Photos of the new airport expressway and airport construction site:



Dubai image: Dubai Travel Guide

Shilin solar plant begins operation
The first phase of the 66-megawatt photovoltaic solar power plant in Shilin, about 70 kilometers outside of Kunming, went online and began feeding the electrical grid at the beginning of the month, according to Xinhua Net.

The 9.1 billion yuan project is being jointly financed by Yunnan Power Investment New Energy Development Company and the Chinese photovoltaic manufacturing giant Suntech Power Holdings. It will eventually include 100 megawatts of experimental and demonstration solar capacity in addition to the 66 megawatts of grid-connected capacity.

The Chinese solar energy industry has benefited from government subsidies for utility-grade solar energy projects and Yunnan's high elevation and relatively clear skies make it an attractive location for solar energy projects.

For now, the Shilin plant is the largest photovoltaic solar project in China, and perhaps Asia. It will, however, eventually be dwarfed by a planned 360-megawatt project north of Kunming and a planned one-gigawatt photovoltaic installation in Qinghai province's Qaidam basin.

Although it remains unclear whether the planned capacity of the Qaidam project will ever be reached, the first 30-megawatt phase of that project is already under construction.

As a point of comparison, a large coal-fired power plant might have a generation capacity in the range of 500 megawatts to one gigawatt.

Yunnan foreign trade dropped in 2009
Official statistics for Yunnan's trade with foreign countries were released last week. Yunnan's foreign trade amounted to US$8 billion for 2009, with US$4.5 billion in exports and US$3.5 billion in imports. Overall trade fell by almost 16.5 percent compared to 2008, with a 9.5 percent decrease in exports and an almost 24 percent drop in imports.

Although the drop seems rather precipitous, Hou Liqun, Secretary General of the Yunnan Association of Enterprises with Foreign Investment was quoted in the Spring City Evening Post as saying that, "the data is better than many people expected."

Hou also expressed a belief that Yunnan's foreign trade will increase over the course of 2010, partly following in the wake of the global financial recovery, and partly on the basis of opportunities inherent in the new ASEAN Free Trade Area.

Yunnanese among earthquake victims
Three peacekeepers from Yunnan were among the eight Chinese nationals that were killed in the magnitude 7.0 earthquake that devastated the Haitian capital of Port-au-Prince and surrounding areas last week.

All eight died in the collapse of the Port-au-Prince building housing the U.N. Stabilization Mission in Haiti, where they were attending a meeting.

Their bodies were returned to Beijing on Monday and family members were expected to attend a memorial service today.

Kunming to Sydney or Melbourne via Guangzhou
Aussies living in Kunming might be interested to learn that China Southern Airlines recently announced new routes connecting several Chinese cities, including Kunming, to both Sydney and Melbourne via the airline's Guangzhou hub. In its press release, China Southern claims that flying through Guangzhou will shorten the routes by two hours compared to connecting through Shanghai.

Photo: Xinhua Net

Southwest China rail network to be upgraded
Rail lines linking Yunnan, Sichuan, Guizhou, Guangxi and Chongqing will be upgraded "at an early date" according to Yan Hexiang, deputy director of the Ministry of Railways' development planning department.

The ministry plans on adding more than 50,000 kilometers of new rail lines to China's less-developed west by 2020. Lines slated for improvement include the Kunming-Nanning, Chengdu-Guiyang, and Chongqing-Guiyang lines. China's west consists of more than 70 percent of the country's land area and is home to 370 million people.

Myanmar to build rail link to Yunnan
Myanmar will build a railroad connecting the border town of Muse with Yunnan's Jieguo, located near Ruili, according to Chinese media reports. The rail line is expected to boost the already flourishing trade between Myanmar and Yunnan, which is currently conducted with cars and trucks.

Since 1998, Myanmar has established five border trade areas with China, including Muse, Lwejei, Laizar, Chinshwehaw and Kambaiti. The country is planning on adding a sixth in the Kokang region, where in August of this year the Myanmar army overran an ethnic Chinese militia, sending thousands of refugees into Yunnan.

The border trade area at Muse primarily sends agricultural products, seafood, timber and gems into Yunnan, with steel, construction materials, computers, farm machinery and other finished products flowing in from China.

Carbon credits helping Yunnan build wind power infrastructure
Yunnan is using the Kyoto Protocol's Clean Development Mechanism (CDM) to rapidly build up its wind power network with foreign investment, according to an AFP report. The CDM allows industrialized nations to fulfill some greenhouse gas reduction requirements by investing in clean energy technologies in developing nations.

The Zhemoshan wind farm in Dali – located at an altitude of 3,000 meters – is the highest wind farm in China. Carbon credits produced by the project, which has been funded by a US$45 million loan from the French Development Agency, will be purchased by Dutch bank Rabobank, according to a representative from Sinohydro, the Chinese company which manages the farm.

It is hoped that the Dali wind farm and others in Yunnan will make up for the winter dropoff in hydroelectric power generation by the province's extensive network of dams.

China has gone from little installed wind generation capacity five years ago to 12.2 gigawatts of installed capacity last year, making it the world's fourth-largest wind power producer, behind only the US, Germany and Spain.

India's national government has decided not to go forward with plans to rebuild the Stilwell Road connecting northeast India's Assam State with Yunnan in China, according to a BBC report.

The decision follows a continuing impasse regarding the long-disputed border shared by China and India. Recent talks between the two countries ended with no resolution of border issues and a promise to talk more in the future.

The Stilwell Road is a former World War II supply route built in 1944 under the supervision of US General 'Vinegar' Joe Stilwell. The 1,700-kilometer (1,000-mile) road once connected Kunming with the city of Ledo in Assam state, with most of the road passing through northern Myanmar's Kachin state.

Several prominent officials in Assam state had been pressing for the reopening of the Stilwell Road in recent years, which they had viewed as being a potential source of economic growth which could stabilize India's occasionally restive northeast.

In 2006, more than 10,000 demonstrators demanded that the government reopen the road. Some analysts have estimated that as much as one-fifth of bilateral trade between China and India could pass through a revived Stilwell Road.

In addition to New Delhi's reluctance to reopen the Stilwell Road, the government of Myanmar has been cool to the idea of an international highway passing through Kachin state, much of which is controlled by the Kachin Independence Army, which has had a ceasefire with Myanmar's ruling junta since 1994.

The Chinese portion of the road, which heads westward from Kunming, has been completed for several years. Progress in Myanmar, where more than half of the road is located, has been slow. In 2007, India became the last of the three countries to start work on the road.

The Indian government's reversal of its decision to rebuild the Stilwell Road suggests that despite recent diplomatic breakthroughs between the two Asian powers, there are concerns bubbling beneath the surface. These concerns are likely to include Indian worries about China diverting the Brahmaputra River, Chinese involvement in the arms trade around Assam and China's stance toward Arunachal Pradesh, which Beijing calls 'South Tibet'.

Nazeeb Arif, a native of Assam state and former secretary-general of the Indian Chamber of Commerce who is a major proponent of rebuilding the Stilwell Road, told the BBC that trade with China would be a boon to the region's economy, which lags behind much of the rest of the country:


Although New Delhi's unwillingness to rebuild its portion of the Stilwell Road is a major setback to pan-Asian transport integration, China will likely continue to increase its connectivity with the rest of South Asia, especially Pakistan, Bangladesh and Nepal.

Earlier this week, the Nepalese government recently approved the launch of direct flights between Kathmandu and Kunming. The thrice-weekly flights will be plied by China Eastern Airlines and will make Kunming the third mainland city after Beijing and Guangzhou to have direct air links with the Nepalese capital.

Miss Philippines wins beauty crown in Kunming
The 2009 International Beauty and Model Competition took place this weekend in Kunming, with contestants from more than 40 countries competing in the national dress of their respective countries as well as enduring short interviews and a bikini competion.

Miss Philippines – whose name was not provided in Kunming media reports - took the crown, with Miss China being declared the 'Queen of Asia' and Miss Greece winning 'Queen of Europe' honors.

Australian trade minister to visit Kunming
Australian Trade Minister Simon Crean will be visiting Kunming this week as part of a trade mission that will also take him to Shanghai and Wuhan. While in Kunming, Crean will open an Australian Architecture and Design Exhibition and will also work to promote Australian participation in upcoming infrastructure projects.

"Australia is seeking to diversify and deepen our strong trading relationship with China into new sectors such as architecture and design, green-building, environmental management and sustainable development," Crean said in a statement reprinted on Nasdaq.com.

In addition to architecture and infrastructure, he will discuss Australian trade and investment with customers and investors in Yunnan's agribusiness sector. In recent years China and Australia have been in slowgoing discussions regarding a free trade agreement.

Government to urge peasants to read one book a year
The Yunnan government has allotted 0.5 yuan per rural resident in a fund that beginning next year will be aimed at raising literacy and education levels in the countryside. The project's basic goal is to get peasants throughout the province to read at least one book a year, according to local media reports.

Image: news.kunming.cn

In recent years, the relationship between Asian giants China and India has gradually shifted from vocal distrust to guarded optimism. With the political thaw between the two countries, an economic relationship has grown rapidly – in 2002 bilateral trade was a mere US$2 billion, last year that number surpassed US$51 billion.

As China and India continue to open up to each other, the lack of sufficient transportation links is hampering trade and tourism. With both countries eager to increase interconnectivity, Kunming is emerging as China's de facto gateway to India.

Beginning in June, China Eastern Airlines will increase its flight services between Kunming and Kolkata, capital of eastern India's West Bengal state, from four to seven flights weekly, according to Indian media reports.

Li Ji, general manager of China Eastern's Kolkata operations, told reporters in India that more flights will be added to the Shanghai-New Delhi route, which currently has only three flights weekly.

Li said increasing tourism between the two countries was the driving force behind the decision to increase flight services. At present, China Eastern flights between the two countries have full occupancy, he added.

Local politics in India, particularly the country's occasionally restive northeast, are also beginning to focus on increasing connectivity with Kunming. MP and parliamentary election candidate Sarbananda Sonowal, from Assam state's Dibrugarh constituency in the Lok Sabha (LS) – India's directly elected lower house of parliament – has become one of India's most vocal proponents of a road to Kunming.

Sonowal has been arguing for a reopening of the Stilwell Road, a former World War II supply route built in 1944 under the supervision of US General Joe Stilwell. The 1,700-kilometer (1,000-mile) road once connected Kunming with the city of Ledo in Assam state, with most of the road passing through northern Myanmar.

Rather than serving as a military supply road, Sonowal imagines a resuscitated Stilwell Road as becoming a new channel for trade between India and China. China's portion of the road – all of it located in Yunnan – has already been upgraded to a modern six-lane expressway.

The main obstacles to the road's revival have been the fact that it passes through Myanmar's politically volatile north, plus a general reluctance by the Indian government, which has voiced security and drug trafficking concerns about the road in the recent past.

"The reopening of Stilwell Road is important not only for people of ... Dibrugarh LS constituency, but also for entire (Indian) northeast, as it would re-establish this region's old trade links with China and other countries in Southeast Asia," Sonowal recently told Indian reporters.

Goods transported between India and China via a new Stilwell Road would take two days to make the trip. At present, sea cargo between the two countries must pass south of Singapore and through the Malacca Strait. Reopening the Stilwell Road would cut the distance between China and India by 5,000 kilometers (3,100 miles).

With Kunming being groomed to be China's gateway to Southeast Asia, more attention is being paid to the new R3E road which runs 1,807 kilometers and links the city with Bangkok. Initial reports from Bangkok suggest that although international trade along the route – which also passes through Laos – has increased sharply, it could grow even faster if physical and bureaucratic obstacles are addressed sooner rather than later.

The R3E road opened in Autumn 2008 to boost intraregional trade, tourism and investment. Yunnan is home to the road's northernmost 688 kilometers, which lead into a 229-kilometer stretch leading into Laos. The remaining 890 kilometers link the Lao-Thai border with the Thai capital.

Thai trade statistics from the customs checkpoints at Chiang Khong and Chiang Saen indicate that Chinese imports into Thailand were up 15 percent year-on-year, reaching 25.8 million yuan, while imports from Laos grew by 85 percent, totaling 142.7 million yuan. Switching directions, Thai exports to China were only up four percent, totaling 9.9 million yuan, compared to Thai exports to Laos, which nearly doubled to reach 250.4 million yuan.

In terms of the flow of goods between the more developed economies of China and Thailand, Laos is a bottleneck for the road in terms of physical infrastructure and customs processing, according to a report in the Bangkok Post.

A 480-meter bridge across the Mekong River connecting Houeixay, Laos with Thailand's Chiang Rai province was originally expected to commence construction this year. However, the possibility of delay has increased as the global financial crisis has worsened. Construction of the 310 million yuan bridge is to be jointly funded by China and Thailand.

In addition to structural challenges to making the road more efficient, the Bangkok Post reports that customs officials in Laos "continue to collect high tariffs, sometimes arbitrarily, that can amount to as much as 30% of the total cost of goods," citing Thai businesses.

Should transport on the road become more streamlined, experts are predicting that as many as 10 million containers could travel R3E annually.

The road's proponents are also saying it helps alleviate gridlock on the Mekong River. During the river's high water season, ships traveling from Jinghong to Chiang Rai take around 12 hours, while ships heading upstream can take two to three days, which is much less viable for agricultural and horticultural goods that have a short transport life.

Map: Bangkok Post

Malaysia has called for a clear timetable for the completion of the rail network that will link Kunming with Singapore, a project that has been ongoing since 1994.

Yesterday Malaysian Transport Minister Ong Tee Keat told the rail network's 10th Special Working Group Meeting in Putrajaya, according to Malaysian media reports.

The 5,382 kilometer (3,344 mile) rail network will connect Singapore, Malaysia, Thailand, Myanmar, Laos, Cambodia and Vietnam with Kunming and other cities in Yunnan. The main obstacle to getting the network up and running is the existence of around 550 kilometers of gaps between rail lines around the region. According to Ong:


Ong said that despite concerns about rising costs of construction materials, Malaysia was not going to pressure poorer countries in the region – ie Cambodia, Laos and Myanmar – to meet the generally hoped-for completion target of 2015, although Malaysia's last gaps will be filled before then.


Once completed, the rail network is expected to greatly boost regional trade and tourism as well as contributing to poverty reduction in poorer areas throughout the region. It will also bolster Kunming's position as the primary Chinese logistics hub for trade with Southeast Asian countries.