Ukraine becomes new 'battlefield' in US-China race

US National Security Advisor John Bolton. Photo: Reuters

US National Security Adviser John Bolton visited Kiev last week and met with President Volodymyr Zelenskiy. According to the US administration, Mr. Bolton's visit aimed to emphasize Washington's support for Ukraine's sovereignty and territorial integrity as well as its path to Euro-Atlantic integration.

However,NikkeiAccording to observers, the main purpose of Mr. Bolton's visit to Kiev seems to be to prevent China from buying Motor Sich, a major supplier of engines for military helicopters.

According to sources familiar with the matter, Beijing Skyrizon Aviation wants to buy a 50% stake in Motor Sich. The source also said that the Beijing company wants to provide $100 million in support for Ukraine’s aviation industry and is awaiting approval of the deal. Wang Jing, Skyrizon’s chairman, is said to have close ties to the Chinese Communist Party and the country’s military.

While Ukraine's Antimonopoly Committee is reviewing the deal, the United States is reportedly considering backing a U.S. company to bid for Motor Sich through the Overseas Private Investment Corp, a government agency that provides financial support to U.S. companies looking to invest in emerging markets.

The US has made no secret of its strategic interest in trying to stop China from pouring money into Skyrizon. Speaking to Ukrainian media ahead of his meeting with Mr Zelenskiy, Mr Bolton said that defence technology should not be given to “potential adversaries” and that it was in the interests not only of Ukraine but also of the US, Japan and others.

On August 30, Mr. Bolton announced that the US would continue to provide military assistance to Ukraine, although President Donald Trump appeared to have declared the opposite the next day. According to US media, Mr. Trump asked Mr. Bolton and his aides to stop and review $250 million in military aid to Kiev.

China has used military technology from Ukraine, a country that was once a major supplier of equipment to the former Soviet Union’s defense. China’s first domestically built aircraft carrier, the Liaoning, was built from a second-hand aircraft carrier that Beijing bought from Ukraine. Skyrizon has also bought technology from Antonov, the maker of the world’s largest transport aircraft, the Antonov 225.

In 2017, Skyrizon agreed to buy a stake in Motor Sich, but the Ukrainian Supreme Court blocked the deal after lobbying by the US and Japan.

"The acquisition of Motor Sich will help strengthen China's military technology and become a threat," a Japanese diplomatic source said.

Key link in the “Belt and Road” initiative

In addition to military technology, China has made Ukraine a key link in its “Belt and Road” initiative. Under a $7 billion joint project signed in late 2017, China is pushing to build ports and highways in Ukraine.

The move has initially been effective. According to a senior Ukrainian official, in addition to the pro-American, pro-European and pro-Russian factions, Ukraine's political scene now includes a pro-Chinese faction, and its voice is becoming more and more influential.

Ukraine is also seen as an increasingly important partner for China amid the escalating US-China trade war. To counter the US tariff hike, China has chosen the “granary of Europe” - Ukraine - as an alternative supplier of grain products, after a period of dependence on the US.

Ukraine also supplies 80% of China’s corn imports, and Kiev is now boosting its production of soybeans, a commodity Beijing previously bought mostly from the United States.

Russia, Ukraine’s neighbor, is not thought to be too concerned about China’s growing influence in Kiev. Experts say Russia may prefer Ukraine to be closer to China than to the US or Europe.