New Silk Road 新絲路 Новый Шелковый путь

20/05/2016

China looking for brave new trade corridors

Journal of Turkish Weekly

Just days after China marked the 50th anniversary of Mao Zedong’s Cultural Revolution, a movement to wipe “capitalist elements” out of the country, Beijing set further goals on May 18 for its multi-billion-dollar “One Belt, One Road” initiative, with Hong Kong sitting at the heart of the plans that would affect around 60 countries, including perhaps Turkey.

“China is the initiator but this is not a one-man show,” said Zhang Dejiang, chairman of the Standing Committee of the National People’s Congress and the vice chairman of the National Security Commission of China, also known as the “third man” of the world’s second largest economy, during an opening speech at the Belt and Road Summit in Hong Kong.

“The Belt and Road are not private exclusive roads but wide and open avenues for all of us,” he said at the summit held under very strict security measures, adding that some 30 international agreements had been signed with the countries on the routes defined by China. Another deal with Indonesia was signed on May 18. However, Beijing still needs to convince more countries to build its planned network, which might make it an even stronger regional power if realized.

Six corridors

“It consists of six economic collaboration routes,” said Tommy Lui, the advisory board member of the Hong Kong Trade Development Council, who is also the Southern Chinadirector of Li & Fung, an arm of leading logistics company Fung, while addressing a group of visiting journalists.

The first of these corridors is the China-Russia-Mongolia route.

Authorities said Mongolia has played an important role in negotiations and that this will help in carrying goods produced in the northern parts of China to Europe faster than first taking them to Hong Kong before a long sea route if it connects to another projected corridor, the Eurasia Bridge. These two trade channels might cultivate Russia-China ties further.

Another route is the China-Central and East Asia corridor. Authorities said this would help Central Asian countries find trade partners, while it will also be important in terms of the mineral richness of the region.

The projected China-Indochina Peninsula corridor offers several Chinese production centers a shortcut to the ocean, while it may also help new industries emerge on its way.

But the most serious plan for Beijing to reach the ocean closer to Western maritime routes is the China-Pakistan corridor, which is also the most mature phase of the plan.China has already built oil refineries in the unrest-stricken country. The Pakistani army is in charge of protecting the facilities.

The last corridor is the the India-Bangladesh-Myanmar route, where China may find a cheaper workforce in exchange for marketing these countries’ goods.

Hong Kong the ‘super connector’

C.Y. Leung, the chief executive of the Hong Kong Special Administrative Region, said Hong Kong was a major link between mainland China and the rest of the world.

“In areas such as finance, investment and professional technology, Hong Kong’s unique super connector role can bring together the strengths of the Belt and Road economies,” he said.

China has already dedicated $40 billion to a Silk Road Fund, and the program was the driving force behind the establishment of the $50 billion Asian Infrastructure Investment Bank. However, the total investment amount remains vague since the initiative is only beginning to take shape.

Zhang praised the efforts with historic references to the ancient Silk Road.

“From the Yellow River to the Ganges, from the Nile to the blue Mediterranean, the flowers of ancient civilizations have bloomed in the course of mutual learning and become the shared memory of countries along the routes,” he said.

The idea of reviving the historic Silk Road is nothing new for China, but the latest shape of the initiative mirrors Beijing’s future projections that go far beyond logistics. Goals include building an Asian bond market and improving the use of the Chinese currency, the renminbi.

“Belt and Road” countries account for more than 60 percent of the world’s population, producing more than 30 percent of the world’s merchandise trade and 30 percent of the world’s GDP.

However, the honorary guests of the summit remained limited to a few countries such as Indonesia, Malaysia, Belarus and United Arab Emirates.

No Turkish officials were listed among the speakers, showing that Ankara, which once expressed its interest in the so-called Shanghai Five, might still be cautious about the Chinese initiative.

http://turkishweekly.net/2016/05/20/news/china-looking-for-brave-new-trade-corridors/

18/05/2016

How China’s Silk Road project can benefit India

DNAIndia

India remains unmoved, at present. Since OBOR is expected to take shape over 35 years, New Delhi cannot be said to have closed the matter for all time

It is hard to figure out why the Government of India (GoI) has steeled itself against accepting any part in China’s One Belt One Road (OBOR) initiative. Sections seeking to influence policy have more than once reiterated that it is in India’s interests to work with Beijing on OBOR.

None of these policy wonks and strategic affairs experts is a China-lover or China-optimist by any definition. To the contrary, many of them are staunch supporters of the US “pivot” against China and advocates of the Washington-Delhi-Tokyo axis. Their case is that India should get on board OBOR for non-ideological, pragmatic reasons. Economic common sense, need for connectivity and access to the proposed Asia-Europe infrastructure of transport and industrial corridors and hubs for telecom, trade, travel and energy transfer dictate that India seize the promise held out by OBOR.

In fact, from a geostrategic perspective, involvement in OBOR could help India to more effectively implement its own Spice Route and Mausam projects. Far from being counter-proposals, these two can be integrated with OBOR to optimise both economic and strategic gains. On more than one occasion, Beijing has expressed its readiness to work with New Delhi — and South Asia — on Spice Route and Mausam. It has offered to reorient and adapt OBOR to make it more acceptable to New Delhi.

However, India remains unmoved, at present. Since OBOR is expected to take shape over 35 years, New Delhi cannot be said to have closed the matter for all time. And, neither China nor the other countries including Russia have given up on India being persuaded to join the initiative.

The trigger for these reflections is the Asia-Europe Meeting (ASEM) Media Dialogue on Connectivity, held in Guangzhou on May 9-10. Over 200 delegates representing media, business, government and think tanks from ASEM member states had gathered to discuss media’s role in “Promoting Public Awareness and Partnership.” Pakistan, Bangladesh, Mongolia, New Zealand and Singapore had co-sponsored the Dialogue along with China’s Ministry of Foreign Affairs and the State Council Information Office.

Although GoI keeps out of OBOR-linked activities, Indians especially from the media are regular invitees to these stakeholders’ meetings on Connectivity. Every such event is a reminder of how much India would have been in the limelight had it opted to partner China on OBOR.

In the absence of India, the most influential element of the Anglo-American axis that tends to dominate such spaces is Pakistan. Needless to say, Islamabad, as the leading South Asian presence in such forums makes the most of these opportunities to “manage” perceptions.

Had GoI participated, even at a Track 2 level, it would have held centre stage, shown the way and stolen the thunder not only in Guangzhou, but in any such ASEM session. In the absence of Official India, if Indian media delegates led some of the sessions and held the floor with their ideas, inputs and articulation, it was because of the content of their contribution.

These media representatives are, at best, informed participants with little authority or say in policy; and, that is a fact known to the organisers and the audience. Yet, their being invited to present their thoughts and suggestions underscores the importance attached to India, its role in Asia, its engagement with Europe and emerging global initiatives.

Such participation and impact in international forums is a testimony to India’s “soft power” at play, in the interests of the people and the state (not government) by non-state actors. Thus, by keeping out of an initiative like OBOR, New Delhi is losing out not only on the projected hard, tangible benefits of connectivity but also the soft, intangible gains that flow from diplomatic success in expanding spheres of influence.

http://www.dnaindia.com/analysis/column-how-china-s-silk-road-project-can-benefit-india-2213315

04/05/2016

Share on Facebook Twitter India’s recent moves are putting India’s multipolar commitment in doubt and raise questions about whether India …

16/03/2016

China's Belt and Road Initiative to bring the world closer together

China Xinhua News

BEIJING, March 16 (Xinhua) -- At the just concluded Two Sessions, China promised to further the opening up and reform of its economy while pushing forward the Belt and Road Initiative, a move experts believe demonstrates the country's resolve to bring the world closer together through commerce.

China set this year's growth target in the range of 6.5 to 7 percent, following 6.9-percent economic growth in 2015, according to a government work report delivered by Premier Li Keqiang at the sessions of the National People's Congress and the Chinese People's Political Consultative Conference National Committee, together called the "two sessions."

This year's target is aligned with China's goal of completing the building of a moderately prosperous society in all respects, and takes into consideration the need to advance structural reform, Li said.

It also marked the first time in two decades that China adopted a range for its growth target rather than a specific number.

This decision was "a bit of a strategic choice" made by the Chinese government, said David Dollar, a senior fellow with the Brookings Institution and a former official of the World Bank and the U.S. Treasury Department.

While this range is lower than last year's target of around 7 percent, "it still sends a strong signal to the market that the government is resolved to keep growth momentum at a rate that is above potential," the Institute of International Finance (IIF), a global association representing about 500 financial intuitions, said Thursday in a research note.

"Structural reforms are to focus on addressing overcapacity problems, improving productivity, lowering the tax burden on enterprises and facilitating access to credit, addressing imbalances in the property market and strengthening financial supervision," the IIF said.

Dollar said supply-side structural reforms are essential if China wants to continue growing well, noting that he was particularly impressed by the announcements of hukou (household registration system) reform and opening up more service sectors in China to foreign investment.

According to the 13th Five-Year Plan, China will continue to open more areas in a phased manner, grant greater market access for foreign capital, introduce more overseas capital and advanced technology, and improve the quality of foreign capital utilization, heralding that more opportunities are available for overseas investors in the near future.

Justin Comes, Vice President of the Research and Development Department at Mars Chocolate China, said past experience showed that Mars would continue to "increase optimism in the Chinese market."

"We will continue to make our investments in the Chinese economy. We believe that the ambitious reform agenda coupled with the commitment to grow the economy to the medium to high range gives a more balanced view for us to be able to continue these investments in a very bright future in China," Comes said.

Under the circumstance of a slowdown in global economic growth, China's Belt and Road Initiative has received positive response from many countries and regions and brings with it new opportunities along its route.

According to Premier Li, China will work to ensure solid progress in pursuing the Belt and Road Initiative and work with other countries and regions to build overland economic corridors and maritime hubs, all in a bid to promote connectivity, economic and trade cooperation, and cultural exchange.

Thanks to the Belt and Road Initiative, some 100 China-Europe freight trains have begun running on the route, effectively boosting economic relations between China and Europe.

For Poland, the Belt and Road Initiative has not only offered a convenient channel for Polish enterprises to enter the Chinese market, but also linked Poland with other countries along its path, like Mongolia, said Piotr Gadzinowski, a former member of the Polish Sejm, the lower house of the Polish parliament.

Of the about 65 countries along the Belt and Road, most of them are in the process of industrialization and urbanization. As the initiative complements their aspirations for growth, dozens of countries remain hopeful about its promise, said Xu Shaoshi, head of the National Development and Reform Commission (NDRC), at a press conference on March 6.

"No matter what rate the country grows at in 2016, its share of the global economy, and of many specific sectors, will be larger than ever," said Gordon Orr, emeritus director for McKinsey & Co.

14/03/2016

Eurasia superland bridge: China is constructing super suspension bridge in Yunnan province. It is expected that the construction of bridge would be completed in May. This bridge will connect southwest of China with South Asia. It is a first Eurasian land bridge and a part of 15,000 kilometer proposed transport corridor which would pass through 17 countries – in China it would pass through Guangdong, Guangxi and Yunnan before entering Myanmar and passing through Bangladesh, India, Pakistan, Iran and Turkey before continuing into Europe.

12/03/2016

Russia and China signed an agreement to construct a railway line linking eastern Siberia to the Chinese province of Jilin in the north-east of the country.

01/02/2016

China has launched a new maritime shipping route to Iran two days after the first freight train departed China for the Islamic Republic, media outlets reported Monday, citing sources

China has launched a new maritime shipping route to Iran two days after the first freight train departed China for the Islamic Republic, media outlets reported Monday, citing sources.

23/01/2016

The Belt and Road Initiative was a hot topic during Chinese President Xi Jinping's visit to Saudi Arabia, Egypt and Iran. The Initiative is conducive to promoting connectivity and expanding trade cooperation between China and Middle East countries, said experts.

Tourists ride on camelback in a scenic spot of ancient China's Silk Road. Zhang highlighted both the necessity and compatibility of cooperation between China and the Middle East in transportation infrastructure,noting that trade cannot be smooth without convenient transportation n. China promised to…

17/01/2016

Ukraine's Yatsenyuk shows "Silk Road" map to Asia

Ukrainian Prime Minister Arseniy Yatsenyuk has showed a so-called “Silk Road” map via which Ukrainian goods will be supplied to Asia bypassing Russia.

The Ukrainian premier made a relevant posting on Facebook.

“Today the first experimental haul on route Ukraine-Georgia-Azerbaijan-Kazakhstan-China is departing from Illichivsk Sea Port. It will become an alternative to transportation of freight from Ukraine to these markets bypassing the territory of Russia,” Yatsenyuk said.

According to him, the Ukrainian and European goods now can be supplied to the countries of the Middle East even if there are sanction restrictions from the side of Moscow.

“The Russian transit and trade embargo will not prevent the transportation of our freight to the markets of the Middle Asia,” Yatsenyuk said.

www.ukrinform.net

12/01/2016