BypromotingtheconnectivityoftheAsian,EuropeanandAfricancontinentsandtheiradjacentseas,theInitiativeofbuildingtheSilkRoadEconomicBeltandthe21st-CenturyMaritimeSilkRoad(“BeltandRoad”)placesspecialfocusoninfrastructure,industrialparks,porteconomiczones,andportlogisticsnetworks.Itaimstoconnectseveralmajorcontinentsandpromotethefreeflowofinvestment,commodities,services,capital,technology,andpersonneltocreatenewdevelopmentmomentum.
Ofcourse,ChinahasitsownstrategicconsiderationsinproposingtheInitiative.Amongthem,themostimportantistheexplorationofnewdevelopmentspaceforChina’seconomictransformation.SinceChinabegantoimplementthereformandopening-uppolicyinthelate1970s,itseasterncoastalareashaveexperiencedthemajorityofthecountry’seconomicdevelopmentduetotheirgeographicaladvantages.WhileeasternChinahasattractedincreasinginflowofresourcesandlabor,westernChinaremainsinstarkcontrast,withitsvitalitydwindling,exacerbatingChina’sregionaldisparities.Inturn,unbalancedregionaldevelopmenthasbecomeakeyroadblockhinderingChina’ssocialandeconomicstabilityandsustainabledevelopment.
TheChinesegovernmenthasbeenmakingmajoreffortstoalleviatethisimbalance.ThebiggestandmostinfluentialpolicyistheWesternChinaDevelopmentStrategy,whichwaslaunchedintheearly21stCentury.Coveringatotalof12provinces,autonomousregions,andmunicipalities,thestrategyprovidessubstantialsupportforinfrastructureconstructionincludinghighways,railways,powergridsandnaturalgasprojectsandencouragesresourcestoflowfromeasterntowesternChinathroughpreferentialpolicies.However,yearsafterthestrategywentintoeffect,thewesternpartofthecountrystillhadn’twitnessedimpressiveprogressintermsofcompetitivestrength,andunbalancedregionaldevelopmenthadn’tseensubstantialchange.ItbecameclearthatamajorreasonfortheslowprogresswasthegeographicalrestrictionsofwesternChina.
Comparedwiththemoredomestically-focusedWesternChinaDevelopmentStrategy,theBeltandRoadInitiativeemphasizesthatparticipationfrombothdomesticandinternationalplayerswillcreateanevenmoreopenmarketforthewesternChinaregion.Onland,theSilkRoadEconomicBeltfocusesonlinkingChina,CentralAsia,WestAsia,RussiaandEuropeandconnectsChinadirectlytoSoutheastandSouthAsiatoconstructanewandopendevelopmentbelt.Atsea,the21st-CenturyMaritimeSilkRoadisdesignedtostretchfromChina’scoasttoEuropethroughSoutheastAsia,theIndianOcean,andAfrica.ItalsoconnectsChinaandOceaniatoestablishcooperationzonesacrossseasandrealizemutualdevelopment.ConnectingChinawithcountriesalongtheBeltandRoadwillhelpcreatenewspaceforeconomicdevelopment,whichwillbenefitnotonlywesternChina,butalsothewholecountry.
Today,globaleconomicdevelopmentisundergoingadjustmentsthatcallfornewideasandinitiatives.TheBeltandRoadInitiativeproposescooperationanddevelopmentthroughinnovation,constructionofanewenvironmentforcomprehensivedevelopmentandthefosteringofneweconomicgrowthenginesdrivenbysharedexperiences,resources,andinterests,torealizesustainable,inclusive,andbalanceddevelopment.TheBeltandRoadInitiativeisoneofthemostinfluentialprogramsintheworldtoday.
BirthofanIntegratedMarket
TheBeltandRoadInitiativeplacestoppriorityoncoordination.CountriesalongtheBeltandRoadareurgedtocoordinatetheireconomicdevelopmentstrategiesandpoliciesanddesignplansandmeasurestoenhanceregionalcooperationtoprovidepolicysupportforimplementation.ThesecondpriorityisachievingconnectivityamongcountriesalongtheBeltandRoadthroughbuildingawide-reachinginfrastructurenetworkthatincludesbothplannedinfrastructureprojectsandrelevanttechnicalstandards.Thethirdpriorityisimprovinginvestmentandtradeconditionsandremovinginvestmentandtradebarrierstocreateasoundbusinessenvironmentwithintheregionandinallaffectedcountries.Fourth,theconstructionofacurrencystabilitysystem,investmentandfinancingsystemandcreditinformationsystemaimstoexpandthescopeandscaleofbilateralcurrencyswapandsettlementwithothercountriesalongtheBeltandRoad,developabondmarketandfoundnewfinancialinstitutionssuchastheAsianInfrastructureInvestmentBank(AIIB),theNewDevelopmentBank(NDB),andtheInterbankConsortiumoftheShanghaiCooperationOrganization(SCO).Fifth,theInitiativepromotesculturalandacademicexchanges,personnelexchangesandcooperation,mediacooperation,youthandwomenexchangesandvolunteerservicestowinpublicsupportanddeepenbilateralandmultilateralcooperation.Asalargedevelopingcountry,China,thedesignerandkeydriveroftheInitiative,willprovidekeycapitalinputandtechnicalsupportfortheaforementionedcooperationanddevelopment.
FacilityconnectivityisapriorityareaforimplementingtheInitiative.Connectivityinvolvesinfrastructureconstruction,legalalignment,rulesandtechnicalstandards,aswellaspersonnelexchangesandflowamongcountriesalongtheBeltandRoad.Focusoninfrastructuredemandstheconstructionofmoderntransportationnetworks.Thekeyaimofenactedpolicies,rulesandtechnicalstandardsonconnectivityistosignificantlyreduceoreliminaterestrictionsontransportation,trade,andinvestment.Focusisplacedonpersonnelflowtofacilitateengineeringtechnologyexchange,corporatecooperation,educationalandculturalpersonnelexchange,andcross-bordertourism.Chinahasaccumulatedabundantmanagementexperienceoninfrastructurenetworkconstructionandownsthenecessaryequipmentaswellastechnicalskills,enablingittoplayanimportantroleinimprovinginfrastructureincountriesalongtheBeltandRoad.
InvestmentandtradecooperationisamajorpillaroftheBeltandRoad.TheInitiativestrivestoimproveinvestmentandtradefacilitationandremoveinvestmentandtradebarrierstocreateasoundbusinessenvironmentwithintheregionandinallrelatedcountries.TheInitiativeadvocatescooperationthatwillexpandtradeandinvestmentandupgraderelatedstructures.Viavariousmeasureslikeimprovinginfrastructure,foundingindustrialparksandportnetworks,raisingfundsandincreasingcapacity,theInitiativeaimstocreategreaterspacefordevelopment.
July21,2015:TheopeningceremonyoftheNewDevelopmentBankisheldinShanghai.CFP
November9,2015:AsigningceremonyfortheChina-RomaniaNuclearPowerProjectisheldinBucharest.byChenJin/XinhuaFinancialintegrationisanimportantbackingfortheimplementationoftheBeltandRoadInitiative.Financialintegrationcoversalonginternationalfinancialagendaincludingmonetarystability,projectfinancing,bilateralcurrencyswapandsettlement,bondmarket,andRMB-denominatedbonds.VariousfinancialagenciesincludingAIIB,NDB,SilkRoadFund,China-ASEANInterbankAssociationandSCOInterbankConsortiumshouldplaysupportiverolesinmultilateralfinancialcooperation.CooperationonfinancialregulationandsupervisionwillbestrengthenedundertheInitiative.Anefficientregulationcoordinationmechanismwillbeestablishedtoimprovetheriskresponseandcrisismanagementsystems.Aregionalfinancialriskearly-warningsystemwillemerge,andacommunicationandcooperationmechanismtoaddresscross-borderriskwillbecreated.Thesejointeffortswillhelppromotecurrencystability,enhancethecapabilityofthecreditsystemandencouragecommercialequityinvestmentfundsandprivatefundstoparticipateintheconstructionofkeyprojectsoftheInitiative.
People-to-peoplebondswillfacilitatepublicsupportforimplementationoftheInitiative.BuildingtheBeltandRoadnotonlyinvolveseconomiccooperation,butalsofeaturesextensiveculturalandacademicexchanges,personnelexchangesandcooperation,mediacooperation,youthandwomenexchangesandvolunteerservices,allofwhichwillhelpwinpublicsupportfordeepeningbilateralandmultilateralcooperation.Throughvariouscooperationmechanisms,theInitiativeaimstopromotepersonnel,tourism,andsportsexchanges,epidemicinformationsharing,exchangesofpreventionandtreatmenttechnologiesandtrainingofmedicalprofessionals.Additionally,theInitiativewillintegrateexistingresourcestoexpandandadvancepracticalcooperationbetweencountriesalongtheBeltandRoadonscienceandtechnology,youthemployment,entrepreneurshiptraining,vocationalskilldevelopment,socialsecuritymanagement,non-governmentalexchanges,andcity-to-citycooperation.
ConsideringcountriesalongtheBeltandRoadfeaturecontrastingdevelopmentlevels,theBeltandRoadInitiativewouldbeimpossibletoimplementifitadoptedaunifiedplan.China’sconstructioninvariousfieldsshouldcoordinatethedevelopmentstrategiesofothercountriesalongtheBeltandRoadforwin-winresultsthatbenefiteveryparticipatingparty.TheeconomicdevelopmentofmanycountriesalongtheBeltandRoadlagsbehindduetoalackofinfrastructureinvestment.ByparticipatinginconstructionoftheBeltandRoad,thesecountriescanmergetheirowndevelopmentintothebiggerregionalcooperationnetworkandbreakthroughtheirownlimitationsontransnationallinksandlogisticsnetworks.
October2,2015:HungarianPrimeMinisterViktorOrban(left)andBankofChinaChairmanTianGuoliattendtheopeningceremonyoftheRMBClearingCenterinBudapest,Hungary.CFP
January10,2016:LuChun(secondfromleft),chairmanoftheChinaThreeGorgesCorporation,attendsthemobilizationceremonyoftheconstructionoftheKarotHydropowerProjectinPakistan.Xinhua
January17,2016:AIIBinauguralchiefJinLiqunmeetswiththepressandtakesquestions.Xinhua
July27,2016:Threecoremodulesforliquefiednaturalgas,constructedbyWuchangShipbuildingIndustryGroupandwithatotalweightof7,000tons,setoffforRussia’sYamalPeninsulafromChina’sQingdao.byWanHoude/Xinhua
November22,2015:ChinesePremierLiKeqiangattendsaceremonyheldtoreleaseaJointStatementontheRegionalComprehensiveEconomicPartnershipNegotiations,inKualaLumpur.byLiuWeibing/XinhuaInthefuture,constructionoftheBeltandRoadwillgraduallyimprovetheconnectivityofAsia,EuropeandAfrica.Byconstructinganinfrastructurenetwork,theBeltandRoadwillprovideanewenvironmentfordevelopingnewindustrialzones,financialcenters,freetradezones,andinvestmentzonesaswellassomeothercomprehensiveprojectssuchasoilandgaspipelines,powergrids,internetinfrastructure,powerlines,andtelecommunicationnetworks.ThesemovesareboundtocreateahugemarketfusingAsia,EuropeandAfrica.
September29,2016:CustomerspassthepassagewaytotheKhorgosInternationalBorderCooperationCenterattheChina-Kazakhstanborder.byLiXiaoguo/Xinhua
December10,2016:TheconstructionofalandmarkChina-Belarusindustrialparkproject,calledGreatStone,alongtheSilkRoadEconomicBeltinMinsk,Belarus,isprogressingsmoothly.IC“OpenRegionalism”
Incontrastwithtraditionaldevelopmentaid,constructionoftheBeltandRoadwilladoptcooperationrequiringjointparticipation,planningandconstruction,afterwhichanyfruitswillbesharedbyallparticipants.Everyparticipantisanequalpartner.Geopolitically,sincetheconstructionoftheBeltandRoadinvolvesmorethan60countries,itrequiresactiveparticipationandclosecooperationfromallrelevantparties.TheInitiativealwaysfollowstheprincipleofmutualconsultationwithallaffectedpartiesbeforeanyjointconstructioncommences.Greateffortswillbemadetocoordinatethedevelopmentstrategiesofallparticipatingcountries.
Aftermorethanthreedecadesofrapideconomicgrowth,Chinahasreacheda“newnormal”intermsofeconomicdevelopment.Thecountryisnowexperiencingslowerbuthigherqualitygrowth.China’smanufacturingindustryneedstofindnewplaceswithlowercostsandimprovetechnologytomaintainitscompetitiveness.ThecooperationmechanismproposedbytheInitiativewillintegratethemassivespacefordevelopmentandcostadvantagesofdevelopingcountriesinAsiaandAfrica,butcontrastpreviouspracticessuchasrelocatingoutdatedandhigh-pollutingproductionstoothercountries.TheInitiativeemphasizesthatinvestorsneedtodesignandbuildnewindustriesalongsidelocalsthroughmutualconsultation.Fromthisperspective,ithelpsexpandandupgradeindustry.
MostcountriesandregionsalongtheBeltandRoadaredevelopingeconomieswithpercapitaGDPmeasuringlessthanhalfoftheworld’saverage.Nosinglecountrycanestablishaqualityinfrastructurenetworkonitsown.Sinceinfrastructuredevelopmentrequireslong-terminvestment,supportandcooperationfrompublicfundsandfinancialinstitutionsaretremendouslyimportant.AIIBcreatedanewmodelforinfrastructuredevelopmentandcooperationfinancing,whichwillhelpbreakbottlenecksrestrictinglong-terminvestments.AIIBmembershipisopentoallcountriesthatarewillingtocontributetoAsiandevelopmentandglobaleconomicdevelopment.Operationoftheinstitutionstrictlyfollowsinternationalrules,anddecisionsarejointlymadebyallmembers.
Theglobaleconomyisfacinggreatchallengesandundergoingpainfuladjustments.Becauseofthewideningincomegapandtheexacerbationofunbalanceddevelopment,tradeandinvestmentgrowthhasslowed,andprotectionismisprevailing.ConstructionoftheBeltandRoadwillfosteranewmodeofopenness,cooperation,anddevelopment.Withgovernmentalsupportandtheparticipationofinternationalorganizations,theInitiativeissuretoattractabundantpublicandprivatecapital,whichwillhelpimproveboththeinternalandexternalenvironmentfortradeandinvestment,andunleashfurtherpotentialforeconomicdevelopment.
Ofcourse,becausecountriesalongtheBeltandRoadfeaturediversenationalconditionsandinterests,pullingthemtogethertobuildtheBeltandRoadisnotaneasytask.Variousrisks,includingpoliticalinstability,investmentbarriersandthethreatofterrorism,dothreatentheprocess.Avoidingthemrequiresin-depthresearch,comprehensiveunderstandingofthesituation,andabalanceofbenefitswithrisks.Atthesametime,theconstructionoftheBeltandRoadaimsforlong-termdevelopmentratherthanshort-termgains.Prioritiesmustbedefinedwhenpromotingconstruction,andproceedingtooquicklyshouldbeavoided.China,astheadvocateoftheBeltandRoadInitiative,mustcoordinatetheinterestsofvariousparties,assesstheriskofvariouscommercialprojects,strengthenbilateraleconomicandtradeagreementsandregulations,promotesuccessfulmodesofcooperation,establishkeyentrepreneurialprojectsandseekaligninginterestsoneconomicdevelopment,politicalcooperation,security,andpersonnelexchangesamongthecountries.IntermsoftheprioritiesinimplementingtheInitiative,aneffectivecoordinationmechanismisnecessarytoensurethatfirstthingshappenfirst,theinterestsofdifferentcountriesarebalancedandeveryparticipantbenefits.
TheBeltandRoadInitiativewillhelpestablishanew,cooperativeandwin-winregionalandinternationalorder.Inparticular,againstthebackdropofprofoundglobaleconomicchanges,theInitiativeprovidesanewconceptandpathtoimprovingthecomprehensivedevelopmentenvironmentfordevelopingeconomiesandcreatesnewdevelopmentmomentumbyunleashingparticipationenthusiasmandmobilizingresourceinput.TheInitiativewillhelptheworldeconomygetridofrecessionandenteranewphaseofdevelopment.Today,avarietyofanswersandsolutionsshouldbereadytoaddressdevelopmentproblems.WhiletheTrumpadministrationadvocatesan“Americafirst”protectionistdoctrine,China’sBeltandRoadInitiativeaimsforopencooperationandcommondevelopment,makingitevenmoreimportanttoday.Acallforcooperationratherthanstrategiccompetition,theInitiativepromotesawarenessofacommunityofshareddestinyandfostersregionalandinternationalpeaceandcooperation.
December11,2016:Theclosingceremonyforthe11thConfuciusInstituteConferenceisheldinKunming,YunnanProvince.CFP
January18,2017:ThefirstfreighttraincarryingtextilesandconsumergoodsarrivesinBarking,London,aftera12,000-milejourneyfromYiwuintheeasternChineseprovinceofZhejiang.CFPTheauthorisMemberoftheChineseAcademyofSocialSciences(CASS)anddirectoroftheAcademicDivisionofInternationalStudies,CASS.