New silk road to expand economic links in region

The Philippines is an important part of the ancient maritime silk road and can benefit from a stepped up cooperation with China in antiterrorism and anti-illegal drugs efforts, infrastructure, economy and trade, people’s well being and arts and culture, Ruan Zongze, executive vice president of China’s Institute of International Studies said in a forum in Manila on Friday.

China’s proposed New Silk Road is an economic corridor that will be a modern version of the historic network of ancient trade routes between Europe and Asia that started during the Han dynasty with the lucrative trade of China’s famous silk.

Ruan said the New Silk Road is meant to expand economic cooperation among neighbors in the region, including those it is in dispute with such as the Philippines.

Essentially, the New Silk Road aims to create a massive trade loop that will link Asia, Europe and Africa through the construction of massive infrastructure such as railways and ports.

Through it, China envisions a region of “more capital convergence and currency integration” which means currency exchanges will become fluid and easy.

The Philippines can take advantage of the opportunity, being a maritime neighbor of China.

Furthermore, Ruan said China could initiate infrastructure projects in the Philippines that could boost its capacity for economic cooperation.

“China’s economic ascent proves that infrastructure building is an effective way to boost growth,” he said, adding that it would help integrate Eurasia’s economic development.

In all, Ruan said the world is entering into a period of multi-polarity characterized by the unsettling direction of the US and the rapid rise of China.

On the issue of the West Philippine Sea, Ruan said joint exploration is possible.

“Joint exploration doesn’t affect and involve the respective legal systems of both countries. It is about agreeing on common rules and arrangements acceptable to both sides. Two countries make decisions that could benefit the peoples of both sides,” he said.

An arbitral tribunal has upheld the country’s maritime entitlements in the West Philippine Sea amid sea disputes with China and other countries.