China’s One Belt, One Road Initiative

LONDON: China is seeking to rebuild an ancient network of land and ocean silk trade routes between Asia and Europe to help to increase trade and improve transport logistics.

The project involves many roads, railways, ports and maritime routes. The land-based projects are the belt. The road is the maritime routes that will connect up China’s southern provinces to south-east Asia and the east coast of Africa with ports and railways.

The project has already signed off on $1.3 trillion worth of projects, including major infrastructure works in Africa and Central Asia. It will involve 65 countries with a total population reach of 4.4 billion with a share of the global economy of more than 30 percent. It is said to be more than seven times larger than America’s Marshall Plan to rebuild Europe after the World War II.

China believes emerging markets in its neighborhood will be more willing to accept Chinesemade high-speed rail, energy generators and telecommunications equipment if it is instrumental in building mega infrastructure projects.

Pakistan, for instance, badly needs a proper power network as electricity outages are common for many hours of the day. An additional theory is that China wants to make the renminbi the main trade and investment currency as part of a bid to replace the dollar.

During a recent summit in Beijing, China’s President Xi Jinping said trade was the important engine of economic development, and he tried to reassure Western diplomats that the plan was not simply an attempt to promote Chinese influence globally.

“In advancing the Belt and Road, we will not re-tread the old path of games between foes. Instead we will build an open platform of co-operation and uphold and grow an open world economy,” Xi told delegates at the conference.