China’s Belt-Road plan could revive global economy

China’s rise has been the most dominant narrative globally. It is getting bolder and louder as the country rolls out its ambitious plan for the Belt-Road Initiative along the lines of the ancient Silk Route. While the idea is to connect China with Europe, Asia and Africa through a web of roads, ports, high-speed railway, power lines, fibre-optic lines and other infrastructure to boost its economy, the benefits could be felt far and wide. It would be beneficial to the Middle East, too, as the maritime route runs through the region on to Africa and Europe. Saudi Arabia and the UAE, in particular, have a lot to capitalise on as sea transport remains the main carrier of Chinese goods. Almost 60 per cent of the trade between China and the UAE is re-directed into Africa and Europe. Of course, with the direct rail link between China and Europe, this percentage might get affected but there will still be opportunities galore. New maritime trade corridors will provide China with shipping alternatives and offer its less developed provinces, mainly in the west, north and south, easier access to new markets.

The BRI territory is expected to cover almost 70 per cent of the world’s energy-rich areas, creating virtually the world’s largest economic zone. The complex network will connect China to a majority of the world in ways not thought of before. The country’s rise has been meteoric to say the least. In four decades, China has emerged from being a marginal player in global trade to a formidable one, commanding a lion’s share. Last year it seized the biggest share of global exports in almost 50 years, as the proportion of its global exports rose to 13.8 per cent. It is the highest percentage share any country has enjoyed since the United States in 1968. It is now looking to move up in the value chain to enable the country to become a producer and exporter of high-value goods. What’s in store is a more ambitious plan that would likely put the Chinese economy on the path of sustainable growth and market dominance.