China to promote global trade and prosperity

Beijing commits 124 billion USD to new silk road initiative for boosting world economy

Beijing
Chinese President Xi Jinping urged the world to
participate in Beijings new silk road initiative,
which seeks/aims to promote global trade and
enhance prosperity for all. In his opening speech
at the so called One Belt, One Road Summit on
May 14th and 15th he pledged 124 billion USD to
boost new trade networks on land and sea, as
well as large scale infrastructure development.
What we hope to achieve is a new model of win-
win cooperation, said Xi. The president
expressed his hope to create a big family of
harmonious co-existence.
Ren Guoqiang, a spokesperson of the Chinese
ministry of national defence stressed, that the so-
called belt and road initiative hides no military or
geostrategic intentions. "China does not seek
dominance over regional affairs or its sphere of
influence, and China will not interfere in the
internal affairs of other countries. Concerns
over these issues are unfounded as the project
only seeks to support and improve economic
development in the region and strengthen trade
ties between Asia, Africa and Europe.
This economic initiative is to be a modern revival
of what is called the ancient silk road, that
connected the ancient Chinese empire to the west
over 2000 years ago. Ancient civilizations
flourished due to the abundance of trade and
sharing of knowledge and president Xi hailed
these old routes as the embodiment of the spirit
of peace and cooperation, openness and
inclusiveness, mutual learning and mutual
benefit.
The one belt, one road initiative was first
proposed in the autumn of 2013 and consists of
two components: the Silk road economic belt on
land and the 21st Century maritime silk road. The
overland routes are to stretch over the Asian
continent all the way to Rotterdam and Venice,
connected through economic corridors such as
the China-Mongolia-Russia Economic Corridor
and the China-Pakistan Economic Corridor. At
sea, the maritime routes run through the South
China Sea to Indonesia, cross the Indian Ocean
to Africa and ending the Mediterranean Sea.
Over 60 countries and international organisations
have been invited to take part in this project, 40
of which have already signed trade cooperation
agreements. The Two-Day-Summit was attended
by foreign dignitaries from 57 participating
nations.
President Xi Jinping and Uzbek President Karimov at the summit
on the 14th, Image is courtesy of globalresearch.ca
The Chinese investment aims to improve infrastructure and
therefore support the economy of smaller or struggling
neighbours. The increase in business and employment
opportunities could start to bridge the overwhelming gap
between rich and poor. Already,
Chinese companies have provided 180,000 jobs in 20 different
countries. At the centre of the initiative also stand the values of
openness and inclusiveness and mutual learning. Operating by
the concept of sharing mutual knowledge to acquire maximum
mutual gain, the ancient silk road brought about change and
revolutionizing concepts. China hopes to apply the same
principal to this new project, stating that the One Belt, One Road
initiative might be key to solving many of the conflicts present in
the Eurasian and Middle eastern region today. By linking three
continents, the new silk road has the potential to unite and
stabilise the world economy and build a fairer and more equitable
system of commerce. If we take the first courageous step
towards each other, we can embark on a path leading to
friendship, shared development, peace, harmony and a better
future. President Xi declared in his opening speech.
Beijing is also engaged in allaying concerns regarding the
possible control that the project would bring. Chinas
representatives stressed that the intention is not for China to
reap the sole benefit and become the regional dominant
economic power, but for there to be mutual benefit. The
initiative does not aim to bring the countries under Chinas
jurisdiction, it aspires to be an interdependent network of trade.
As foreign minister Wang Yi stated on the 18th of April: It was
initiated by China, but shared by other countries.
Mara Perras
 India resists Chinas advances under the cover of
trade
PM Modi signals to Beijing that New Delhi objects to Chinas proposed New Silk Road

New Delhi
India will abstain from Chinas
newly proposed Silk Road project.
Prime Minister Narendra Modi
announced the decision that New
Delhi has chosen to decline the
Chinese invitation to join the One
Belt, One Road Initiative (OBOR).
Indian officials warned of an
unsustainable debt burden and
suspected military and geopolitical
manoeuvring behind the scenes.
The government therefore refused
to send representatives to the
Beijing Summit on 14th and 15th of
May.
Strategic concerns regarding
tangible threats to Indias security
and stability through the push of the
New Silk Road have been voiced by
a number of analysts in the Indian
capital. They refer to Beijings
alarming signals about intensifying
trade links across the Himalayan
mountain range and planning of
overland and maritime routes. India
has expressed increasing worry
about what it regards as Chinas
expansionist tendencies both at sea
and on land. It fundamentally
disagrees with the construction of
the so called China-Pakistan-
Economic-Corridor (CPEC), which
partly runs through Kashmir. The
strategically significant region in
the Himalayas is an Indian province
partly occupied by Pakistan. CPEC
is the keystone of Chinas South-
East Asia strategy as it grants
Beijing access to the Arabian sea,
which China seeks to widen its
influence in Indias neighbourhood.
The fact that Beijing has made the
decision to build the corridor with
Pakistan, without consulting India,
does not bode well for future
foreign relations between the two
countries, warned an Indian
official under the condition of
anonymity. Officially India
expresses its concerns in a more
Map of existing and planned routes, Image by The Wall Street Journal
diplomatic manner as China is also an important trading partner.
Kashmir has been a disputed territory since before the partition of
British India, but was officially ceded to India on August 26, 1947.
Two wars were fought over the state, resulting in splitting of Kashmir
into two territories separated by the so-called Line of Control. One
part is occupied by India, the other by Pakistan. China also holds a
small piece of uninhabited wilderness. Border skirmishes between
Indian and Pakistani forces are still common.
The rising tensions between the nuclear armed neighbours is closely
monitored by the US. Chief Admiral of the U.S. Pacific Command
(PACOM) Harry Harris stated with view to the conflict in Kashmir: I
think the relationship between China and Pakistan is a matter of
concern and I will certainly be discussing it with my Indian
counterparts as India is also concerned about that.
As China proceeds with building the CPEC through disputed territory,
Beijing is actually violating Indian sovereignty as high-ranking
officials in Delhi have repeatedly pointed out. Indian foreign ministry
spokesman Gopal Baglay stated that "no country can accept a project
that ignores its core concerns on sovereignty and territorial integrity."
China is clearly backing Pakistan in this matter, although they claim
that China will not interfere in the internal affairs of other countries.
Another pressing concern was highlighted by several military experts:
The Silk Road Economic Belt over land runs across Chinas northern
border, while the 21st Century Maritime Silk Road runs along the
Indian coastline, creating a Strategic encirclement of the country.
India treats it as an open secret that China has already taken foot in Sri
Lanka and Nepal.
China has constructed and placed airfields, garrisons and missile sites
to the north of the Indian border and is planning direct railway lines to
Nepal as well as pipelines and highways to the Bay of Bengal in the
Indian Ocean. They are using territory in Myanmar and Bangladesh to
achieve their goal. In addition, China has fortified
several small islands in the South China Sea, some
including runways and missile sites and even built an
overseas military base in Djibouti, Africa. Only a
few weeks ago it has launched its second aircraft
carrier.
"We have found a growing movement of their
warships and submarines, they do it in the cover of
fighting piracy but do we need submarines to fight
piracy?" retired Indian Vice-Admiral Pradeep Kumar
Chatterjee asked while assessing the situation.
Some Western nations, including the US, have
expressed worry about the transparency of the so-
called economic initiative. "We are of the firm belief
that connectivity initiatives must be based on
universally recognized international norms, good
governance, rule of law, openness, transparency and
equality," an Indian foreign ministry spokesperson
declared.
The lack of transparency in Beijings plans is
worrying as it contributes to the anxieties among
neighbours who fear China becoming an
increasingly aggressive hegemon. Possible
backlashes for other participating nations in the Silk
Road Initiative, for example unsustainable debt
befalling host countries, have not been addressed at
all. China provides huge loans for infrastructure
projects in neighbouring countries . Amounts which
these nations may struggle to repay. This would put
the majority of the Eurasian continent under Chinas
thumb, which would then present an even bigger
threat to Indias economic stability and growth,
officials in Delhi warn.
Mara Perras