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Edited by
Jean A. Berlie

China’s Globalization and

the Belt and Road Initiative
Politics and Development of Contemporary China

Series Editors
Kevin G. Cai
University of Waterloo
Renison University College
Waterloo, ON, Canada

Pan Guang
Shanghai Center for International Studies
Shanghai Academy of Social Sciences
Shanghai, China

Daniel C. Lynch
School of International Relations
University of Southern California
Los Angeles, CA, USA
As China’s power grows, the search has begun in earnest for what super-
power status will mean for the People’s Republic of China as a nation as
well as the impact of its new-found influence on the Asia-Pacific region
and the global international order at large. By providing a venue for excit-
ing and ground-breaking titles, the aim of this series is to explore the
domestic and international implications of China’s rise and transformation
through a number of key areas including politics, development and for-
eign policy. The series will also give a strong voice to non-western perspec-
tives on China’s rise in order to provide a forum that connects and
compares the views of academics from both the east and west reflecting
the truly international nature of the discipline.

More information about this series at

http://www.palgrave.com/gp/series/14541
 Jean A. Berlie
Editor

China’s Globalization
and the Belt and Road
Initiative
Editor
Jean A. Berlie
The Education University of Hong Kong
Tai Po, Hong Kong

Politics and Development of Contemporary China

ISBN 978-3-030-22288-8    ISBN 978-3-030-22289-5 (eBook)
https://doi.org/10.1007/978-3-030-22289-5

© The Editor(s) (if applicable) and The Author(s), under exclusive licence to Springer
Nature Switzerland AG 2020
This work is subject to copyright. All rights are solely and exclusively licensed by the
Publisher, whether the whole or part of the material is concerned, specifically the rights of
translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on
microfilms or in any other physical way, and transmission or information storage and retrieval,
electronic adaptation, computer software, or by similar or dissimilar methodology now
known or hereafter developed.
The use of general descriptive names, registered names, trademarks, service marks, etc. in this
publication does not imply, even in the absence of a specific statement, that such names are
exempt from the relevant protective laws and regulations and therefore free for general use.
The publisher, the authors and the editors are safe to assume that the advice and information
in this book are believed to be true and accurate at the date of publication. Neither the
publisher nor the authors or the editors give a warranty, express or implied, with respect to
the material contained herein or for any errors or omissions that may have been made. The
publisher remains neutral with regard to jurisdictional claims in published maps and
institutional affiliations.

This Palgrave Macmillan imprint is published by the registered company Springer Nature
Switzerland AG.
The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland
 Acknowledgment

I thank particularly J. Neto Valente, C. Barthelemy and J.P. Bondil who

inspired me to edit this book on globalization. Without them, this book
would have not seen the light of day.

v
 Praise for China’s Globalization and the Belt
and Road Initiative

“Jean A. Berlie’s book “China’s Globalization and the Belt and Road Initiative” is
about a particularly crucial topic for the future of the Planet: The OBOR (One Belt
& One Road) is a Chinese global program launched in 2013 by President Xi
Jinping, which includes the new land and maritime Silk Road. China is now an
economic and political superpower and its Belt and Road managed to link more
than 70 countries, encompasses more than 70% of the world’s population (4.4 bil-
lion) and will rapidly reach some 70% of the world’s GDP (US$ 25 trillion). This
book proposes an exhaustive economico-political analysis with international impli-
cations. Xinjiang, Hong Kong, Malaysia, Indonesia, East Timor and Africa are
studied in relation with the Belt and Road Initiative. We recall that the historical
Silk Road was mainly concerned with trade and exchange as with the diffusion of
Buddhism. This time, however it is more closely associated with the diffusion of the
Chinese Communist Party’s social-capitalism than Western liberal-capitalism.”
—Professor L. Vandermeersch, Former Director of the French EFEO

“Based on a high coverage, this book offering a comprehensive analysis of the

issues related on One Belt, One Road (OBOR) construction, included the infra-
structure construction, transportation, energy, commerce, finance and its risk, cul-
tural impact, globalization influence, etc. In the meantime, the analysis with many
living cases, included the Hong Kong-Shenzhen-Macao Greater Bay Area, the
issues of South China Sea, and OBOR practice in Asia, Africa and Europe, etc.
This book brings us many new views on OBOR studies, it encouraged to under-
stand the positive influence of OBOR, emphasized the importance of the harmony
in the OBOR practices. It also discussed some sensitive issues like the difference of
“old” and “new” globalizations related to the OBOR, and the replacement of
China’s economic developmental model to the west in Africa, and so on. Anyway,
depended on the new data, new view, new development, this book is an important
and new one among hundreds of publications benefited the understanding of the
background, actuality, risk and prospective of OBOR construction.”
—Dr. Xiao Yun Zheng, Distinguished Professor of Hubei University,
President of China Institute of Yangtze River Culture Studies

vii
 Contents

1 Introduction  1
Jean A. Berlie

2 The New Silk Road 13

Jean A. Berlie

3 Xinjiang and Central Asia’s Pivot of History for the Belt

and Road Initiative 41
Jean A. Berlie

4 Infrastructure and the Belt and Road Initiative 57

Manuel Benard

5 The Greater Bay Area and the Role of Hong Kong and
Macau SARs in the Belt and Road Initiative 77
Jean A. Berlie and Steven Hung

6 China’s Development of Public Goods in the South China

Sea Islands101
Zhang Mingliang

7 China’s Globalization and the Belt and Road Project: The

Case of Indonesia and Malaysia123
Geoffrey C. Gunn

ix
x Contents

8 Timor-Leste and the Australia Treaty on Maritime

Borders and Implications for the Belt and Road Initiative139
Peter Murphy and Jean A. Berlie

9 Africa-China Relations in the Context of Belt and Road

Initiative: Realizing African-Chinese Dreams for Common
Development?157
Raymond Kwun-Sun Lau

10 A Chinese-African Cross Cultural Perspective on Dispute

Settlement and the Belt and Road Initiative: Challenges
and Risks Facing Chinese Investors179
Li Ke

11 Epilogue207
Jean A. Berlie

Bibliography217

Index237
 Notes on Contributors

Manuel Benard is an expert on infrastructure and development. He

worked for the United Nations, the African Development Bank and the
European Central Bank.
Jean A. Berlie is a research fellow at the Education University of Hong
Kong. His main research is on China and Southeast Asia. He wrote a
dozen of books on China and Southeast Asia.
Geoffrey C. Gunn is emeritus professor, Nagasaki University/adjunct
professor, Center for Macau Studies, University of Macau. He wrote some
20 books on history, Asia and in particular Southeast Asia.
Steven Hung is a lecturer at the Education University of Hong Kong.
Li Ke is a researcher at the Faculty of Law of the University of Macau.
Raymond Kwun-Sun Lau is a lecturer in the Department of History at
the Hong Kong Baptist University. He holds a PhD in Political Science at
the University of Queensland, Australia.
Zhang Mingliang (张明亮) is a professor at the Institute of South East
Asia Studies in Jinan University, in Guangzhou. He holds a PhD from
Beijing University in 2004. His major works are centered on the South
China Sea and Sino-Vietnamese ties, and he has authored two mono-
graphs and articles concerning the South China Sea. His books are enti-
tled: Breaking the Deadlock in the South China Sea: What China Could Do

xi
xii NOTES ON CONTRIBUTORS

(超越僵局:中国在南海的选择), and America’s Involvement in the South

China Sea: Backgrounds and Approaches (超越航线:美国在南海的追求).
Both were published in Chinese in Hong Kong in 2011.
Peter Murphy is an Australian freelance journalist who wrote an article
on Australia and East Timor for Palgrave Macmillan’s book (2017) East
Timor’s Independence, Indonesia and ASEAN.
 Abbreviations

ACBRI Australia-China Belt and Road Initiative

ACFTA ASEAN-China Free Trade Area
AIIB Asian Infrastructure Investment Bank
ASEAN Association of Southeast Asian Nations
BIT Bilateral investment treaty
BRI Belt and Road Initiative
CICC China International Commercial Court
CIETAC China International Economic and Trade Arbitration Commission
COC Code of Conduct in the South China Sea
CPC Communist Party of China
DAB Democratic Alliance of Betterment (Hong Kong)
EBRD European Bank for Reconstruction and Development
ECRL East Coast Rail Link
EU European Union
FDI Foreign Direct Investment
FOCAC Forum on China-Africa Cooperation
GBA Greater Bay Area
HKIAC Hong Kong International Arbitration Center
HKSAR Hong Kong Special Administrative Region of China
IBRD International Bank for Reconstruction and Development
ICJ International Court of Justice
ICSID International Centre for Settlement of Investment Disputes
JTM Jornal Tribuna de Macau (main Portuguese daily news of the MSAR)
MoU Memorandum of Understanding
MSAR Macau Special Administrative Region of China
MSR Maritime Silk Road
NYT New York Times

xiii
xiv ABBREVIATIONS

OBOR One Belt, One Road

PCA Permanent Court of Arbitration
PRC People’s Republic of China
SCIA Shenzhen Court of International Arbitration
SCMP South China Morning Post
SCPRC Supreme Court of the People’s Republic of China
SCS South China Sea
SRCIC Silk Road Chamber of International Commerce
T/T Transit time
UN United Nations
USA United States of America
USIDFC US International Development Finance Corporation
 List of Figures

Fig. 2.1 November 15, 2018, the Hong Kong University’s conference
Asia Global Dialogue: “The Global Multilateral Trade System
from Asia” chaired by Victor K. Fung. Photo J. A. Berlie 22
Fig. 8.1 Petroleum Minister of Timor-Leste, Alfredo Pires. NGO La’o
Hamutuk, Dili 150

xv
 List of Maps

Map 2.1 Chinese String, part of the Belt and Road Initiative. Source:
Philippe Raggi 2019 14
Map 2.2 The Belt and Road 15
Map 8.1 Timor-Leste maritime borders 144

xvii
 List of Tables

Table 5.1 Hong Kong and Macau SARs, table of impacts: globalization,
industrialization, economy, legal and political systems 80
Table 5.2 Numbers of Hong Kong visitors and mainlanders visiting
Hong Kong 89
Table 5.3 Hong Kong residents who had worked in mainland China on
age groups in 2013 and 2017 90
Table 5.4 Main visitors to Hong Kong and Macau in 2016, 2017 and
201892

xix
 CHAPTER 1

Introduction

Jean A. Berlie

Abstract This book concerns globalization and the Belt and Road, also
called the modern Silk Road. The question of infrastructure is sometimes
criticized by those who do not like the new Silk Road. Arbitration and
English language are essential for the development of China’s globaliza-
tion in the twenty-first century. The opportunities and risks of the Belt and
Road Initiative (BRI) will be studied in this chapter.

Keywords Arbitration • ASEAN • Belt and Road Initiative (BRI)

• Globalization • Opportunities • Risks • Silk Road

Foreword
This book deals with China’s globalization in the twenty-first century and
the modern Silk Road. It explains globalization with reference to the Belt
and Road Initiative (BRI). Globalization “is the subject of a rapidly prolif-
erating theoretical literature…” (Mittelman 2010: 3, 24). Although glo-
balization studies try to theorize structural change, it would be wrong to
either underestimate or exaggerate the achievements. The new Silk Road,

J. A. Berlie (*)
The Education University of Hong Kong, Tai Po, Hong Kong

© The Author(s) 2020 1

J. A. Berlie (ed.), China’s Globalization and the Belt and Road
Initiative, Politics and Development of Contemporary China,
https://doi.org/10.1007/978-3-030-22289-5_1
2 J. A. BERLIE

called in 2013 One Belt, One Road (OBOR), is China’s project of the
century. It is a challenge to explain what is the Belt and Road because it is
changing, despite its global key purpose, and it has no clear definition in
spite of the existence of memoranda signed by China and other states that
are part of the Belt and Road project. Those who fear and think that China
wants “to create a new world order” have to study more the positive aspect
of the BRI, which is an important theme of my book. It is sure that glo-
balization without risks does not exist. Western globalization and the Belt
and Road Initiative are both not exempted of certain risks which are part
of the present time world economy. Finance and investments in the
twenty-first century always need a serious consideration of the risks
involved. Does China’s Belt and Road need a new Chinese ethic to better
succeed? The world is currently suffering severe economic and financial
problems, so the modern Silk Road, with its long past history of more
than two thousand years, needs initiative, creativity, international gover-
nance and ethic to give some hope and to try to end the US–China
trade war.
What explains this book? It contains various chapters on Central Asia,
the pivot of Asia and the gate of the OBOR, infrastructure, the Greater
Bay Area with Guangdong Province, Hong Kong and Macau SARs, the
Maritime Silk Road (MSR), the South China Sea (SCS), the ASEAN
countries including Indonesia and Malaysia, the dispute resolution Timor-­
Leste versus Australia secured by a Treaty on Maritime Boundary, and two
chapters on the Belt and Road Initiative and Africa. Harmony, dispute
resolution and arbitration give an actualized definition of dispute resolu-
tion in South Africa, and the epilogue concludes. The positive theme of
this book is essential, and in all chapters a force of the Chinese globaliza-
tion is pointed out, the Belt and Road Initiative is not linked with capital-
ist globalization.
The objective of the book is the opportunities created by the Belt and
Road Initiative, which exists in all the chapters. Some risks of China’s glo-
balization should be mentioned. There are risks on the BRI as in all types
of globalization, especially for the infrastructure projects that involve
loans. In the introduction, in Chaps. 2 and 3, Berlie introduces and
explains the Belt and Road Initiative and the New Silk Road which is a
socialist globalization with Chinese characteristics and the entire book
demonstrates it, we hope. So, a direct comparison of both Western and
Chinese globalization is not so useful, but there are international rules and
China is suggested to try to promote more international arbitration; this
 1 INTRODUCTION 3

is one of the thesis of this book also developed in particular in Chaps. 10

and 11. Since April 2018, the Shenzhen Court of International Arbitration
(SCIA) has been trying to be closer to the Hong Kong international arbi-
tration. It is sure that an economic confrontation is unproductive to solve
the question of the world’s economic weakness that the USA and China
try to improve.
Manuel Benard’s Chap. 4 on Infrastructure and the Belt and Road
Initiative is a key chapter. China’s ambition to link globalization and infra-
structure development in Asia and Africa is not always perfect. All coun-
tries should provide free market access to “all developing countries poorer
and smaller than themselves.” Do China and the USA follow this advice in
global governance? (Stiglitz and Charlton 2005; Glenn 2007: 211). The
Maritime Silk Road is essential for China’s merchant navy growing every-
day years. There was other important navy news, a Vietnamese tanker
carrying gasoline cargo successfully reached North Korea (Reuters 2019)
when Trump met Kim in Hanoi, on February 28, 2019. President Donald
Trump prepared key talks on security and cooperation which finally failed
in the Vietnamese capital. Elsewhere on the Belt and Road exist essential
investments to boost the new Silk Road, and investment enhances infra-
structure. This question of Foreign Direct Investments (FDIs) is essential
and this book will stress this question. Manuel Benard knows the question
of infrastructure from his long experience in Asia and Africa. Chapters 1
and 4 address the question of China’s huge investments on infrastructure.
The giant Hong Kong–Zhuhai–Macau Bridge is an example in which
Hong Kong has invested HK$120 billion so far. The mega bridge was
opened to public on October 24, 2018, and this was officially announced
by the three governments (Hong Kong, Macau and Zhuhai) five days
before its opening. A more global role of the Hong Kong and Macau
SARs will happen later, but slowly. Chapter 4 also considers the philoso-
phy of infrastructure, sea, rail, road, air and pipeline transportation along
the Belt and Road. It also addresses the important question of energy.
The integration of two Special Administrative Regions with the new
Greater Bay Area is not so easy. “The Chief Executive of Hong Kong,
Carrie Lam, reassured the public on the safety of mega bridge … and area
cities (are) urged to drop rivalry and cooperate” (SCMP, February 11 and
13, 2019). There is no limit to the ambition to develop infrastructure
projects under the Belt and Road Initiative. The Liaoning Daily and South
China Morning Post mentioned the project to link Dadong, Liaoning, and
Pyongyang, the North Korea capital by rail and a new road. However,
4 J. A. BERLIE

China will not try to “push any infrastructure projects with North Korea
while sanctions are still in place” (SCMP, September 15, 2018). Everything
at present do not work so well because the trade conflict between the USA
and China is not yet solved even if the discussions between the two coun-
tries seem to go smoothly. For example, on the GBA, the property market
tries with some difficulty to promote essential Foreign Direct
Investments (FDIs).
The practical study of globalization continues in Chap. 5 written by
Berlie and Steven Hung. It includes the Greater Bay Area and its new
blueprint in February 2019, with the role of Hong Kong and Macau
Special Administrative Regions linked to China’s Belt and Road Initiative.
Zhang Mingliang is a qualified scholar to write Chap. 6 on “China’s
Development of Public Goods in the South China Sea Islands.” Zhang’s
thesis is that China could improve its position in the SCS by offering pub-
lic services there. His first study on the question was his already published
Beijing University Doctorate dissertation on China and the USA in the
Paracel and Spratly Islands. The question of peace and harmony compels
China and the USA to reconsider their ambitions in the South China Sea.
Security and peace will remain a robust foundation for international politi-
cal stability. The Belt and Road Initiative in the South China Sea needs
time and patience. When China and ASEAN are concerned, careful inter-
national diplomacy is necessary, and the solution is unilateral, state by
state. China has a long history of avoidance of conflict with Southeast
Asian countries, so cooperation, exploration and joint exploitation of lim-
ited parts of the South China Sea, case by case, reef by reef, is a solution
needing great joint Sino-Southeast Asian diplomacy.
To maintain excellent relationships with ASEAN is essential for China.
Geoffrey C. Gunn, Emeritus Professor, Nagasaki University/Adjunct
Professor at the Center for Macau Studies, University of Macau, is a well-­
known specialist of the Malay World, and he wrote Chap. 7 entitled:
“China’s Globalization and the Belt and Road Project: The Case of
Indonesia/Malaysia.” He knows well that China’s globalization is based
on pre-eminent relations with ASEAN and the United Nations (UN), and
the future will tell how the Southeast Asian countries will support the
BRI. Among the leaders of ASEAN, the Prime Minister Mahathir Mohamad
fully supports the Belt and Road Initiative. China’s main claim of full sov-
ereignty over the Paracel and Spratly Islands is another question. The
reader will be interested to compare Geoffrey Gunn’s view and Chap. 6 by
Zhang Mingliang. As an introduction to Chap. 8 by Peter Murphy and
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