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Ancient trade route to open new frontier for Chinese development
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CHINA’S ambition to reconstruct the ancient Silk Road through Central Asia to Europe would create the world’s longest project.
The 6,000-kilometer-long dream envisioned by President Xi Jinping would open a new frontier for Chinese development as ties with traditional trading partners in Europe and North America mature.
The Silk Road proposal is expected to wind its way through the fourth summit of the Conference on Interaction and Confidence Building Measures in Asia, which opens today in Shanghai.
“It has attracted global attention as a framework covering a wide range of issues,” said Pan Guang, vice chairman of the Chinese Society of Middle East Studies. “It is an open and inclusive initiative that is consistent with the development of Asian countries.”
The initiative involves both overland and maritime routes west. The land route would generally follow the Silk Road of 2,000 years ago. It would connect the city of Xi’an in northwest China with Venice, where Marco Polo began his legendary voyage to the Orient.
The 21st century incarnation would pass through countries such as Kazakhstan, Kyrgyzstan, Iran, Iraq, Turkey, Romania and Germany.
“The New Silk Road will enable trade to flow easily east and west just as it did centuries ago,” Erlan Idrissov, Kazakhstan’s minister of foreign affairs, said in a recent article about improved regional economic integration. “The vision for an economic belt from the Pacific Ocean to the Baltic Sea, representing a market of unparalleled size and potential, will spread prosperity.”
Trade made the original Silk Road flourish for 1,600 years, and trade is expected to underpin the development of the New Silk Road.
Investment opportunities are expected to abound, especially in infrastructure projects such as energy pipelines, highways and rail links.
On Sunday, Xi welcomed Kyrgyzstan President Almazbek Atambayev, one of the first foreign leaders to arrive in Shanghai for the summit. Xi is expected to discuss the New Silk Road idea with him and other Central Asian leaders during the two-day summit, even though it is not the main focus of the meeting of 46 nations.
The potential for new trade and investment is significant in Central Asia, which is largely an untapped part of the world. China’s trade with Kazakhstan totaled US$23.9 billion in 2012, the most recent figures available. By contrast, trade that year with Iran totaled US$43.6 billion.
China’s New Silk Road concept also involves sea routes connecting ports in places such as Indonesia, Thailand and India. Trade with Thailand in 2012 totaled US$63.8 billion.
“From a Chinese perspective, China’s multi-directional opening-up policies have generated more two-way demand for commodities, energy and resources,” said Zhou Shixin, an assistant research fellow at the Shanghai Institute for International Studies.
“A favorable economic and social environment in Asia will reinforce China’s enthusiasm for deeper involvement in regional integration,” he added. “And will offer an opportunity for Asian countries to realize their full economic potential.”
The Silk Road concept highlights the emergence of China and Asia as economic powerhouses in the world. China has become the world’s second-largest economy, ahead of Japan.
Asia now accounts for up to 30 percent of global output, and some media reports have suggested that share will reach 50 percent by 2050.
However, Asia also faces challenges going forward. Two-thirds of the world’s poor live in Asia, and the region must deal with cultural, ethnic, religious and historical differences.
Some initiatives that help define the New Silk Road concept are already under way.
For example, Chengdu, capital of Sichuan Province, started freight rail service to Kazakhstan, Russia, Belarus and Poland last year. The high-speed train, with a capacity of 41 containers, takes 14 days — five days longer than air freight but 25 percent cheaper.
“Infrastructure construction already under way will remove barriers detrimental to cooperation among countries,” said Zhou.
He added: “The Silk Road dream can enhance political mutual trust and prepare the ground for cooperation on other issues.”
The summit’s main agenda focuses on integrating regional responses to cross-border issues such as sovereign integrity, terrorism, drug trafficking and organized crime.
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