he Silk Road Economic Belt (New Economic Development Zone of China)
The Silk Road Economic Belt will become a new economic development zone based on the concept of the original Silk Road including Shaanxi Province, Gansu Province, Qinghai Province, Ningxia Hui Autonomous Region and Xinjiang in Northwest China, as well as Chongqing City, Sichuan Province, Yunnan Province and Guangxi Province in Southwest China. It was proposed by Chinese President Xi Jinping at Nazarbayev University, Kazakhstan in 2013.
The Silk Road Economic Belt is considered as “the longest economic corridor with the most development potential in the world” because it is next to Asian-Pacific economic circle and the well-developed European economic circle.
Known as a base of strategic energy and resources, the Silk Road Economic Belt covers a large area with abundant resources of nature, energy, land and tourism. But the poor transportation, bad natural environment and low economic development level in this area reflect the huge gap between it and the two economic circles around it.
One、Historical Background
The original Silk Road, a route opened by Zhang Qian who was sent on a diplomatic mission aboard in the Western Han Dynasty, started from Chang’an (present Xi’an, Shaanxi Province) through Central Shaanxi Plain, Hexi Corridor, Tarim Basin to Transoxiana and Greater Iran which are situated between Syr Darya and Amu Darya. This land route linked countries along the Mediterranean. Colorful silk, china and spice got through this international road with profound historical meaning,. The Silk Road made important contribution to economic and culture exchanges between the East and the West. As an earlier version of economic globalization, this route enjoyed the reputation of the most important artery for commerce and trade in the world.
Time flies. In the 21st century, trade and investment activities in the original Silk Road arise again. Countries in Central Asia are willing to expand cooperation fields with China who can invest them in the fields of transportation, post and telecommunications, weaving, food, pharmacy, chemistry, agricultural products processing, consumer goods manufacturing, machinery manufacturing, etc., cooperate in the fields of agriculture, desertification control, solar energy, environmental protection and inject fertilizer and vitality into the fertile land.
Some far-sighted persons in China unceasingly call for promoting development and cooperation in commerce, trade and other fields with countries along the Silk Road under the background of fast developing transportation and information as well as globalization. This move not only passes on the history and culture, but also develops the huge potential therein.
In a speech delivered at Nazarbayev University, Chinese President Xi Jinping proposed to joint hands to build the “Silk Road Economic Belt” on September 7, 2013. The Silk Road Economic Belt can be built through innovative cooperation mode to make economic connection closer, deepen mutual cooperation and widen development space among Eurasian countries. It benefits peoples in the countries along the Silk Road.
In October 2013, Neighborhood Diplomacy Forum was held in Beijing. President Xi underlined that good neighborhood diplomacy provides nice environment for Chinese development and makes Chinese development benefit surrounding countries. We form a community of shared future and benefit. It is the requirement of achieving “two centenary goals” and Chinese Dream of great rejuvenation of China. The building of the Silk Road Economic Belt and the 21st Century Maritime Silk Road become an important strategic guide.
In November 2013, The Decision of the CPC Central Committee on Several Important Issues of Comprehensively Deepening Reform was passed at the third Plenary Session of the 18th Party Central Committee. It confirms the building of the Silk Road Economic Belt and the Maritime Silk Road so as to form a new pattern that opens up comprehensively. Thus the building of the Silk Road Economic Belt has been established as a significant national strategy for achieving the next stage development of China in domestic concerns and diplomacy.
Two、Cause of Carrying out
1. China has to consider regional balance in its development and strive for forming new economic growth point. The rejuvenation of the original Silk Road can mobilize the western China whose economic strength is weak and make new open regions.
2. It can build sound environment of surrounding politics, national defense and nationality for China through the building of the “Silk Road Economic Belt”.
3. It can promote interconnectivity including infrastructure among regions and make for development of regional cooperation level.
4. It is good for off-setting severe overcapacity of China.
5. It is in favor of establishing a reversed new pattern which uses the open-up to promote the development of the west China and second-round reform of the east China.
Three、TCoverage
The Silk Road Economic Belt will become a new economic development zone based on the concept of the original Silk Road including Shaanxi Province, Gansu Province, Qinghai Province, Ningxia Hui Autonomous Region and Xinjiang in Northwest China, as well as Chongqing City, Sichuan Province, Yunnan Province and Guangxi Province in Southwest China. It was proposed by Chinese President Xi Jinping at Nazarbayev University, Kazakhstan in 2013.
The Silk Road Economic Belt is considered as “the longest economic corridor with the most development potential in the world” because it is next to Asian-Pacific economic circle and the well-developed European economic circle.
Known as a base of strategic energy and resources, the Silk Road Economic Belt covers a large area with abundant resources of nature, energy, land and tourism. But the poor transportation, bad natural environment and low economic development level in this area reflect the huge gap between it and the two economic circles around it.
Fore、Strategic Vision
Five Pillars
The “Silk Road Economic Belt” can be launched through the following procedures:
First, Strengthen policy communication.
Second, Strengthen smooth transportation.
Third, Strengthen flowing trade.
Forth, Strengthen currency circulation.
Fifth, Strengthen people–to-people connectivity and enhance friendly exchanges and social communication. Among all these, smooth transportation is basic and flowing trade is the nature of the content.
Specific Measures
Five specific measures which correspond to five pillars include: develop transportation and logistics; achieve convenient trade and investment and break restriction of economic development; promote financial cooperation; establish energy club; build cereal cooperation.
Five、Construction Thoughts
Strategy of the Building
First, China needs to take the Silk Road as an opportunity to comprehensively explore potential chances of mutual benefit among China and emerging market countries, and deepen the cooperative relations with the emerging market countries in economy, trade and infrastructure, etc.
Second, effectively apply unique advantage of China in fund, market, technology, industrial capacity, etc., share special development experience of bringing the market and government into full play accumulated in the process of practicing opening-up and reform policy and provide full solution for developing countries to conquer constructive difficulties in boosting economic development and regional economic integration.
Third, improve transnational operation capacity of Chinese companies, establish their overseas business and trade location and manufacturing base, conduct “going out” orderly and transfer outward for some industries who bear severe overcapacity and fail to enjoy economic benefit in domestic market.
Forth, in the process of promoting green energy industry, renovating environmental pollution, establishing low-carbon city and smart city, and cause transnational companies of Europe, the USA and Japan who have advanced technology participate in the investment and provide equipment. Let these transnational companies have chance to share the interests of construction and economic growth of Chinese cities and towns. Meantime inspire domestic companies to conduct industrial upgrades.
Fifth, put forward new policy concept, “inclusiveness, respect and development”, on the basis of the concept of “peaceful development”, systematically integrate ideas including “harmony in diversity” and “don’t do to others what you don’t want others to do to you” from Chinese tradition, “non-interventionism” in contemporary society and cultural pluralism in the West, form a universal value with Chinese characteristics which is different from “free trade” from the UK and “freedom and democracy” in the USA. And make soft power of international culture for rejuvenation and rise of China.
Policy Instruments
First, set up “Silk Road Foundation” whose scale is larger than World Bank and equal scale “Silk Road Strategic Investment Fund”.
Second, consider to establish global development think tank led by China, assist leading countries in these area in building coordinated think tank, and build full transnational cooperation network of the think tank.
Third, consider to set up “transnational talent training scheme” catering for all developing countries, training and nurturing talents in the fields of public governance, economic planning, urban planning, etc. These training organizations not only train.
Forth, consider to set up “New Silk Road Communication Group” catering for social elites of countries along the Silk Road Economic Belt. Based on topics of finance, economics, tourism, environment, cities and culture, provide these countries a channel to spread and share transnational information and ideas beyond the view of the West.
Supporting System
The effective enforcement of policies depends on the establishment of policy administration. Firstly the Silk Road initiative should be led by the Central Leading Group for Comprehensively Continuing Reform who is responsible for arranging policy planning and resource allocation, and coordinating ministries, provinces and cities. The phenomenon of locality separatist that each does things in his own way will be broken. Secondly, handle the relation between the central government and local administrations well. Thirdly, the performance of “global economic increment rebalance strategy” requires a risk management scheme. Global geopolitics risk, sovereign risk of these countries and political mutual trust have to be considered dynamically. Coverage of Chinese influence and capacity limit of Chinese government protecting property and Chinese people staying aboard have to be assessed pragmatically. The feature of risk assessment can be combined with think tank. It’s not enough to include companies and government. The objective, neutral assessment of think tank matters.
Such a large scale external project like the Silk Road, it’s impossible to figure out a perfect plan by one country or perform exactly according to the plan by one country. We have to learn in the process of performing it as for such project. But if we want to pay less cost and avoid material fault, we have to absorb enough policy knowledge and prepare more policy instruments well.
Six、Development Status
Energy Cooperation
Energy Cooperation is the highlight of cooperation between China and the Central Asian countries. China-Kazakhstan crude oil pipeline, China-Central Asian natural gas pipelines and other large-scale energy projects have been built and put into operation. These projects inject fresh blood into regional economic development. Since 2006 when the 2800-kilometre China-Kazakhstan crude oil pipeline officially opened up, it has become the energy artery linked China and Caspian Sea. Kazakhstan has exported 50,000,000 tons of oil to China via the pipeline. The capacity of transmitting volume of China-Central Asian natural gas pipelines is assumed as 30-40 billion cubic meter. The natural gas pipelines delivered about 60 billion cubic meter to China from the end of 2009 to 2013, which equals to the half of total output of Chinese natural gas in 2010.
Economy and Trade
China has become the top trading partner of the Central Asian countries, and second biggest trading partner of Kazakhstan, Uzbekistan, Kyrgyzstan and Tajikistan. China has become the biggest country of providing investment in Uzbekistan and Kyrgyzstan, and the second biggest in Tajikistan, as direct investment from China has become rapid increasing for the Central Asian countries.
Connectivity
Rapidly promote the building of connectivity is a common view shared by related countries with the Silk Road Economic Belt. Shanghai Cooperation Organization proposed that we strive to develop finance, energy, communications and agriculture cooperation in its mid-term development strategy. Currently, China has been promoting the building of connective network in railway, highway, aviation, telecommunications, power grid, energy pipelines with the Central Asian countries, and establishing cooperation with these countries in cash flow, logistics, stream of people, information flow, etc., and activating new economic grown point.
Under the support of concessional loan and assistance from Chinese government, Chinese companies have taken some infrastructure construction project including highway, telecommunication and power grid. A series of economic cooperation projects such as China-Kyrgyzstan-Uzbekistan highway, Tajikistan-Uzbekistan highway and transmission line in Tajikistan have been started up successfully and actively putting into practice. As the infrastructure within this area keeps improved, the outline of network which links this area in energy, transportation, telecommunication, etc., becomes clear.
In 2012, Chinese government committed a loan of $10 billion to the Central Asia in Shanghai Cooperation Organization summit. This loan was used in infrastructure construction such as railway, highway, power grid, crude oil and natural gas pipelines in the Central Asia. The injection of Chinese money speeded the economic construction of the Central Asian countries. Shanghai Cooperation Organization will establish financial cooperation scheme by setting up development bank, so as to provide financing platform for cooperation projects, drive the commercial and trading cooperation among countries along the Silk Road Economic Belt and provide vast space and enduring motility to cooperative development in various fields.
The nature of the original Silk Road is to cater to commerce, trading and logistics between Asia and Europe. In order to change the line of trading to Economic Belt where industries and people gather around, the modern transportation and logistics should be built as basis. Thus companies will be attracted and an industrial ecologic chain will take shape. It’s hard to achieve connectivity and form an ecologic chain by parallel lines of railway and highway. The Silk Road requires the support of information and modern logistics with systematic service. Firstly build suitable logistics park and information platform on the basis of the existing transportation junction and industrial parks and the building of platform is the key. Secondly plan and design the Trans-Asian Railway and Trans-Asian Highway well. The design of logistics is the line. Thirdly complete logistics network which combines transport artery, storage and sorting with information service and regional distribution. The establishment of logistics network is a part. The combination of the “point, line and part” becomes a transportation and logistics system, which benefits regional integration and the building of Economic Belt.
Regional Cooperation
Promote the facilitation of logistics, trade and investment and lower the cost of trading and investment. It is the trend of the world and the key to develop regional economic cooperation. In order to promote trade and investment facilitation, it seems very important to improve cooperation in the customs, transportation, entry and exit inspection and quarantine, finance and information exchange and to strengthen trading policies coordination and communication among related administrations and counties.
The building of the Silk Road Economic Belt integrates the transportation as open space, conducts optimal configuration of trade and production factors in this area, depending on transportation infrastructure and key cities along the way, promotes regional economic integration and realizes regional economic and social development in the end. The trilogy of the building of the Silk Road Economic Belt is to promote trade and investment facilitation, deepen economic and technical cooperation, and set up free trade zone. The building of the free trade zone will be long-term objectives for countries along the Silk Road Economic Belt including members of Shanghai Cooperation Organization.
In 2013, the legal foundation and system scheme of regional economic cooperation keep improving. Shanghai Cooperation Organization set up the trade ministers meeting for members which is responsible for organizing and coordinating regional economic cooperation. It has officials committee and professional work group in key cooperation fields such as the customs, quality inspection, e-commerce, investment promotion, development of cross-border potential, energy, information and telecommunication, responsible for put decision of summit and prime minster meeting on economy and trade into practice. Various professional work group enhance the cooperation and coordination of the customs assistance and statistics. The procedure and mechanism of technology regulations, sanitation and plant sanitation measures and information exchanges have been made. The methods to coordinate and improve qualification assessment procedures have been researched. Shanghai Cooperation Organization Entrepreneurs Committee and the Inter-Bank Consortium establish a platform for companies of these countries to cooperate.
Financial Cooperation
The exchanges among Shanghai Cooperation Organization members’ finance department increased. The first central bank and finance minister meeting where regional financing cooperation was discussed was held in November 2009. China Development Bank led by China carried out credit granting and its financing amount exceeded 50 billion.
China signed cross-border trade settlement of local currencies with Russia, Kyrgyzstan and Kazakhstan. This move fostered mutual trade cooperation. Next step, these countries will carry out currency exchange within the area and push other financial cooperation measures such as offshore trade, Shanghai Cooperation Organization Development Bank.
Seven、Development Suggestions
The building of the Silk Road Economic Belt can start from several aspects below. Point to part; line to piece; gradually form a big regional cooperation.
Strengthen Policy Communication
These countries can exchange ideas on economic development strategies, put forward plans and measures after negotiation based on the principle of seeking common points while reserving difference and give a green light to policy and legal support for regional economic integration.
Strengthen Smooth Transportation
Shanghai Cooperation Organization is negotiating the transportation facilitation agreement. The fast signing and practice of this file will open the marine transport channel from the Pacific Ocean to the Baltic Sea. On the basis of that, China is willing to discuss the improvement of cross-border transportation infrastructure with all parties and gradually form a transport network linked the East Asia, the West Asia to South Asia, and make economic development and people of these countries convenient.
Strengthen Flowing Trade
The total population in the Silk Road Economic Belt is about 3 billion. The market scale and potential are second to none. These countries have huge potential in trade and investment cooperation. Each party should discuss and make proper arrangement for trade and investment facilitation, eliminate trade barrier, lower trade and investment cost, improve the fast and quality of regional economic circular flow and realize mutual benefit and win-win result.
Strengthen Currency Circulation
China, Russia and other countries have had good cooperation in trade settlement of local currency, achieved fruitful results and accumulate abundant experience. This action is necessary to expand. If these countries realize exchange and settlement of local currency in frequent account and capital account, the cost in circulation will be lowered extremely; the capacity to resist financial risk will be enhanced and regional economic competitiveness in the world will be advanced.
Strengthen People–to-People Connectivity
Close contact between the people holds the key to sound state-to-state relations. The performance of the above-mentioned cooperation must have people’s support. The enhancement of friendly exchanges among peoples, increasing knowledge and friendship of each other will make a solid public and social foundation for carrying out regional cooperation.
Eight、Prospect Outlook
Firstly the fixed goals of the new Silk Road will be realized by stages. It will be divided into five sections in space: the East Asia section, the Middle Asia section, the West Asia section, the Central and East Europe section and the West Europe section. It will be built by near term, mid-term and long term stages. Reactivation of this ancient trade route has material strategic meaning for economic construction and regional prosperity in countries along the way and the balance of world economy.
The building of the Silk Road Economic Belt will improve the development environment of the west regions in China, form a new frontier of opening-up and economic growth section, and improve regional feature and living standard of local people to a higher level. Through joining the building of the Silk Road Economic Belt, the so-called shabby regions will have chance to blend in the main stream of world economy, and gradually eliminate poverty and lagging behind. It also helps to uproot the breeding ground for extremism, terrorism and transnational criminal activities. The new Silk Road will bring the two most active regions in world economy closer. It not only promotes trade and economy, but also benefits the exchange and fusion of the civilization of the East and West and boosts mutual inclusiveness among groups sharing different nationality and culture. Therefore, we can expect that this plan will gain positive response and support from many countries there.
Compared with the prospective earnings, the most attractive part of the idea of the Silk Road Economic Belt is the historical value. Regional economic integration is an important feature of the era of globalization. The idea of the Silk Road Economic Belt, breaking through the traditional regional economic cooperation mode, advocates to build an open, inclusive system, welcome all parties to participate in with an open mind, lower running obstacles furthest, enlarge support basis and mobilize various resources. These advantages are second to none, compared with exclusive regional economic cooperation whose objectives are fighting for power and trade protection. The idea of the new Silk Road promotes the communication and construction of politics, economy, security and popular mind, breaks the traditional mode of spreading from single field to other fields, makes these aspects grow together and eliminates negative factors furthest.
Secondly China can play the leading and central role to a large extent. To build the Silk Road Economic Belt, we have mature conditions of international cooperation in technology preparation, infrastructure construction, capital investment, even politics and security. The Chinese proposal of this idea is a spontaneous result and reflects its confidence of diplomacy. The confidence comes from judgment on international situation, acknowledge of its strength and strategic objectives and courage and competence to handle various complex situation. Currently China not only has strong economic strength to support the plan, but also can gain direct and indirect returns. China carries out this plan through starting by government, leading by companies, pushing by market and international cooperation. The feasibility of the plan becomes more clear.
Thirdly since China proposed the plan, China has received positive response and cooperation from countries in the Central Asia, the West Asia, the Middle East Europe and the West Europe. The building of the new Silk Road will bring Eurasian integration and rejuvenation. This is not only Chinese dream, but the dream of the world and human beings.
NIne、Challenges
First, it deserves attention that what level the construction of the systematization will reach. Regarding the systematization construction, we have to handle: the balance between sovereignty transfer and nonintervention of internal affairs; the balance between the lack of leading country and the advancement of systematization construction.
Second, the construction and planning of infrastructure such as highway tests the wisdom of policy-maker. The geographical environment, economic benefit and political coordination should be fully considered in the process of deciding the Silk Road Economic Belt route. Compared with technical and planning factors, the bigger challenge is the political coordination, especially the coordination among big countries.
Otherwise, the building of the Silk Road Economic Belt depends on the elimination of personal obstacles. Border management and security are the outstanding personal obstacles.
Please note that the geopolitics in regions along the Silk Road Economic Belt is complex and versatile. There are various contradictions. Under such circumstance, we have to respect actual differences, innovate cooperation ideas and solve most realistic problems so as to boost economic cooperation.
Ten、International Development
Expand Cooperative Partnership
In the Central Asia, Chinese President Xi Jinping held a meeting with Kyrgyzstan President Almazbek Atambayev and declared to improve China-Kyrgyzstan relation to strategic partnership on September 11, 2013; the two presidents signed the Joint Declaration to Deepen Strategic Partnership Further on May 18, 2014; China signed the Treaty of Friendship and Cooperation, Joint Declaration to Develop and Deepen strategic partnership, Statement on Development Planning (2014-2018) of Strategic Partnership with Turkmenistan May 12, 2014.
In the West Asia, Chinese President Xi wished China and Arab States jointed hands to build the Belt and Road, deepened comprehensive cooperation under new opportunities and starts, and developed China-Arab States strategic cooperation at the sixth ministerial meeting of the China-Arab States Cooperation Forum on June 5, 2014.
In the Middle East Europe, after Premier Li Keqiang attended the summit of heads of China and Central and Eastern European countries, China and 16 countries of the Middle and Eastern Europe jointly declared China-Central and Eastern European countries Bucharest Guidelines for Cooperation. In Europe, China and the Netherlands released joint declaration on March 23, 2014 and decided to build open and pragmatic comprehensive cooperation partnership.
Otherwise, the cooperation among cities has progress. On September 13, 2013, Xi’an City, China established friendly exchange and cooperation relation with Mary, Turkmenistan, witnessed by the heads of two countries.
Get a Greater Say and Promote Shared Understanding
The Silk Road Economic Belt sticks to the spirit of peace, friendship, open, inclusiveness, mutual benefit and win-win result, which reflect strategic appeal of undeveloped countries. Therefore, after China proposed the building of the Silk Road Economic Belt, it has become an important topic to discuss in multilateral and bilateral communication of international society, especially countries along the route. China got a greater say in international society. Carrying forward the spirit of the Silk Road and jointing hands to build the Silk Road Economic Belt were listed as key topic in international communication scheme and platform, such as the thirteenth meeting of the SCO Heads of State Council in September 2013, the fifth Euro-China Economic Forum in 2013, the annual conference of the Boao Forum for Asia in April 2014, the fourth summit of the Conference on Interaction and Confidence-Building Measures in Asia in May, the sixth ministerial meeting of the China-Arab States Cooperation Forum in June. China carried out the idea of building community of shared future and benefit, which gained positive response from countries in meetings. In different occasion, Russia, Kazakhstan, Kyrgyzstan and Tajikistan, Uzbekistan, Turkmenistan, Afghanistan, Gulf Arab States Cooperation Council, India, Iraq, Pakistan and Azerbaijan made it clear that they supported and would like to participate in the building of the Silk Road Economic Belt. Consensus of countries along the route on cooperative development strengthened.
Conduct People-to-People Exchanges and Academic Research and Discussion
Countries, their governments and NGOs who expressed to support the building of the Silk Road Economic Belt held seminars and exchanges’ year so as to increase mutual understanding among countries along the route and discuss the feasibility of cooperation further. The people-to-people exchanges have got advanced to a certain extent. Regarding academic discussion, Istanbul, Turkey held “Silk Road International Meeting” in October 2013; China and Central and Eastern European Countries High-Level Think Tank Seminar was held in Beijing in December; the second meeting of the United Cooperation Committee of China-Cuba Economic Corridor Perspective Planning was held in Beijing in February 2014; Kuwait magazine, Arabian, held Arabic culture on the Silk Road seminar in March; China-Uzbekistan “Silk Road” Economic and Trading Cooperation Forum was held in Tashkent; the first meeting of China-Kazakhstan Entrepreneurs Committee and Silk Road economy and trade seminar was held in Astana, capital city of Kazakhstan. Regarding people-to-people exchanges, during the period of the seventeenth meeting of special representatives about border issues, China and India stated that they were willing to promote the connection of the two big markets of China and India, boost the building of railway, industrial parks and Bangladesh-China-India-Myanmar economic corridors and work together to build the Silk Road Economic Belt. At the same time, the year of China-India friendly exchange was held in New Delhi in February 2014. In order to promote China-Russia Comprehensive Strategic Partnership running in high level, advance China-Russia friendship development and drive the practical cooperation in various fields, year of Chinese and Russian youth exchanges was opened in St Petersburg in March. Besides, the Silk Road peace prize committee was founded in Beijing in March 2014.
Start of Primary Cooperation
Regarding the pragmatic construction of the Silk Road Economic Belt, China and Tajikistan singed cooperative contract of the building and running of natural gas pipelines in September 2013. During the period of Xi’an holding Euro-Asia Economic Forum, China and Afghanistan signed cooperative contract in economic assistance, extradition of criminals and cooperation among higher education institutes. In May 2014, the second natural gas processing factory under the contract of China National Petroleum Corporation in Bagtiyarlyk, Turkmenistan was completed. After the project is fulfilled, the natural gas produced will be transported to China. During the summit of Conference on Interaction and Confidence-Building Measures in Asia, China and Russia began “joint sea 2014” China-Russia marine joint military exercise at Wusong naval port in Shanghai and the head of the two countries witnessed the signing of Memorandum of China-Russia East Line Natural Gas Cooperative Project and China-Russia East Line Gas Supply Sales and Purchase Contract between China National Petroleum Corporation and Gazprom. The both parties of the last contract agreed that Russia starts to provide China natural gas via east line of China-Russia natural gas pipelines since 2018. The output of natural gas will increase year after year and reach 38 billion cubic meters each year. It will last 30 years. In June, guests and representatives from China National Petroleum Corporation, Kaz Trans Gas and Helgas Port started up the ignition and declared that C line of trans-Asia natural gas pipelines began to transport gas from Turkmenistan to China. Regarding cooperation with the EU, in September 2013, Premier Li Keqiang, the European Council Chairman Hermna Van Rompuy and the European Commission President José Manuel Barroso jointly hosted the sixteenth China-EU summit. Both parties signed agreements about China-EU cooperation in agriculture, energy, intellectual property, etc., and jointly launched China-EU 2020 Strategic Agenda for Cooperation.
Eleven、Cooperation Results
Since 1992 when China and five countries in Middle Asia establish diplomatic relations, the cooperation of bilateral commerce and trade has developed fast. It is estimated that the total volume of trade was only $460 million at the beginning. In the 21st century is a golden century to develop the cooperation of the Silk Road Economic Belt:
Shanghai Cooperation Organization was founded in 2001 and the bilateral trade has kept growing rapidly.
The volume of trade in 2008 reached $30.8 billion. The bilateral trade between China and five countries in the Middle Asia in 2009 fell because of financial crisis with total amount of $23.5 billion. Thereafter, the bilateral trade strived once again representing a trend of speeded development.
The trade volume between China and the Middle Asian countries reached $46 billion in 2012 with an increase of 100 times compared with 20 years ago.
The first Silk Road Economic Belt International Cooperation Forum
The value of products which China imported from countries along the route increased from $60.9 billion in 2005 to $171.6 billion in 2015. Import of products, having international division of labor such as consumer goods, capital goods, components and parts, increased from $3.2 billion to $10.7 billion.
China became the second investor in 2016 with direct investment of more than $170 billion.
The government investment stock of China to countries along the route exceeded $50 billion in 2015. China will enlarge the investment on these countries.
On May 12, 2015, President Xi Jinping visited China-Belarus industrial park under the escort of Belarus prime minister Alexander Lukashenko, witnessed the first batch of companies acquired certificate of getting in and signed on the development blueprint of the industrial park. China-Belarus industrial park, covering a planning area of 91.5 square kilometers, is the biggest project of investment promotion of Belarus and the largest economic and technical cooperation project between China and Belarus. When it is completed, it will accommodate 100,000 employees and 200,000 residents.
The value of project contract which China carried out in countries along the route increased 33.9% in the first quarter of 2017.
On June 3, 2017, the first Silk Road Economic Belt International Cooperation Forum was held in Xi’an. The forum aims at establishing an international, systematic open cooperation platform for the building of the Belt and the Road.
Twelve、Significance
The total population in the Silk Road Economic Belt is about 3 billion. Its market scale and potential are unparalleled. China will nurture new economic growth point in the route. China will bring in industries, and gather population to make the western regions develop faster and create rare chance for provinces in the middle and west regions to export their mechanical and electrical products, distinctive agricultural products, feature food and other goods.
Firstly contribute to the development of diplomacy around China and build sound economic development environment.
The building of the route is closely linked with surrounded countries. The surrounded diplomacy environment should lay solid foundation for rejuvenation of China. The route considered domestic and foreign conditions. The building of the route, which was put forward on the basis of overall development, is in favor of handling the relation with regional major powers and rebuilding China-Russia new type of major-power relationship.
Secondly contribute to establish new regional economic cooperation organization and form new international economic landscape.
The building of the route is significant to build new international economic landscape of great cooperation and development. Along with the socialization of manufacturing, economic tightness among countries is enhanced; the number of regional economic cooperation organization keeps increasing and the cooperative scale becomes expanded. Countries in related area eliminate trade barrier in economic cooperation by signing related agreements, so as to enlarge import and export scale, optimize resource allocation among regions and strengthen their international competitiveness.
Thirdly contribute to guarantee national strategic security and expand Chinese strategic space.
The western regions are important area to guarantee Chinese strategic security. The building of the route is in favor of the development and construction of the western regions, national defense security, Chinese strategic development in depth and breath, firm energy supply and economic security. The Silk Road Economic Belt include several dozens of countries and regions in Europe and Asia. Among countries shared with different social system, nationality, belief and cultural background, there are different choices in development strategy, mode and policy. It’s inevitable to meet various obstacles and resistance in economic and cultural cooperation. “policy communication” is to communicate, discuss economic development and decide planning and measures about regional development, and provide policy support for related countries to eliminate the obstacles of mutual development.
Fourthly contribute to nurture new economic growth point and promote the transfer of economic center to the west.
The building of the Silk Road Economic Belt is in favor of the conduct of Chinese strategy of going west. China carried out lots of new ideas on the going-west strategy, but overall that was for strengthening exchanges and cooperation among China and surrounded countries in many fields and making these countries gain mutual benefit. The Silk Road Economic Belt can be considered as a significant symbol for the official performance of going-west policy. The going-west strategy aims at rebalancing the rebalance to the Asia-Pacific policy of the USA. The objectives of the Silk Road Economic Belt are the rising China reclassifies surrounded sphere of influence with its strong economic strength and establishes foundation for China to become a great country in the world.
