The Political Economy of China's Belt and Road Initiative

The following sections are included:

• Contents
• About the Author
• About the Translator

In the period between the 2nd century BC, when Zhang Qian was sent as the Emperor’s envoy to the then Han Dynasty’s western neighbors, and the 15th century AD, when Zheng He was sent on expeditionary voyages, there was a long trade route connecting China and the rest of Asia, Africa and Europe. Known as the “Silk Road”, it traversed vast grasslands, deserts and oceans, and was named after its most famous commodity, silk. The name “Silk Road” was first used by German geographer Ferdinand von Richthofen, and was made famous, thanks to the eponymous book published in 1983, by the Swedish explorer Sven Hedin. At first, “Silk Road” was mainly used to describe the overland trade route that existed before the rise of the modern Western world. It started from China and extended as far as Europe, with China, Central Asia and West Asia at its core. Gradually, it became the name for the complex cobweb formed by the ports, trading posts, commodities, ideas, cultures, regions and ethnicities along the way. Instead of referring to only one route, it became a generic term that people used to describe the several trading routes between Europe and Asia, including the original “Oasis Route” that crossed the desert in the Middle East, plus the “Maritime Route”, “Steppe Route” and “Southwest Route”…

As the most important political, economic, cultural and religious link connecting Europe and Asia before the rise of the modern Western world, the Silk Road has become a key concept for describing the continuous communication between the East and West in the ancient times. Since the 20^th century, various economic cooperation projects either within Asia or between the two continents have been carried out in the name of a “New Silk Road”. The Belt and Road Initiative is another large-scale cooperative initiative that adopts the historical symbol of the Silk Road…

As the routes of trade, civilization and faith connecting China and Eurasian countries, the ancient land and maritime Silk Road were once the most important geo-economic integration and cultural-religious bond before the rise of the West. While western countries embarked on the road of modernization and developed their sea power, the maritime Silk Road between China and the Middle East sank into idleness for centuries. Since the 21st century, however, various signs indicate that, with the two-way flow of Chinese-made products and Middle Eastern oil, a “Modern Silk Road” joining China’s eastern coastal provinces to the Persian Gulf has been emerging, rejuvenating the long-lost economic bond between them. In the 21st century, the connectivity between the world’s major manufacturing base and oil-exporting region gives profound geo-economic and geopolitical meaning to the “Modern Silk Road”. Accordingly, western political elites are increasingly paying attention to the political implications of such a trade relation (especially its implications to the West).

In September and October 2013, when Chinese President Xi Jinping visited Central and Southeast Asia, he officially proposed a Silk Road Economic Belt and a 21st-century Maritime Silk Road, now together referred to as the Belt and Road Initiative. This is another major national development strategy raised by Xi’s Administration, besides the construction of several China Pilot Free Trade Zones, the coordinated development of Beijing-Tianjin-Hebei region and the development of Yangtze River Economic Belt. It is also the first time that the Chinese government has unveiled the top-level design of the economic cooperation among neighboring and Eurasian countries in the name of “Silk Road”, which embodies the spirit of a new era and is of unique historical significances.

Since the Belt and Road Initiative was proposed in September 2013, the Chinese central government has crafted the top-level design of its construction after more than one year’s repeated deliberation.

As a major national development strategy and international cooperation proposal in the new era, the Belt and Road Initiative will bring multifaceted opportunities. As the cooperation framework gets clear, especially after the publication of Vision and Actions on Jointly Building Silk Road Economic Belt and 21st-Century Maritime Silk Road, the BRI will promote the development of the international community and China itself, benefiting governments, markets and ordinary people concurrently.

Ever since the Belt and Road Initiative was proposed by President Xi Jinping in 2013, it has become top agenda of the Chinese governments at all levels. From the central government to local authorities, a series of plans, arrangements and measures have been launched. The grand blueprint of the Belt and Road Initiative is turning into concrete actions.

As Chinese President Xi Jinping stated, “the Belt and Road Initiative is not meant as rhetoric. It represents real work that could be seen and felt to bring real benefits to countries in the region”. Since its proposal in 2013, the Belt and Road Initiative, which focuses on key routes, key countries, key fields and key projects, has achieved tremendous progress in terms of policy coordination, connectivity of infrastructure and facilities, unimpeded trade, financial integration and closer people- to-people ties thanks to the concerted efforts of China and B&R countries.

As an ultralarge international cooperation proposal covering a vast geographical area, the Belt and Road Initiative involves a good number of countries as well as numerous complex matters. The implementation of it will hardly be achieved at one stroke or in a smooth way. Although the BRI has been comprehensively moving forward, various risks — inherent or concomitant, structural or unexpected — will surface accordingly, which calls for rational understanding and deliberate management.

As a major national development strategy and international cooperation initiative proposed by China in the new era, the “Silk Road Economic Belt” and “21st-Century Maritime Silk Road” represent the Chinese government’s new vision on equal and win-win cooperation between China and relevant countries with the ancient maritime and land Silk Roads as a reference. As we dig deeper into this initiative’s relationship with the ancient Silk Road and the Modern Silk Road, its strategic importance gradually manifests itself. It is not a simple reincarnation of the ancient Silk Road, but China’s guiding principle in opening up and conducting international cooperation. It is the “Chinese Proposal” and an international public good that will promote a win-win cooperation in the world.

The following sections are included:

• Bibliography
• Index