Russian Federation willing to get new investment through Chinese Belt and Road Initiative
It has also promised to set up 50 joint laboratories with countries participating in the Belt and Road Initiative to enhance cooperation on innovation.
The participation of prime minister along with about 29 heads of states in OBOR forum has reflected the importance of the event.
“We should build an open platform of cooperation and uphold and grow an open world economy”, Xi told the opening of a summit on the new Silk Road.
The forum held in Beijing was attended by leaders of 29 countries, over 1,500 delegates from 130 nations, and representatives from over 70 global organizations including the heads of the United Nations, worldwide Monetary Fund and the World Bank.
Proposed by China in 2013, the Belt and Road Initiative refers to the Silk Road Economic Belt and the 21st Century Maritime Silk Road, aiming at building a trade and infrastructure network connecting Asia with Europe and Africa along the ancient trade routes of Silk Road. The improved efficiency plus better market access from joining the organisation propelled a decade of rapid development and made China what it is today.
In fact, the BRI presents a stern test for China. And the key to success is not financial largesse, but reforms within China. He has variously been quoted in worldwide media explaining how the initiative “is very significant because China is the only country that has the capacity to build infrastructure like this and the only country that is willing to do it”. Moreover, it has pledged to provide emergency food aid worth 2 billion yuan to developing countries along the Belt and Road, and make an additional contribution of Dollars 1 billion to the Assistance Fund for South-South Cooperation, 100 “happy home” projects, 100 poverty alleviation projects and 100 health care and rehabilitation projects in countries along the Belt and Road. Companies from China may proceed at any time to negotiate all types of contractual arrangement with U.S. LNG exporters, including long-term contracts, subject to the commercial considerations of the parties.
There were nonetheless hints of China’s ambition.
Second, China could opt to bring in other countries and multilateral institutions to share in the task of financing projects.
He further affirmed that “In advancing the Belt and Road, we will not re-tread the old path of games between foes”.
China is also trying to create an economic corridor that carries its products directly to new markets in Europe, thereby enabling it to promote exports to more than one hundred countries along the new worldwide trading routes.
It is in China’s and the world’s interest that the belt and road succeeds.
The BRI is a bold strategy to connect the world to China.
For his part, Britain’s finance minister Philip Hammond said his country is a natural partner for China’s new Silk Road program.
As alarming as this proposition may sound to some, especially Western ears, the spread of Chinese influence and power is not news to the Association of South-east Asian Nations (Asean). As a culmination of the unprecedented economic rise of the Middle Kingdom, OBOR is China’s version of the Marshall Plan – the extremely successful business stimulus launched by the United States to power West European recovery following World War II.
The question that would be uppermost in the minds of the attending countries is whether China would become more transparent about its plans, and whether it would follow internationally-accepted standards on the environment, labour, and trade and political relationships in future. It will be mathematically impossible for Sri Lanka and Pakistan to repay big yuan-denominated loans when they’re running trade deficits with China close to $2 billion and $9 billion, respectively. The Tanaka riots of 1974 provide a cautionary tale for China.
The belt and road countries are much poorer and less developed than Europe and Japan were.
Strikingly, Prime Minister Lee Hsien Loong was not invited. Japan subsequently mended fences by enunciating the Fukuda Doctrine and pledged to conduct “heart-to-heart” relations with South-east Asia. The C919 has been manufactured by COMAC, or the Commercial Aircraft Corporation of China, a state-owned entity.
China and Pakistan, another major recipient of One Belt, One Road infrastructure funds, have also recently intensified their military cooperation, both in defending the trade routes and in other technological development. Other notable attendees included Russian President Vladimir Putin and Christine Lagarde, managing director of the International Monetary Fund.
However, the devil is in the details and it is the implementation of these ideals that would test China and Asean’s friendship.
Prestigious projects built on shaky economic foundations will surely bury the recipients of Chinese largesse in a mountain of debt.
OBOR needs to tackle the universal problems and challenges faced by the world, including sluggish economy growth, wealth distribution inequality, aggravated social turmoil, etc.