China spreads new Silk Road to establish world

China spreads a new Silk Road, to establish world domination

During his visit to Kazakhstan in 2013
year, Xi recalled the common
commercial links along the Silk
way, going back thousands of years.
Chinese Prime Minister said at the time
the creation of the new Silk Road,
economic zone, which again
Asia will bring prosperity. At that moment
his statement remained virtually
not noticed by the world press. But
Today, less than two years later, the plan
codenamed “One belt – one
road “, and includes sea” silk ”
routes, became the central focus
in China’s foreign policy and its
international economic strategy.

commercial implications for the region
and global corporations go hand
hand with unpredictable geopolitical
consequences in that part of the world where the United States,
Japan, India and Russia have a direct
material interests and competing

Beijing’s new approach to business
within the country and abroad has become apparent
already some time ago. many of
recent bilateral investment
China deals in Africa and Asia, based
on access to commodity resources were
It was a non-profit, bad
well developed, and in some cases – even
and unpopular at the local level.

in industry and the real estate market
Now it is ended within the country, leaving
China with significant excess
facilities (both production and
built), in deflation and growing
debt servicing problems.

Among other things, the country is tired of accumulating
endless volumes of US
Treasury and other government
bonds – and now prefers
Direct investment abroad. Besides,
Beijing impressively demonstrates its
protest against too large roles
And US dollar in international financial
institutions, primarily the IMF and
World Bank.

Last year Beijing has taken three
Key initiatives

  • Together with its
    partners, co-founder of China made
    New New Development Bank, a kind
    clone IMF.
  • He then founded and provided
    half the capital for the Asian Bank
    Infrastructural investments (AIIB),
    which is currently
    It has 57 member countries. If successful
    solve the issue of financing,
    logistical and administrative
    questions, AIIB 2020
    It will become a real rival to the World
  • the
    Still, all this – a kind of overture
    before the main “product” of China,
    which is called “One belt one
    road”. The goal is to link
    together 65 countries and 4.4 billion people dear
    which stretch from Xi’an (northwest
    China, the old imperial capital and the point
    reference first ancient Silk
    Path) through the whole of Central Asia at
    Middle East, Russia and Europe. Nautical
    the path will connect the South China Sea through
    Indian Ocean with the Red and Mediterranean
    seas. This will inevitably require from China
    continue to build on its growing
    sea ​​power.

China spreads new Silk Road to establish world

Map alleged "New Silk Road". Red lines – overland routes, the blue – sea "The Silk road".

Will be able
Are “One belt, one road” completely
rebuild the global economic
system as loudly say many?
Beneficiaries will benefit from investment
new infrastructure, pipelines
for oil and gas, fiber optic
communication systems. reduced trade
barriers. China itself could partly
offset the effects of falling
domestic investment and reduce
capacity within the country, to strengthen
internal connection between developed
coastal and more backward western
provinces of the country. But the most important thing
Celestial achieve – greater financial
yuan integration into the international
economic system and strengthening its
role in international trade.

all this apart from the rest – a cart,
posed before the horse. “One
belt, one road “and serving the
agency (for example, AIIB and
CBB BRIX) can be transformative
force, but not alone, and only if
provided that they will reflect the desire to
Beijing to achieve other long-term
purposes. Here intertwined and politics,
and the economy, and that’s all – projects
They do not work on themselves. This unique
“Crutches”, thanks to which Beijing
He wants to raise per capita income
up to the American level; enter open
control; to involve other countries in the
China’s foreign policy; enter yuan
the rank of the world’s reserve currency. In short,
China’s goal – not to facilitate transport
trading system, as it may seem
At first glance – and, in fact, take away
the US world championship palm.

George Magnus, to The Financial Times. Adapted translation – Tugrikk

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