Effects of China's New Silk Road on the Participating Economies

Effects of China's New Silk Road on the Participating Economies

Author: Natasa Stanojevic

Publisher:

Published: 2020-11-10

Total Pages: 140

ISBN-13: 9781636480305

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After two decades of rapid economic growth, based on export and foreign investments inflow, a major shift in the economic strategy of China was made in 2001. A set of basic principles was called Go Global. The focus shifted from exports as a driver of economic growth, to domestic consumption, and from FDI inflow to FDI outflow due to the need to place surplus capital. Go Global strategy has transformed China from a participant to one of the main promoters of globalization. Although the 2013 New Silk Road was presented as a new global project, it was actually just a new name (brand) for the basic principles adopted under the Go Global strategy. China had started intensive economic and diplomatic activity long before it was launched. The New Silk Road has only given shape to the part of China's development strategy for the 21st century that refers to foreign policy and economic relations with foreign countries. Today, the New Silk Road or Belt and Road Initiative (BRI), as it was later called, is the most dynamic and unique segment of the globalization process. After two decades of setting up and starting the implementation of the new China`s development strategy, there is enough information for providing an initial assessment of its effects. The assessment of costs and benefits of the countries along the New Silk Road corridors is the main subject of the book. The analysis of these topics has the form of a regional approach, and it is divided in four chapters related to: Central Asia, South Asia, Middle East and Balkan. Within each region, the scope and sectoral distribution of Chinese FDI are analyzed, and the compliance of FDI with the needs of the domestic economy, i.e. their development potential, is assessed. The effects of the BRI are not only visible in the case of investments, but China's economic penetration into a certain area also brings significant changes in the field of foreign trade of the host country. The next topic refers to the attitudes of the dominant powers in the analyzed regions towards China's economic penetration into the area they consider their zone of interest. Russia, India and European Union have taken very different views on Chinese influence in their neighborhood, so their responses vary significantly.


China and the New Silk Road

China and the New Silk Road

Author: Harald Pechlaner

Publisher: Springer Nature

Published: 2020-05-04

Total Pages: 219

ISBN-13: 3030433994

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This book studies the Chinese “Belt and Road Initiative” (BRI), also called "New Silk Road", and focuses on its regional and local effects. Written by experts from various fields, it presents a range of case studies on the geopolitical, socio-economic, ecological and cultural implications of the BRI for European regions and their stakeholders. The book is divided into four parts, the first of which discusses the history of and China’s motivations for the BRI. The second part explores the global phenomenon from a number of regional standpoints. In turn, the third part presents studies on the political, socio-economic, cultural and ecological implications of the New Silk Road project. The final part highlights the tourism prospects in connection with the Silk Road project, as tourism has established itself as an important economic sector in many regions along the historic Silk Road. This book will appeal to scholars of economics, international relations and tourism, decision-makers, managers, chambers of commerce and entrepreneurs with special interests in establishing collaboration with the Chinese market.


How China's Silk Road Initiative is Changing the Global Economic Landscape

How China's Silk Road Initiative is Changing the Global Economic Landscape

Author: Yuan Li

Publisher: Routledge

Published: 2019-08-28

Total Pages: 304

ISBN-13: 0429848005

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China’s New Silk Road initiative constitutes one of the most ambitious projects in recent decades designed to change the pattern of the global economic division of labour as well as the geostrategic balance of power. It has the potential to create a new fabric of industrial value creation that links China and East Asia via Central and South Asia with Europe, and to forge new regional and multilateral institutions that complement or compete with existing regional and global governance systems. First proposed in 2013, the new initiative is only now starting to be rolled-out, with trade relations gradually intensifying, and the first investment projects and infrastructure clusters becoming manifest. However, the full impact of the evolving new regional value chains on global goods flows, investment activity, supra-national institution building, as well as their wider international implications, remains undetermined. This book brings together leading scholars from economics, political science and area studies, who present the latest cutting-edge knowledge and the latest state-of-the-art economic and political analysis on how the new initiative is developing and likely to develop.


A road to riches or a road to ruin?

A road to riches or a road to ruin?

Author: Sijbren de Jong

Publisher: The Hague Centre for Strategic Studies

Published: 2017-08-15

Total Pages: 36

ISBN-13: 9492102579

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China’s One Belt One Road (OBOR) project was formally introduced by Chinese President Xi-Jinping in 2013. The project, aimed at integrating trade and investment in Eurasia, encompasses over $900 billion in planned investments of infrastructure across Central and South Asia, the Middle East, and Central and Eastern Europe (CEE). A dedicated forum for cooperation with CEE countries has been around now for several years. Originally created in April 2012, ‘the so-called ‘16+1’ framework constitutes a platform which brings heads of state together annually to strengthen dialogue and cooperation between China and the CEE region. Chinese investment interests within the CEE region appear strongly related to privatization opportunities, including large scale infrastructure projects and public procurement opportunities. China’s interest in the CEE region, and the creation of the ‘16+1’ format in particular, also gives rise to concerns that China is attempting to use the region as a medium through which to influence the EU from within. This influence manifests itself primarily in the form of initiatives which aim to persuade and/or pressure CEE countries to adopt favorable policies vis-à-vis China. These concerns stem from two directions. First, there is a fear that some deals concluded with China may not comply with EU rules on public procurement, or other regulations and guidelines. Second, there is a fear of political influencing, which some see exhibited by the EU in avoiding direct references or statements towards China’s legal defeat over the South China Sea after the objection by some member states China’s engagement in the Middle East is arguably the most important component of the OBOR initiative as far as its strategic objectives are concerned. Beijing enunciates a clear interest in developing strong structural ties within the region, particularly with fossil fuel exports being the centerpiece, at least for the initial stage. This also means of course that China will almost inevitably get embroiled in political matters, and thus pose a challenge to the interests of other key players such as Russia, the US and the EU. While China seeks to avoid becoming yet another outside power that meddles in the region’s affairs, it does already show signs of being prepared to become politically engaged. In its engagement in the Middle East, China’s policy is banked on the hopes of being the newish entrant in the region, which absolves it from any imperialist or interventionist baggage. This notwithstanding, regional players, are going to be tempted to play the China card when dealing with the other major (outside) powers, which will effectively pull China into the region’s political vortices. Given OBOR’s unprecedented scale, this new study by The Hague Centre for Strategic Studies (HCSS) investigates the extent to which ‘Belt and Road’ related investments in CEE and the greater Middle East bring sufficient economic weight to both regions that at the same time can be turned into political influence. If this is indeed the case, a pertinent question to ask is whether China is prepared and willing to play a greater political (and/or security) role in CEE and the Middle East in the first place? In addition, the paper seeks to understand whether China’s role can be judged as positive or negative for regional security, as seen from the viewpoint of Europe and the Netherlands.


The New Silk Road and the Innovation Economy in China

The New Silk Road and the Innovation Economy in China

Author: Jon-Arild Johannessen

Publisher: Taylor & Francis

Published: 2023-02-28

Total Pages: 216

ISBN-13: 1000837238

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This book provides deep insight into the emergent Chinese innovation economy, as we head towards the Fourth Industrial Revolution. It describes, discusses and analyzes the period from China’s opening up to foreign investment in the 1980s until the New Silk Road project, from 2013 onwards. The developments are assessed from a systemic thinking and evolutionary economic standpoint. The book presents the latest research findings on the direction and achievements of the Belt and Road Initiative, and the results both for China, the countries along the new Silk Road, as well as for Europe and the United States are brought to light. The author asserts that the phenomenon of the New Silk Road as an innovation generator can be understood and explained through the effects of various social mechanisms. He labels these five social mechanisms as: the locomotive force; the explosive force of the butterfly effect; the force of co-creation; the force of expectation; and the force of competence. The book presents 20 cases to substantiate the descriptions, analysis, theoretical reflections and the practical utility of the questions examined in each chapter. It utilizes economic history research methods, scenario thinking, futures research and conceptual generalization to offer different views on the research problem under investigation. Further, the book offers policy suggestions, which include promoting effective macroeconomic policies, and extending microeconomic cooperation schemes, related to the innovation economy. The book will appeal to academics, researchers and graduate students concerned with Chinese economic expansion, Chinese foreign policy and US- and Europe-China relations, as well as policymakers and political advisors.


China's Belt and Road

China's Belt and Road

Author: Jennifer Hillman

Publisher: Council on Foreign Relations Press

Published: 2021-03-23

Total Pages: 190

ISBN-13: 9780876098004

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China's massive, globe-spanning Belt and Road Initiative (BRI) seeks to build everything from railways, ports, and power plants to telecommunications infrastructure and fiber-optic cables. Chinese President Xi Jinping's signature foreign policy endeavor, BRI has the potential to meet developing countries' needs and spur economic growth, but its implementation creates risks that outweigh its benefits. Unless the United States offers an effective alternative, China could reorient global trade networks, set technical standards that would disadvantage non-Chinese companies, lock countries into carbon-intensive power generation, increase its political influence over countries, and acquire power projection capabilities for its military. The COVID-19 pandemic has made a U.S. response more urgent as the global economic contraction has accelerated the reckoning with BRI-related debt. China's Belt and Road: Implications for the United States proposes that the United States respond to BRI by putting forward an affirmative agenda of its own, drawing on its strengths and coordinating with allies and partners to promote sustainable, secure, and green development.


Belt and Road Economics

Belt and Road Economics

Author: World Bank

Publisher: World Bank Publications

Published: 2019-08-16

Total Pages: 199

ISBN-13: 1464814651

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China proposed the Belt and Road Initiative in 2013 to improve connectivity and cooperation on a transcontinental scale. This study, by a team of World Bank Group economists led by Michele Ruta, analyzes the economics of the initiative. It assesses the connectivity gaps between economies along the initiative’s corridors, examines the costs and economic effects of the infrastructure improvements proposed under the initiative, and identifies complementary policy reforms and institutions that will support welfare maximization and mitigation of risks for participating economies.


Chinese Perspectives on the Belt and Road Initiative

Chinese Perspectives on the Belt and Road Initiative

Author: Joel Wuthnow

Publisher: Createspace Independent Publishing Platform

Published: 2017

Total Pages: 56

ISBN-13: 9781978092525

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One of Chinese president Xi Jinping's signature foreign policy programs is the Belt and Road Initiative (BRI), a web of infrastructure development plans designed to increase Eurasian economic integration. Chinese official rhetoric on the BRI focuses on its economic promise and progress, often in altruistic terms: all countries have been invited to board this "express train" to wealth and prosperity. Missing from the rhetoric is much discussion of the initiative's security dimensions and implications. Chinese officials avoid describing the strategic benefits they think the BRI could produce, while also gliding over major security risks and concerns. Yet at the unofficial level, China's security community has paid close attention to these issues, probing in great depth the gains Beijing can expect, the challenges it will face, and the new demands it will have to satisfy. Understanding those Chinese assessments is helpful as the United States considers how, when, and in what capacity to engage the BRI.


China's Belt and Road: A Game Changer?

China's Belt and Road: A Game Changer?

Author: Alessia Amighini (a cura di)

Publisher: Edizioni Epoké

Published: 2017-07-11

Total Pages: 110

ISBN-13: 8899647631

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Officially announced by Xi Jinping in 2013, the Belt and Road Initiative (BRI) has since become the centrepiece of China’s economic diplomacy. It is a commitment to ease bottlenecks to Eurasian trade by improving and building networks of connectivity across Central and Western Asia, where the BRI aims to act as a bond for the projects of regional cooperation and integration already in progress in Southern Asia. But it also reaches out to the Middle East as well as East and North Africa, a truly strategic area where the Belt joins the Road. Europe, the end-point of the New Silk Roads, both by land and by sea, is the ultimate geographic destination and political partner in the BRI. This report provides an in-depth analysis of the BRI, its logic, rationale and implications for international economic and political relations.


New Silk Road: China Meets Europe In The Baltic Sea Region, The - A Business Perspective

New Silk Road: China Meets Europe In The Baltic Sea Region, The - A Business Perspective

Author: Jean-paul Larcon

Publisher: World Scientific

Published: 2017-05-24

Total Pages: 288

ISBN-13: 9813221828

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The 'Belt and Road' initiative announced by Chinese President Xi Jinping in 2013 aims at reviving the ancient trade routes connecting China to Europe and Africa: the '21st Century Maritime Silk Road' and the inland 'Silk Road Economic Belt'. Both maritime and land routes of the New Silk Road meet Europe in the Baltics — a region accounting for some 150 million inhabitants representing 30% of the total EU population. The maritime route enters Europe through the Mediterranean Sea before reaching the largest European seaports of the North Sea and the Baltic Sea up to Saint Petersburg in Russia. The land route starting from West China crosses Central Asia, Russia and Belarus before reaching the shores of the Baltic Sea.This book focuses on the business and economic dimensions of China's initiative: Chinese government objective and policies, the strategies of Chinese and foreign firms along the Silk Road, trade and investment between China and Nordic-Baltic countries, the Eurasia Land Bridge corridors and logistics, the impact of the New Silk Road on the economies of Central Asia, new institutions financing the 'Belt and Road', cross-cultural challenges and Sino-foreign joint ventures along the New Silk Road. The direct impact of China's initiative on economic sectors such as logistics services; the shipping, port management and maritime industry; construction and high-speed train; energy and engineering; and e-commerce, information technology and tourism will be assessed.Readers will be provided with an in-depth analysis of the opportunities and challenges for companies and regions along the New Silk Road as well as 17 short case studies focusing on China-led projects currently developed along the 'Belt and Road' and 15 maps of the New Silk Road, the Baltic Sea Region and Central Asia to help in understanding China's vision and strategic moves.