40 Reasons Why China’s One Belt One Road (OBOR) Initiative Ushers in The New Paradigm

September 30, 2016 Paul Economics 4
  1. The New Silk Road, or One Belt One Road (OBOR) project, includes countries situated on the original Silk Road through Central Asia, West Asia, the Middle East, and Europe
  2. The Silk Road Economic Belt will be an overland network of road, rail and pipelines connecting China’s east coast with Europe via a new Eurasian land bridge. Five regional corridors will branch off the land bridge, with Mongolia and Russia to the North, South East Asia, India, Pakistan and Bangladesh to the South, and central Asia, West Asia and Europe to the West
  3. Maritime Silk Road, aimed at investing and fostering collaboration in Southeast Asia, Oceania, and North Africa, through several contiguous bodies of water – the South China Sea, the South Pacific Ocean, and the wider Indian Ocean area
  4. Xi Jinping said, “the economic belt along the Silk Road is home to 4 billion people and represents the biggest market in the world, with unparalleled potential”
  5. Integration of these regions into an economic area through building infrastructure, increasing cultural exchanges, and broadening trade
  6. Enhancing policy coordination is a requirement for implementing the OBOR Initiative via the promotion of intergovernmental cooperation, building a multi-level intergovernmental macro policy exchange and communication mechanism, expansion of shared interests, enhance mutual political trust, and reaching new cooperation consensus
  7. Facilities connectivity is regarded as a priority for OBOR initiative, by respecting each other’s sovereignty and security concerns, development of the connectivity of infrastructure construction plans and technical standard systems, jointly push forward the construction of international trunk passageways
  8. Investment and trade cooperation is a major task in building the OBOR, by improving investment and trade facilitation and removing investment and trade barriers within the region and in all related countries
  9. Financial integration and cooperation needs to underpin the OBOR initiative via the implementation of currency stability, investment and a financing system
  10. Promotion of mutual cooperation in the OBOR, via e.g. extensive cultural and academic exchanges, personnel and media cooperation and volunteer services to foster bilateral and multilateral relations
  11. Strengthen bilateral cooperation and bilateral relations through multi-level and multi-channel communication and consultation. Develop the signing of cooperation Memorandums of Understanding (MOUs) and bilateral cooperation pilot projects. Establishment of bilateral joint working mechanisms, draw up implementation plans and roadmaps for advancing the OBOR initiative
  12. China will fully leverage its various regions, adopting a proactive strategy of interaction and cooperation among the eastern, western and central regions, and their integration into the Chinese economy
  13. President Xi Jinping and Premier Li Keqiang have visited over 20 countries, attended the Dialogue on Strengthening Connectivity Partnership and the sixth ministerial conference of the China-Arab States Cooperation Forum, and met with leaders of relevant countries to discuss bilateral relations and regional development issues
  14. China is ready to conduct equal-footed consultation with all countries along the OBOR to maximise the opportunities provided by the Initiative
  15. Designed to boost global trade and help countries coordinate their economic policies
  16. It will incorporate up to 60 countries with a population of 4.5 billion people
  17. Proposed 1.5 trillion renminbi investment over a distance of 11,000 km
  18. 1500 contracts worth over $40 billion were signed by Chinese companies in the first half of 2015
  19. Already 900 projects planned at an estimated cost of $890 billion
  20. President Xi Jinping has channelled nearly $1 trillion of government money into the project. He’s also encouraging state-owned enterprises and financial institutions to invest in infrastructure and construction abroad
  21. China hopes to lift the value of cross-border trade to $2.5 trillion within a decade
  22. China and the Association of Southeast Asian Nations (ASEAN) member states plan to push forward the OBOR initiative
  23. Financing for Silk Road projects will come from Chinese state-owned banks and a series of government and multilateral funds, including a Silk Road Fund, the AIIB, and the New Development Bank
  24. The Asian Infrastructure Investment Bank (AIIB) is a development bank dedicated to lending to infrastructure projects with an authorized capital of $100 billion. China is the largest stakeholder, holding 26% of voting rights
  25. Silk Road Fund is financed predominantly with Chinese capital, with a focus on transport and other infrastructure, resources and connectivity projects across the B&R, with a focus on Asia. The initial US$40 billon seed capital is funded by the CDB, China Eximbank, the China Investment Corporation and China’s State Administration of Foreign Exchange (SAFE). The Karot Hydropower Station in Pakistan was the first investment project by the Silk Road Fund
  26. The New Development Bank (NDB), formerly referred to as the BRICS Development Bank, is a multilateral development bank established by the BRICS nations (Brazil, Russia, India, China and South Africa). They are looking to support public or private projects through loans, guarantees and equity participation. The initial authorized capital of the bank is $100 billion with the bank headquartered in Shanghai, China and its first regional office to be opened in Johannesburg, South Africa
  27. China has pushed for the Shanghai Cooperation Organization (SCO) to establish a financial institution that would provide an additional funding stream for projects
  28. The China Pakistan Economic Corridor (CPEC) initiatives will be financed through loans from Chinese state-owned banks such as the China Development Bank, The Industrial and Commercial Bank of China (ICBC) and the Export-Import Bank of China to enable Chinese companies to invest in projects as commercial ventures
  29. New Eurasian Land Bridge (Jiangsu province to Rotterdam, Netherlands)
    • Central and Eastern Europe: Albania, Bosnia, Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Macedonia, Poland, Romania, Serbia Western
    • Northern Europe: Netherlands, Germany
    • New major road and rail logistics passageway from China to Europe which is faster than sea transport and cheaper than air routes.
    • International freight train line from Lianyungang via Xinjiang province to Kazakhstan
    • 10,900km in length China is working with customs departments in countries such as Kazakhstan, Poland and Russia to reduce customs clearance costs along the route.
  30. China – Mongolia – Russian Corridor (Beijing/Tianjin/ Hebei/Dalian to Russia)
    • Utilise existing international freight lines and construct a northern passageway to connect Beijing, Dalian and Tianjin with Western Europe
    • Belarus, Moldova, Mongolia, Russia
    • Chinese contracts for high-speed rail, energy, infrastructure and aerospace signed with Belarus, Russia and Kazakhstan
    • Corridor fits with Russia’s Transcontinental Rail Plan and Mongolia’s Prairie Road Programme
  31. China – Central Asia – West Asia Corridor
    • Central Asia: Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, Uzbekistan
    • West Asia: Afghanistan, Armenia, Azerbaijan, Bahrain, Georgia, Iran, Iraq, Israel, Jordan, Kuwait, Qatar, Oman, Saudi Arabia, Syria, Turkey, Yemen
    • Important gateway for oil and natural gas, running from Xinjiang to the Arabian Peninsula, Turkey and Iran
    • Chinese contracts signed with Kazakhstan, Kyrgyzstan and Tajikistan to work on trade facilitation and logistics
    • A Chinese consortium acquired a 64.5% stake in the Kumport container terminal in Turkey in September 2015, this was the largest foreign capital investment in Turkey to date
  32. China – Indochina Peninsula Corridor (Pearl River Delta Economic Circle (Guangzhou, Hong Kong and Shenzhen) to Indochina)
    • Bangladesh, Bhutan, Maldives, India, Nepal, Pakistan, Sri Lanka
    • Middle East and Africa via Dubai and Oman, bypassing the Strait of Malacca. Expansion into large–scale infrastructure projects, building on China’s previous focus on small scale renewables. This corridor is to some extent the test pilot for the Belt and Road Initiative and is expected to be a priority, given Pakistan’s lack of infrastructure development
    • Chinese contracts signed worth approximately US$45 billion covering energy, ICT and transport infrastructure. The US$1.95 billion 660MW Thar Coal project became the first integrated mining and power project in the corridor
  33. Bangladesh – China – India – Myanmar Corridor
    • Bangladesh, India, Myanmar
    • Connect China with South Asia as part of China’s wider strategy for integration with western Asia, again reducing reliance on the Straits of Malacca
    • Chinese contracts covering telecoms, steel, solar energy and film signed with India. 2,800km Kolkata to Kunming road is at the heart of the corridor
  34. Ports with Chinese Engagement
    • Africa (Planned or under construction)
      1. Abidjan
      2. Tema
      3. Kribi
      4. Libreville
      5. Maputo
      6. Beira
      7. Bagamoyo
      8. Mombasa
      9. Lamu
      10. Mogadishu
      11. Dijbouti
      12. Massawa
    • Africa (Existing)
      1. Lome
      2. Lagos
      3. Sao Tome and Principe
      4. Luanda
      5. Walvis Bay
      6. Dar es Salaam
      7. Suez
    • Asia (Planned or under construction)
      1. Kuantan
      2. Sihanoukville
    • Asia (Existing)
      1. Kuala Lumpur
      2. Rajin
      3. Chongjin
    • Europe (Existing)
      1. Pireas
      2. Ambarli
      3. Anaklia
    • Others (Planned or under construction)
      1. Male
      2. Colombo
      3. Hambantota
      4. Gwadar
      5. Chittagong
    • Others (Existing)
      1. Karachi
      2. Dhaka
  35. Rail link from Lobito in Angola in West Africa to the port of Dar es Salaam in Tanzania in East Africa
  36. Rail Link from Mombasa in Kenya to Kigali in Rwanda, Kasese and Pakwach in Uganda and Juba in South Sudan
  37. It is estimated that 80% of 300 proposed new nuclear reactors, planned within the next 15 years, will be within the OBOR nations
  38. SINOSURE, the Chinese state-owned export credit insurance provider, will provide commercial and political risk insurance cover to support Chinese companies, whilst also providing some assistance to host countries
  39. Hong Kong chief executive CY Leung’s announced his intention of setting up a Maritime Authority aimed at strengthening Hong Kong’s maritime logistics in line with Beijing’s OBOR economic policies
  40. New Silk Road Law Schools Alliance between 20 Chinese and foreign law schools of world famous comprehensive universities was launched in Xi’an, the capital of Shaanxi province. The alliance was formed with 10 law schools in China’s mainland and 2 in China’s Hong Kong and Taiwan, and 8 foreign law schools including the Law School of Singapore National University, the Law School of University of New South Wales, Australia, the Law School of University of Helsinki, Finland, the Law School of Delhi University, India, the Law School of People’s Friendship University, Russia, the Law School of FGV University, Brazil, the Law School of Seoul National University, South Korea and the Law School of National University, Kyrgyzstan

Related Articles

3 Comments

  1. Just because the economic development of Europe and the United States occurred to a large extent within the framework of colonial and neocolonial domination of the "third world" does not mean there is no other path of progress. We in the west are about to have the privilege of receiving a lesson in humanity from our brothers and sisters in the east. I, for one, am happy to have a front row seat. Has anyone else gotten the notion to obtain a degree in law with a specialty in international contract law? I wouldn't mind leaving the sidelines and joining the party!

    Reply

1 Trackback / Pingback

  1. How China's Shenzhen Grew From Fishing Village into Major Financial Centre

Leave a Reply

Your email address will not be published.


*