The Conundrum of China’s New Silk Road PlanPosted: April 19, 2017
In its report yesterday titled “China to gather friends for biggest summit of year on New Silk Road”, Reuters says, “While China has portrayed the New Silk Road as a genuine effort to share the bounty of China’s economic development and to fund infrastructure gaps, many Western countries are concerned about a lack of detail and transparency in the project and are suspicious about China’s broader political intents.”
China certainly is not so generous as to contribute billions of dollars to its New Silk Road projects for nothing in return. The sharing of bounty is but propaganda. China is simply not rich enough to do so. It has to first eliminate poverty at home and raise its own people’s living standards to a level similar to Western developed countries. To achieve those goals, China still has a long way to go.
Therefore, it helps other countries build infrastructures first of all for its own benefits, i.e. to provide alternative routes for import and export, which will facilitate not only its trade but also national security.
The most important are pipelines for import of oil and gas from Russia, Central Asia and the Middle East. The shipping route to the Middle East and Europe through Indian Ocean can easily be cut by powerful US navy. Russia and Central Asia offer alternative land routes, but the China-Pakistan Economic Corridor will be even better.
The roads, railways and pipelines to be built and expanded through the corridor will provide China with connections to the Middle East, Europe and Africa as there is military protection by Iran and Russia of the sea route from Pakistan’s Gwadar Port that China has been building. That trade route will facilitate the economic development not only in Pakistan but also China’s vast west.
In addition, China may move its labor-intensive industries to Pakistan to exploit the cheap labor there.
The New Silk Road projects are first of all for China’s own security and economic growth while enabling other countries along the road to become rich through win-win cooperation. Leaders of Western developed countries will not attend the New Silk Road summit as they do not think that their countries will be much benefited by the road. Only Italian Prime Minister will attend the summit as the sea route from Gwadar Port may connect to land route through Italy to Europe.
However, can China’s good relations with those small and poor nations along the New Silk Road in Asia enable China to replace the US as world leader? I don’t think Western leaders have such rich imagination as Reuters points out in its report.
Comment by Chan Kai Yee on Reuters’ report, full text of which can be viewed at http://www.reuters.com/article/us-china-silkroad-summit-idUSKBN17K0FL.