One Belt One Road paving the way to success


In 2013, Chinese President Xi Jinping proposed building the Silk Road Economic Belt and 21st-Century Maritime Silk Road, which became known as the Belt and Road Initiative.

Countries along the Belt and Road have their own resource advantages, and their economies are mutually complementary. This means there is a great potential and space for cooperation.

Connecting facilities is a priority in implementing the initiative. On the basis of respecting each other’s sovereignty and security concerns, countries along the Belt and Road are improving the connectivity of their infrastructure construction plans and technical standard systems, jointly pushing forward the construction of international passageways, and forming an infrastructure network connecting all sub-regions in Asia, and between Asia, Europe and Africa.

At the same time, China and countries along the way are making efforts to promote green and low-carbon infrastructure construction and operation management, taking into full account the impact of climate change on any construction.

With regard to transport infrastructure construction, they are focusing on key passageways, junctions and projects, and giving priority to linking up unconnected road sections, removing transport bottlenecks, advancing road safety facilities and traffic management facilities and equipment, and improving road network connectivity.

Countries along the Belt and Road are building a unified coordination mechanism for whole-course transportation, increasing connectivity in customs clearance, reloading and multimodal transport, and gradually formulating compatible and standard transport rules, in order to facilitate international transport.

China suggests pushing forward port infrastructure construction, building smooth land-water transportation channels, and advancing port cooperation, increasing sea routes and the number of voyages, and enhancing information technology cooperation in maritime logistics. We should expand and build platforms and mechanisms for comprehensive civil aviation cooperation, and quicken our pace in improving aviation infrastructure.

In this episode, we will see how Belt and Road helps close the distance between people around the world.

The Belt and Road:

http://watchthis.chinadaily.com.cn/video/column/belt-and-road/

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Regional issues today developed from the past to predict the future, the winds of change in Asia


To appreciate how issues today had developed from the past is also to understand how they are likely to develop in the future.

  “Since Sultan Mahmud Shah of 15th-century Malacca at least, Malay rulers have had no problems with a powerful China“.

MANY people can be so absorbed by specific issues as to neglect the larger picture that created them. Thus much misunderstanding persists of the issues themselves.

This failure to see the wood for the trees also affects many professional analysts or “country watchers”.

Putting issues in the news in their proper context is crucial.

In the late 1980s, economic growth in East Asia had become both contagious and self-evident. Talk of the coming 21st century as “the Century of Asia and the Pacific” had been gathering momentum.

After Japan’s stellar economic performance from the 1970s, rapid growth would visit the East Asian “tigers” – Hong Kong, Singapore, South Korea and Taiwan – then the other countries of South-East Asia and then China.

Few countries at the time could see that never before in history had both Japan and China, old rivals with their historical baggage still in hand, achieve economic ascendancy at the same time like now – but Malaysia was one of them.

Since economic strength meant diplomatic and political clout, tensions between Tokyo and Beijing could grow to unmanageable proportions with potentially devastating effects throughout the region.

Something had to be done to anticipate and contain any such fallout.

In December 1990, on the occasion of the visit to Malaysia by Chinese Premier Li Peng, Prime Minister Datuk Seri Dr Mahathir Mohamad proposed the formation of the East Asia Economic Grouping (EAEG).

This would comprise all the countries of South-East Asia and China, Japan and South Korea working together towards a more integrated regional economy.

Since economics was less controversial than politics, the EAEG would skirt political sensitivities while a culture of working together as a region could in time overcome them.

Such regional cooperation that acknowledges and encourages regional integration could also pre-empt and minimise any economic crisis.

But that was not to be. Australia and the US had not been included and opposed the EAEG, the latter also pressuring Japan to reject it.

Within Asean, Indonesia’s Suharto rebuffed it because as senior regional leader he had not been consulted, while a West-leaning Singapore still preferred Occidental leadership to anything so distinctly Asian.

Singapore then proposed a watered-down East Asia Economic Caucus (EAEC), this compromise being a subset of the larger Asia-Pacific Economic Cooperation (Apec) grouping largely to assuage US insecurities. After the EAEG died, the EAEC withered away.

By 1997 a financial and economic crisis struck East Asia, devastating the economies of Indonesia, Thailand and South Korea in particular.

There was no regional grouping or bank to help deflect, absorb or otherwise mitigate it.

South Korea then stepped up the drive to form an Asean Plus Three (APT) grouping, with the EAEG’s same 13 countries. The crisis also gave China an opportunity to demonstrate regional leadership: it suspended its planned currency revaluation, thereby helping to cushion the shock of the crisis.

Throughout the whole long-drawn saga, the unspoken issue for some countries was the impending economic dominance of China that they could not accept.

Thus they opposed the EAEG, as if China’s economic dominance could be restrained in the absence of a regional grouping. The reality would have been quite the reverse: with South Korea and Japan balancing China, and Asean countries at the fulcrum.

Meanwhile an underlying Western presumption shared by West-leaning Asians is that once China achieves economic ascendancy, it would mimic the West in acquiring overseas colonies and generally throwing its weight around.

That remains a heavily constructed hypothesis at odds with the history of China and the region.

China had been a great maritime power before, but had never embarked on naval conquest in a region where naval power trumps all other strategic options.

And through the years of talk on the EAEG, EAEC and APT, China’s economy kept on growing.

Then came China’s massive projects resulting from, and further empowering, that growth: the New Silk Road Economic Belt (“One Belt, One Road”) linking Asia and Europe overland, the Maritime Silk Road at sea, and the Asian Infrastructure Investment Bank (AIIB) and the New Development Bank to fund them.

In contrast only Indonesia’s still formative and insular “maritime highways” idea, just a tiny fraction of China’s proposals in scale albeit grandly positioning Indonesia as a Global Maritime Fulcrum, appears to be the only response from the region.

Why has the rest of South-East Asia, or East Asia in general, become mere passive spectators to China’s bold plans? Why have other countries not offered their own thought contributions in response to China’s proposals?

Indonesia has, through different presidential administrations, clung to its informal position as first among equals in Asean. It has foraged for opportunities lending it such a profile, though not always elegantly or consistently.

On President Joko Widodo’s first visit to Beijing for an Apec summit last November, one month after he became president, he asked that the AIIB be moved from Beijing to Jakarta. That was a non-starter.

He recovered some equilibrium last month on state visits to Japan and China. On the day of his arrival in Tokyo, an interview was published in Japan in which he said China had no legal basis to its South China Sea claims.

That was three days before his arrival in Beijing, where the news had preceded him. One day after his arrival there, a bilateral agreement had been fleshed out for full-scale economic cooperation.

Now that much of the dust has settled on which countries would, or would not, be founding members of the AIIB, the challenge of projecting possible futures begins.

The positives include there being more international support for the multilateral lending institution than expected, a good mix of countries in Asia and Europe, and that the bank will proceed unimpeded.

However, the negatives include the voluntary absences of the US and Japan, two major economies that would have made the bank more multilateral, better resourced and further enriched with the collective experience of multilateral lending.

Playing somewhere in the background is the Western-oriented anxiety that a militarily powerful China may one day edge the US out of the region.

That prospect goes against the grain of China’s deep policy pragmatism and interests.

US military dominance in East Asia is often credited for keeping the peace in the region.

That peace has meant unfettered transportation and travel that has benefited the region, most of all China, in its imports of fuel and raw materials and its exports of manufactured goods.

China has had ample opportunity to learn from the tragic errors of not just the Soviet Union but also neighbouring North Korea, where overspending on military assets only wrecks the economy. The same applies to the US itself in profligate spending on questionable foreign wars.

China’s focus on infrastructure for facilitating trade is clear, its economic priorities echoing those it has had for centuries. Since Sultan Mahmud Shah of 15th-century Malacca at least, Malay rulers have had no problems with a powerful China.

Such a China had prioritised economic growth and cooperation without meddling in local affairs except to provide protection against hostile outside powers.

There are still no indications that modern China would deviate significantly from such a position, other than perhaps “protection” today including cushioning the shocks of economic crises.


Behind the Headlines by Bunn Nagara

Bunn Nagara is a Senior Fellow at the Institute of Strategic and International Studies (ISIS) Malaysia. The views expressed are entirely the writer’s own.

Winds of Change in Asia

The birth of new development banks led by developing countries and the United States’ failure to block them are signs of rebalancing of economic power, especially in Asia.

The world must adjust to the rise of new powers. It will not stop just because the United States can no longer engage. If the results are not to the United States’ liking, it only has itself to blame! – Martin Wolf

 

China’s Asian Infrastructure Investment Bank (AIIB): U.S. Asian, European “Allies” Pivot away from Washington

IN the last month, the international media has been carrying articles on the fight between the United States and China over the formation of the Asian Infrastructure Investment Bank (AIIB).

Influential Western economic commentators have supported China in its move to establish the new bank and judged that President Barack Obama made a big mistake in pressurising US allies to shun the bank.

The United States is seen to be scoring an “own goal” since its close allies the United Kingdom, Australia and South Korea decided to be founding members, as well as other European countries, including Germany and France, and most of Asia.

The United States also rebuked the United Kingdom for policies “appeasing China”, but the latter did not budge.

The United States did not give any credible reason why countries should not join the AIIB.

Treasury Secretary Jack Lew said the new bank would not live up to the “highest global standards” for governance or lending.

But that sounded like the pot calling the kettle black, since it is the lack of fair governance in the International Monetary Fund (IMF) and World Bank that prompted China to initiate the formation of the AIIB, and the BRICS countries (Brazil, Russia, India, China and South Africa) to similarly establish the New Development Bank.

For decades, the developing countries have complained that the developed countries have kept their grip on voting power in the Breton Woods institutions by clinging to the quotas agreed upon 70 years ago.

These do not reflect the vastly increased shares of the world economy that the emerging economies now have.

Even the mild reform agreed upon by all – that the quotas would be altered slightly in favour of some developing countries – cannot be implemented because of US Congress opposition.

The big developing countries have been frustrated. They had agreed to provide new resources (many billions of dollars each) to the IMF during the financial crisis, but were rewarded with no reforms in voting rights.

In addition, the unjustifiable “understanding” that the heads of the World Bank and IMF would be an American and a European respectively remains in place despite promises of change.

So much for legitimacy of lectures about good governance, merit-based leadership and democratic practice, which are preached by the Western countries and by the IMF and World Bank themselves.

The BRICS countries then set up the New Development Bank, which will supplement or compete with the World Bank, while China created the AIIB to supplement the Asian Development Bank (ADB), which also has a lopsided governance system.

The new banks will focus on financing infrastructure projects, since developing countries have ambitious infrastructure programmes and there is gross under-funding.

Critics anticipate that the new banks will finance projects that the World Bank or ADB would reject for not meeting their environmental and social standards.

But that is attacking something that hasn’t yet happened. True, it would be really bad if the new banks build a portfolio of “bad projects” that would devastate the environment or displace millions of people without recognising their rights.

It is thus imperative that the new banks take on board high social, environmental and fiduciary standards, besides having good internal governance and being financially viable.

The new institutions should be as good as or better than the existing ones, which have been criticised for their governance, performance and effects.

It is a high challenge and one that is worthy of taking on. There is no certainty that the new banks will succeed. But they should be given every chance to do so.

The AIIB, in particular, is being seen as part of the jostling between the United States and China for influence in the Asian region.

A few years ago, the United States announced a “pivot” or rebalancing to Asia. This included enhanced military presence and new trade agreements, especially the Trans-Pacific Partnership Agreement (TPPA).

It seemed suspiciously like a policy of containment or partial containment of China. The United States combines cooperation with competition and containment in its China policy, and it retains the flexibility of bringing into play any or all of these components.

China last year announced its own two initiatives, a Silk Road Economic Belt (from Western China through Central Asia to Europe) and a 21st century Maritime Silk Road (mainly in South-East Asia).

The first initiative will involve infrastructure projects, trade and public-private partnerships, while details of the second initiative are being worked out.

The AIIB can be seen as a financial arm (though not the only one) of these initiatives.

China is also part of negotiations of the RCEP (Regional Comprehensive Economic Partnership) that does not include the United States.

Last year, it also initiated a study to set up a Free Trade Area of the Asia-Pacific, which will include the United States.

These two intended pacts are an answer to the US-led TPPA. It is still uncertain whether the TPPA will conclude, due both to domestic US politics and to an inability to reach a consensus yet among the 12 countries on many contentious issues.

Meanwhile, prominent Western opinion makers are urging the United States to change its policy and to accommodate China and other developing countries.

Former US Treasury Secretary Larry Summers said this past month will be remembered as the moment the United States lost its role as the underwriter of the global economic system.

Summers cited the combination of China’s effort to establish a major new institution and the failure of the United States to persuade dozens of its traditional allies to stay out of it.

He also called for a comprehensive review of the US approach to global economics, and to allow for substantial adjustment to the global economic architecture.

Martin Wolf of the UK-based Financial Times said that a rebuff by the United States of China’s AIIB is folly. This is because Asian countries are in desperate need of infrastructure financing, and the United States should join the bank rather than pressuring others not to.

The real US concern is that China might establish institutions that weaken its influence on the global economy, said Wolf.

He added that this is wrong since reforms on influence in global financial institutions are needed and the world economy would benefit from more long-term financing to developing countries. China’s money could push the world in the right direction.

In a devastating conclusion, Wolf said the world needs new institutions.

“It must adjust to the rise of new powers. It will not stop just because the United States can no longer engage. If the results are not to the United States’ liking, it has only itself to blame.”

The winds of change are blowing in the global economy, and many in the West recognise and even support this.

Global Trends by Martin Khor

> Martin Khor is executive director of the South Centre, a research centre of 51 developing countries, based in Geneva. You can e-mail him at director@southcentre.org. The views expressed here are entirely his own.

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China’s revival of 600-year-old links in Asia, Africa, Europe and the Americas


 Malaysia and China have great plans for a 21st century version of an ancient trade route from China that reached as far as Europe and the Americas

China Maritine Silk Road_ Asean

Maritime trade between China and other countries dates back to the Qin and Han dynasties.

Merchant ships that departed from China sailed into the South China Sea carrying silk, porcelain ware, tea and other commodities.

The ancient trade route reached as far as Europe and the Americas, forging friendships and exchanges.

Today, China has a grand vision: to revive a 21st century version of this ancient maritime corridor by inviting countries from Asia, Africa, the Americas and Europe to come on board the present-day route.

According to an article in the Asia Weekly of China Daily, an English-language newspaper, the proposed 21st century Maritime Silk Road (MSR) begins in Quanzhou in Fujian province, moves on to Guangzhou in Guangdong province and Beihai in Guangxi Zhuang autonomous region, and then heads south to Hanoi, Vietnam.

Continuing south to Kuala Lumpur on the Strait of Malacca, the MSR joins Jakarta, Indonesia, crosses the Indian Ocean to Nairobi, Kenya, and then links with Colombo, Sri Lanka and Male, the Maldives.

China has taken many initiatives to promote the 21st century MSR since its president Xi Jinping first brought up the idea during his visit to Indonesia in October last year.

One of the most recent efforts was the Guangdong 21st Century Maritime Silk Road International Expo, which brought together more than 40 countries and regions to seek cooperation in the fields of economy, trade, tourism and culture.

Guangdong party secretary Hu Chunhua, during the opening ­ceremony of the expo in Dongguan, touted the 21st century MSR as a road of peace and friendship that brings about mutual cooperation and benefits.

He said Guangdong is a convenient transportation hub linking China with countries along the MSR.

“The inland provinces join the MSR and venture out to the world through Guangdong, while Guangdong is also the entry point for resources to come into China from the outside world,” he said of the strategic location of Guangdong.

In the past, Guangzhou, the capital of the southern province, was a major stop on the ancient trade route. Records show that close to 90 per cent of the merchant ships from the West docked at its Huangpu Port from 1685 to 1757.

The glory remains today, with Guangdong ranking first among all provinces in China in terms of economic output, trade volume and population.

Last year, both its gross domestic product and total imports and exports exceeded US$1 trillion.

Trade between Guangdong and Malaysia, China’s largest trading partner in Asean, stood at US$26.81 billion.

Tourism Malaysia chairman Dr Ng Yen Yen said Malaysia’s participation at the expo, the ­largest among all countries, reflected our readiness for greater collaboration and cooperation with countries along the MSR.

In her speech at a forum held ­during the expo, she said ties between both countries can be traced back to 600 years ago when Admiral Cheng Ho visited Malacca during his seven naval expeditions to the Western Ocean.

On the tourism front, Dr Ng proposed a multiple-destination cruise route along the 21st-MSR that will provide vast opportunities for multi­lateral economic cooperation.

Meanwhile, an Institute of Maritime Silk Road Tourism and Culture was established during the expo.

A collaboration between the Guangdong Tourism Board and the South China Normal University, the institute will be a platform for academic research and exchange on topics related to the Maritime Silk Road, such as tourism, culture, education and regional development.

By Tho XIn Yi The Star/Asia News Network

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BEIJING, November 11 (People’s Daily Online) – To better adapt to interconnectivity of Asia-Pacific area, China needs to step forward to higher level in global value chains, an expert with APEC said after a high level forum.

The 2014 Beijing APEC meetings focus on interconnectivity in Asia-Pacific region, infrastructure and Free Trade Area of Asia-Pacific. According to Zhang Lijun, Director of China APEC Development Council, it is of high importance for China to have a clear conception about its role in value chains and supply chains.

To promote interconnectivity in the region is to connect Chinese economy with that of the world. “If not cooperate with supply chains, China may not have a clear mind of its economic role in the market,” said Zhang.

China has long been regarded as the workshop of the world. However, China is shifting its focus to knowledge-intensive industries as well as protection of intellectual property by changing the mode of growth. Only in this way can China realize its updated version of economy, Zhang said.

Besides, according to Zhang, the establishment of Asian Infrastructure Investment Bank (AIIB) is beneficial to advanced Chinese enterprises to seek fortune abroad. Zhang mentioned that China would play a major role in AIIB. Therefore, Chinese preeminence and voice in cooperation will be valued and guaranteed.

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Building the 21st Century Maritime Silk Road


Reflections on Maritime Partnership

China Maritine Silk Road_ Asean

The “Silk Road” is a general term used to geographically describe ancient Chinese exchanges between Asia, Europe and Africa in the areas of politics, economics and culture. Starting on land and developing on sea, the “Silk Road” is a vehicle of historic importance for the dissemination of culture. The ancient maritime Silk Road was developed under political and economic backgrounds and was the result of cooperative efforts from ancestors of both the East and West. China’s proposal to build a 21st Century Maritime Silk Road is aimed at exploring the unique values and concepts of the ancient road, enriching it with new meaning for the present era and actively developing economic partnerships with countries situated along the route. Specifically, the proposal seeks to further integrate current cooperation in order to achieve positive effects.

The ocean is the foundation and vehicle necessary to build a 21st Century Maritime Silk Road. It is China’s mission to understand the importance of building a Maritime Silk Road and take effective actions at present and for a certain period to come.

21st Century Maritime Silk Road from a Global Perspective

In the twenty-first century, countries have become more inter-connected by the ocean in conducting market, technological and information exchanges. The world is now in an era that values maritime cooperation and development. China’s proposal to build a Maritime Silk Road conforms with larger developments in economic globalization and taps into common interests that China shares with countries along the route. The goal is to forge a community of interest with political mutual trust, integrated economies, inclusive culture and inter-connectivity. The construction of a 21st Century Maritime Silk Road is a global ini-tiative that pursues win-win results through cross-border cooperation. It is thus of great importance to view it from the perspective of multi-polarization, economic globalization and the co-existence and ba-lancing of cooperation and competition.

Building a 21st Century Maritime Silk Road will help stimulate all-round maritime opening-up and benefit ASEAN and relevant countries.

Oceans contain a treasure trove of resources for sustainable development. China is currently at a critical stage in its economic reform process and must pay more attention to the ocean. As mentioned in the resolution of the Third Plenum, “[China] needs to enhance opening-up in coastal regions and boost the connectivity construction with neighboring countries and regions to spur all-round opening-up.”

The Maritime Silk Road of the 21st century will further unite and expand common interests between China and other countries situated along the route, activate potential growth and achieve mutual benefits in wider areas. The Maritime Silk Road will extend southward from China’s ports, through the South China Sea, the Straits of Malacca, Lombok and Sunda and then along the north Indian Ocean to the Persian Gulf, Red Sea and Gulf of Aden. In other words, the Road will extend from Asia to the Middle East, East Africa and Europe, and it will mainly rely on ASEAN countries. Building the Maritime Silk Road will connect China’s ports with other countries through maritime connectivity, intercity cooperation and economic cooperation. On the one hand, the Road will strengthen the economic basis for China to cooperate with countries along the route and better connect Europe and Asia. On the other hand, the Road will facilitate the development of the Regional Comprehensive Economic Partnership (RCEP), bringing benefits to China, ASEAN and other countries along the road.

The Maritime Silk Road will increase trust and regional peace and stability.

As the world’s economic and political center shifts towards the Asia Pacific, the region has stepped into a stage of geopolitics characterized by intersecting, overlapping and conflicting interests. By facilitating communication between countries along the road, the Maritime Silk Road will help build a community that represents the common concerns, interests and expectations of all countries. The community is expected to guide and support a peaceful and stable Asia Pacific landscape.

Moreover, the Maritime Silk Road will further bring together the “Silk Road Economic Belt,” the “Bangladesh-China-India-Myanmar Economic Corridor” and the “China-Pakistan Economic Corridor” that together connect Europe and Asia. Such connections will greatly enhance China and other countries’ abilities to develop economically while limiting external risks. The Maritime Silk Road will also enhance cooperation in non-traditional security areas while maintaining maritime security.

Maritime Partnerships Are the Key to Building the Maritime Silk Road

At a speech before the Indonesian parliament in 2013, President Xi Jinping stated that Southeast Asia has become an important hub for the maritime silk road and that China is willing to enhance maritime cooperation with ASEAN countries, boost maritime partnerships and build a 21st Century Maritime Silk Road. President Xi’s speech set forth a clear path for developing road. Enhancing maritime cooperation will be a priority task in building the Maritime Silk Road. The first step will involve China and countries along the route promoting pragmatic maritime cooperation.

Connecting multiple regions and uniting wide areas of co-operation, the tasks put forth in the 21st Century Maritime Silk Road will not be achieved in the immediate future. Instead, these tasks call for China and relevant countries to work in a step-by-step and practical manner. Building the Maritime Silk road will require diverse forms of cooperation. With a focus on economic cooperation, the Road will give consideration to all parties involved. It will be based on the existing cooperation mechanisms and platforms and be promoted by China and other countries along the route.

The 21st Century Maritime Silk Road will cover more than 20 countries and regions that share a broad consensus on enhancing exchanges, friendship, promoting development, safety and stability within the region and beyond. The Silk Road has already received positive responses and support from many relevant countries. Greek Prime Minister Antonidis Samaras, for example, made it clear that Greece will “support and actively participate in building the 21st Century Maritime Silk Road proposed by China.” The Road runs through a region that is sensitive to international strategy and has complex geopolitics. The countries in the region differ in size, development, history, religion, language and culture. Therefore, the 21st Century Maritime Silk Road will accommodate various countries’ demands and apply suitable policies to each country. Meanwhile, the Road must change and consolidate new patterns of cooperation.

China has been building friendships and partnerships with nei-ghboring countries and developing maritime partnerships with its ocean neighbors, providing a solid foundation for cooperation with ASEAN and countries in the region. The 21st Century Maritime Silk Road requires the following efforts: First, consensus must be reached between major countries along the route to enhance maritime cooperation. During high-level dialogues in recent years, the Chinese leadership made maritime cooperation an important topic of bilateral discussions and established the China-ASEAN and China-Indonesia Maritime Cooperation Fund. At the same time, China has actively promoted maritime cooperation between Southeast Asia, South Asia and African countries and established high-level mechanisms between various national maritime departments.

Second, countries must engage in pragmatic cooperation along the route in the areas of trade, the economy, culture and infrastructure. In 2012, the trade volume of countries along the route accounted for 17.9 percent of China’s total trade. The contracted turnover in countries along the route accounted for 37.9 percent of China’s overseas contracted turnover. People-to-people exchanges between China and ASEAN recently topped 15 million, while two-way students reached more than 170,000.

Third, countries along the route must engage in effective cooperation on ocean and climate change, marine disaster prevention and mitigation, biodiversity preservation and other areas of maritime policy. In 2010, the Indonesia-China Center for Ocean & Climate (ICCOC) was established. In 2013, the China-Thailand Climate and Marine Ecosystem Joint Lab were both launched. In 2012, the Chinese government set up a Marine Scholarship, and from that year onward, the scholarship will sponsor young people from developing countries in Southeast Asia, Africa and Latin America to obtain a master’s degree or doctorate in China to enhance the marine capabilities of their own countries.

Focusing on Developing Partnerships Along the Maritime Silk Road

The Maritime Silk Road is in line with the development of national economies and the improvement of welfare. China must follow the new perspectives on value, cooperation and development featuring equality, cooperation, mutual benefits, win-win results, inclusiveness and harmony. Guided by President Xi’s desire to “expand the scale of cooperation and gradually foster regional cooperation,” China must make use of its comparative advantages and promote communication, connectivity, trade flow, currency circulation and consensus among people. China needs to target common interests between countries along the road and map out long-term plans and execute its plans in a step by step manner.

The Road will connect the Pacific and Indian Oceans. China will focus on upgrading the China-ASEAN Free Trade Area and extending it to the coastal regions of the Indian Ocean, the Persian Gulf, the Red Sea and the Gulf of Aden. By virtue of connecting the China-Pakistan Economic Corridor, the “Bangladesh-China-India-Myanmar Economic Corridor” and the “Silk Road Economic Belt,” China will build an open, safe and effective maritime road that can facilitate trade, transportation, economic development and the dissemination of culture.

The Road will also make good use of the China-ASEAN Maritime Cooperation Fund and enhance pragmatic maritime cooperation. By prioritizing cooperation in inter-connectivity, the maritime economy, marine environmental protection and disaster prevention and mitigation, China aims to improve the welfare of countries along the route and share the benefits of the Maritime Silk Road.

The Road will also make use of existing bilateral and multilateral marine cooperation mechanisms and frameworks. By making use of the existing and effective marine cooperation platforms, China will improve the area’s marine partnership network, forge closer ties between countries along the route and finally create a cooperation landscape in which marine resources, industries and culture are all reasonably distributed and mutually reinforcing.

The construction of a 21st Century Maritime Silk Road the development of marine partnerships call for the following measures:

First, it will call for better marine connectivity. Infrastructure connectivity is the priority of the 21st Century Maritime Silk Road. Countries need to focus on building key pathways, points and major projects, and China needs to work with countries along the road to build marine infrastructure, improve law enforcement abilities, provide public goods of marine security and guarantee the security of marine pathways. China needs to support the construction of ports, wharves and information networks to ensure the open flow of goods and information. It must also enhance communication on marine cooperation policies to facilitate marine investment and trade.

Sea lane safety is the key to sustaining the development of the 21st Century Maritime Silk Road, while ports are the foundation of sea lane safety. Like posts along the ancient Silk Road, ports along the new Maritime Silk Road will act as “posts on sea” that handle cargo and resupply ships and people. Such “sea posts” also must provide safe and convenient sea lanes for all countries to make use of. These posts can either be built by individual countries or built with the help of China and other countries, or even be leased in other counties. The 21st Century Maritime Silk Road will thus able to cover and drive more countries to create “sea posts.”

Second, it will call for strong cooperation on marine economy and industry. Many countries along the route strategically exploit the ocean, develop their maritime economies and sustain marine development. Strengthening cooperation on marine economics and industry will help push forward modernization and promote the upgrading and optimization of industry. Such cooperation will better integrate China’s economy with those of countries along the route.

Closer cooperation in the marine industry will require domestic industrial restructuring according to market demands, require prioritized cooperation in marine fishery, tourism, desalination and marine renewable resources and require Chinese enterprises in this industry to go global. China encourages enterprises with intellectual property and sophisticated desalination technology, marine renewable resources and marine bio-pharmaceutical technology to invest and build their own businesses in countries along the route.

Relying on existing Economic and Trade Cooperation Zones between China and other countries, as well as marine demonstration zones in Tianjin, Shandong, Zhejiang, Fujian and Guangdong, the government will play a leading role in the initial stages, guide enterprises with mature technologies in iron and steel, shipbuilding, fishery and aq-uaculture to establish production bases and extend industrial chains to countries with rich resources and huge demand.

China needs to work with countries along the route to facilitate regional cooperation, building industrial parks, enhancing investment and cooperation in the marine industry, building marine economic demonstration zones, marine technology parks, economic and trade cooperation zones and marine training bases. Through such industrial cooperation, China will forge an investment cooperation platform in which Chinese enterprises can gain international competitiveness and participate at a higher level of the industrial echelon.

China needs to build a cooperation belt to enhance the marine industry and set up cooperation networks to facilitate marine tourism. A sustainable Maritime Silk Road will not be achieved without the help of port economic zones. As a result, China must develop its port economic zones and free trade zones to provide a platform for the Maritime Silk Road. China will focus on eliminating systematic and mechanistic barriers, lowering market thresholds and facilitating the opening-up of major areas.

Third, it will call for all-round cooperation in marine fields. In recent years, non-traditional security issues such as piracy, maritime terrorism, cross-border crimes and maritime disasters have loomed large. Countries along the route share a common interest in addressing these problems. Naturally, fighting against non-traditional security challenges will become an important part of the Maritime Silk Road. As such, China must promote exchanges and cooperation between countries along the route in the areas of marine technology, environmental protection, marine forecasting and rescue, disaster prevention and the mitigation and climate change.

Putting the “Marine Technology Partnership Plan” into practice. Based on existing marine cooperation centers and observation platforms, China will focus on promoting marine technology cooperation networks and building the China-ASEAN Marine Cooperation Center, the Indonesia and China Center for Ocean and Climate, the China-Thailand Climate and Marine Ecosystem Joint Lab, the China-Pakistan Joint Marine Center, the China-Sri Lanka Marine and Coastal Zone Joint Research Center and other ocean stations.

Building “marine ecological partnerships.” By paying more atten-tion to an ecological civilization, China needs to enhance cooperate with countries along the route to build a green Silk Road that addresses the marine ecological environment and climate change. China must set up an effective dialogue mechanism, map out major projects in which all parties can get involved and make comprehensive plans for regional ecological and environmental protection. China must work more closely with Southeast Asia and South Asia to protect biodiversity, build a cross-border bio-diversity corridor and establish marine conservation areas.

Conducting the regional marine research. By building cooperation networks for marine disaster preparedness, providing marine forecasting products and releasing marine disaster warnings, China will increase marine benefits for relevant countries.

Fourth, it will call for expanding cooperation in marine culture. Marine culture is the foundation of building a 21st Century Maritime Silk Road. When talking about the Silk Road Economic Belt, President Xi has stated that “amity between people holds the key to sound relations between states.” He also highlighted the importance of “common aspirations,” given that the Silk Road will be supported by countries only if it is able to benefit people. China will inherit and pro-mote friendly cooperation along the Maritime Silk Road and develop a proposal with international consensus so that marine cooperation and partnerships will be firmly supported.

The plan will also call on countries to increase marine awareness and achieve common aspirations. China needs to make full use of the geopolitics and culture of Maritime Silk Road to promote exchanges in marine culture, tourism and education to make the Road a key link for friendly exchanges. By “going global” and “going local” at the same time, China needs to carry out exchanges and cooperation in marine culture, in areas such as cultural or art exchanges, archaeological exchanges, marine tourism cooperation, education and training.

China will guide and encourage the community to conduct various cultural exchanges and offer tours and products with distinct Silk Road features. In such a way, China will be able to expand the cultural influence of the Maritime Silk Road, push the Road into the new century and promote general marine cultural diversity.

Conclusion

On June 20, 2014, Premier Li Keqiang spoke at the China-Greece Marine Cooperation Forum, stating, “We stand ready to work with other countries to boost economic growth, deepen international cooperation and promote world peace through developing the ocean, and we strive to build a peaceful, cooperative and harmonious ocean.” China’s proposal to build a 21st Century Maritime Silk Road suits the current era and is characterized by peace, development, cooperation, innovation and opening-up. With the goal of building a harmonious ocean, the proposal rests on opening-up and innovation and aims to achieve “harmony between humans and the ocean, peaceful development, safety and convenience, cooperation and win-win results.” A 21st Century Maritime Silk Road will enhance cooperation between China and other countries, increase mutual trust, create a stable environment for cooperation and bring new opportunities for regional stability and prosperity.

by Liu Cigui

China Institute of International Studies

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