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Objectives of China's overseas: why the initiative "One belt, one road" is doomed to success
Material posted: Publication date: 14-01-2018
It seems that the initiative "One belt, one road" covers everything that relates to China, and at the same time, nothing. However, this does not mean that the draft is a smokescreen to divert attention. He's really outworking in practice, in courtrooms, in government offices, public enterprises around the world, the most important from the point of view of logistics strategy places, and also in special economic zones created in dozens of countries. This project is implemented regardless of the views of the American Minister of defence that "One belt, one road" is nothing more than a pompous attempt to dictate terms.

Control over the networking infrastructure

Ports, roads and Railways and also logistic zones is not very attractive, but is the circulatory system of our world. These are the arteries from one point to another to move goods and people. And the first step in the implementation of the initiative "One belt, one road" is to declare their claims in this area.

Over the past five years, Chinese companies have begun to farm 77 marine terminals in dozens of countries. They build high-speed rail corridors across South-East Asia, and can start their construction even in Europe and Russia. They Finance the laying of a highway in Pakistan, the construction of bridges in Bangladesh, the construction of power plants in a huge number of countries that it is impossible to enumerate in this article. They build new towns and special economic zones in Sri Lanka, Oman, Myanmar, Malaysia and Abu Dhabi, are numerous oil and gas pipelines in Central Asia, Russia and Southeast Asia. They built a network of direct rail transport of 35 lines, which connects the industrial centers of Central and Western China with the cities of Europe.

Creating all this infrastructure, China has demonstrated its great superiority over foreign companies and States in obtaining contracts. His strategy is simple. China pays more. But we must remember that economic principles of "One belt, one road" will play a role not today, but in 10, 20 or 50 years. Obviously, China is investing in a future world where all roads pass through Beijing. And only then we can start talking about profit and loss.

The development of soft infrastructure

Creating and developing physical infrastructure, China to create and strengthen long-term political relationships, which underlie the initiative "One belt, one road".

The greatest success this initiative brings to the creation of so-called soft infrastructure, which exists in politics. We are talking about intergovernmental agreements on commercial transactions, customs and covenants of assistance.

Since China started the era of XI Jinping, the country regularly enters into trade agreements with many countries, paying particular attention to those States that are along the routes of the concept of "One belt, one road". Officially, China is currently preparing 19 agreements on free trade, and 14 of them have been implemented.

Si and his entourage actively enter into customs agreements across Eurasia. China has signed deals with Taiwan, with Finland, a landmark agreement with the EU, as well as the draft agreement with the UK. Last year, Beijing has acceded to the Customs Convention on the international transport of goods (TIR Convention), which involves more than 70 countries. This allowed him to speed up customs procedures and more efficient to transport goods.

Along with trade pacts and customs agreements China has actively joined in the game by helping other countries. Research group on international aid from the College of William and Mary conducted an extensive analysis on this subject and came to the following conclusions:

The research group "Addata" (AidData) indicates that in the world there is a financial giant, challenging even the major donor countries. In the period from 2000 to 2014, China has officially provided funding to different countries of the world in the amount of 354,4 billion dollars. It is very close to that amount, which for the same period of time singled out the United States 394,6 billion dollars. In some countries, these two States are similar to competitors, and China at times encroaching on the American championship, becoming the leading donor.

These researchers found that Chinese practice assistance is not fraudulent and unguided, as it is said by many. However, they found a curious feature consisting in the fact that the African States supporting China in the United Nations, receive emoluments in the form of a substantial increase in aid.

When there is money

In the beginning, the enemies of China had occasion to have fun when there were reports about the reduction of foreign exchange reserves of the country. Someone pointed out that Beijing has lost more than one trillion dollars. But most likely, it was just one small setback, as Chinese reserves have increased for six consecutive months and now make up more than three trillion dollars, for China is commonplace. It is possible to tell and differently: China monthly earning at 40-60 billion dollars in one only the imbalance between imports and exports, and even the seemingly extravagant spending on "One belt, one road" does not have a significant impact on the final outcome of the PRC. Essentially, China is funding its own Intercontinental projects for pennies, and gears this initiative a long time will not rust.

Overcoming geopolitical rifts

Instead, to qualify either at the tops or the roots, China takes both, overcoming geopolitical barriers and forging friendships with countries on both sides of the established lines of conflict. China announced that the old foreign policy on the principle "whoever is not with us is against us" (in the framework of such policy of the state to form strong relationships with individual blocks of countries in opposition to other countries) is "outdated geopolitical maneuvering". He stressed that he intends to "form partnerships through dialogue, not confrontation, and where instead there are alliances friendship". These are the words of the main storyteller of Chinese President XI Jinping. China parallel builds and develops relations with Israel and Iran, with Armenia and Azerbaijan, with Russia and Ukraine, Pakistan and India (hopefully), with North Korea and the United States. However, he crosses all boundaries and overcomes any obstacles.

The advantage of such a policy is understandable. In theory, the more countries at the negotiating table, the more deals and agreements, more geo-economic influence and weight, and fewer barriers to trade.

The strength of bilateral relations

We can say that the initiative "One belt, one road" is a series of unrelated, but nevertheless related to each other in economic trade and financial transactions, which China concludes or with individual countries or groups of countries or political blocs in Asia, Europe and Africa. In these transactions there is no General systematic structure, no protocols of membership, no moralistic moralistic and intimidation, there is no pre-determined set of standards that members must observe in unison. In addition, there is no need to drive transactions to the lowest common denominator of some established groups or unions of countries. Every country and bloc negotiating on your own terms, and the deals can be structured in accordance with particular parameters. When something goes wrong, China can negotiate with a party to the conflict directly, without creating such situations when in danger is the whole multilateral system.

Seems that China has realised that not all countries are the same, not all systems of public administration work in a similar way, not all cultures can be combed with the same brush, by installing the hard sets of standards and protocols. This strategy gives China the advantage over partners because they, being without the support of the bloc countries, come into the ring with a much stronger, more rapid and economically sustainable competitor.

In short, the "One belt, one road" is constructed in such a way that it really works.


Tags: economy , China

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