MARITIME Silk Road
struggle for the south china sea
In the wake of Xi’s overland New Silk Road, a new movement is taking place to reinforce the relationship between China and its maritime neighbours. Despite widely-publicised conflicts over various island chains and sea-route rights, the nations of South East Asia are becoming increasingly integrated in terms of trade and development. China’s Asian pivot, or “Asia-Pacific Dream”, counterbalances the New Asia policy of the United States.
The Struggle for the South China Sea
March 9, 2015
In an article to be released in tomorrow’s China Daily, Zhou Zhitong, Chief of the Foshan Bureau of Commerce, discusses the city’s current and historic role as a regional leader in facilitating Asian trade developments. Zhou maintains that its manufacturing prowess, strengthened by the simple fact of its ideal location, perfectly positions the city as a centre for maritime and overland trade.
And the wheels are already in motion.
Currently the city has seen 79 projects funded by businesses from the Maritime Silk Route, since the plan’s announcement in 2013. With an agreed investment of 764 million USD, the actual investment of the silk road projects accounted for 5.9% of the city’s total investment. In 2014, Foshan businesses invested 269 million USD in 35 different projects in countries along the trade route. Just one company, Foshan's home-grown Chinese champion, Midea Household Appliances, has projects in Vietnam, Thailand, India and Egypt, with a total investment of 125 million USD.
In the meantime, Obama has promised to redeploy as much as 60% of US air and sea power to Asia by 2020, in the face of continued evidence of China’s “maximalist stance in territorial disputes.” Despite attending the Asia-Pacific Economic Cooperation (APEC) forum, the United States seems to be largely ignoring opportunities for economic cooperation in the Asia-Pacific region. Choosing instead to focus on its military presence, stretching itself thinly in an attempt to cover all global areas of interest, the US is missing out on some of the biggest Asian opportunities.
Historically speaking, Foshan played an active part in the ancient trade route... We seek to strengthen trade ties and industrial cooperation with the regions along the route [to] encourage more local enterprises to invest there.
Zhou Zhitong, Bureau of Commerce of Foshan City (March, 2015)
Beijing’s slightly passive-aggressive trade-based pivot offers varying degrees of privileged access to the country’s evolving marketplace, a stark contrast to Washington’s overall protectionism and continued tradition of unfulfilled promises - increased military support and diplomatic strong-arming.
Xi’s commitment to developing a modern-day Maritime Silk Road has raised expectations in the Pearl River Delta, a region perfectly positioned to take advantage both of China’s increasingly attractive domestic market, and any potential outbound investment to South East Asia.
A stark example of China’s continued commitment to reinforcing relations with its South-East Asian neighbours, as opposed to vague promises of future economic cooperation, can be seen in the current activities of local governments along the South China Seaboard.
Local governments are already stepping up to the challenge; this month delegates from Foshan City in Guangdong visited Indonesia, aiming to encourage bilateral investment projects between the two regions.
Few U.S. national security officials pay much attention to the Asia-Pacific Economic Cooperation (APEC) forum or economic statecraft in general. In a region where economics is synonymous with security, the impact of the quarter-century-old institution to promote trade liberalization may change the course of tomorrow’s security framework.
Patrick Cronin, Center for a New American Security (November, 2014)
The fear-mongering voices of politicians and media outlets in the west voice the concerns of America's overly-aggressive ally, the Philippines, and those of China’s nearest and dearest neighbour, Japan. The American media paint a picture of China as a hawkish regional aggressor, and its neighbours as poor victim states. In doing so, the deny the complexity of the situation, and negate economic developments that will soon define the region.
The Philippines has proceeded to build military installations and station some 1000 men on them. Beyond occupying the islands, Manila has for years taken actions highly provocative to China, including arresting and expelling Chinese fisherman fishing in the disputed area.
Stephen Harner, Forbes (November, 2014)
As Harner exemplifies, it is not Beijing’s restraint being documented and spread worldwide, but its aggression. The US semi-state-run media focuses on China’s domineering presence in the South China Sea, intimidating its neighbours with military advancements, while neglecting to document either the aggressions of said neighbours, nor the peaceful, trade-based means through which China is dominating the region. The US also fails to acknowledge its own position as a dominant military power in the region.
South East Asia has reached a turning point, either it can reject the traditional hegemony of America and accept a new concept of regional dominance, or it can maintain the status quo and remain a peripheral power in a rapidly evolving world. Regardless of moral superiority, a position of priority in the Chinese marketplace is an economically worthy cause for sellout, particularly as the western world flails under the tides of recession. In order to compete with Chinese regional dominance, the US and other western post-imperial lobbyists will need to come up with a better economic offer.
