NEW Silk Road
a new foreign policy
As Xi Jinping begins lobbying support for a series of infrastructural investments across central and southern Asia, the "New Silk Road" intitative starts to gain momentum worldwide. The New Silk Road will reconnect Asia, bringing new economic strength to regions rich in resources but torn apart by war; but to what extent will the project pose a challenge established power relations?
Reconnecting Asia, Refusing America
November 5, 2014
Xi Jinping has framed the project as an effort to bring more trade and investment to central and western provinces in China, which would initiate another burst of economic growth following the apparent slowdown of China’s economy. The increased availability of freight rail transport options would also decrease the pressure on congested Eastern ports, and reduce carbon emissions by up to 20%. Alongside the development of global carbon markets, such emissions savings could theoretically be sold, thus lowering the logistical cost of rail transportation (maritime transport is currently around 50% cheaper).
Already, China has allocated funds to begin preliminary research on building an international railway network connecting areas in western Xinjiang with Gwadar Port in Pakistan, and plans to invest 16.3 billion USD in the construction of such railways, roads and pipelines. The creation of the International Seminar on Silk Road Economic Belt in June 2014 saw leaders from Xinjiang discuss the high costs involved in building such a rail link through incredibly difficult geographic regions, such as the Pamir Plateau and Karakoram Mountains. A further threat to the US, is Beijing's ability and intent to "put its money where it's mouth is", and tangibly follow-through with its overwhelming economic promises.
The project forms part of both China’s energy security policies, which include vested interests in Iran, Iraq and Saudi Arabia, and part of its policy to boost European trade and bolster European economies. China’s European policy has been described as an effort to counterbalance US dominance over international trade and relations, by creating multiple spheres of power.
It has also been argued that the connection will provide a ready market for China’s “well-developed” and “affordable” renewable energy products, the export - or “dumping” - of which has previously caused controversy in Europe.
While the US conveniently neglects to mention the Chinese role in the creation of a New Silk Road, momentum is growing in Central and South Asia in anticipation for the huge international financing of the Silk Road’s revival.
Publications worldwide have taken note of the contrasting conditions under which both the US and China have focused on the Middle East and Central Asia in their promises for a New Silk Road. That Beijing has already begun to turn his promises into actions, just one year after propositions began, while Washington has still failed to commit three years on from theirs, is not going unnoted by the international community. While Washington's continued global smear campaign against China continues to spread apocalyptic predictions about the country's rise, many world leaders are realising the benefits of befriending Beijing, and the lack thereof in their relationship with Washington. Furthermore, coinciding with China’s increasing strength within the Asia-Pacific region (and the corresponding PR smear campaign initiated by the ever-benevolent US), the New Silk Road represents yet another move to counterbalance US dominance, and reinvent the global stage as we know it.
China and Pakistan will co-fund the railway construction. Building oil and gas pipelines between Gwadar Port and China is also on the agenda...
Zhang Chunlin, Xinjiang Regional Development and Reform Commission
The US State Department has expressed support for the creation of a “New Silk Road”; however, it has done so without once mentioning the role of the People’s Republic of China in this process.
On their website, the US State Department has framed the entire concept as a US initiative designed to encourage Afghanistan’s re-integration and economic recovery following decades of war and occupation.
Not once in the article entitled ‘US Support for New Silk Road’ is China even mentioned, despite its historic role, and despite being a major world player offering to pour significant resources into the project that will ultimately reconnect China with Europe.
According to the Financial Times, Xi Jinping’s New Silk Road ambitions could represent the “biggest shake up in global trade routes since China began its emergence as a big player in international trade two decades ago.”
Both the overland and the maritime New Silk Roads proposed could signal a major challenge to US traditional hegemony, and create more opportunities for RMB trading across two major continental markets.
China’s interest of including Pakistan in the project stems from its fears of any drastic US actions that could see Washington cutting of Beijing’s energy supply through various sea routes that it oversees, or controls virtually.
Farooq Yousaf, The Express Tribune (Pakistan, 2014)
