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THE Silk Road Economic Belt and 21st Century Maritime Silk Road Initiatives， also known as China’s Belt and Road Initiatives， have attracted worldwide attention since they were put forward by Chinese President Xi Jinping in 2013 to improve cooperation with countries in Asia， Europe and Africa.
The year 2015 is regarded as the optimum point at which to implement the Belt and Road Initiatives， which Chinese Premier Li Keqiang mentioned three times in the government work report this year. The Belt and Road Initiatives were moreover one of the hottest topics during the country’s 2015 sessions of
the National People’s Congress （NPC） and the Chinese People’s Political Consultative Conference （CPPCC）.
2015： A Critical Year
The Silk Road Economic Belt stretches northwest along the ancient Silk Road trade route from China’s coastal area through Central Asia， the Middle East and on to Europe， while the 21st Century Maritime Silk Road connects the south of the country with Southeast Asia.
Along the Belt and Road are many developing countries， with a combined population of 4.4 billion （63 percent of the global population） and an annual economic output of US $2.2 trillion （30 percent of the world’s wealth）. Most of these countries also have a late-mover advantage， which provides ample room for development. The implementation of these initiatives is beneficial to the economic growth of countries along the routes， and could make it into a pole of global economic development. For China， the Belt and Road Initiatives will not only expand its foreign trade and economic cooperation， but also stabilize its economic development.
“2015 will be a critical year for Chi-na’s Belt and Road Initiatives and the move will see a good start，” Commerce Minister Gao Hucheng said at a press conference on the sidelines of China’s annual NPC session on March 7. China has made smooth negotiations with countries along the route and some projects are under implementation while some are in planning， he added.
Gao also stressed that the initiatives will carry the spirit of being “open and inclusive.” Any countries or organizations that are interested in the plans can participate under the principle of jointly negotiating， constructing and sharing. So far， more than 50 countries have shown interest in the Belt and Road Initiatives.
“We believe the initiatives will not only facilitate China’s growth， but also boost economies along the route and the entire world，” Gao said. Going Global
According to the government work report by Premier Li Keqiang， China will promote industries such as railways， power， telecoms， machinery， automobiles， airplanes， and electronics to “go global.”
“China will further encourage projects that export Chinese industrial capacity and equipment under a win-win principle，” said Xu Shaoshi， head of the National Development and Reform Commission （NDRC）， at a press conference for the third session of China’s 12th NPC on the economic situation and macroeconomic control on March 5. The third session of China’s 12th NPC opened in Beijing on the same day.
According to Xu， China has plenty of industrial capacity with a competitive edge， but it is not fully utilized. On the other hand， there is a huge demand in some countries. China and its foreign partners should hence strengthen pragmatic cooperation under the principle of achieving win-win and mutually beneficial results.
According to Zhang Jianping， senior researcher at the Institute for International Economic Research under the NDRC， the Belt and Road Initiatives have far-reaching and diverse influences， which will accelerate the country’s flow of factors such as labor force， capital， and technology. In other words， during the integrative growth period， new impetus will be tapped.
During the implementation of the Belt and Road Initiatives， China’s outbound investment will create employment opportunities and introduce technology and management experience to relevant countries. In the process， internationalization of the RMB will be expedited and the trade and investment ties further strengthened.
Symphony for All
“China will further enhance policy communication with other countries， and expand the convergence of our shared interests and explore possible areas of win-win cooperation under the principle of wide consultation， joint contribution and shared benefits，” Foreign Minister Wang Yi said at a news conference in Beijing on March 8 alongside the annual meeting of the NPC， China’s top legislature.
Wang Yi noted that China’s Belt and Road Initiatives are not its “solo，” but a“symphony” of all related countries， as the vision of the initiatives is “common development，” and the goal is “win-win progress through cooperation.”
“President Xi made this historical decision in the face of profound changes in the pattern of international relations，”said Zhou Hong， NPC deputy and director of the Institute of European Studies at the Chinese Academy of Social Sciences （CASS）. “Starting from the fastdeveloping economic circle in Asia and extending to the developed economic circle in Europe， there is no strategic collusion between the two. With favorable management， a brand-new， equal and mutual benefit cooperation framework will be established， which will not only prolong China’s development opportunity， but also boost economic development along the line，” he added. “The core of the Belt and Road Initiatives is the link between economy and trade，” said Chen Yao， secretary general of the China Regional Economic Society. Countries along the Belt and Road comprise those who already have frequent economic and trade contacts with China， and also emerging economies with great development potential. Therefore， import and export trade among nations will be the critical point.
Apples and Oranges
China’s Belt and Road Initiatives are nothing like the United States’ Marshall Plan， Wang Yi stressed. “The initiatives are both much older and much younger than the U.S. plan，” Wang said. “Likening the two would be like comparing apples and oranges.”
China’s two initiatives are older， having inherited the spirit of the continental and maritime Silk Roads more than 2，000 years ago， whose aim was improve the livelihood of people in countries along the routes. The initiatives are younger， as the plan is taking form in a globalized world in the spirit of winwin cooperation， the minister explained. Wang also stressed the Belt and Road Initiatives should not be viewed through a Cold War mentality lens.
“China’s Belt and Road Initiatives are a new model of South-South and regional cooperation，” said Lü Xinhua， spokesman at the annual session of the CPPCC on March 2. “It is inappropriate to describe the Belt and Road Initiatives as another Marshall Plan，” Lü said.
The Belt and Road Initiatives seek common development of countries with different ethnicities， religions and cul- tures， focusing on wide consultation， joint contribution and shared benefits， Lü added. The Marshall Plan has its own historic context and different political intentions with many conditions attached.
China’s initiatives have led to the Silk Road Fund and the Asian Infrastructure Investment Bank， which aim to improve connectivity and provide more public services for people in this region， he said. “We expect the early realization of connectivity to benefit people of all countries along the Belt and Road.”
Common Development and Prosperity
A board of directors and a senior management team have been selected for the US $40 billion Silk Road Fund， which will start investing soon， its chief executive， Jin Qi， said at a press conference that ran concurrently with China’s annual NPC session on March 12.
According to Jin， the fund will invest mainly in infrastructure and resources， as well as industrial and financial cooperation， in an effort to achieve common development and prosperity. President Xi Jinping announced the creation of the fund in November 2014， and it was established on December 29， 2014. It is part of China’s national strategy to revive the continental and maritime Silk Roads by financing major infrastructure projects along the centuries-old trading routes. The fund has drawn wide international attention as it is by far the largest China has ever proposed to finance multilateral projects in the Eurasian economic circle.
The fund has been assessed as a good alternative to the China-led Asian Infrastructure Investment Bank for financing infrastructure projects such as high-speed railways， airports and roads in Asia. Analysts say that the fund will help expand international markets for Chinese industries including construction， equipment manufacturing， utilities， high-speed railway， oil and energy， some of which are struggling with excess capacity at home.
The fund is not an aid agency， said Jin， who expects market-oriented principles to be put into operation and reasonable returns for shareholders. The company was jointly backed by China’s foreign exchange reserves， the China Investment Corp.， the Export-Import Bank of China and China Development Bank. In the first phase， the company raised US $10 billion， with foreign exchange reserves taking up 65 percent， the China Development Bank， 5 percent and the other two companies each investing 15 percent.
The fund will comply with market rules and the international order of finance， welcoming participation by domestic and overseas investors such as the China-Africa Development Fund and the Asian Infrastructure Investment Bank， Jin added.
The Belt and Road Initiatives are not just a path forward for China， but a common cause for all countries along the routes. China will not enjoy the benefits alone， but share them with the rest of the world.
The year 2015 is regarded as the optimum point at which to implement the Belt and Road Initiatives， which Chinese Premier Li Keqiang mentioned three times in the government work report this year. The Belt and Road Initiatives were moreover one of the hottest topics during the country’s 2015 sessions of
the National People’s Congress （NPC） and the Chinese People’s Political Consultative Conference （CPPCC）.
2015： A Critical Year
The Silk Road Economic Belt stretches northwest along the ancient Silk Road trade route from China’s coastal area through Central Asia， the Middle East and on to Europe， while the 21st Century Maritime Silk Road connects the south of the country with Southeast Asia.
Along the Belt and Road are many developing countries， with a combined population of 4.4 billion （63 percent of the global population） and an annual economic output of US $2.2 trillion （30 percent of the world’s wealth）. Most of these countries also have a late-mover advantage， which provides ample room for development. The implementation of these initiatives is beneficial to the economic growth of countries along the routes， and could make it into a pole of global economic development. For China， the Belt and Road Initiatives will not only expand its foreign trade and economic cooperation， but also stabilize its economic development.
“2015 will be a critical year for Chi-na’s Belt and Road Initiatives and the move will see a good start，” Commerce Minister Gao Hucheng said at a press conference on the sidelines of China’s annual NPC session on March 7. China has made smooth negotiations with countries along the route and some projects are under implementation while some are in planning， he added.
Gao also stressed that the initiatives will carry the spirit of being “open and inclusive.” Any countries or organizations that are interested in the plans can participate under the principle of jointly negotiating， constructing and sharing. So far， more than 50 countries have shown interest in the Belt and Road Initiatives.
“We believe the initiatives will not only facilitate China’s growth， but also boost economies along the route and the entire world，” Gao said. Going Global
According to the government work report by Premier Li Keqiang， China will promote industries such as railways， power， telecoms， machinery， automobiles， airplanes， and electronics to “go global.”
“China will further encourage projects that export Chinese industrial capacity and equipment under a win-win principle，” said Xu Shaoshi， head of the National Development and Reform Commission （NDRC）， at a press conference for the third session of China’s 12th NPC on the economic situation and macroeconomic control on March 5. The third session of China’s 12th NPC opened in Beijing on the same day.
According to Xu， China has plenty of industrial capacity with a competitive edge， but it is not fully utilized. On the other hand， there is a huge demand in some countries. China and its foreign partners should hence strengthen pragmatic cooperation under the principle of achieving win-win and mutually beneficial results.
According to Zhang Jianping， senior researcher at the Institute for International Economic Research under the NDRC， the Belt and Road Initiatives have far-reaching and diverse influences， which will accelerate the country’s flow of factors such as labor force， capital， and technology. In other words， during the integrative growth period， new impetus will be tapped.
During the implementation of the Belt and Road Initiatives， China’s outbound investment will create employment opportunities and introduce technology and management experience to relevant countries. In the process， internationalization of the RMB will be expedited and the trade and investment ties further strengthened.
Symphony for All
“China will further enhance policy communication with other countries， and expand the convergence of our shared interests and explore possible areas of win-win cooperation under the principle of wide consultation， joint contribution and shared benefits，” Foreign Minister Wang Yi said at a news conference in Beijing on March 8 alongside the annual meeting of the NPC， China’s top legislature.
Wang Yi noted that China’s Belt and Road Initiatives are not its “solo，” but a“symphony” of all related countries， as the vision of the initiatives is “common development，” and the goal is “win-win progress through cooperation.”
“President Xi made this historical decision in the face of profound changes in the pattern of international relations，”said Zhou Hong， NPC deputy and director of the Institute of European Studies at the Chinese Academy of Social Sciences （CASS）. “Starting from the fastdeveloping economic circle in Asia and extending to the developed economic circle in Europe， there is no strategic collusion between the two. With favorable management， a brand-new， equal and mutual benefit cooperation framework will be established， which will not only prolong China’s development opportunity， but also boost economic development along the line，” he added. “The core of the Belt and Road Initiatives is the link between economy and trade，” said Chen Yao， secretary general of the China Regional Economic Society. Countries along the Belt and Road comprise those who already have frequent economic and trade contacts with China， and also emerging economies with great development potential. Therefore， import and export trade among nations will be the critical point.
Apples and Oranges
China’s Belt and Road Initiatives are nothing like the United States’ Marshall Plan， Wang Yi stressed. “The initiatives are both much older and much younger than the U.S. plan，” Wang said. “Likening the two would be like comparing apples and oranges.”
China’s two initiatives are older， having inherited the spirit of the continental and maritime Silk Roads more than 2，000 years ago， whose aim was improve the livelihood of people in countries along the routes. The initiatives are younger， as the plan is taking form in a globalized world in the spirit of winwin cooperation， the minister explained. Wang also stressed the Belt and Road Initiatives should not be viewed through a Cold War mentality lens.
“China’s Belt and Road Initiatives are a new model of South-South and regional cooperation，” said Lü Xinhua， spokesman at the annual session of the CPPCC on March 2. “It is inappropriate to describe the Belt and Road Initiatives as another Marshall Plan，” Lü said.
The Belt and Road Initiatives seek common development of countries with different ethnicities， religions and cul- tures， focusing on wide consultation， joint contribution and shared benefits， Lü added. The Marshall Plan has its own historic context and different political intentions with many conditions attached.
China’s initiatives have led to the Silk Road Fund and the Asian Infrastructure Investment Bank， which aim to improve connectivity and provide more public services for people in this region， he said. “We expect the early realization of connectivity to benefit people of all countries along the Belt and Road.”
Common Development and Prosperity
A board of directors and a senior management team have been selected for the US $40 billion Silk Road Fund， which will start investing soon， its chief executive， Jin Qi， said at a press conference that ran concurrently with China’s annual NPC session on March 12.
According to Jin， the fund will invest mainly in infrastructure and resources， as well as industrial and financial cooperation， in an effort to achieve common development and prosperity. President Xi Jinping announced the creation of the fund in November 2014， and it was established on December 29， 2014. It is part of China’s national strategy to revive the continental and maritime Silk Roads by financing major infrastructure projects along the centuries-old trading routes. The fund has drawn wide international attention as it is by far the largest China has ever proposed to finance multilateral projects in the Eurasian economic circle.
The fund has been assessed as a good alternative to the China-led Asian Infrastructure Investment Bank for financing infrastructure projects such as high-speed railways， airports and roads in Asia. Analysts say that the fund will help expand international markets for Chinese industries including construction， equipment manufacturing， utilities， high-speed railway， oil and energy， some of which are struggling with excess capacity at home.
The fund is not an aid agency， said Jin， who expects market-oriented principles to be put into operation and reasonable returns for shareholders. The company was jointly backed by China’s foreign exchange reserves， the China Investment Corp.， the Export-Import Bank of China and China Development Bank. In the first phase， the company raised US $10 billion， with foreign exchange reserves taking up 65 percent， the China Development Bank， 5 percent and the other two companies each investing 15 percent.
The fund will comply with market rules and the international order of finance， welcoming participation by domestic and overseas investors such as the China-Africa Development Fund and the Asian Infrastructure Investment Bank， Jin added.
The Belt and Road Initiatives are not just a path forward for China， but a common cause for all countries along the routes. China will not enjoy the benefits alone， but share them with the rest of the world.