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2014-February-7

Silk Road Economic Belt – A Welcome Proposal

United in Cultural Identity

Mohammed Hu Shinan, an Iranian investor, has done business in China for more than 10 years. Four years ago he visited Yinchuan, capital city of Ningxia Hui Autonomous Region, and found that it had a large Muslim population and its business relations with Arab countries lasted more than 2,000 years. Sharing the same religion and cultural customs as its inhabitants, Hu Shinan quickly grew fond of the city and set up a company to export Iranian date juice, carpets and handicrafts to Ningxia. To date, the company has registered a gross export volume of US $15 million.

Known as the home to the largest Muslim community in China, Ningxia has 2.29 million Hui residents who make up more than one third of the region’s total population. The Hui ethnic group shares the same beliefs and customs as Arab peoples, and therefore have strong cultural ties and profound friendships. In September 2012, Ningxia established an open economy pilot area and a comprehensive bonded area in Yinchuan, making it the first in inland China. With a development concept of “low costs in taxes and dues, land, logistics and financing,” the area is open to Arab countries and Muslim regions to exchange and cooperate with China in economy and trade, energy development, science and technology, education, culture and tourism, as well as investment.

Jumping at the chance, Hu Shinan opened three branches of his business in the bonded area to process and pack date juice, nuts and seafood. Besides exploring China’s market, Hu Shinan also plans to expand into the Southeast Asian market. “I want to introduce Iran’s pure, natural agricultural products into Ningxia, transport raw materials to the bonded area and then export to Southeast Asia after processing,” Hu Shinan said.

For the past decade, the bilateral trade between China and Arab countries has maintained a rapid expansion at 30 percent per year. During the China-Arab States Expo held in Yinchuan in September 2013, a total of 158 contracts worth about RMB 260 billion were signed, including 39 contracts worth over RMB 1 billion each, and four contracts worth over RMB 10 billion each. The contracts involved cooperation in energy and chemicals, new materials, equipment manufacturing, halal meat, infrastructure, culture and tourism, as well as finance. The contract volume exceeded the total of those signed at the three annual China-Arab States Economic and Trade Forums from 2010 to 2012, the predecessor of the China-Arab States Expo.

Abundant Tourism Resources

Linked by the Silk Road since ancient times, China and countries in Central Asia have maintained close ties in business and culture. Along the Silk Road, there are abundant tourism resources with profound cultural associations.

China, Kazakhstan and Kyrgyzstan are working hard to add the Silk Road to the World Heritage List. China has numerous historical sites along the route, such as the famous Mogao Grottoes, first constructed in the fourth century, and the Terracotta Warriors and Horses of the Qin Dynasty (221-206 BC). Meanwhile, Central Asia is also home to bountiful cultural heritage sites related to the Silk Road.

Moreover, the natural landscapes and environment along the Silk Road have a unique style. Lake Issyk Kul in Kyrgyzstan, for example, is a world-famous alpine lake, which is ice-free all year round. The Karakul Lake (meaning “black lake”) in Tajikistan is popular among travelers for its out-of-this-world scenery and the clarity of reflection in its waters, whose color ranges from dark green to azure and light blue. The 7,495-meter Ismoil Somoni Peak is the highest mountain in Tajikistan and famous for glacier exploration. In addition, countries in Central Asia boast a variety of folk arts, such as Turkmenistan’s annual horseracing festival in April.

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