Progressing with the World
By staff reporter WANG SONG
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 China’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 macro-economic 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.