China’s BRI aims to connect Asia with Africa and Europe | Sunday Observer

China’s BRI aims to connect Asia with Africa and Europe

26 January, 2020
Prof. Yiwei Wang
Prof. Yiwei Wang

The Ceylon Chamber of Commerce with the Pathfinder Foundation will hold an informative discussion on the Belt and Road Initiative (BRI) at 2.30 p.m. tomorrow at the auditorium of the Ceylon Chamber of Commerce.

The BRI program initiated by the Chinese Government aims to connect Asia with Africa and Europe through land and maritime networks along six corridors with the aim of improving regional integration, increasing trade and stimulating economic growth.

The keynote address at the forum will be delivered by Prof. Yiwei Wang. He is the Jean Monnet Chair Professor, Director of Institute of International Affairs, Director of Center for European Studies at Renmin University of China.

The Sri Lankan perspective on the Belt and Road Initiative will be discussed by Additional Secretary to the President (Foreign Relations), Admiral Prof. Jayanath Colombage.

The discussion will conclude with an open forum moderated by Head, Department of Economics, University of Colombo, Prof. Sirimal Abeyratne and Chief Economist at the Ceylon Chamber of Commerce, Shiran Fernando.

The Belt and Road Initiative (BRI, or B&R is a global development strategy adopted by the Chinese government in 2013 involving infrastructure development and investments in 152 countries and international organizations in Asia, Europe, Africa, the Middle East, and the Americas.

The leader of the People’s Republic of China, Xi Jinping, originally announced the strategy during official visits to Indonesia and Kazakhstan in 2013. ‘Belt’ refers to the overland routes for road and rail transportation, called ‘the Silk Road Economic Belt’; whereas ‘road’ refers to the sea routes, or the 21st Century Maritime Silk Road. Formerly known as One Belt One Road (OBOR) (Chinese: short for the Silk Road Economic Belt and the 21st-century Maritime Silk Road it has been referred to as the Belt and Road Initiative (BRI) since 2016 when the Chinese government considered the emphasis on the word ‘one’ was prone to misinterpretation. However, ‘One Belt One Road’ is still used in Chinese-language media.

The Chinese government calls the initiative “a bid to enhance regional connectivity and embrace a brighter future”. Some observers see it as a push for Chinese dominance in global affairs with a China-centered trading network. The project has a targeted completion date of 2049, which coincides with the 100th anniversary of the People’s Republic of China.

The initiative was unveiled by Chinese leader Xi Jinping in September and October 2013 during visits to Kazakhstan and Indonesia, and was, thereafter, promoted by Premier Li Keqiang during state visits to Asia and Europe.

The initiative was given intensive coverage by Chinese state media, and by 2016 often being featured in the People’s Daily. Initially, the initiative was termed One Belt One Road Strategy, but officials decided that the term ‘strategy’ would create suspicions so they opted for the more inclusive term ‘initiative’ in its translation.

The stated objectives are “to construct a unified large market and make full use of both international and domestic markets, through cultural exchange and integration, to enhance mutual understanding and trust of member nations, ending up in an innovative pattern with capital inflows, talent pool and technology database.”

The initial focus has been infrastructure investment, education, construction materials, railway and highway, automobile, real estate, power grid, and iron and steel.

Some estimates list the Belt and Road Initiative as one of the largest infrastructure and investment projects in history, covering more than 68 countries, including 65% of the world’s population and 40% of the global gross domestic product as of 2017.

The Belt and Road Initiative addresses an ‘infrastructure gap’ and thus has potential to accelerate economic growth across the Asia Pacific area, Africa and Central and Eastern Europe: a report from the World Pensions Council (WPC) estimates that Asia, excluding China, requires up to US$900 billion of infrastructure investments per year over the next decade, mostly in debt instruments, 50% above current infrastructure spending rates.

The gaping need for long term capital explains why many Asian and Eastern European heads of state “gladly expressed their interest to join this new international financial institution focusing solely on ‘real assets’ and infrastructure-driven economic growth.” 

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