Understand China’s One Belt, One Road: Complete Documentary
Everyone knows that China`s One Belt One Road Project is not an ordinary project. The project is spanning 68 countries along with 4.4 billion people with the 40% global GDP. The planners promise the massive and boosted economy and claim that this project will benefit the entire world. It will lift millions of people from poverty.
However, until now, no one can encompass that what exactly the plan will do to the world. Many detractors warn that it may be a precious boon, which will toggle at its best or will take the massive expansion of Chinese imperial power at worst.
What is One Belt One Road
No one can conclude that what One Belt and one road will do because it is almost at its core level. One Belt, One Road is a collection of interlinking infrastructure and trade deal project all over the Pacific and Eurasia. It’s hard to define that which countries are involved in this initiative and what exactly qualifies for the OBOR project is actually fuzzy.
Professor of economics at Peking University said
The project means everything or sometimes nothing.
The comprehensible thesis makes the project truly is unclear even though OBOR is an attractive project which means it is impossible to lock down criteria for how the project will fit the overall initiative. Chinese officials have mentioned it explicitly that they cannot explain what they are trying to promote, or the project is merely like a US lawmaker that talks about FREEDOM.
The professor of economics Chenggang Xu at Cheung Kong Graduate School of Business said that the project would help to think about the OBOR as philosophy or party line instead of anything concrete.
All of the media is talking about OBOR project benefits. It is the Middle East peace process that has start-ups in Dubai, enables currency trading eliminates global poverty, Medical Industry Xinjiang will promote along with Australian hotels, polish orchards, nuclear power and finally it is the entire world.
EU Chamber of Commerce in China, Jorg Wuttke warned the initiative in this week by saying that the idea was actually hijacked by various Chinese companies who have used it as an excuse which enables them to evade capital controls, smuggling the money out of the country. This helps to disguise the international investments and partnerships.
How the name is given?
The name does not seem clear to many people due to which most of the people were settled on the abbreviation. However, the project consists of two parts
Both of the two projects are known as One Belt, One Road or Belt and Road of New Silk Road.
Will China get out of this?
According to Chinese media, more than $1 trillion is invested in the project while many other trillions have been invested over the upcoming decade. The two most important benefits, which can be availed from Beijing from the political, economic, will allow winning the significant risks.
According to the officials, the project owns limitless economic advantages. From some years, economic growth has slowed in China ad China is suffering overcapacity in many industries such as aluminum, cement, and steel.
China finally ways to cut various jobs and is advantageous in providing services to more than 1.2 million people through the OBOR project. An analyst from Economist Intelligence Unit Nick Marro said that cHina is looking forward for using OBOR as an important way of shipment for its domestic overproduction offshore. The project will pave the way for Chinese goods; new markets will be able to shore the country economy while the potential demand from the US and Europe will increase as stated by JI Yong Cai the former head of International Finance Corporation.
China is leveraging their capital and wants to get involved by helping the countries to get wealthier, so the customers of Chinese products will increase worldwide.
While China is very much confirmed about the major benefits from the OBOR project but it is also footing significant proportion of risks with it. OBOR targets most of the countries in Africa, Asia, and Southeast Asia, and they are prone to political instability, economic issues, and corruption. XU said that what happens when Chinese Government funds OBOR project, the consequences are utterly unclear. However, he also mentioned that if the series of the project fails, then everything would collapse.
Balding mentioned China does own a poor record of accomplishment of investment especially overseas, which points to widespread problems along with the Chinese Projects in Venezuela, Myanmar, and Sri Lanka.
He added OBOR is mainly characterized by projects along with the little economic rationale for China. Wuttke has warned that the project is remembered as huge white elephant, which left an enormous amount of wasted resources that is strewn along its path.
Many analyses agree that oratory development and trade OBOR is a political project. It is compared to the Marshall Plan, and one of the huge redevelopment projects is undertaken by the US to reconstruct Western Europe after World War II due to which it emerged as the superpower via Chinese state media that enthusiastically rejected the analogy.
The Author of Chinas Asian Dream: Empire Building Along the New Silk Road Tom Miller said OBOR is a part of plan due to which China focused on restoring the historical status as Asia’s dominant power.
China new empire will be primarily economic and informal one. It is positioned on cash as well as held together by solid infrastructure.
Balding Saud that the project is much diplomatic effort taken by China to influence people and win friends instead of the strictly economic program. The effort will be on show in Beijing on May 14-15 while the world leaders including Russian President Vladimir Putin and Turkish President Recep Tayyip Erdogan will be in attendance at acronym-ed Belt and Road Forum.
If the project gets successful, then OBOR will be able to see China supplant because the US is the leading superpower, but Xu apparently warned about the project, which can be backfired considerably because of the size.
Talking about the economic fragility, most of the projects are in Asia, which will carry significant security risks hat particularly be the China-Pakistan Economic Corridor while more than 13000 Pakistani troops are deployed to protect the project which runs through the South Asian country’s restive tribal regions.
Many previous Chinese overseas investments earned a bad reputation for not delivering the local economies as stated by Marro. The re-export mined raw materials came back home and said that most notorious allegations are levied against Chinese investment in Africa and often sees state-owned companies set up the shop and bring in workers from China which opposed on hiring locally and then re-export the mined raw materials back.
However, it can be concluded that Chinese overseas investment is maturing but expressed concerns that OBOR project is large, and exercising effectively over the diverse elements, which may prove to be difficult.
The OBOR project is vast and has taken the important initiative while if things go wrong, then major blight on Chinas reputation will be in front of the world.