https://www.washingtonpost.com/news/monkey-cage/wp/2017/07/24/chinas-belt-and-ro
ID: 117570 • Letter: H
Question
https://www.washingtonpost.com/news/monkey-cage/wp/2017/07/24/chinas-belt-and-road-opens-up-new-business-in-africa-for-both-the-u-s-and-china/?utm_term=.53e35b2bd3ac
https://www.washingtonpost.com/news/monkey-cage/wp/2017/06/22/why-is-china-suddenly-leading-the-climate-change-effort-its-a-business-decision/?utm_term=.f39c0032f5e1
Based on these pieces and the course material, answer the following questions.
Do you think that, in general, the "Belt and Road" plan will lead to win-win outcomes for the parties involved or will the benefits accrue mostly to China? Justify your answer.
According to the article, the U.S. " largely shunned the initiative as incompatible with its own interests". Why is this not attractive to the U.S.? Do you think that by not being a part of this initiative, the U.S. will lose grip on trade relations in the world economic arena?
Based on the following excerpt from the article: "Unlike political leaders in Europe or former U.S. president Barack Obama, who link moral duty with climate action, China’s leadership is not looking to support collective goals of reducing greenhouse gases. Rather, China will redefine global climate leadership to pursue the government’s immediate goals of national economic development, control of energy infrastructure and the global economic competitiveness of Chinese industry.", how does this resemble the motives behind China's "Belt and Road" plan?
Explanation / Answer
ONE BELT is THE SILK ROAD ECONOMIC BELT with an intention to develop LAND base trade routes from China through Central Asia, Middle East and Europe.
ONE ROAD is the 21st century MARITIME SILK ROAD and this whole concept is to develop traditional SEA routes.
ONE BELT, ONE ROAD (OBOR) is a Chinese initiative to connect with more than 65 countries, which attempts to foster international cooperation. The one belt, one road phrases were introduced by China's president Xi JINPING during his overseas trips.
Though the major initiative of OBOR is to expand China's influence in entire Asia, Africa and Europe. But there is no doubt that OBOR brings various parts of Asia closer physically, politically, economically and also culturally. The major reason behind this objective is to boost its GDP. Over recent years the GDP of China has slowed down and by this initiative they hope that the situation might change and they could find new market for their products.
Basically OBOR is a network of roads, railways, oil pipelines, ports and many other infrastructural project which literally meant to connect China to the rest of world. To be honest I personally think that China would benefit more with this rather than other countries. But developing countries like Afghanistan and Pakistan could now bridge the infrastructural deficit and particularly these countries could easily notice huge development in their GDP due to increased investments and trades.
But INDIA is the only country who boycotted this OBOR initiative due to its lack of transparency and CHINA-PAKISTAN CORRIDOR (CPEC) passes through Indian territory and we all know the rivalry between India and Pakistan. So India was worried about Chinese investment in the maritime route through the Indian ocean, in which India has a clear dominance. With this move India has lose much out in terms of economic boost through greater integration with other countries.
Recently USA announced the conclusion of US-CHINA trade deal and interestingly United States backs India on OBOR and says 'it crosses disputed territory'. Earlier G.W BUSH and OBAMA both had an intention to expand the United States trade and investment with the countries in Asia. But Trump withdrew the efforts made by considering economic risks and Trump's pullout has significant economic and strategic consequences for the United States. In my point of view the OBOR can greatly benefit developing countries, but USA is already well developed so there is no point of growth in USA by becoming a part of OBOR. But with its participation the United States would have possibly grown strong relationships with Asian countries.
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