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FIRST QUESTION: What is the One Belt One Road project?
ANSWER: It’s an economic policy initiative lead by China’s President Xi Jinping. It’s a fairly nebulous concept — it’s not a formal trade deal like NAFTA or the WTO. At its core, it’s an adaptation of the historical silk road, with an economic land belt connecting central Asia, Pakistan, Middle and Europe and a maritime road — linking Southeast Asia, India, the African coast and the Mediterranean.
SECOND QUESTION: Which countries are involved in the project?
ANSWER: It includes more than 68 countries — some 4.4 billion people. It links Asia, Europe, the Middle East and Africa. China wants to extend it to North and South America.
THIRD QUESTION: What are the key milestones or timeline of this project?
ANSWER: China’s leaders first started pushing the project in 2013, after Xi came to power but it’s become increasingly important to China in the past two years — the conference currently taking place in Beijing right now is a massive statement of intent — it shows that China really wants this to be a global project.
QUESTION: What’s in it for China?
ANSWER: It’s about finding new sources of growth for China’s slowing economy, particularly for its underdeveloped western regions. Critics would say it’s about expanding Chinese influence around the world. They also say it will be Chinese companies and banks that will benefit most from the project.
QUESTION: How about the other countries’ involved? What are the benefits for them?
ANSWER: There are many different countries involved so it’s difficult to say how each one is reacting. Pakistan is one of the countries set to benefit most. The China-Pakistan Economic Corridor — one of the flagship projects — will build roads, railroads, ports and other infrastructure. The plan is massive and is expected to cost $46 billion.
CNN reporting on the ground in the capital Islamabad suggests many people really welcome this investment and this is borne out by public opinion surveys from Pew, which show that a majority of Pakistanis approve of China — the percentage is much lower for the US.
Even though the corridor project was only announced two years ago, there’s been massive changes in Pakistan. Schools are making Mandarin compulsory, Chinese groceries and restaurants are opening up catering to Chinese expats. There’s even a hit movie featuring a Chinese actor.
QUESTION: What are the risks for China and the countries’ involved?
ANSWER: Many of the projects are funded through concessional loans from Chinese state banks. There are fears that countries like Pakistan that are borrowing heavily might not be able to pay everything back and fall into debt traps. China also has a mixed track record of building infrastructure abroad — there have been controversies, especially in Africa, over the use of Chinese labor, corruption and cost overruns.
There’s also geopolitical concerns. Critics say it’s a way to expand China’s reach and influence — China is building its first military base in Djibouti and expanding its Navy so it can operate in open oceans far from the country’s borders.
For China, there are risks to its reputation. If these projects aren’t completed on time and within budget, then its standing with the countries involved and the wider world will be affected.
QUESTION: What is the position of the US towards OBOR? How about Russia and the EU?
ANSWER: The US hasn’t really been involved in the project – and for now it isn’t officially involved. It did send a delegation to the conference taking place in Beijing, but no Cabinet or elected official were in attendance. It paid lip service to the project when it announced a new trade deal with China on Thursday, saying it “recognizes the importance” of One Belt, One Road.
Russian President Vladimir Putin is probably the highest profile attendee — China and Russia are long-time allies, so this isn’t surprising. However, Russia is wary of China’s investments and growing influence in central Asia — a region it considers its own backyard.
The EU has also welcomed the project and the investment it brings. A freight train route now runs all the way from the eastern Chinese city of Yiwu to places like London and Madrid. However, the president of the EU Chamber of Commerce in China warned that the initiative had been hijacked by Chinese companies. He said they have used it as an excuse to evade capital controls.
India is another country that’s been skeptical. A minister said this month that it has “serious reservations” about the project — particularly about the China-funded development in Pakistan-administered Kashmir.
QUESTION: What’s the impact of this project globally?
This is China’s first home-grown global initiative — and it comes amid signs that the US is becoming more isolationist under President Trump. For example, Trump pulled the US out of the Trans-Pacific Partnership a day after taking office. This free-trade alliance of 12 Asian and Pacific countries could have acted as something of a counterbalance to rising Chinese power.
One Belt One Road signals that China is more willing to take on a leadership role in the world just as the US appears to be retreating.
QUESTION: Would China be more or less reluctant in exerting its 9-dashed line to ensure OBOR’s completion?
ANSWER: No one’s really been linking belt and road with what’s happening in the South China Sea. China views the disputed region as an integral part of its territory and there’s no sign that China would be prepared to make trade-offs over it.
However, a more isolationist US and more Chinese investment in Southeast Asia could make the claimants less willing to confront China. There are signs that the US has reduced its activity in the hotly contested waters and this has been viewed as a concession to China by President Trump as he seeks Beijing’s help in reining in North Korea. You can read more about it here: http://cnn.it/2rgc9Da
LAST QUESTION: What’s next after the meeting this week?
ANSWER: That’s a good question. We’re not sure whether China will issue any kind of communique at the end of the summit that will outline specific goals and investments. China has already committed to some $1 trillion worth of investments and infrastructure projects, according to state media.
The challenge now will be in completing these projects on time and on budget and in a way that benefits all parties. It’s also not clear whether the belt and road forum is a one-off event or whether it will be repeated annually. It will be interesting to see if other countries in North and South America, which haven’t been involved to date, will join the project.
That's it for today! Thanks for sending your questions. If you want to know more about China's One Belt One Road Project, you can read our report here: http://cnn.it/2rg1MPH
Source: CNN via LINE
