To expand the capacity for the biggest exporter of goods in the world, an ambitious project to develop and enhance infrastructure ties between Europe, Asia, Africa and the Middle East was put forward by Chinese president Xi Jingping in 2013. Upgrades to ports, highways and power grids will link the country to all corners of the globe, with China aiming to replicate the ancient Silk Road from yesteryear, both in geographic and economic measures.
The recent One Belt One Road summit in Beijing had a list of attendees that tells its own story. The United States, India, Japan and Australia declined to send a representative; Pakistan, Russia and New Zealand on the other hand, have embraced the mega project to varying degrees. One must ponder the fact that a project estimated to cost over a US$1 trillion and involving over 60 countries holds a number of matters to address.
In the most practical sense, the infrastructure developments China have implemented since the announcement of OBOR have shown tangible progress. At the turn of the year, a train made the inaugural voyage from Yiwu Xi station in the eastern Chinese province of Zhejiang to Barking in east London. The journey was half the price of airfreight, and took half the time of sea. And in April, interest from the East began to be reciprocated with the UK launching its first direct laden cargo train laden with British goods bound for China.
China’s push to upgrade infrastructure has provided European manufacturers with a valuable link to a booming consumer market in China. Interestingly, the type of goods that these trains are best suited for are precisely those that the rising middle class in China are now hungry to buy; European pharmaceutical, automotive, luxury, agriculture and food companies stand to benefit. BMW is already shipping cars to China by rail, while Land Rover has shown interest in using the newly established route.
The project also continues a drive by Beijing to provide domestic companies – from high-speed rail manufacturers to telecom companies – with experience to become global brands. Charles Patron, a former EU diplomat to China who has extensively researched the initiative, believes “they think the next step is making Chinese companies globally competitive, learning management techniques and so on… Building up these champions as China wants to do is a big part of OBOR.”
The corridor aims to maintain trading infrastructure across several regions in the future, but it also addresses a number of productivity issues China is currently facing. Figures have shown that China´s economy is slowing, with domestic overcapacity in sectors such as steel and cement invariably benefitting from an infrastructure upgrade. Beijing also hopes OBOR will boost the economies of less developed border regions such as Xinjiang by providing a link with neighbouring countries.
If one were to analyse how OBOR affects particular regions, it’s worth beginning with a group of countries I’ll aptly label the “Stans”. According to the author of China´s Asian Dream, Tom Miller, “There are certain countries, like Kyrgyzstan and Tajikistan, where it is literally keeping the lights on.” These central and southeast Asian champions of the project are enjoying the benefits of Xi dream becoming a reality, with huge Chinese power transmission sites in those nations.
Pakistan has also benefitted from China’s ambitions. At time of writing, the list on the Pakistani government’s website proudly lists 62 projects ranging from railways and numerous forms of power plants, to airports and even Chinese staffed hospitals. Measures such as these align with the aims of Pakistani Prime Minister Nawaz Sharif of reinvigorating the economy.
Diplomatically, Beijing´s dialogue and exploits in Pakistan and other countries have proven to ignite jarring responses, in particular from an old (and current) wartime foe for both countries – India. Prime Minister Narendra Modi stated that regional connectivity corridors could not “override or undermine the sovereignty” of nations, in an implicit criticism of OBOR. It should not be forgotten that a significant part of the passage runs through what New Delhi calls Pakistan-occupied Kashmir, bringing an added level of animosity.
Another problem India has with the deal is the lack of operational detail in its plans. A researcher from the respected Observer Research Foundation stated that “it is impossible for China to expect presumptive endorsement from India without showing them an operation blueprint.” It’s a sentiment shared with other regions – during the conclusion of the most recent summit in Beijing, the EU refused to endorse part of the plan due to its lack of commitment to social and environmental sustainability and transparency.
This is even after China had previously given assurances that Beijing would not meddle in the affairs of other states, among other promises. In regards to OBOR, President Xi has previously declared the “Three Nos”: no interference in the internal affairs of other nations; no intention to increase the so-called “sphere of influence”; and no motive to strive for hegemony.
With infrastructure expansions across multiple continents involving the investment of trillions of dollars, there are bound to be ramifications for a multitude of countries across Eurasia and around the world. The main protagonist of this geopolitical stage show has established and maintained a massive level of momentum towards expansion, and there´s number of signs that show this should continue well into the future.
Fred Johnston is a freelance writer from Central Australia who loves writing about topics he can add value to. Say hello to him on Twitter at @FreddyKuma.