New Waves along the Maritime Silk Road

“The 21st Century Maritime Silk Road links the past and the future. It also links China with other parts of the world,” remarked Jiang Jianguo, minister of the State Council Information Office, in a speech at the opening ceremony of the International Seminar on the 21st-Century Maritime Silk Road Initiative, themed “Collectively Building the 21st Century Maritime Silk Road and Creating a Community of Common Destiny,” in Quanzhou, Fujian Province, on February 11, 2015.

Roads to Common Development

In 2013, while visiting countries in Central and Southeast Asia, Chinese President Xi Jinping proposed the strategic idea of building the Silk Road Economic Belt and the 21st Century Maritime Silk Road.

Despite the fact that it has grown into the world’s second largest economy, China remains a developing country. So, why is the country still allocating considerable resources to promote the Belt and Road Initiatives? Is the world’s second largest economy aiming at common development of countries involved or seeking more political and economic influence? These questions bother some stakeholders.

Noriyoshi Ehara, chief economist of the Institute of International Trade and Investment Japan, opined that after it achieved an economic miracle through reform and opening-up, China now hopes to share the fruits of its economic growth with the rest of the world via the Belt and Road Initiatives, thus bringing common prosperity.

Li Mingjiang, a doctoral tutor at the National University of Singapore, commented that the construction of the 21st-Century Maritime Silk Road will help reduce disputes and disagreements and urge countries involved to eye communication and cooperation, thus improving relations between China and its neighbors.

In his speech at the international seminar, Zhou Mingwei, president of China International Publishing Group, remarked that the initiative to collectively build the 21st-Century Maritime Silk Road evidences China’s strong determination to adhere to the road of peaceful development, demonstrates China’s faith in pursuing principles of amity, sincerity, mutual benefits and inclusive diplomacy with neighboring countries, and expresses the country’s aspirations for common development and progress alongside the international community.

Benefits for All

The world order has shifted from unipolar to multipolar, an inevitable and irreversible change. The 21st-Century Maritime Silk Road merely reflects such change.

“Within the framework of the 21st-Century Maritime Silk Road Initiative, countries along the Road can enhance economic interaction and deepen cultural understanding and mutual respect,” remarked James Leroy Peck, president of US-China Book Design Press. “This will inject tremendous vitality into development of these countries. The initiative is a precious opportunity not only for countries involved, but also for the world economy.”

Khin Maung Lynn, joint secretary of the Myanmar Institute of Strategic and International Studies, expressed similar sentiments: “Along with the construction of the 21st-Century Maritime Silk Road, Myanmar will build closer economic and trade relations with other countries along the Road. The world has become a global village. In this context, cooperation is the only path to development.”

Laos is a landlocked country. Yong Chanthalangsy, director general of the Laos Institute of Foreign Affairs, revealed that the Southeast Asian nation hopes to gain access to the ocean. He added that the Laotian government has formulated an ambitious plan to connect Laos to neighboring countries with highways and railways. “Laos will build a 421-kilometer expressway linking to China through Thailand.”

According to Babar Sultan Makhdoom, editor-in-chief of Pakistan-based Daily Mail International, a major reason the Belt and Road Initiatives received applause from almost every country involved is that the initiatives attempt to integrate development plans of all parties to promote common and win-win development. “The Belt and Road Initiatives will undoubtedly boost comprehensive regional cooperation,” he added.

Enterprise Participation

As construction of the 21st-Century Maritime Silk Road advances, regional investment and trade will further boom, thus creating an enormous market with abundant opportunities. In the future, it will become normal for Chinese enterprises to venture abroad via the Belt and Road.

Bai Peijun, executive deputy director of the Research and Development Center under China Ocean Shipping (Group) Company, pointed out that the construction of the 21st-Century Maritime Silk Road requires governments, enterprises and media organizations from all countries to jointly build a framework to overcome obstacles in areas such as overseas investment policies, business environment, cultural values, and trade protectionism, which cannot be surmounted by enterprises on their own.

According to Li Xiangyang, director of the National Institute of International Strategy under the Chinese Academy of Social Sciences, in the early stage of construction of the Belt and Road, governments should take the lead on issues such as establishing the Asian Infrastructure Investment Bank and the Silk Road Fund, but without effective participation of enterprises, the initiatives will become unsustainable aid projects. For this reason, he suggested the government guide and encourage commercial organizations to take part in construction of the Belt and Road with their financial means.  

Sameh El-Shahat, CEO of China-i Ltd., a British company experienced in cooperating with Chinese partners, remarked that Chinese enterprises are playing an important role in promoting the Belt and Road Initiatives, but lack awareness of political risks of investing in some countries. “Along with business alliances, Chinese enterprises should learn how to form social coalitions with local residents as they go abroad,” he suggested. “Just investing in highways, railways, hospitals, and schools isn’t enough. They also need to strengthen communication with locals. The formation of social coalitions will help Chinese enterprises’ deficiency in this regard.”