The Great Game Changer: Belt and Road Intiative (BRI; OBOR)
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Silk Road International Bank set in Djibouti
2016-12-29 08:57 | CE.cn
By Gu Yang
With the acceleration of Chinese enterprises' "Going out", the financial industry is becoming the powerful support to boost Belt and Road construction. Recently, under the guidance of the Belt and Road construction frame, the first commercial bank set abroad by our country- Silk Road International Bank was announced to be set up in Djibouti on the west bank of Gulf of Aden and this was the first time for China-invested enterprises to obtain the banking license on the African continent.
Why Djibouti
Djibouti is a strange country for most people, but in the eyes of Luo Feng, the Vice Chairman of Silk Road International Bank Board of Directors and the President of IZP Group, this magical land in the east Africa is a hot land that is full of hope-it is at the vital communication hub of Europe, Asia and Africa and is located at the throat where the Red Sea flowing into the Indian Ocean. It is not only the strategic area connecting the Asia, Europe and Africa markets, but also the key point for Belt and Road Initiative to construct the sea passage in the western front.
Presently, the financial infrastructure of Djibouti is relatively weak and there is not a set of complete national payment systems. The financial service deployment completely depends on the SWIFT (Society for Worldwide Interbank Financial Telecommunication) System under the cash and USD system and the banking business is basically at the phase of manual operation.
However, the local good financial investment environment makes Luo Feng a little excited: the political situation and the exchange rate are stable; there is a certain trade volume without foreign exchange control; it allows the free movement of capital and fully opens to the foreign capital; What's more, the development goal "Be the Financial Center of the East Africa and the Dubai of the Horn of Africa" put forward by Djibouti is highly consistent with the business orientation of the Big Data Technology and Cross-border Trade Finance Company of IZP Group.
The Silk Road International Bank was jointly initiated and set up by China-invested enterprises such as the IZP Group, China Merchants Group and Silk Road E-merchants Information Technology Co., Ltd. with the Ministry of Finance of Djibouti. It is the 13th local commercial bank set up at the approval of the Djibouti Central Bank. Among which, IZP Group is the major initiator and occupies 25 percent of the shares, so does the Ministry of Finance of Djibouti.
More businesses in Silk Road International Bank
"The short-term goal of the Silk Road International Bank is to develop into the biggest international bank and transactional bank of Djibouti within 5 years as well as to become the biggest card issuer in the East Africa," said Illias Moosa Guardavalle, the Chairman of Silk Road International Bank Board of Directors and the Finance Minister of the Ministry of Finance of Djibouti.
He said, China was one of the major investment countries of Djibouti and the trade contacts between them were frequent. The establishment of the Silk Road International Bank will help Djibouti improve the financial infrastructures, improve the clearing and settlement facilitation of both parties and effectively promote the local social economic development. Meanwhile, the advanced information technology, mature business model and mature market means brought by the Silk Road Bank will help Djibouti transfer the geographic advantages into the momentum of economic development and promote the realization of "Be the Financial Center of the East Africa".
"The Silk Road International Bank will adopt the advanced information technology and financial management experience to create the first high-tech bank of Djibouti with the modern information system. It will provide a package of financial solutions for China-Africa bilateral trade and the investment of China in Africa, provide safe and convenient payment and settlement service for numerous Chinese enterprises in Africa and escort the trades of Chinese enterprises in Africa," said Luo Feng. Djibouti will form the liquidation ring of the African region by taking the Silk Road International Bank as the carrier to provide the international clearing and settlement service for the global trade and consumption as well as to lay the foundation for establishing an international financial center.
"Belt and Road Initiative enables the China's high quality productions 'Going-out' and objectively, China-invested enterprises need the settlement center like Silk Road International Bank as well as convenient and efficient cross-border financial services," said Chen Chunying, one shareholder of the Silk Road International Bank and the Vice-President of Silk Road E-merchants Information Technology Co., Ltd. The Silk Road International Bank is an important link of the "Silk Road Station" in Belt and Road construction. Silk Road E-merchants need such a link, so do Chinese enterprises.
Who will be the next "Silk Road Bank"
Under the framework of WTO, any two countries can realize the point-to-point trade pattern. However, the pattern of monetary settlement is a single-polarization and the flattening of the trade and the single-polarization of the settlement not only limit the global growth, but also bring fatal effects to the geo-economics. One of the performances is the constant depreciation of the domestic currency and the enormous risks caused thereby.
"As the statistic shows, one well-known domestic enterprise in the Central Asia lost about USD 1.8 billion for currency devaluation last year" said Luo Feng. 10 years ago, we may not need the internationalization of RMB nor needed to concern about the exchange rate changes of other countries. But now, when we make the investment, what we take is RMB or US dollars and what we take back is the local currency. But many countries along the Belt and Road do not have US dollars, which may cause a big risk of depreciation.
As far as Luo Feng concerned, the new system of clearing and settlement established by the Silk Road International Bank through the big data and the block chain structure changes the past tree structure of dollar-based system into the net structure, which can realize the real-time account arrival and reduce the financial risks; what's more, under the new clearing system, all the money can become the clearing currency, which not only provides services for Chinese enterprises, but also is welcomed by European enterprises. The philosophy of "Co-consulting, Co-construction and Sharing" advocated by Belt and Road Initiative is truly reflected.
Luo Feng said frankly, African could not afford to install the fixed-line telephones and it evolved into the 3G era across the 2G era directly, realizing "out of nothing" and "corner overtaking". "It is also true for the financial infrastructures: presently, we really have the chance to enable the African finance to make the breakthrough from 'zero to one' like the communication industry through the new technologies such as the big data and the digital bank.
Luo Feng revealed that apart from the Silk Road International Bank in Djibouti, setting up a new silk road bank in Togo (Community of West African States) and a two-wing development pattern of "Togo in the west and Djibouti in the east" finally are being considered.
Presently, IZP Group has obtained the interbank clearing license in more than 40 countries of Europe, Central Asia, Africa, South Asia, Middle East, North Africa, etc. It is expected that it will enter into more than 120 overseas countries and regions in the next 3 years. The establishment of the Djibouti Silk Road International Bank is an important link of its global layout and will be the bridgehead for it to develop business in Africa.
@Shotgunner51 , @AndrewJin , @cirr , @ahojunk , @DayWalker90
2016-12-29 08:57 | CE.cn
By Gu Yang
With the acceleration of Chinese enterprises' "Going out", the financial industry is becoming the powerful support to boost Belt and Road construction. Recently, under the guidance of the Belt and Road construction frame, the first commercial bank set abroad by our country- Silk Road International Bank was announced to be set up in Djibouti on the west bank of Gulf of Aden and this was the first time for China-invested enterprises to obtain the banking license on the African continent.
Why Djibouti
Djibouti is a strange country for most people, but in the eyes of Luo Feng, the Vice Chairman of Silk Road International Bank Board of Directors and the President of IZP Group, this magical land in the east Africa is a hot land that is full of hope-it is at the vital communication hub of Europe, Asia and Africa and is located at the throat where the Red Sea flowing into the Indian Ocean. It is not only the strategic area connecting the Asia, Europe and Africa markets, but also the key point for Belt and Road Initiative to construct the sea passage in the western front.
Presently, the financial infrastructure of Djibouti is relatively weak and there is not a set of complete national payment systems. The financial service deployment completely depends on the SWIFT (Society for Worldwide Interbank Financial Telecommunication) System under the cash and USD system and the banking business is basically at the phase of manual operation.
However, the local good financial investment environment makes Luo Feng a little excited: the political situation and the exchange rate are stable; there is a certain trade volume without foreign exchange control; it allows the free movement of capital and fully opens to the foreign capital; What's more, the development goal "Be the Financial Center of the East Africa and the Dubai of the Horn of Africa" put forward by Djibouti is highly consistent with the business orientation of the Big Data Technology and Cross-border Trade Finance Company of IZP Group.
The Silk Road International Bank was jointly initiated and set up by China-invested enterprises such as the IZP Group, China Merchants Group and Silk Road E-merchants Information Technology Co., Ltd. with the Ministry of Finance of Djibouti. It is the 13th local commercial bank set up at the approval of the Djibouti Central Bank. Among which, IZP Group is the major initiator and occupies 25 percent of the shares, so does the Ministry of Finance of Djibouti.
More businesses in Silk Road International Bank
"The short-term goal of the Silk Road International Bank is to develop into the biggest international bank and transactional bank of Djibouti within 5 years as well as to become the biggest card issuer in the East Africa," said Illias Moosa Guardavalle, the Chairman of Silk Road International Bank Board of Directors and the Finance Minister of the Ministry of Finance of Djibouti.
He said, China was one of the major investment countries of Djibouti and the trade contacts between them were frequent. The establishment of the Silk Road International Bank will help Djibouti improve the financial infrastructures, improve the clearing and settlement facilitation of both parties and effectively promote the local social economic development. Meanwhile, the advanced information technology, mature business model and mature market means brought by the Silk Road Bank will help Djibouti transfer the geographic advantages into the momentum of economic development and promote the realization of "Be the Financial Center of the East Africa".
"The Silk Road International Bank will adopt the advanced information technology and financial management experience to create the first high-tech bank of Djibouti with the modern information system. It will provide a package of financial solutions for China-Africa bilateral trade and the investment of China in Africa, provide safe and convenient payment and settlement service for numerous Chinese enterprises in Africa and escort the trades of Chinese enterprises in Africa," said Luo Feng. Djibouti will form the liquidation ring of the African region by taking the Silk Road International Bank as the carrier to provide the international clearing and settlement service for the global trade and consumption as well as to lay the foundation for establishing an international financial center.
"Belt and Road Initiative enables the China's high quality productions 'Going-out' and objectively, China-invested enterprises need the settlement center like Silk Road International Bank as well as convenient and efficient cross-border financial services," said Chen Chunying, one shareholder of the Silk Road International Bank and the Vice-President of Silk Road E-merchants Information Technology Co., Ltd. The Silk Road International Bank is an important link of the "Silk Road Station" in Belt and Road construction. Silk Road E-merchants need such a link, so do Chinese enterprises.
Who will be the next "Silk Road Bank"
Under the framework of WTO, any two countries can realize the point-to-point trade pattern. However, the pattern of monetary settlement is a single-polarization and the flattening of the trade and the single-polarization of the settlement not only limit the global growth, but also bring fatal effects to the geo-economics. One of the performances is the constant depreciation of the domestic currency and the enormous risks caused thereby.
"As the statistic shows, one well-known domestic enterprise in the Central Asia lost about USD 1.8 billion for currency devaluation last year" said Luo Feng. 10 years ago, we may not need the internationalization of RMB nor needed to concern about the exchange rate changes of other countries. But now, when we make the investment, what we take is RMB or US dollars and what we take back is the local currency. But many countries along the Belt and Road do not have US dollars, which may cause a big risk of depreciation.
As far as Luo Feng concerned, the new system of clearing and settlement established by the Silk Road International Bank through the big data and the block chain structure changes the past tree structure of dollar-based system into the net structure, which can realize the real-time account arrival and reduce the financial risks; what's more, under the new clearing system, all the money can become the clearing currency, which not only provides services for Chinese enterprises, but also is welcomed by European enterprises. The philosophy of "Co-consulting, Co-construction and Sharing" advocated by Belt and Road Initiative is truly reflected.
Luo Feng said frankly, African could not afford to install the fixed-line telephones and it evolved into the 3G era across the 2G era directly, realizing "out of nothing" and "corner overtaking". "It is also true for the financial infrastructures: presently, we really have the chance to enable the African finance to make the breakthrough from 'zero to one' like the communication industry through the new technologies such as the big data and the digital bank.
Luo Feng revealed that apart from the Silk Road International Bank in Djibouti, setting up a new silk road bank in Togo (Community of West African States) and a two-wing development pattern of "Togo in the west and Djibouti in the east" finally are being considered.
Presently, IZP Group has obtained the interbank clearing license in more than 40 countries of Europe, Central Asia, Africa, South Asia, Middle East, North Africa, etc. It is expected that it will enter into more than 120 overseas countries and regions in the next 3 years. The establishment of the Djibouti Silk Road International Bank is an important link of its global layout and will be the bridgehead for it to develop business in Africa.
@Shotgunner51 , @AndrewJin , @cirr , @ahojunk , @DayWalker90
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From this series, I learn more knowledge of OBOR route nations. Thanks.
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Spotlight: China's Belt and Road Initiative promotes connectivity, development along ancient route
Xinhua, January 2, 2017
More than three years ago, Chinese President Xi Jinping proposed to build the Silk Road Economic Belt and the 21st-Century Maritime Silk Road.
Looking back at 2016, the Belt and Road Initiative has gained fruitful early achievements, promoting connectivity and opening up possibilities and potentials for development along the ancient trade route.
SILK ROAD ECONOMIC BELT STRINGS ROADS TOGETHER
One day in golden October in Kashgar of China's Xinjiang Region, a fleet of 50 trucks of a joint trade convoy carrying large containers started to roll along the China-Pakistan Economic Corridor (CPEC).
After passing the Pamirs, crossing the Har goolun Range, and threading Pakistan's western region, the fleet finally arrived at its destination -- the Gwadar Port of Pakistan, concluding its 3,115-km journey in a month.
The containers carried by the fleet were shipped to the United Arab Emirates and other countries, marking the Gwadar port's first export of containers to overseas destinations, and showing that the port has restored the designed handling capacity.
Pakistani Prime Minister Nawaz Sharif said that CPEC is destined to transform the entire country and open up a world of possibilities for not just Pakistan but also Central Asian states.
In February 2016, China Railway Tunnel Group completed building the Qamchiq Tunnel in Uzbekistan, the longest tunnel in Central Asia. It is part of the 169-km Angren-Pap railway line, a major state project. After completion of the rail line, Uzbekistan's domestic transport will no longer have to go through foreign territories.
"If we say 2013 is the year of proposal, 2014 is the year of guideline, 2015 is the year of top-level design, then 2016 is the year of implementing landmark projects of the Belt and Road Initiative," said Zhao Lei, a professor at China's Central Party School. "Many European countries have high approval rates on the Belt and Road Initiative."
Perhaps the busy-running China-Europe trains give the best illustration to people's acceptance. Since the Belt and Road proposal, trains running between Europe and China have been burgeoning. By June 2016, trains had been running nearly 2,000 times between China and Europe, with a total of import and export value of 17 billion U.S. dollars.
Many other projects are also under way. The China-Belarus industrial park is in development, the Hungary-Serbia railroad is to be constructed by the Chinese side soon, cooperation between China and Central and Eastern European countries has been further expanded.
The Silk Road Economic Belt, with a nature of inclusiveness and openness, has become a vital link connecting regional development and China's transformation.
21ST CENTURY MARITIME SILK ROAD CONNECTS ROADS AND PORTS
In October 2016, the contract for the second phase of the China-Laos railway project was signed in Lao capital of Vientiane.
Kicked off in late 2015, the construction of the project is expected to be completed in five years. Upon completion of the railway, a trip from Vientiane to the Chinese border will take only four hours, turning Laos from a landlocked country into a land-linked nation.
On Jan. 21, 2016, at the ground-breaking ceremony of the Jakarta-Bandung high-speed railway, Indonesian President Joko Widodo launched the country's first ever high-speed railway project in Walini, West Java Province.
With a maximum design speed of 350 km per hour, the travel time between Jakarta and Bandung will be cut from over three hours to less than one hour once the project is finished.
The Belt and Road Initiative provides opportunities not only for a new round of China's opening-up, but also for the growth of world economy.
On Aug. 10, 2016, Chinese shipping giant COSCO acquired 67 percent stake of Piraeus Port Authority through the Athens Stock Exchange, officially becoming the controlling shareholder of the Greek port.
Piraeus is expected to operate as a hub in Europe for the 21st Century Maritime Silk Road, and to connect the Silk Road Economic Belt with the China-Europe Land-Sea Express Line.
According to Chinese ambassador to Greece Zou Xiaoli, Piraeus was not merely an economic project, but also a bridge to connect the peoples of Greece and China.
In Africa, the Chinese-built Ethiopia-Djibouti railway has officially opened service, marking a milestone in cooperation between China, Ethiopia and Djibouti.
In Cambodia, the Sihanoukville Special Economic Zone has attracted hundreds of enterprises, providing a model of China-Cambodia cooperation under the Belt and Road Initiative.
In Myanmar, a consortium of six foreign companies led by China's CITIC has won two bids to build an industrial park and a deep-sea port in the Kyaukpyu Special Economic Zone in Rakhine State, which will improve the country's infrastructure, local people's employment and livelihood.
In Sri Lanka, the green light has been given to the delayed Colombo Port City. Through the Maritime Silk Road, China will support the country in becoming a shipping, logistics and even financial hub in the Indian Ocean.
A CHINESE MATTER, ALSO A WORLD MATTER
It has been nearly two years since the Chinese-owned company Southeast Asia Telecommunications entered the Cambodian market. With an investment of 150 million U.S. dollars, a fiber network extending 10,000 km, and over 1,000 base stations, the company has improved the efficiency of communications in Cambodia, and was spoken highly of by Cambodian Prime Minister Hun Sen.
Apart from opening up a new market in Cambodia with the dedication to high-speed Internet and high-quality phone calls, the company is also shouldering social responsibility by launching the Youth Sci-Tech Education Base and the Cloud Data Center.
"Previously, people saw most 'Belt and Road' programs in areas such as energy and infrastructure. In 2016, cooperation between China and those countries along the routes have been expanded to education, culture, medical care and telecommunications," said Zhao of the Central Party School
If the "hard connection" of the Belt and Road draws countries geographically closer, then the "soft connection" brings people together.
Till now, over 100 countries and international organizations have expressed willingness to actively support and join the initiative, 40 of which have signed cooperation deals with China.
In 2017, a Belt and Road summit will be held to further map out the blueprint of the initiative, explore business opportunities and deepen alignment of development strategies between China and the relevant parties.
On June 22, 2016, during a speech at the Legislative Chamber of the Uzbek Supreme Assembly in Tashkent, Xi called for building a green, healthy, intelligent and peaceful Silk Road, laying out the future of the initiative.
According to Huang Rihan, Executive Director of the Belt and Road Institute at the Center for China and Globalization think tank, a green Silk Road urges environmental protection and intensive cultivation for sustained development.
A healthy Silk Road means closer cooperation in medical care and health among related countries. An intelligent Silk Road calls for people cultivation and exchanges. A peaceful Silk Road aims at implementing a common, comprehensive, cooperative and sustainable security concept in Asia, then promoting world peace and stability, Huang added.
While addressing the Uzbek Parliament, Xi invited other countries to attend the 2017 Belt and Road summit. The summit will not only look back at the fruitful harvest made so far under the initiative, but also set up a new starting point for the future, observers said.
"The Belt and Road Initiative will not be a flash in the pan, nor will it be formalism," said Zhao, "China will go deep with the initiative and turn it into real benefits."
"The agreement reached in November by the UN General Assembly to further promote the Belt and Road Initiative worldwide shows that its construction involves not just China, but also countries along the routes and the world at large," said Wang Yiwei, a professor at Renmin University of China.
Xinhua, January 2, 2017
More than three years ago, Chinese President Xi Jinping proposed to build the Silk Road Economic Belt and the 21st-Century Maritime Silk Road.
Looking back at 2016, the Belt and Road Initiative has gained fruitful early achievements, promoting connectivity and opening up possibilities and potentials for development along the ancient trade route.
SILK ROAD ECONOMIC BELT STRINGS ROADS TOGETHER
One day in golden October in Kashgar of China's Xinjiang Region, a fleet of 50 trucks of a joint trade convoy carrying large containers started to roll along the China-Pakistan Economic Corridor (CPEC).
After passing the Pamirs, crossing the Har goolun Range, and threading Pakistan's western region, the fleet finally arrived at its destination -- the Gwadar Port of Pakistan, concluding its 3,115-km journey in a month.
The containers carried by the fleet were shipped to the United Arab Emirates and other countries, marking the Gwadar port's first export of containers to overseas destinations, and showing that the port has restored the designed handling capacity.
Pakistani Prime Minister Nawaz Sharif said that CPEC is destined to transform the entire country and open up a world of possibilities for not just Pakistan but also Central Asian states.
In February 2016, China Railway Tunnel Group completed building the Qamchiq Tunnel in Uzbekistan, the longest tunnel in Central Asia. It is part of the 169-km Angren-Pap railway line, a major state project. After completion of the rail line, Uzbekistan's domestic transport will no longer have to go through foreign territories.
"If we say 2013 is the year of proposal, 2014 is the year of guideline, 2015 is the year of top-level design, then 2016 is the year of implementing landmark projects of the Belt and Road Initiative," said Zhao Lei, a professor at China's Central Party School. "Many European countries have high approval rates on the Belt and Road Initiative."
Perhaps the busy-running China-Europe trains give the best illustration to people's acceptance. Since the Belt and Road proposal, trains running between Europe and China have been burgeoning. By June 2016, trains had been running nearly 2,000 times between China and Europe, with a total of import and export value of 17 billion U.S. dollars.
Many other projects are also under way. The China-Belarus industrial park is in development, the Hungary-Serbia railroad is to be constructed by the Chinese side soon, cooperation between China and Central and Eastern European countries has been further expanded.
The Silk Road Economic Belt, with a nature of inclusiveness and openness, has become a vital link connecting regional development and China's transformation.
21ST CENTURY MARITIME SILK ROAD CONNECTS ROADS AND PORTS
In October 2016, the contract for the second phase of the China-Laos railway project was signed in Lao capital of Vientiane.
Kicked off in late 2015, the construction of the project is expected to be completed in five years. Upon completion of the railway, a trip from Vientiane to the Chinese border will take only four hours, turning Laos from a landlocked country into a land-linked nation.
On Jan. 21, 2016, at the ground-breaking ceremony of the Jakarta-Bandung high-speed railway, Indonesian President Joko Widodo launched the country's first ever high-speed railway project in Walini, West Java Province.
With a maximum design speed of 350 km per hour, the travel time between Jakarta and Bandung will be cut from over three hours to less than one hour once the project is finished.
The Belt and Road Initiative provides opportunities not only for a new round of China's opening-up, but also for the growth of world economy.
On Aug. 10, 2016, Chinese shipping giant COSCO acquired 67 percent stake of Piraeus Port Authority through the Athens Stock Exchange, officially becoming the controlling shareholder of the Greek port.
Piraeus is expected to operate as a hub in Europe for the 21st Century Maritime Silk Road, and to connect the Silk Road Economic Belt with the China-Europe Land-Sea Express Line.
According to Chinese ambassador to Greece Zou Xiaoli, Piraeus was not merely an economic project, but also a bridge to connect the peoples of Greece and China.
In Africa, the Chinese-built Ethiopia-Djibouti railway has officially opened service, marking a milestone in cooperation between China, Ethiopia and Djibouti.
In Cambodia, the Sihanoukville Special Economic Zone has attracted hundreds of enterprises, providing a model of China-Cambodia cooperation under the Belt and Road Initiative.
In Myanmar, a consortium of six foreign companies led by China's CITIC has won two bids to build an industrial park and a deep-sea port in the Kyaukpyu Special Economic Zone in Rakhine State, which will improve the country's infrastructure, local people's employment and livelihood.
In Sri Lanka, the green light has been given to the delayed Colombo Port City. Through the Maritime Silk Road, China will support the country in becoming a shipping, logistics and even financial hub in the Indian Ocean.
A CHINESE MATTER, ALSO A WORLD MATTER
It has been nearly two years since the Chinese-owned company Southeast Asia Telecommunications entered the Cambodian market. With an investment of 150 million U.S. dollars, a fiber network extending 10,000 km, and over 1,000 base stations, the company has improved the efficiency of communications in Cambodia, and was spoken highly of by Cambodian Prime Minister Hun Sen.
Apart from opening up a new market in Cambodia with the dedication to high-speed Internet and high-quality phone calls, the company is also shouldering social responsibility by launching the Youth Sci-Tech Education Base and the Cloud Data Center.
"Previously, people saw most 'Belt and Road' programs in areas such as energy and infrastructure. In 2016, cooperation between China and those countries along the routes have been expanded to education, culture, medical care and telecommunications," said Zhao of the Central Party School
If the "hard connection" of the Belt and Road draws countries geographically closer, then the "soft connection" brings people together.
Till now, over 100 countries and international organizations have expressed willingness to actively support and join the initiative, 40 of which have signed cooperation deals with China.
In 2017, a Belt and Road summit will be held to further map out the blueprint of the initiative, explore business opportunities and deepen alignment of development strategies between China and the relevant parties.
On June 22, 2016, during a speech at the Legislative Chamber of the Uzbek Supreme Assembly in Tashkent, Xi called for building a green, healthy, intelligent and peaceful Silk Road, laying out the future of the initiative.
According to Huang Rihan, Executive Director of the Belt and Road Institute at the Center for China and Globalization think tank, a green Silk Road urges environmental protection and intensive cultivation for sustained development.
A healthy Silk Road means closer cooperation in medical care and health among related countries. An intelligent Silk Road calls for people cultivation and exchanges. A peaceful Silk Road aims at implementing a common, comprehensive, cooperative and sustainable security concept in Asia, then promoting world peace and stability, Huang added.
While addressing the Uzbek Parliament, Xi invited other countries to attend the 2017 Belt and Road summit. The summit will not only look back at the fruitful harvest made so far under the initiative, but also set up a new starting point for the future, observers said.
"The Belt and Road Initiative will not be a flash in the pan, nor will it be formalism," said Zhao, "China will go deep with the initiative and turn it into real benefits."
"The agreement reached in November by the UN General Assembly to further promote the Belt and Road Initiative worldwide shows that its construction involves not just China, but also countries along the routes and the world at large," said Wang Yiwei, a professor at Renmin University of China.
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China flags off first goods train to London
By: PTI | Beijing | Published:January 2, 2017 4:16 pm
http://indianexpress.com/article/world/china-flags-off-first-goods-train-to-london-4455704/
The train will travel for about 18 days and more than 12,000 kilometres before reaching its destination in Britain, the China Railway Corporation (CRC) said.
China has launched its first freight train to London over 12,000 kms away as part of efforts by the world’s second largest economy to expand rail links to different areas across the globe to improve its dwindling exports and stabilise slowdown. The train departed from China’s international commodity hub Yiwu in Zhejiang Province yesterday. It will travel for about 18 days and more than 12,000 kilometres before reaching its destination in Britain, the China Railway Corporation (CRC) said.
Yiwu is known for producing small commodities, and the train mainly carried such goods, including household items, garments, cloth, bags and suitcases. It will pass through Kazakhstan, Russia, Belarus, Poland, Germany, Belgium and France before arriving in London, state- run Xinhua news agency reported.
London is the 15th city in Europe added to China-Europe freight train services. The service will improve China-Britain trade ties, strengthen connectivity with western Europe, while better serving China’s Belt and Road Initiative, an infrastructure and trade network connecting Asia with Europe and Africa along ancient trade routes, the CRC said.
China’s exports totalled to USD 2.27 trillion in 2015 slowing down from USD 2.34 trillion in 2014. Its economy grew at 6.9 per cent in 2015, slipping below seven per cent in a quarter of century. As part of its efforts to stabilise its exports and economy, China has embarked on multi-billion dollar global connectivity project called the ‘One Belt One Road’ (Silk Road).
By: PTI | Beijing | Published:January 2, 2017 4:16 pm
http://indianexpress.com/article/world/china-flags-off-first-goods-train-to-london-4455704/
The train will travel for about 18 days and more than 12,000 kilometres before reaching its destination in Britain, the China Railway Corporation (CRC) said.
China has launched its first freight train to London over 12,000 kms away as part of efforts by the world’s second largest economy to expand rail links to different areas across the globe to improve its dwindling exports and stabilise slowdown. The train departed from China’s international commodity hub Yiwu in Zhejiang Province yesterday. It will travel for about 18 days and more than 12,000 kilometres before reaching its destination in Britain, the China Railway Corporation (CRC) said.
Yiwu is known for producing small commodities, and the train mainly carried such goods, including household items, garments, cloth, bags and suitcases. It will pass through Kazakhstan, Russia, Belarus, Poland, Germany, Belgium and France before arriving in London, state- run Xinhua news agency reported.
London is the 15th city in Europe added to China-Europe freight train services. The service will improve China-Britain trade ties, strengthen connectivity with western Europe, while better serving China’s Belt and Road Initiative, an infrastructure and trade network connecting Asia with Europe and Africa along ancient trade routes, the CRC said.
China’s exports totalled to USD 2.27 trillion in 2015 slowing down from USD 2.34 trillion in 2014. Its economy grew at 6.9 per cent in 2015, slipping below seven per cent in a quarter of century. As part of its efforts to stabilise its exports and economy, China has embarked on multi-billion dollar global connectivity project called the ‘One Belt One Road’ (Silk Road).
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First China-U.K. Freight Train Departs as Xi Seeks to Lift Trade
Bloomberg News
January 3, 2017, 1:28 PM GMT+11 January 4, 2017, 1:34 AM GMT+11
London is the 15th city in Europe to be added to China’s freight train services to the continent.Photographer: Pierre-Philippe Marcou/AFP via Getty Images
China started a freight train to London as part of President Xi Jinping’s efforts to strengthen trade ties with Europe, according to state-owned China Railway Corp.
The train departed Yiwu in eastern Zhejiang province on Jan. 1 and will cover more than 12,000 kilometers (7,500 miles) in about 18 days before reaching the British city, China Railway Corp. said in a statement on its website on Monday. The freighter, carrying garments, bags and suitcases among other items, will pass through Kazakhstan, Russia, Belarus, Poland, Germany, Belgium and France. Xinhua reported the service earlier.
London is the 15th city in Europe to be added to China’s freight train services to the continent as Xi seeks to reinforce commercial links with markets across Asia, Africa, the Middle East and Europe. In 2013, Xi unveiled his so-called Belt-and-Road initiative, making transport lines the centerpiece of his efforts to create a modern Silk Road.
Read more about China’s modern-day Silk Road here
China has initially set aside about $40 billion in a fund to finance roads and railways abroad under the plan, while the nation’s trade with countries along the routes could reach $2.5 trillion in about a decade, Yao Gang, the then vice chairman of China Securities Regulatory Commission, said in 2015.
Railways is one of the top priorities of President Xi and only last month, the country announced that it plans to spend 3.5 trillion yuan ($503 billion) to expand the national railway system by 2020.
The high-speed rail network will span more than 30,000 kilometers under the proposal, according to details released at a State Council Information Office briefing in Beijing Thursday. The distance, about 6.5 times the length of a road trip between New York and Los Angeles, will cover 80 percent of major cities in China.
China has also used railways as a diplomatic tool overseas. Chinese domestic train manufacturers have targeted emerging markets in Africa, Latin America and Southeast Asia for rail-related orders while also bidding for high-profile contracts in the developed world.
Rail trade between Asia and Europe is rather unique when bulk of the goods between the two continents travel by ships. Goods sail about 10 days to reach Los Angeles from Asia, and could take as many as 30 days to Rotterdam.
China’s economy is on pace to meet the official growth target, posting 6.7 percent expansions in the first three quarters of 2016.
— With assistance by Sam Nagarajan
https://www.bloomberg.com/news/arti...ght-train-to-london-as-xi-promotes-trade-ties
Bloomberg News
January 3, 2017, 1:28 PM GMT+11 January 4, 2017, 1:34 AM GMT+11
- London trip will span 18 days and more than 12,000 kilometers
- ‘Silk Road’ service to transit Asia, Europe and Channel Tunnel
London is the 15th city in Europe to be added to China’s freight train services to the continent.Photographer: Pierre-Philippe Marcou/AFP via Getty Images
China started a freight train to London as part of President Xi Jinping’s efforts to strengthen trade ties with Europe, according to state-owned China Railway Corp.
The train departed Yiwu in eastern Zhejiang province on Jan. 1 and will cover more than 12,000 kilometers (7,500 miles) in about 18 days before reaching the British city, China Railway Corp. said in a statement on its website on Monday. The freighter, carrying garments, bags and suitcases among other items, will pass through Kazakhstan, Russia, Belarus, Poland, Germany, Belgium and France. Xinhua reported the service earlier.
London is the 15th city in Europe to be added to China’s freight train services to the continent as Xi seeks to reinforce commercial links with markets across Asia, Africa, the Middle East and Europe. In 2013, Xi unveiled his so-called Belt-and-Road initiative, making transport lines the centerpiece of his efforts to create a modern Silk Road.
Read more about China’s modern-day Silk Road here
China has initially set aside about $40 billion in a fund to finance roads and railways abroad under the plan, while the nation’s trade with countries along the routes could reach $2.5 trillion in about a decade, Yao Gang, the then vice chairman of China Securities Regulatory Commission, said in 2015.
Railways is one of the top priorities of President Xi and only last month, the country announced that it plans to spend 3.5 trillion yuan ($503 billion) to expand the national railway system by 2020.
The high-speed rail network will span more than 30,000 kilometers under the proposal, according to details released at a State Council Information Office briefing in Beijing Thursday. The distance, about 6.5 times the length of a road trip between New York and Los Angeles, will cover 80 percent of major cities in China.
China has also used railways as a diplomatic tool overseas. Chinese domestic train manufacturers have targeted emerging markets in Africa, Latin America and Southeast Asia for rail-related orders while also bidding for high-profile contracts in the developed world.
Rail trade between Asia and Europe is rather unique when bulk of the goods between the two continents travel by ships. Goods sail about 10 days to reach Los Angeles from Asia, and could take as many as 30 days to Rotterdam.
China’s economy is on pace to meet the official growth target, posting 6.7 percent expansions in the first three quarters of 2016.
— With assistance by Sam Nagarajan
https://www.bloomberg.com/news/arti...ght-train-to-london-as-xi-promotes-trade-ties
onebyone
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'China freight train' in first trip to Barking, London
China has launched a direct rail freight service to London, as part of its drive to develop trade and investment ties with Europe.
China Railway already runs services between China and other European cities, including Madrid and Hamburg.
The train will take about two weeks to cover the 12,000 mile journey and is carrying a cargo of clothes, bags and other household items.
It has the advantage of being cheaper than air freight and faster than sea.
Image copyright GETTY IMAGES
The first China-Europe Block Train for Madrid left Yiwu Railway Freight Station in November 2014
The proliferation of routes linking China and Europe is part of a strategy launched in 2013 aimed at boosting infrastructure links with Europe along the former Silk Road trading routes.
London will become the 15th European city to join what the Chinese government calls the New Silk Route.
The service will pass through Kazakhstan, Russia, Belarus, Poland, Germany Belgium and France before arriving at Barking Rail Freight Terminal in East London, which is directly connected to the High Speed 1 rail line to the European mainland.
Because of the different railway gauges involved, a single train cannot travel the whole route and the containers need to be reloaded at various points.
The Chinese government is keen to boost its economy in the face of slowing export and economic growth.
http://www.bbc.com/news/business-38497997?yptr=yahoo
- 3 January 2017
Image copyright GETTY IMAGES The first freight train from China arrived in Hamburg in August 2013 after a 15 day journey
China has launched a direct rail freight service to London, as part of its drive to develop trade and investment ties with Europe.
China Railway already runs services between China and other European cities, including Madrid and Hamburg.
The train will take about two weeks to cover the 12,000 mile journey and is carrying a cargo of clothes, bags and other household items.
It has the advantage of being cheaper than air freight and faster than sea.
The first China-Europe Block Train for Madrid left Yiwu Railway Freight Station in November 2014
The proliferation of routes linking China and Europe is part of a strategy launched in 2013 aimed at boosting infrastructure links with Europe along the former Silk Road trading routes.
London will become the 15th European city to join what the Chinese government calls the New Silk Route.
The service will pass through Kazakhstan, Russia, Belarus, Poland, Germany Belgium and France before arriving at Barking Rail Freight Terminal in East London, which is directly connected to the High Speed 1 rail line to the European mainland.
Because of the different railway gauges involved, a single train cannot travel the whole route and the containers need to be reloaded at various points.
The Chinese government is keen to boost its economy in the face of slowing export and economic growth.
http://www.bbc.com/news/business-38497997?yptr=yahoo
TaiShang
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OBOR goes northwest. Excellent. Currently, that's the most viable route, along with China-Central Asia-Eastern Europe-Western Europe route.
Interestingly, railway gauge systems actually push China to down south. But, despite of this, China goes northwest. There must be strong political, security and economic reasons for this.
If the newly-laid tracks in Russia-Central Asia are made compatible with that of China's, they will have even bigger advantage and larger piece of China's development public goods.
onebyone
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Globalization Isn’t Doomed. It’s Evolving, With China As A Leader
China attaches great importance to making globalization and global governance work again.
01/04/2017 11:00 am ET | Updated 8 hours ago
The worldwide debate about globalization has been upended by “the Trump phenomenon,” which has spread like wildfire across Europe and elsewhere. The two separate camps of “deglobalization” versus “reglobalization” are pitted against each other in a tug of war with no clear winner.
From a historical perspective, globalization has not been linear in its progress. There have been ups and downs and twists and turns. With several decades of fast growth of globalization, the world has reaped unprecedented benefits, but we have also seen a widening gap between the rich and the poor and a deeper division between capital and labor, as predicted by Karl Marx.
Globalization will continue but with a different paradigm or narrative, ushering in a new era of “reglobalization,” wherein China is called upon to play a key role of leadership. China’s President Xi Jinping is going to the Davos World Economic Forum this January, which again indicates that China attaches great importance to making globalization and global governance work again, even though now globalization is somewhat in shatters and in urgent need of change.
Although what anti-globalization measures President-elect Trump will take and what will happen in European politics in the next few years are mostly in the domain of unknowns, there are a few trends that will no doubt continue. One trend is that after the 2008 financial crisis, neo-liberalism has been retreating or receding at a rapid pace globally. Another trend is that despite global economic slowdown, China’s economic growth path and political system have been resilient.
The contrast between a collapsing neo-liberalism of the West and the much-welcomed new development model espoused and practiced by China is not to be missed. I am certain that it will be featured prominently at the upcoming annual Davos gathering too. In the last decade or so, China has taken a proactive approach to the provision of global commons ranging from the Shanghai Cooperation Organization to the Asia Infrastructure Investment Bank, from Regional Comprehensive Economic Partnership to the “One Belt & One Road” initiative.
Amid growing uncertainty caused by political and economic shifts in advanced nations like the U.S., U.K., Italy and France, China stands out as an anchor of stability and continuity in global governance and international efforts to tackle global challenges such as climate change. Of course, it is not just about China, the U.S. and Europe. It is about the changing political and economic landscape of the world we live in and about the “rebalance” or “convergence” between developed and developing nations on a scale that has not been seen since the industrial revolution a few hundred years ago. Global governance is undergoing a historical shift from Western governance to co-governance by the East and West. Will we succeed in shaping the emerging new world order to be more fair and just?
Reglobalization does not mean throwing away the current global governance system. China has repeatedly expressed its firm position that it wants to safeguard, reinforce and reform the existing governance system.
Rising populism in the U.S. and Europe is a result of the widening income and wealth gap. That root cause that keeps feeding the populist anger against the elites in the West is now crystal clear. If that angst cannot be diffused, any talk of a new world order would be futile. China’s success in continuous growth and reduction of poverty should be a model for other nations.
http://www.huffingtonpost.com/entry/globalization-china-leader_us_586bcee0e4b0d9a5945c8b2a
China attaches great importance to making globalization and global governance work again.
01/04/2017 11:00 am ET | Updated 8 hours ago
The worldwide debate about globalization has been upended by “the Trump phenomenon,” which has spread like wildfire across Europe and elsewhere. The two separate camps of “deglobalization” versus “reglobalization” are pitted against each other in a tug of war with no clear winner.
From a historical perspective, globalization has not been linear in its progress. There have been ups and downs and twists and turns. With several decades of fast growth of globalization, the world has reaped unprecedented benefits, but we have also seen a widening gap between the rich and the poor and a deeper division between capital and labor, as predicted by Karl Marx.
Globalization will continue but with a different paradigm or narrative, ushering in a new era of “reglobalization,” wherein China is called upon to play a key role of leadership. China’s President Xi Jinping is going to the Davos World Economic Forum this January, which again indicates that China attaches great importance to making globalization and global governance work again, even though now globalization is somewhat in shatters and in urgent need of change.
Although what anti-globalization measures President-elect Trump will take and what will happen in European politics in the next few years are mostly in the domain of unknowns, there are a few trends that will no doubt continue. One trend is that after the 2008 financial crisis, neo-liberalism has been retreating or receding at a rapid pace globally. Another trend is that despite global economic slowdown, China’s economic growth path and political system have been resilient.
The contrast between a collapsing neo-liberalism of the West and the much-welcomed new development model espoused and practiced by China is not to be missed. I am certain that it will be featured prominently at the upcoming annual Davos gathering too. In the last decade or so, China has taken a proactive approach to the provision of global commons ranging from the Shanghai Cooperation Organization to the Asia Infrastructure Investment Bank, from Regional Comprehensive Economic Partnership to the “One Belt & One Road” initiative.
Amid growing uncertainty caused by political and economic shifts in advanced nations like the U.S., U.K., Italy and France, China stands out as an anchor of stability and continuity in global governance and international efforts to tackle global challenges such as climate change. Of course, it is not just about China, the U.S. and Europe. It is about the changing political and economic landscape of the world we live in and about the “rebalance” or “convergence” between developed and developing nations on a scale that has not been seen since the industrial revolution a few hundred years ago. Global governance is undergoing a historical shift from Western governance to co-governance by the East and West. Will we succeed in shaping the emerging new world order to be more fair and just?
Reglobalization does not mean throwing away the current global governance system. China has repeatedly expressed its firm position that it wants to safeguard, reinforce and reform the existing governance system.
Rising populism in the U.S. and Europe is a result of the widening income and wealth gap. That root cause that keeps feeding the populist anger against the elites in the West is now crystal clear. If that angst cannot be diffused, any talk of a new world order would be futile. China’s success in continuous growth and reduction of poverty should be a model for other nations.
http://www.huffingtonpost.com/entry/globalization-china-leader_us_586bcee0e4b0d9a5945c8b2a
Chinese-Dragon
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Globalization sucks for countries that are not competitive.
When you're not competitive, you prefer not to compete. Down that road lies communist-style stagnation.
When you're not competitive, you prefer not to compete. Down that road lies communist-style stagnation.
Place Of Space
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Most countries in the world are not that competitive. So I don't think competitiveness is the standard or condition of accepting globalization.
TaiShang
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Interesting historical point of convergence in which one set of actors are receding while another set of actors are rising. The receding actors wish to bring the system (that they set up, for the most part) down with themselves at the sight of the fact that the rising actors are now benefitting more than they were supposed to do.
Make no mistake, if the previous state of affairs, in which China was a mere dirty-cheap factory of the world with no competitive and innovative edge, continued, the receding actors would fanatically argue about maintaining the great globalization movement and claim that if the impoverished nations were in miserable conditions, the guilt must be looked for in their own backward cultures, insufficient public services and inefficient governance.
Yet, especially with respect to China, it has not been the case. China has transformed itself from a low-end, low value-added manufacturer into a (still developing) innovative economy with an all-around industrial manufacturing chain and logistics. Especially from the 2012, China has also set out to qualitatively and quantitatively improve regional conditions by proposing a comprehensive framework of maritime-land connectivity centered-around Eurasia. This meant that China was not simply asking for a piece from the pie for itself only, but a more fair distribution.
The West (US) would be fine about an idea of a G2, giving China its fair share of economic benefits. But, sharing the world resources with the rest of the world was a no-go. If China was weak, the US-led West would simply punish it and make an accomplice out of it; but because of China's strength, that was largely also out of option (although they tried in various places from Xinjiang to Hong Kong and, probably, in Taiwan, China, in the future).
Then, what option remained for the US-led West other than simply retreating and backing down on their own promises and demonizing the very system that enabled them in-proportionately wealthier at the cost of the rest? Hence, they are retreating, cursing globalization and free trade, and blaming all their miserable existence on China's competitive and more efficient industries.
My argument is that re-globalization is possible without active participation of the US-led West. The OBOR has been designed to show this. Hence, China has been doing more trade with the rest of the world minus US-EU. I believe we have the capacity and potential to develop and grow not only because of (and in cooperation with) the US-led West but also in spite of it.
The ideal situation would be the first option, for sure.
Make no mistake, if the previous state of affairs, in which China was a mere dirty-cheap factory of the world with no competitive and innovative edge, continued, the receding actors would fanatically argue about maintaining the great globalization movement and claim that if the impoverished nations were in miserable conditions, the guilt must be looked for in their own backward cultures, insufficient public services and inefficient governance.
Yet, especially with respect to China, it has not been the case. China has transformed itself from a low-end, low value-added manufacturer into a (still developing) innovative economy with an all-around industrial manufacturing chain and logistics. Especially from the 2012, China has also set out to qualitatively and quantitatively improve regional conditions by proposing a comprehensive framework of maritime-land connectivity centered-around Eurasia. This meant that China was not simply asking for a piece from the pie for itself only, but a more fair distribution.
The West (US) would be fine about an idea of a G2, giving China its fair share of economic benefits. But, sharing the world resources with the rest of the world was a no-go. If China was weak, the US-led West would simply punish it and make an accomplice out of it; but because of China's strength, that was largely also out of option (although they tried in various places from Xinjiang to Hong Kong and, probably, in Taiwan, China, in the future).
Then, what option remained for the US-led West other than simply retreating and backing down on their own promises and demonizing the very system that enabled them in-proportionately wealthier at the cost of the rest? Hence, they are retreating, cursing globalization and free trade, and blaming all their miserable existence on China's competitive and more efficient industries.
My argument is that re-globalization is possible without active participation of the US-led West. The OBOR has been designed to show this. Hence, China has been doing more trade with the rest of the world minus US-EU. I believe we have the capacity and potential to develop and grow not only because of (and in cooperation with) the US-led West but also in spite of it.
The ideal situation would be the first option, for sure.
Last edited:
Shotgunner51
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There is one simple, convenient and decisive factor - currency - that can alter relative competitiveness. This looks simple, but in fact is the most complicated factor that may involve post-WWII status quo, geopolitics, domestic politics, national/public interests, vested interest groups ("political elites").
Last edited:
Viet
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China is big. You have enough room there to lead the landscape. No, you as leader have never been good for anyone. Least your immediate neighbors. Look at history.
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