What is the main objective of China behind funding heavily on One Belt One Road "OBOR" portfolio?
"The Belt and Road (B&R, or One Belt, One Road) is an ambitious vision for global trade, infrastructure development, and diplomacy. First articulated by Chinese President Xi Jinping in 2013, the initiative frames China as the geographic and financial center, with ties radiating toward Europe, Asia, and Africa."
"It is about connecting culture. It is about connecting communities. It is about enriching economies and improving the standard of living of people."
– Christine Lagarde
Managing Director, International Monetary Fund
India and Bhutan did not participate in this summit.
Without prejudice and my own observation or comments I will highlight what is reflected in the news track as under:
OBOR portfolio can lead to China acquiring equity and then controlling stakes in the projects, getting a permanent footprint in several small countries which is nearly impossible for it to achieve otherwise.
China always hides its military plans in its economic projects. A vast infrastructural footprint in dozens of countries in Asia and Africa will eventually mean a strong Chinese military presence across OBOR.
A small country that hosts infrastructure created by China and unable to repay the loan will be vulnerable to China's diplomatic and military moves
A key part of OBOR is China-Pakistan Economic Corridor passes through Gilgit-Baltistan region which lies in Pakistan-Occupied Kashmir. The Chinese presence in a disputed region which India claims as part of its own territory raises sovereignty concerns for India.
China is making inroads on its rivals too. Citigroup Inc. research shows Chinese investment into the five largest Southeast Asian nations — Singapore, Malaysia, Thailand, Indonesia and the Philippines — climbed to $13.5 billion last year, exceeding flows from Japan for the first time.
China is investing a hefty sum ($900bn) in a project known as the “One Belt, One Road” (OBOR) initiative – this scheme seeks to boost integrated economic growth between Eurasia through mega infrastructure projects. The OBOR project includes 6 corridors under two roads, the New Silk Road Economic Belt running west towards Europe through Russia and Central Asian and the 21st Century Maritime Road focuses on reaching Europe through South Asia and Southwest Africa.
The 6 corridors demonstrated below run between:
China-Mongolia-Russia Economic Corridor (CMREC);
New Eurasian Land Bridge (NELB);
China-Central and West Asia Economic Corridor (CCWAEC);
China-Indo-China Peninsula Economic Corridor (CICPEC);
China-Pakistan Economic Corridor (CPEC); and
Bangladesh-China-India-Myanmar Economic Corridor (BCIMEC).
One Belt, One Road has been described as “the most significant and far-reaching initiative that China has ever put forward.”
Five major goals sit within a broad framework:
- Connectivity and cooperation:
- policy coordination;
- facilities connectivity;
- unimpeded trade;
- financial integration;
- and people to people bonds.
Although this final goal is broadly recognized as an important mechanism for deepening bilateral and multilateral cooperation, it has received less media and expert attention in large part because its projects do not carry the spectacle of multi-billion dollar infrastructure investments and contracts, or the mega-project outcomes they produce. However, for both
https://themarketmogul.com/chinas-6-magical-economic-corridors/
The policy I identified earlier, which is resource led with control of debt whereby China not the West becomes world banker in maybe 10 or 15 years.
Can you Stanley Wilkin
elaborate your view point in this new discussion
The chinese will offer loans, especially to the less wealthy along the route, but also to European countries in order to keep up the high cost of technology, media, economy development. They will begin buying predominantly then exclusively from China. China will be funding economic restructuring and creating wealth, but more and more countries will be in their debt. USA did something similar. Chinese are learning from others. This is not a moral judgement, just economic strategy.
What I think
Basically its Chinese outreach strategy to lower their logistics cost of production and reduce lead Time, which would further enhance Chinese sales and economy in future.
I also agree that
There must be few other motives of China besides Economic Motives
and such objectives always remain part of greater plans, strategies and foreign policies of any supper power.
Although China is still not super power, but the progress she has made in last few decades in enormous which cant be neglected.
One Belt One Road "OBOR" portfolio or CPEC is a long term plan and its effects or impact will also be long term.
Our following published research papers have analyzed these impacts
Article Impact of CPEC on Pakistan Stock Exchange (PSX) and Shanghai...
Conference Paper Energy Management Modernization and Economic Growth: An anal...