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Announced in by President Xi Jinping, a brand new double trade corridor is set to reopen channels between China and its neighbours in the west: The project has proved vast, expensive and controversial. Four years after it was first unveiled, the question remains:. One strong incentive is that Trans-Eurasian trade infrastructure could bolster poorer countries to the south of China, as well as boost global trade.
Domestic regions are also expected to benefit — especially the less-developed border regions in the west of the country, such as Xinjiang.
Among domestic markets set to gain from future trade are Chinese companies — such as those in transport and telecoms — which now look poised to grow into global brands. Chinese manufacturing also stands to gain. There's no doubt that China is growing into a geopolitical heavyweight, stepping into the breach left by the United States on matters of free trade and climate change. Geopolitically, China decided a long time ago that security was too expensive an offer to make.
Instead, this new superpower may offer connectivity. If combined with enhanced global connectivity, China's enormous gravity could become an even more meaningful engine for the global economy," Liu adds.
Chinese companies are already behind several energy projects, including oil and gas pipelines between China and Russia, Kazakhstan and Myanmar. Roads and infrastructure projects are also underway in Ethiopia, Kenya, Laos and Thailand. China's growing influence is a concern for nations whose political interests do not always align with Beijing's," explains Paul Haenle, director of the Carnegie-Tsinghua Centre for Global Policy.
But before we spend shareholders' money, which is really the taxpayers' money, we have three requirements.
The new trade route would have to promote growth, be socially acceptable and abide by environmental laws, Jin said. How well the project fares against these three criteria has yet to be seen. The views expressed in this article are those of the author alone and not the World Economic Forum. What you need to know East to west How technology is driving a fourth wave of environmentalism Fred Krupp 23 May More on the agenda.
Explore the latest strategic trends, research and analysis. This article is part of the Annual Meeting of the New Champions. Four years after it was first unveiled, the question remains: What can the New Silk Road do for global trade?
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