OBOR and CPEC : News, Discussions & Updates

Pakistan may consider using Chinese Yuan for bilateral trade

Pakistan has no option but to follow China’s economic vision: Ahsan Iqbal. CPEC long-term plan 2017-2030 launched in Islamabad


ISLAMABAD: With the growing cooperation with China following implementation on China-Pakistan Economic Corridor (CPEC) plan, Pakistan is considering using Chinese currency instead of US dollar for bilateral trade to avoid the constant process of converting Yuan and Rupees into the dollar.

This was said by Interior Minister Ahsan Iqbal during the inauguration ceremony of the Long-Term Plan (2017-2030) of the CPEC in Islamabad on Monday. He said China has also been pressing Pakistan to allow the use of the renminbi (RMB), the official name of its currency, as a currency in the Gwadar Free Zone. The event was also attended by Chinese Ambassador to Pakistan Yao Jing.

Ahsan Iqbal, who also holds the charge of Ministry of Planning and Development, said the use RMB or any other currency would not be permitted in Pakistan, however, consideration is being given to using RMB for trade between Pakistan and China only.

Addressing the ceremony, the minister opined that it has become necessary for Pakistan to follow China’s economic vision. “We have to learn from China, how China with its political stability, how China with its social solidarity and harmony, and how China with the pursuit of its economic policies and vision has become a success story in the world.”

“We need to learn from the wisdom Chinese leadership have shown, and the path Chinese leadership have followed to bring about the biggest miracle of human civilization,” he said, explaining that China went from being the least developed country to world’s fastest-developing country.

China has become the export engine in the world because it has mastered low-cost production, he remarked. “We should follow the economic miracle of China.”

He said that CPEC was a national plan approved by the both the Chinese and Pakistan governments.” It will effectively match relevant national plans of China as well as Pakistan Vision 2025,” he added.

“This plan is effective until 2030, the short-term projects included will be considered by up to 2020; medium-term project up to 2025 and long-term projects up to 2030” he added.

The minister said that during President of China Xi Jinping’s visit to Pakistan in April 2015, the all-weather strategic cooperation partnership between the two countries was enriched with new connotations.

Praising the neighbouring country for investing in Pakistan at a time when others were shelving businesses in the country, he said, “China had invested over $ 50 billion when other countries were not interested to make any investment. He added, “Chinese were doing what the Americans and the Europeans should have done after the end of the Afghan war” that evicted the Soviets from Afghanistan. “That war helped bring down the Berlin Wall and made Europe safe. But we here in Pakistan are still paying the price for it.”

He added, “CPEC, for the first time, offers an opportunity for Pakistan to join China in a community of shared destiny and prosperity.”

Ahsan Iqbal said that the long-term plan would expand the scope of cooperation in various new areas, including cooperation in social sectors along with economic fields

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Source is Pakistani so I would take is with caution. Only time will tell how much of these 500 million dollars would actually so to poor people of Gwadar.

China lavishes aid on Gwadar raising suspicions in US, India - The Express Tribune


GWADAR: China is lavishing vast amounts of aid on a small Pakistani fishing town to win over locals and build a commercial deep-water port that the United States (US) and India suspect may also one day serve the Chinese navy.
Beijing has built a school, sent doctors and pledged about $500 million in grants for an airport, hospital, college and badly-needed water infrastructure for Gwadar, a dusty town whose harbour juts out into the Arabian Sea, overlooking some of the world’s busiest oil and gas shipping lanes.
 
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Surely they are being robbed.
CPEC helps the Western China to develop as then the products from Western China can now be shipped through Pakistan instead of being sent to east to ports like Shanghai etc and then to be shipped to Europe, Thus it cuts down the transit time to almost half.

Pakistan needs Chinese help more than China needs Pakistan, Pakistan wants the roads and if China is building it free then its good, but THE DOWNSIDE IS,,. The agreement benefits china and not pakistan with almost 79% of benefits going to China. So China says that the land belongs to pakistan but the infra is ours.

Soon we might have the road signs in Chinese and Chinese RMB freely used in Pakistan. And then maybe the names of some cities will be written in Chinese in Pakistani school books

Shashank said:
I follow pakistni news channels on youtube. I feel many sane and educated Pakistanis feel that they are being robbed by Chinese and there are many details which are not in public domain. In the name of friendship and support against India Pakistanis are taken for a ride. loosing their money and jobs to Chinese.
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smestarz said:
Surely they are being robbed.
CPEC helps the Western China to develop as then the products from Western China can now be shipped through Pakistan instead of being sent to east to ports like Shanghai etc and then to be shipped to Europe, Thus it cuts down the transit time to almost half.

Pakistan needs Chinese help more than China needs Pakistan, Pakistan wants the roads and if China is building it free then its good, but THE DOWNSIDE IS,,. The agreement benefits china and not pakistan with almost 79% of benefits going to China. So China says that the land belongs to pakistan but the infra is ours.

Soon we might have the road signs in Chinese and Chinese RMB freely used in Pakistan. And then maybe the names of some cities will be written in Chinese in Pakistani school books
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Question here is whats the total transportation capacity of these roads are and will they be able to operate all year round. As far as I know they are passing through areas of heavy landslides and will not be open for normal transport for most of year.

Also whats the cost of transporting goods through roads. They would cost Bomb compared to sea route as Big transporter ships have huge capacity and are economical.

I feel Chinese might be planning to setup some manufacturing units in Pakistan itself and then export it from there.
 
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1. The Western part of China is more close to Pakistan than Eastern ports of China

2. Areas of land slides can be concreted (involves putting a metal mesh on the area and fixing it (that sort of avoids most of the land slides if the areas are identified correctly.

Thus with the road, Chinese can start developing their western area more easily using the large spaces and cheap labour and to be able to access europeans markets more faster.

How, the Chinese, if i understand them will first put an infra structure and then put their own security on protecting this belt which is understood, then since Pakistan would not be able to pay back the Chinese, they would ask 99 years lease of some area which they will use to put their own industry of course using Chinese tech and maybe chinese workers, and to secure this zone, they would put barracks and security bases around this to ensure protection.. and that my friends is East China company heading west.



Shashank said:
Question here is whats the total transportation capacity of these roads are and will they be able to operate all year round. As far as I know they are passing through areas of heavy landslides and will not be open for normal transport for most of year.

Also whats the cost of transporting goods through roads. They would cost Bomb compared to sea route as Big transporter ships have huge capacity and are economical.

I feel Chinese might be planning to setup some manufacturing units in Pakistan itself and then export it from there.
Click to expand...
 
smestarz said:
1. The Western part of China is more close to Pakistan than Eastern ports of China

2. Areas of land slides can be concreted (involves putting a metal mesh on the area and fixing it (that sort of avoids most of the land slides if the areas are identified correctly.

Thus with the road, Chinese can start developing their western area more easily using the large spaces and cheap labour and to be able to access europeans markets more faster.

How, the Chinese, if i understand them will first put an infra structure and then put their own security on protecting this belt which is understood, then since Pakistan would not be able to pay back the Chinese, they would ask 99 years lease of some area which they will use to put their own industry of course using Chinese tech and maybe chinese workers, and to secure this zone, they would put barracks and security bases around this to ensure protection.. and that my friends is East China company heading west.
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I have this Video about frequent land slides for CPEC route. This looks quite convincing to me.


Also check snippet of one Pakistani news about capacity of CPEC in terms of transportation.

Not too long ago, the Karakoram Highway had supported only a handful of trucks that traversed its narrow route to move goods between markets in Pakistan and China. The highway is expected to carry up to 100 trucks a day when CPEC reaches its full swing.

Source : CPEC and the environment - Daily Times

Question is how much goods 36,500 trucks can carry even if its open for almost whole year?


Regarding point 1 Even Russians are saying that OBOR is East India Company at our west.

WASHINGTON, Dec 13 - RIA Novosti, Ekaterina Sobol. The US suspects China of trying to build its economic world order bypassing international rules, US Secretary of State Rex Tillerson said in a speech at the Atlantic Council in Washington.

"China's policy -" One belt - one way "is a continuation of its economic development.Our policy is not to try to hinder China's economic development, but China's economic development, in our understanding, should work in the system of international economic norms, and" One belt is one way "seems to be trying to find its own rules and norms," Tillerson said, commenting on China's establishment of the Silk Road.

He added: "All countries in the region should have equal access to free trade."



РИА Новости США заподозрили Китай в попытке создать свой экономический миропорядок
 
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IT is true, the agreements made are beneficial to Chinese not the pakistanis

I just wonder who the hell read the agreements before they were signed? Or the Pakistanis went with motto, "Pakistanis Chini bhai bhai"
If this way then I guess next time we have to discuss something with Pakistan then we have to actually convince the chinese and they will order the pakistanis

Shashank said:
One Pakistani armyman talking about CPEC.

https://twitter.com/x/status/855630035063115776
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With a plan to trade in yuan, Pakistan may be heading towards a point of no return

he US dollar may be replaced by Chinese yuan in China-Pakistan trade, Pakistan's Minister for Planning and Development Ahsan Iqbal has said.

Iqbal told this to journalists after the formal launch of Long Term Plan (LTP) for the China-Pakistan Economic Corridor (CPECBSE -4.45 %) 2017-30 signed by the two sides on November 21, Dawn online reported on Tuesday.


Read more at:
//economictimes.indiatimes.com/articleshow/62130965.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
 
  • China and Pakistan are looking at extending their $57 billion China-Pakistan Economic Corridor to Afghanistan.
  • Chinese foreign minister said China hoped the economic corridor could benefit the whole region and act as an impetus for development.
China and Pakistan will look at extending their $57 billion China-Pakistan Economic Corridor to Afghanistan, Chinese foreign minister Wang Yi said on Tuesday, part of China's ambitious Belt and Road plan linking China with Asia, Europe and beyond.

China has tried to position itself as a helpful party to promote talks between Pakistan and Afghanistan, both uneasy neighbours ever since Pakistan's independence in 1947.

Their ties have been poisoned in recent years by Afghan accusations that Pakistan is supporting Taliban insurgents fighting the US-backed Kabul in order to limit the influence of its old rival, India, in Afghanistan.

Pakistan denies that and says it wants to see a peaceful, stable Afghanistan.

Speaking after the first trilateral meeting between the foreign ministers of China, Pakistan and Afghanistan, Wang said China hoped the economic corridor could benefit the whole region and act as an impetus for development.

Afghanistan has urgent need to develop and improve people's lives and hopes it can join inter-connectivity initiatives, Wang told reporters, as he announced that Pakistan and Afghanistan had agreed to mend their strained relations.

"So China and Pakistan are willing to look at with Afghanistan, on the basis of win-win, mutually beneficial principles, using an appropriate means to extend the China-Pakistan Economic Corridor to Afghanistan," he added.

How that could happen needs the three countries to reach a gradual consensus, tackling easier, smaller projects first, Wang said, without giving details.

Pakistani Foreign Minister Khawaja Asif said his country and China were "iron brothers", but did not directly mention the prospect of Afghanistan joining the corridor.

"The successful implementation of CPEC (China-Pakistan Economic Corridor) projects will serve as a model for enhancing connectivity and cooperation through similar projects with neighbouring countries, including Afghanistan, Iran and with central and west Asia," he said.

India has looked askance at the project as parts of it run through Pakistan-administered Kashmir that India considers its own territory, though Wang said the plan had nothing to do with territorial disputes.

China has sought to bring Kabul and Islamabad together partly due to Chinese fears about the spread of Islamist militancy from Pakistan and Afghanistan to the unrest-prone far western Chinese region of Xinjiang.

As such, China has pushed for Pakistan and Afghanistan to improve their own ties so they can better tackle the violence in their respective countries, and has also tried to broker peace talks with Afghan Taliban militants, to limited effect.

A tentative talks process collapsed in 2015.

Wang said China fully supported peace talks between the Afghan government and Taliban and would continue to provide "necessary facilitation".

The Belt and Road infrastructure drive aims to build a modern-day "Silk Road" connecting
More at : China, Pakistan to look at including Afghanistan in $57 billion economic corridor - Times of India
 
CPEC and the Silk Road Rail Network

Reliable freight routes will help Pakistan and neighbouring countries cut transportation costs, save time and ease mobility

Yasir Habib Khan

DECEMBER 23, 2017

If CPEC is handled carefully and Pakistan is able to use it to its advantage, there is a fortune to be made in trade and the industrial market through one of its lesser known projects. This is the Silk Road Rail Network (SSRN), also known as the Eurasian Rail Project or Eurasian trans-continental rail transport network. It is meant to link Pakistan to Eurasian countries; including Myanmar, Bangladesh, India, Turkey and Germany as part of China’s Belt and Road Initiative (BRI). This massive overland railroad which will stretch from Myanmar to Germany only exists on paper today, but it is highly likely that it will see the light of day soon as the practical and theoretical issues associated with it have been smoothed out.

Robust and reliable freight routes will help cut transportation cost, save time and ease mobility. China and the Eurasian countries, which include Pakistan, will be able to exploit the SRRN and rejuvenate their economies and change the fate of the entire Eurasian landmass. 80 percent of global trade is currently executed through sea due to a lack of rail networks across the world. Once the SRRN is completed, global trade will be revolutionised. China Railways has already published its master plan for the SRRN, outlining all emerging rail routes. The railway will start at Kunming, the capital of China’s western Yunnan province and connect Myanmar, Bangladesh, India, Pakistan, Iran and Turkey before ending in the heart of Europe at Hamburg.

However, this project does not include the 1800 kilometre long rail line between Pakistan and China, which is specifically a part of CPEC. The SRRN is part of the Silk Road Train. There is already optimism regarding this plan, because freight trains have already journeyed from China to Europe in the recent past. 7500 mile long rail links are already operating within Suzhou, a major city in the South Eastern Jiangsu province, which leads to Warsaw.

80 percent of global trade is currently executed through sea due to a lack of rail networks across the world. Once the SRRN is complete, global trade will be revolutionised. China Railways has already published its master plan for the SRRN, outlining all emerging rail routes. The railway will start at Kunming, the capital of China’s western Yunnan province and connect Myanmar, Bangladesh, India, Pakistan, Iran and Turkey before ending in the heart of Europe at Hamburg

There are also railways which go from Lianygang to Rotterdam, Chengdu to Lodz, Chongqing to Duisburg, Yiwu to Madrid and Zhengzhou to Hamburg. Currently, these trains move along one of two main routes: either they go north from China to link with Russias Trans-Siberian network or they travel west across Kazakhstan and feed into the Trans-Siberian at Yekaterinburg which divides Europe and Asia.

After the China-Madrid rail connection, the China-London route has been gaining traction. This is the second longest rail route conceived in history. It journeyed from China to the UK, reaching Barking’s Eurohub freight terminal in London in January 2017. The train is famous by the name of ‘East Wind’, getting its inspiration from Chairman Mao who once claimed that “The East Wind shall prevail over the West.” This train made London the fifteenth European city with direct rail links to China. Last month, the first freight train set off from Standord-le-Hope, Essec for Yiwu in Zhejiang province, China. As Brexit looms, British Prime Minister Theresa May is likely hoping trade ties between the UK and China continue to improve.

rail.jpg


The train starts its journey from Zhengzhou, which is located on the southern banks of the Yellow River. Once it was known as one of the eight ancient capitals of China, home to the famous Shaolin Monastery. Being a leading national railway hub, it has easy access to Beijing and some other regions by high speed train.



Passing through Baoji, Tianshui, Lanzhou and Zhanye, renowned cities for China huge industrial belt, it reaches at Xinjiang, old route of Silk Road trade that linked to Middle East. This ancient route’ footprints may be found easily by moving into its traditional open-air bazaars of the oasis cities of Hotan and Kashgar. Making headways, train has a route of the old Kazakh capital Almaty, and Astana, Kazakhstan’s modern capital. After penetrating into Russia, train accesses to Yekaterinburg, Russia’s fourth-largest city. It is place of Ural mountain range considered as the boundary between Europe and Asia.

Before The Silk Road Rail Network made the world sit up and take notice, some initiatives had taken shape in form of “The Trans-Siberian”. After this, various rail routes came into play between East and West. As a major part of the Silk Road Economic Belt, the overland segment of China’s BRI, direct cargo trains are frequently moving between China and Europe.

The writer is a senior journalist working for China Today, CRIOnline and, China Plus. He also writes for local and international print media. He is a fellow of ICFJ and a recipient of China friendly Netizen 2017 award. He can be reached at [email protected] and tweets at @yasirkhann
 
Paro said:
Their biggest problem is drinking water. But I think they are constructing a desalination plant nearby
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Sir.

The plant is being constructed to cater primarily for the Chinese who are going to be coming in. The capacity of other projects needed to be taken by Pakistan under Municipal Head is likely to be insufficient.

I think that China is planning to fund the capacity enhancement for the civil population too, in effect, undertaking the municipal duties of the local government.

Makes sense for the Chinese.
 
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Falcon said:
The plant is being constructed to cater primarily for the Chinese who are going to be coming in.
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I have a friend from Karachi who’s hometown is near gwadar. She confirmed about a construction of an apartment housing complex exclusively for the initial batch of Chinese moving in. The deadline is 2020. Someone related to her is the sub contractor for the project.
 
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CPEC’s Centre of Excellence fails to fulfill core responsibility

ISLAMABAD: The China-Pakistan Economic Corridor’s (CPEC) policy think tank, set up at a cost of Rs1.2 billion to fill policy gaps, is struggling to perform its core tasks even two years after its establishment due to misplaced priorities of the government.

Due to absence of a home-grown policy, the $60 billion CPEC is guided by a voluminous study that was carried out by the China Development Bank which became the basis for the Long-term Plan 2017-2030. At the time of approving the Centre of Excellence project, there was hope that the country will soon have research-based studies in important areas of CPEC, according to government officials who were involved in setting up the centre.

About two years ago, the government had set up the Centre of Excellence of CPEC with the aim of providing “policy guidelines to the Ministry of Planning and Development and other relevant ministries” in integrating the economies of the two countries. Its other key goal was providing empirical policy guidelines for best use of the $60 billion corridor and other foreign direct investment that will flow in because of CPEC.

In early 2016, the five-year project plan for the Centre of Excellence was approved at a cost of Rs1.215 billion.

The project’s objective was to “provide policy-based research guidance to federal and provincial governments and implementers of CPEC projects to enable an efficient and coordinated implementation, ensuring maximum benefit to both economies and society at large”.

The Department was also supposed to offer Masters in Chinese Economy and Masters in Chinese Cultural Studies within one year.

Two years down the line, the centre’s work is limited to only holding roundtable conferences and publishing articles in the media to counter propaganda against CPEC. It has also moved away from the five thematic research areas, showed internal papers of the Centre of the Excellence.

Since its inception, the centre has not produced even a single research paper in thematic areas of job growth and human resource development, urban development in Pakistan, financing and financial sector Integration, regional connectivity, trade and industry cooperation and socio economic impacts of CPEC.

The centre took over one year to set up and was inaugurated only in March 2017, said Dr Saleem Janjua, the head of urban development unit of the centre. He said that the centre was not responsible for the delay, adding that it has started conducting roundtable conferences.

The key obstacles in achieving the objectives were using the Center of Excellence for image-building activities by the Planning Ministry and hiring people with an engineering background in key positions, according to officials working with the centre and in the Planning Ministry.

An executive director level officer heads the centre and, according to the PC-I of the project, they must have over 15 years senior management experience in government, development sector or in international organisations with an emphasis on socio-economic development strategies and regional integration.

The centre could also not meet most of the targets set out for the second quarter of 2017, despite having a consolidated work plan. But the plan was modified keeping in view the short-term pressing demands put forth by the Planning Ministry, according to officials.

Executive Director of the Centre Dr Shaid Rashid claimed that the centre has produced dozens of research papers that are also available on the website. But he could not cite the name of a single research paper.

The Centre of Excellence website carries three published reports, which are largely based on day-to-day issues. For instance, one report is based on outcomes of a roundtable conference on “CPEC-A Step towards Environmentally Sustainable Special Economic Zones”.

There was a realisation that the ministries and departments directly or indirectly linked with CPEC projects need policy support as most of the implementers do not have strong internal research and development facilities. The CPEC Centre of Excellence was meant to fill this gap.

However, instead of producing quality policy documents, the centre’s internal papers showed that work in most of the targeted areas remains behind schedule. For instance the work on proposed Priority Special Economic Zones under CPEC, Factor Endowments Opportunities and Prospects has not been completed yet.

Similarly, work on situational analysis of GSP, GSP+, EU, Pakistan and CPEC could not be completed. The CPEC value proposition for China, Afghanistan, Iran, EU, Sweden and Azerbaijan could not be completed either.
 
Lobbying firm hired to target CPEC in European Parliament

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LONDON: A group called Baloch Voice Association (BVA) has hired an influential lobbying firm to arrange a conference on Balochistan in the European Parliament against the China Pakistan Economic Corridor (CPEC) but the lobbying firm has not disclosed the amount paid to it in the European Union’s Transparency Register.

This correspondent has seen evidence showing that the BVA, whose president is France-based Munir Ahmed Mengal, made payments to influential lobbying firm Kreab, which specialised in strategic communications consultancy and has offices in over three dozen countries, to arrange conference in the European Parliament which is scheduled to take place this month featuring Khan of Khalat, Mir Sileman Dawood Jan, as the main guest.

Interestingly, the lobbying firm didn’t declare details of the payments it received in the Transparency Register until contacted by The News to ask about the source of funding, nature of the contract and the received amount. A trusted Baloch source said that the lobbying firm has been paid in cash to arrange the conference and “to look after the European Parliament members”.

Emails sent by the BVA’s President Munir Mengal to the lobbying firm to organise the conference inside the European Parliament stated that the conference will be titled “Why Balochistan matters: Implications of China’s One Belt One Road policy on the Baloch community” and its impacts on “the future of the regional and international communities; concerns etc against CPEC”.

The email said: “Baloch Voice Association needs your kind support to organise this conference” and “Baloch Voice Association and Baloch European Diaspora will bear the expanses of this conference”.

It then went on to make the financial offer for those who will attend the conference and will give supporting views: “The Baloch Diaspora in Europe will be able to give donation for your party.”

The lobbying firm then sent dozens of email invitations to influential EU parliamentarians stating that it was acting on behalf of the “Baloch Voice Association, a non-governmental organisation which aims to defend and pursue respect of human rights for the citizens of Balochistan”.

The lobbying firm then explained in its correspondence that object of the conference isabout the CPEC. “As you are already aware, the territory, a province of Pakistan, has become an important economic and strategic hub for the country. However, the existing infrastructural projects and related investments enrich only central administrations and do not bring any benefit to the Balochistan region or community, which is deprived of its most basic needs. In an effort to raise awareness around these issues, the BVA is organising a European Parliament event and would be pleased if you would accept to host it.”

The lobbying firm informed the MEPs that its representatives would like to meet them to brief them further about the conference and to take care of any other aspects of the conference. The lobbying firm confirmed that the conference on “China’s One Belt One Road Policy” will be attended by a “diverse range of speakers, including Baloch academics, NGOs, MEPs and His Excellency, Khan of Khalat, Mir Sileman Dawood Jan”, followed by a networking dinner.

The European Union’s Transparency Register, run by the Joint Transparency Register Secretariat (JTRS), shows that Baloch Voice Association registered itself towards the end of 2015. Munir Ahmed Mengal, a long time ally of the Khan of Kalat, is registered as its President who is based out of France. The website says that the BVA “brings the concerns of oppressed persons and communities particularly of South Asia to the attention of the decision makers in the EU”.

In the financial declaration, the BVA gives estimate of the annual costs related to activities at around 56,800 €. It says its total budget till the end of 2016 was 56,800 € - of which 5,300 € was contributions from members and 51,500 € came from Baloch Voice Foundation.

When contacted, Karl Isaksson, spokesman for the Kreab, told The News: “We help the BVA to arrange a conference in the European Parliament, as a one-off project. Hence the contacts with MEPs. It will be reported in the Transparency register when it is updated with the 2017 information.” He said that the conference is “still in the planning phase, we’re aiming for a date in Q1 next year”. Muneer Mengal was sent questions but didn’t respond in three days.

More at : Lobbying firm hired to target CPEC in European Parliament
 
Europe casts a wary eye on China's Silk Road plans

Depending on who you ask in Europe, China's colossal East-West infrastructure programme is either an opportunity or a threat ─ and when French President Emmanuel Macron visits next week, Beijing will be watching to see how keen he is to jump on board.

Since China launched the New Silk Road plan in 2013, the hugely ambitious initiative to connect Asia and Europe by road, rail and sea has elicited both enormous interest and considerable anxiety.

“It's the most important issue in international relations for the years to come, and will be the most important point during Emmanuel Macron's visit,” said Barthelemy Courmont, a China expert at French think-tank Iris.

The $1 trillion project is billed as a modern revival of the ancient Silk Road that once carried fabric, spices, and a wealth of other goods in both directions.

Known in China as “One Belt One Road”, the plans will see gleaming new road and rail networks built through Central Asia and beyond, and new maritime routes stretching through the Indian Ocean and Red Sea.

Beijing will develop roads, ports and rail lines through 65 countries representing an estimate 60 per cent of the world's population and a third of its economic output.

Macron, who heads to China for a three-day state visit on Sunday, will notably be accompanied by some 50 company chiefs keen to do business with the Asian powerhouse.

So far France has been cautious on the Silk Road plan, but Courmont said Chinese leaders were “waiting for a clear position” from Macron at a time when they view the young leader as an “engine” for growth in Europe.

“If Macron takes a decision on how to tackle the Chinese initiative, all of Europe will follow,” Courmont predicted.

But, as Courmont acknowledges, Europe is divided on what to make of China's ambitions.

The continent could potentially benefit handsomely from increased trade over the coming decades, but in some corners there is suspicion that it masks an attempted Beijing influence grab.

“They are notably asking themselves about the geopolitical consequences of this project in the long-term,” Alice Ekman, who covers China at the French Institute of International Relations, said of France and Germany.

Win-win?
In Central and Eastern Europe the programme has been met with altogether more enthusiasm, given the huge infrastructure investment that China could bring to the poorer end of the continent.

“Some consider the awakening of China and Asia as a threat,” Hungary's Prime Minister Viktor Orban told a summit in Budapest in November which gathered China with 16 Central and Eastern European countries.

“For us, it's a huge opportunity,” he said, with Beijing using the summit to announce three billion euros of investment in projects including a Belgrade-Budapest railway line.

Bogdan Goralczyk, director of the Centre for Europe at the University of Warsaw, noted there were divisions even within eastern Europe, with Poland hesitant due to its right-wing government's “strong anti-communist stance”.

Others to the west have made little effort to hide their concern.

Former Danish premier Anders Fogh Rasmussen fretted in a column for Germany's Zeit newspaper that “Europe will wake up only when it's too late, and when swathes of central and eastern Europe's infrastructure are dependent on China.”

The former Nato chief noted that Greece ─ a major recipient of Chinese largesse ─ had in June blocked an EU declaration condemning Chinese rights abuses.

It came just months after Athens' Piraeus port, one of the biggest in the world, passed under Chinese control.

Germany, Europe's biggest economy, is favourable to Chinese investment, but has reservations. “If we do not develop a strategy in the face of China, it will succeed in dividing Europe,” Foreign Minister Sigmar Gabriel warned in August.

France is meanwhile seeking to “rebalance” relations with China during Macron's trip, according to his office ─ eyeing a trade deficit of 30 billion euros, its biggest with any partner.

“Our Chinese partners would prefer a win-win situation. Why not? On the condition that it's not the same party that wins twice,” French Foreign Minister Jean-Yves Le Drian said Thursday.

“It is not France's intention to block China,” he said.

More at : Europe casts a wary eye on China's Silk Road plans - World - DAWN.COM
 
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