Asian prospects in China’s Belt and Road initiative (BRI)

By Bilawal Hammad

Your commercial awareness dose

China’s BRI (Belt and Road Initiative), a trillion dollars project, is its quest to go global. NSR (New Silk Road) is the lynchpin to China’s BRI. New Silk Road is a continuation of the Old Silk Road, which itself was a socio-economic, political, and cultural link between nations having diverse cultural backgrounds. China’s BRI (Belt and Road Initiative), of which NSR (New Silk Road) is an important component, is divided into two aspects:

1. Silk Road Economic Belt.

2. 21st Century Maritime Silk Route.

Silk Road Economic Belt is land-based connectivity of roads that are spread around the whole of Europe and Asia. NSR (New Silk Road) is all about the Silk Road Economic Belt, which is a continuation and rehabilitation of the Old Silk Road. New Silk Road connects China with Europe, Central Asia, and South Asia. 21st Century Maritime Silk Route is the sea-based connectivity of China with East Asia, South East Asia, Africa, South Asia, Australia, New- Zealand, and Europe. These Silk Road Economic Belt and 21sr Century Maritime Silk Route will together not only boost China’s trade but, will also ensure socio-economic, political, and cultural connectivity among China, Asia, Europe, Africa, and the Australian continent.

Asia is the pivot to China’s BRI (Belt and Road Initiative). Connectivity is the main theme of

China’s BRI and it has started working on the projects. The Six main projects of BRI include:

• Bangladesh-China-India-Myanmar Economic Corridor (BCIMEC).
• China-Mongolia-Russia Economic Corridor (CMREC).
• New Euro-Asian Land Bridge (NELB).
• China-Central Asia-West Asia Economic Corridor (CCAWAEC).
• China-Indochina Peninsula Economic Corridor (CICPEC).
• China-Pakistan Economic Corridor (CPEC).

All the above-mentioned projects will boost exports from Asian nations to the rest of the world as almost all the mentioned projects include special economic zones where both large and small-scale manufacturing will take place. Asian Nations will also practice import substitutions strategies and will try to attenuate the burden on their import bills by manufacturing products that are import substitutes. The terms of trade are not very favourable in Asia as almost all of the South Asian nations have negative terms of trade that is their imports exceed their exports.

These important projects of China’s BRI will help them to improve their terms of trade and hence, will ameliorate their economy. China’s BRI will also provide Asia with an opportunity to import the latest technology in their respective countries and thus, these nations will be able to manage affairs in a better state of manner, presenting them with an opportunity to overcome the technological backwardness.

It can be argued that that China’s BRI will recalibrate the whole of Asia in a way that will be helpful for the Asian Nation to overcome their abject poverty, the abysmal state of infrastructure, weak human capital, and downtrodden institutional capacity. Projects like Gwadar Port Free Zone, Colombo Port City, China Railway Express to Europe, Jakarta-Bandung Railway, China-LAOS Railway, and China-Thailand Railway will resuscitate economic activity in Asia.

To sum up, China’s BRI (Belt and Road Initiative) is heading towards reality and is going to be a gamechanger in the World Economic Order and International Political Economy. Asia is the main beneficiary in China’s BR and China itself has started working on six main projects that are based in Asia. China’s BRI will improve the economy and will lead to inclusive growth and development in Asia.