The 21st-century MaritimeSilk Road and The Silk Road Economic Belt are also known as the One Belt and OneRoad Initiative (OBOR), The Belt and Road (B&R) and The Belt and RoadInitiative (BRI) is a development strategy proposed by China’s top leaderPresident Xi Jinping; which focuses on the connectivity and cooperation betweenEurasian countries, particularly the People’s Republic of China (PRC), theland-based Silk Road Economic Belt (SREB) and the oceangoing Maritime Silk Road(MSR). The strategy underlines China’s determination to take a bigger role inglobal affairs with a trade network based in China. These initiatives wererevealed in September and October 2013 respectively for SREB and MSR. PremierLi Keqiang also promoted it during his state visit to Asia and Europe. InEnglish, this initiative was originally called One Belt and One RoadInitiative, but in the mid-2016 the official English name was changed to theBelt and Road Initiative due to misinterpretation of the term one. For almostfour years, the focus has been primarily on infrastructure investment,construction materials, railway and highway, automobile, real estate, powergrids, and iron and steel.
Overly Supplied ManufacturingIndustry ProductsChina’s manufacturingproduction is abundant while the demand is unchanged. This has led to China’seconomic growth declining in recent years, which still relies on themanufacturing sector to be exported. With this project, China will be able todistribute the overly supplied manufacturing industry products.In the year 2015 China seteconomic growth amounted to 7%, although it is a declining economic growthcompared to the 10% economic growth in 2010, China is still the second largesteconomy contributor after America.
The imbalances of economic growth in Chinahas been relying on foreign trade, export and consumption and investment growthare disproportionate compared with the growth of the export sector. The globaleconomic recession marked by the declining and even minus of America and Europe’seconomy, making Chinese exports also declining which gives impact on the decreaseof the GDP of China.America and Europe is thelargest export destination of China.
The economic slowdown in both continentsforced China to look for another alternative to maintain its economic growth. Bybuilding economic integration of Europe, Asia and Africa are expected to beable to distribute the output of China’s overcapacity industrial products suchas iron and steel. Belt and Road InitiativeThe Belt and RoadInitiative (BRI) is a multifaceted economic, diplomatic, and geopoliticaleffort that has been transformed through various iterations, from the”Modern Silk Road” to “One Belt One Road”. OBOR is aconcept that tries to build a Eurasia economic integration zone inspired by thesuccess of the Ancient Silk Economic Path.This project will build theeconomic path of China’s cooperation to Europe through Central Asia and someASEAN countries. To realize this project; there have been established financialinstitutions such as the AIIB (Asian Infrastructure Investment Bank) and SilkRoad funds. Countries that have registered as AIIBcontributors and supporters led by China include countries in Asia, such asIndia, Japan, Korea and even European countries such as Germany and Britain. It is said that this project has made the Uncle Sam country a.
k.aAmerica worried, as there will be a new rival for its dominance in the globaleconomy. According to data from ADB (Asian DevelopmentBank), the infrastructure in Asia needs $1.7 trillion USD per year from2016-2030, or in total up to $26 trillion USD. The infrastructures to be builton this route include the crevice lines, toll roads, bridges, ports, energypipelines, the development of industrial zones and the Internet network.
By May 14-15, 2017, Chinaheld the “One Belt and One Road” Summit Forum (OBOR) or the Silk RoadSummit in Beijing. A total of 130 countries, 70 organizations, and more than 1,500participants and 29 heads of state including Indonesia’s President Jokowi cameto attend an unprecedentedly glorious forum. Besides Indonesia, there are othercountries, which are also competing to take the investment from China. The Beltand Road is actually carried by China to overcome the economy imbalance in theIron Curtain country. However, it is also utilize as a capital investment by thecountries present.
China initiated and led BRIwith a $ 1.7 trillion investment program to create infrastructure networksincluding roads, railways, telecommunications, energy pipelines and ports. Thiswill enhance economic interconnectivity and facilitate development in Eurasia,East Africa, and more than 60 partner countries. For more than three years,the SREB ground infrastructure network includes connecting a series of major”Belt and Road” construction projects started one at a time.
The Beltand Road initiative is geographically structured along 6 corridors, and theMaritime Silk Road. The Six corridors of Economy are:· New Eurasian Land Bridge: going from Western China – Western Russiathrough Kazakhstan.· China–Mongolia–Russia Corridor: going from Northern China – EasternRussia· China–Central Asia–West Asia Corridor: going from Western China – Turkey· China–Indochina Peninsula Corridor: going from Southern China toSingapore· China–Myanmar–Bangladesh–India Corridor: going from Southern China toMyanmar· China–Pakistan Corridor: going from South-Western China to Pakistan· Maritime Silk Road: going from the Chinese Coast through Singapore tothe Mediterranean