A great deal of rhetoric is expended over China’s gigantic investment initiatives. Still, many of the economic projects are real, and Western governments will be well advised to understand their purpose.
The Middle Kingdom is asserting its centrality in global affairs by hosting the Silk Road summit this weekend. Aimed at showcasing President Xi Jinping’s ‘Belt and Road’ vision, the conference will bring together leaders, officials and experts from around the world.
Apart from the signing of some large deals and some affirmations about China’s eagerness towards free trade, the summit’s real importance is in the message it sends about China’s place in the world. Continue reading →
As the new president of Uzbekistan, Shavkat Mirziyayev, embarks on foreign visits, Beijing is likely to be fourth on the list, illustrating a broader set of tensions for China in its quest for a Silk Road economic belt through Central Asia.
Since independence from the Soviet Union in 1991, Uzbekistan has maintained a strategic distance from Moscow and been unwilling to open its doors wide to Chinese investment. It also employs tight currency controls, making it hard for companies to withdraw profits.
All of this produces problems for China’s vision of open trade and economic corridors under the “One Belt, One Road” initiative. Continue reading →
After the collapse of the Soviet Union the newly independent countries of the Central Asian region for the first time in their modern history looked beyond the iron curtain with which they were isolated from the world within the Soviet era. They quickly remembered that in ancient times they were an important part of what today can be called a global system of communication and trade – the Great Silk Road, which connected China to Europe through the Eurasian continent. Central Asian countries desperately needed to break their newly land-locked status. Forming a trade path from East to West was part of their unique selling point. However, such a position is not merely their geographical destiny. It is also a geopolitical condition due to the fact that unlocking the region depends largely on neighboring great powers – namely China and Russia. But interestingly, the opening and unlocking of Central Asia appears to be a more complicated and protracted process than expected, in which the ‘Modern Silk Road’ needs to balance multiple national interests. Continue reading →