There has been much speculation on the role of the Silk Road Fund (SRF) and Asian Infrastructure Investment Bank (AIIB) in China’s outward investment push.
They are both instruments created by Beijing to provide economic firepower and bring international credibility to the ‘Belt and Road’ vision that has become President Xi Jinping’s keynote foreign policy concept. But in reality they have both undertaken a series of investments that, while substantial and linked to ‘Belt and Road’ countries, pale in size next to China’s overall outward investments.
While the AIIB has quite clearly been subsumed into the ‘Belt and Road’ project, the SRF has so far largely focused on commercial projects which are focused on profit rather than national strategy. Continue reading →
From 1949 until the late 1990’s Central Asia was conspicuous in Chinese foreign policy by its absence. China has since “rediscovered” Central Asia. Twice.
China first rediscovered the five Central Asian republics as a crucial source of energy and the key partner in fighting against separatists in North-west China. In the first decade of the 21st century, bilateral trade—primarily in the form of Chinese imports of energy and exports of manufactured products—witnessed extraordinary growth, reaching $51.1 billion in 2013. Meanwhile, the Shanghai Cooperation Organization was established in 2001, and one of its main missions continues to be to “maintain and ensure peace, security and stability in the region”. Continue reading →