The still the second largest economy contributor after

The 21st-century Maritime
Silk Road and The Silk Road Economic Belt are also known as the One Belt and One
Road Initiative (OBOR), The Belt and Road (B&R) and The Belt and Road
Initiative (BRI) is a development strategy proposed by China’s top leader
President Xi Jinping; which focuses on the connectivity and cooperation between
Eurasian countries, particularly the People’s Republic of China (PRC), the
land-based Silk Road Economic Belt (SREB) and the oceangoing Maritime Silk Road
(MSR). The strategy underlines China’s determination to take a bigger role in
global affairs with a trade network based in China. These initiatives were
revealed in September and October 2013 respectively for SREB and MSR. Premier
Li Keqiang also promoted it during his state visit to Asia and Europe. In
English, this initiative was originally called One Belt and One Road
Initiative, but in the mid-2016 the official English name was changed to the
Belt and Road Initiative due to misinterpretation of the term one. For almost
four years, the focus has been primarily on infrastructure investment,
construction materials, railway and highway, automobile, real estate, power
grids, and iron and steel.

 

Overly Supplied Manufacturing
Industry Products

China’s manufacturing
production is abundant while the demand is unchanged. This has led to China’s
economic growth declining in recent years, which still relies on the
manufacturing sector to be exported. With this project, China will be able to
distribute the overly supplied manufacturing industry products.

In the year 2015 China set
economic growth amounted to 7%, although it is a declining economic growth
compared to the 10% economic growth in 2010, China is still the second largest
economy contributor after America. The imbalances of economic growth in China
has been relying on foreign trade, export and consumption and investment growth
are disproportionate compared with the growth of the export sector. The global
economic recession marked by the declining and even minus of America and Europe’s
economy, making Chinese exports also declining which gives impact on the decrease
of the GDP of China.

America and Europe is the
largest export destination of China. The economic slowdown in both continents
forced China to look for another alternative to maintain its economic growth. By
building economic integration of Europe, Asia and Africa are expected to be
able to distribute the output of China’s overcapacity industrial products such
as iron and steel.

 

Belt and Road Initiative

The Belt and Road
Initiative (BRI) is a multifaceted economic, diplomatic, and geopolitical
effort that has been transformed through various iterations, from the
“Modern Silk Road” to “One Belt One Road”. OBOR is a
concept that tries to build a Eurasia economic integration zone inspired by the
success of the Ancient Silk Economic Path.

This project will build the
economic path of China’s cooperation to Europe through Central Asia and some
ASEAN countries. To realize this project; there have been established financial
institutions such as the AIIB (Asian Infrastructure Investment Bank) and Silk
Road funds. Countries that have registered as AIIB
contributors and supporters led by China include countries in Asia, such as
India, 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.a
America worried, as there will be a new rival for its dominance in the global
economy. According to data from ADB (Asian Development
Bank), the infrastructure in Asia needs $1.7 trillion USD per year from
2016-2030, or in total up to $26 trillion USD. The infrastructures to be built
on this route include the crevice lines, toll roads, bridges, ports, energy
pipelines, the development of industrial zones and the Internet network.

By May 14-15, 2017, China
held the “One Belt and One Road” Summit Forum (OBOR) or the Silk Road
Summit in Beijing. A total of 130 countries, 70 organizations, and more than 1,500
participants and 29 heads of state including Indonesia’s President Jokowi came
to attend an unprecedentedly glorious forum. Besides Indonesia, there are other
countries, which are also competing to take the investment from China. The Belt
and Road is actually carried by China to overcome the economy imbalance in the
Iron Curtain country. However, it is also utilize as a capital investment by the
countries present.

China initiated and led BRI
with a $ 1.7 trillion investment program to create infrastructure networks
including roads, railways, telecommunications, energy pipelines and ports. This
will 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 Belt
and Road initiative is geographically structured along 6 corridors, and the
Maritime Silk Road. The Six corridors of Economy are:

·      
New Eurasian Land Bridge: going from Western China – Western Russia
through Kazakhstan.

·      
China–Mongolia–Russia Corridor: going from Northern China – Eastern
Russia

·      
China–Central Asia–West Asia Corridor: going from Western China – Turkey

·      
China–Indochina Peninsula Corridor: going from Southern China to
Singapore

·      
China–Myanmar–Bangladesh–India Corridor: going from Southern China to
Myanmar

·      
China–Pakistan Corridor: going from South-Western China to Pakistan

·      
Maritime Silk Road: going from the Chinese Coast through Singapore to
the Mediterranean