The new Silk Road will link China with the Middle East
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Topping everyone’s agenda at the conference was China’s “ One Belt, One Road” project. For Arab leaders, the idea works: The region was culturally entangled with China along the old Silk Road trading routes for thousands of years. “One Belt, One Road” is China’s policy of revitalizing the Silk Road with investments in roads, high-speed rails and ports, bringing efficiency to manufacturing bases across a broad regional belt. It makes perfect sense to every Arab leader. For ages the Silk Road represented a true globalization of ideas, facilitated by trade and based on respect for others’ diversity, a mutual exchange and learning. That is different from unilateralism, whether coming from the World Bank, the White House or the Pentagon.
Topping everyone’s agenda at the conference was China’s “ One Belt, One Road” project. For Arab leaders, the idea works: The region was culturally entangled with China along the old Silk Road trading routes for thousands of years. “One Belt, One Road” is China’s policy of revitalizing the Silk Road with investments in roads, high-speed rails and ports, bringing efficiency to manufacturing bases across a broad regional belt. It makes perfect sense to every Arab leader. For ages the Silk Road represented a true globalization of ideas, facilitated by trade and based on respect for others’ diversity, a mutual exchange and learning. That is different from unilateralism, whether coming from the World Bank, the White House or the Pentagon.
Review and prospects of China's diplomacy
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Last year saw the steady and comprehensive progress of the Belt and Road Initiative proposed by Chinese President Xi Jinping. With the establishment of the Asian Infrastructure Investment Bank (AIIB), the Silk Road Fund and various economic cooperative programs, the initiative has gradually come into being.
At the G20 Hangzhou Summit in September last year, China provided the world with a new model of global governance, and the Belt and Road Initiative provided a promotional platform for the model. The five overseas trips to 14 countries President Xi made last year were a boon to the development of the initiative.
Last year saw the steady and comprehensive progress of the Belt and Road Initiative proposed by Chinese President Xi Jinping. With the establishment of the Asian Infrastructure Investment Bank (AIIB), the Silk Road Fund and various economic cooperative programs, the initiative has gradually come into being.
At the G20 Hangzhou Summit in September last year, China provided the world with a new model of global governance, and the Belt and Road Initiative provided a promotional platform for the model. The five overseas trips to 14 countries President Xi made last year were a boon to the development of the initiative.
The risks and benefits of China weakening its currency
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Even a slightly weaker currency - which makes Chinese goods cheaper - could help on that front.
But here's the rub: China can't allow the currency to weaken too much because of the potential blowback the country will face from both domestic and international markets.
"China's projecting power externally, via the Asia Infrastructure Investment Bank and the Silk Road Fund," adds Mr Motwani. "They're funding a lot of infrastructure projects in South East Asia, and that requires a lot of Chinese money. So it doesn't make sense for them to weaken their currency too much."
Then there's the risk of Chinese people choosing to take their money elsewhere because of lowered economic expectations at home - so-called capital flight.
Even a slightly weaker currency - which makes Chinese goods cheaper - could help on that front.
But here's the rub: China can't allow the currency to weaken too much because of the potential blowback the country will face from both domestic and international markets.
"China's projecting power externally, via the Asia Infrastructure Investment Bank and the Silk Road Fund," adds Mr Motwani. "They're funding a lot of infrastructure projects in South East Asia, and that requires a lot of Chinese money. So it doesn't make sense for them to weaken their currency too much."
Then there's the risk of Chinese people choosing to take their money elsewhere because of lowered economic expectations at home - so-called capital flight.
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