Everything One Needs to Know about China’s New Silk Road
You must have heard about the famous Silk Road. Yes, the same silk road that connected China with various parts of Europe during the days of the Roman Empire. The Silk Road was the reason that oriental silk from China made its way into Europe.
Well, the Silk Road is on its way towards a resurrection. It was announced by the Chinese president, Mr. Xi Jinping that a two-way trade corridor will be built, which will connect china to its western neighbors like Central Asia, Middle East, and Europe.
The reason behind rebuilding the Silk Road is to create land and sea routes. As a result, China will get a chance to improve its trade relations in the regions, mainly through investment in infrastructure.
China is investing a total of $ 900 billion in building this two-way economic corridor. This initiative will enhance globalization and lead China and rest of the world to an age of economic prosperity. Beijing says that it is willing to lend $8 trillion for infrastructure development in more than 65 countries. This is equivalent to 65% of the global population and one-third of the global gross domestic product (GDP).
However, there are diverse reviews about China’s new plan all over the world. Many countries are beginning to doubt China’s geopolitical intentions. Yet, there are those who are appreciating the ambition behind this brave move.
Ever since it was announced, this project has proven to be comprehensive, costly, and very controversial. Everyone wants to know why exactly is China doing all of this.
One reason behind this move is that the trade infrastructure will strengthen the poor countries to the south of China and also have a positive impact upon the global trade. As a result, the less-developed countries will benefit too, especially the ones situated towards the western part of China.
The economic benefits of this initiative are numerous, but most importantly trading with new markets give allow China the edge that is required to maintain its economic buoyancy.
As a result, China’s telecommunication and transportation companies seem driven to emerge as popular global brands.
The manufacturing sector in China seems poised to benefit from this new development, big time. Along the new Silk Road, China’s industry could find outlets for the manufacturing of steel and other heavy equipments. This will allow China’s manufacturing sector to go towards high-end industrial commodities.