Significance of the ‘Belt and Road Initiative’ goes beyond trade
Globalisation is the stated goal of trade plan but the benefits will be seen in other areas too, most notably in China’s further opening up to the world
We lack specifics on the import expo and details need to be ironed out. There remain risks, both security and financial, in deals with 68 countries to jointly develop infrastructure. But a clear blueprint for a China-led revival of ancient Silk Road trade routes is unfolding.
Also absent among 29 leaders were those of major trade partners the US, Japan and Australia, among other developed countries. Several European countries, including Germany, France and Britain also declined to sign a trade statement at the summit, citing lack of clarity on a level playing field for private companies in tendering against state-owned enterprises for government contracts, or on social and environmental standards.
Scepticism among Western countries is understandable. They are accustomed to thrashing out rules and standards before signing a treaty. But one set of rules will not fit everyone in the diverse mix of belt and road countries. As a result China seeks more flexibility through bilateral negotiations, an approach that has served it well in Africa. There may be criticism of the lack of clarity, standards and rules, but the belt and road plan is to be encouraged because it is a commitment to further opening up, not to mention Hong Kong’s self interest in the chance to become the principal financial hub for China’s global trade and commerce strategy.