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China well knows that its development is linked to Asia and beyond. As it grows stronger, it has to shoulder greater global responsibilities. Photo: Xinhua

'One belt, one road' initiative will define China's role as a world leader

China's "one belt, one road" initiative has been much talked about for the past two years, but little understood by other governments.

China's "one belt, one road" initiative has been much talked about for the past two years, but little understood by other governments. The annual Boao Forum was used to articulate the idea, with President Xi Jinping spelling out the vision in his keynote address and three government entities teaming up to issue an action plan. It is the most significant and far-reaching project the nation has ever put forward, having domestic and foreign policy implications that impact the economy and strategic and diplomatic relations. Importantly, it provides an opportunity for the nation to take a regional and global leadership role.

There are obvious benefits for China. The initiative dove-tails neatly with its Asian Infrastructure Investment Bank and Silk Road Fund, creating a structure for Chinese companies to help build the roads, railway lines, ports and power grids that are sorely needed in many parts of Asia, Africa and the Middle East. That, in turn, will involve loans and swap deals aimed at making the yuan a global currency. But as Xi made clear, all countries involved will also prosper.

Together, the Silk Road economic belt linking China and Europe through Central Asia and the Middle East and the 21st-century Maritime Silk Road to Africa and the Pacific covers 65 countries on three continents and 4.4 billion people. Infrastructure construction will drive development that will lead to greater economic cooperation. Long term, it is envisaged that bilateral and regional free trade areas will arise along with financial integration. Xi hopes that China's annual trade volume with belt and road countries will exceed US$2.5 trillion in a decade or so.

China well knows that its development is linked to Asia and beyond. As it grows stronger, it has to shoulder greater global responsibilities. For the region and the world, a growing Chinese domestic market means the chance to capitalise by providing goods and services. Cooperation and coordination of policies will be win-win for all involved.

But governments worried about China's rise still have to be won over. There will be concern at the political dimensions, making use of the belt and road to promote foreign policy objectives of respect for sovereignty and non-interference in the affairs of other countries. While convincing has to be done, the initiatives will propel China to a more active leadership role in regional integration and the global economy.

 

This article appeared in the South China Morning Post print edition as: Road to promote China's world role
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