The Belt and Road Initiative and Sino-Russian economic cooperation: Is there one more chance for us?

2019 ◽  
pp. 47-71
Author(s):  
Petr M. Mozias
Keyword(s):  
Regional Integration ◽  
Raw Materials ◽  
Belt And Road Initiative ◽  
Stage Of Development ◽  
Belt And Road ◽  
Flexible Framework ◽  
The One ◽  
International Transactions ◽  
The Belt And Road ◽  
Current Stage

China’s Belt and Road Initiative could be treated ambiguously. On the one hand, it is intended to transform the newly acquired economic potential of that country into its higher status in the world. China invites a lot of nations to build up gigantic transit corridors by joint efforts, and doing so it applies productively its capital and technologies. International transactions in RMB are also being expanded. But, on the other hand, the Belt and Road Initiative is also a necessity for China to cope with some evident problems of its current stage of development, such as industrial overcapacity, overdependence on imports of raw materials from a narrow circle of countries, and a subordinate status in global value chains. For Russia participation in the Belt and Road Initiative may be fruitful, since the very character of that project provides us with a space to manoeuvre. By now, Russian exports to China consist primarily of fuels and other commodities. More active industrial policy is needed to correct this situation . A flexible framework of the Belt and Road Initiative is more suitable for this objective to be achieved, rather than traditional forms of regional integration, such as a free trade zone.

scholarly journals China: investment ambitions, limitations and opportunities

2019 ◽  
Vol 2019 (3) ◽  
pp. 138-157 ◽  
Author(s):  
Serhii Korablin
Keyword(s):  
Raw Materials ◽  
Value Added ◽  
Capital Intensity ◽  
Developed Countries ◽  
Belt And Road Initiative ◽  
Foreign Investments ◽  
Rapid Economic Growth ◽  
Belt And Road ◽  
The One ◽  
The Belt And Road

The article considers financial aspects of the implementation of the People's Republic of China's international initiative of "One Belt, One Way". China's impressive economic success over the last 30 years has shown how it grew into a major global exporter and investor, gaining the second-country status in terms of national GDP and imports. These changes took place against the backdrop of rapid economic growth and deep structural reforms, which were accompanied by increased output and exports of high value-added products. Under these conditions, the country naturally prefers to reorient the global economic system in such a way that it is more conducive to China's economic, financial and political interests. A key practical tool for implementing such a plan is the One Belt, One Way initiative, which is to ensure simultaneous access to (a) Western technologies, (b) global raw materials markets, (c) infrastructure capacities that should maximize the deliveries of Chinese produce to all corners of the world economy. However, such an ambitious plan requires an extraordinary amount of financial resources. Despite China's considerable international reserves (over $3 trillion), its volume is still insufficient to cope with such a task. Moreover, the country itself needs further assimilation of foreign investment and technology due to the relatively low level of capital intensity of its workforce. China will be able to solve this dilemma if it manages to create a system of "counter investment", that is, attraction and absorption of foreign investments from more technologically developed countries, which are denominated in the main reserve currencies, and simultaneously realize their own foreign investments in Yuan, offering their users deliveries of own products of slightly lower technological complexity than those received from foreign investors. This publication was prepared based on the presentation of "The Belt and Road Initiative - A New Shape of Globalization?" presented at the Institute of World Economics and Policy (IWEP) of the Chinese Academy of Social Sciences (CASS) in May 2019 as part of the International Economic and Economic Conference on "Economic and Trade Cooperation under the Belt and Road Initiative: Retrospect and Prospect".

scholarly journals Tendencies and Prospects of China’s Investments into Russian Regions

2019 ◽  
pp. 35-45
Author(s):  
Victoria Batmanova ◽  
Ellada Tikhonovich ◽  
Tatyana Chigareva ◽  
Yuan Lyudai
Keyword(s):  
Foreign Direct Investments ◽  
Belt And Road Initiative ◽  
Russian Regions ◽  
Republic Of China ◽  
The Usa ◽  
Belt And Road ◽  
The Government ◽  
The One ◽  
Investment Process ◽  
The Belt And Road

The article examines the growing role of China in global investments. During 15 years of economic development of the country, the People’s Republic of China (PRC) became the second country in the world acting as a recipient of investments and the second (third) investor sending its funds abroad. After the maximum volume of foreign direct investments (FDI) from the PRC in 2016, 2017 was marked by the drop of FDI. This is connected with China’s control over FDI withdrawal from the country, increasing protectionism from other countries and the aggravating situation for Chinese investors in foreign markets. The drop of investments is connected with a number of reasons. On the one hand, the government of China has strengthened the control over the capital drain from the country in the form of investments. Another reason is the growth of trade protectionism. The complicating external conditions for Chinese investors in connection with the policy of the USA are also worth paying attention to. The 19th National Congress of China mentioned “Belt and Road Initiative” (BRI) strategy as the main plan for organizing the investment process in the nearest future. Today the effort concentration process (investments into infrastructure, interaction with the countries along the new economic silk belt) is observed. Russia and its regions are included into the Northern corridor of the Belt and Road Initiative and can leverage the advantages of the cooperation with China. China has already invested funds into perspective projects in Russian regions and in the nearest future they are expected to grow within the Belt and Road Initiative.

scholarly journals The Belt and Road Initiative: The Cornerstone of the New-Fangled Financial Institutionalism Led by China

2019 ◽  
Vol 9 (2) ◽  
pp. 153-182
Author(s):  
Enrique Martínez Galán ◽  
Francisco José Leandro
Keyword(s):  
World War Ii ◽  
Marshall Plan ◽  
Belt And Road Initiative ◽  
World War ◽  
Theoretical Frameworks ◽  
Republic Of China ◽  
Belt And Road ◽  
Political Landscapes ◽  
The One ◽  
The Belt And Road

AbstractThe debate about the benefits and the risks brought both to People’s Republic of China and to the other participant countries by the Belt and Road Initiative (BRI) has been gaining momentum in the academic and in the political landscapes. We argue that the BRI is the main pillar of the new financial institutionalism proposed by China to redefine the current global financial architecture and that, consequently, the initiative needs to be considered in that context. This paper (i) reviews the timeline that led to this Chinese-led new financial institutionalism, (ii) proposes two theoretical frameworks to define the concept of multilateral financial statecraft and of new financial institutionalism led by China, and (iii) enumerates the main differences and similarities observed between this new financial institutionalism and the one dominated by the Bretton Woods-related institutions that gradually emerged after World War II, such as the International Bank for Reconstruction and Development, the Marshall Plan, and the Asian Development Bank.

scholarly journals مبادرة الحزام والطريق: نشأة وأهداف / The Belt and Road Initiative: Origin and Objectives

2021 ◽  
Vol 1 (1) ◽  
pp. 81-89
Author(s):  
Ding Long
Keyword(s):  
Regional Integration ◽  
Financial Integration ◽  
Bilateral Trade ◽  
Policy Coordination ◽  
Silk Road ◽  
Chinese Government ◽  
Belt And Road Initiative ◽  
Maritime Silk Road ◽  
Belt And Road ◽  
The Belt And Road

Abstract The Belt and Road Initiative (BRI) is a strategy initiated by Chinese government that seeks to connect Asia with Africa and Europe via land and maritime networks with the aim of increasing commercial exchange, stimulating economic growth and improving regional integration. The BRI comprises a Silk Road Economic Belt and a 21st century Maritime Silk Road. The initiative defines five major priorities, namely policy coordination, infrastructure connectivity, unimpeded trade, financial integration, and people-to-people bonds. The BRI has been associated with large investment programs in infrastructure projects. It is also an increasingly important umbrella mechanism for China’s bilateral trade with BRI partners.

scholarly journals Recognition of Foreign Judgments in China: The Liu Case and the “Belt and Road” Initiative

2019 ◽  
Vol 37 (1) ◽  
Author(s):  
Ronald A. Brand
Keyword(s):  
International Law ◽  
Single Case ◽  
Private International Law ◽  
Belt And Road Initiative ◽  
Significant Development ◽  
Recognition And Enforcement ◽  
Belt And Road ◽  
The One ◽  
The Belt And Road ◽  
Chinese Court

In June, 2017, the Wuhan Intermediate People’s Court became the first Chinese court to recognize a U.S. judgment in the case of Liu Li v. Tao Li & Tong Wu. The Liu case is a significant development in Chinese private international law, but represents more than a single decision in a single case. It is one piece of a developing puzzle in which the law on the recognition and enforcement of foreign judgments in China is a part of a larger set of developments. These developments are inextricably tied to the “One Belt and One Road,” or “Belt and Road” Initiative first announced by Chinese President Xi Jinping on a visit to Kazakhstan in 2013. This article traces the development of the Liu case, from the first judgment in California to the decision to recognize and enforce that judgment in Wuhan, China. It then provides the context within which the decision on recognition and enforcement was made, and the way the decision fits within President Xi’s “Belt and Road” Initiative and the pronouncements of the Chinese People’s Supreme Court which have encouraged the recognition and enforcement of foreign judgments as part of that Initiative.

Forgotten effects in trade relations: a view from the Belt and Road Initiative (BRI)

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Julio Rojas-Mora ◽  
Felipe Chávez-Bustamante ◽  
Cristian Mondaca-Marino
Keyword(s):  
Raw Materials ◽  
Value Added ◽  
Monte Carlo Experiment ◽  
Belt And Road Initiative ◽  
Trade Network ◽  
Content Type ◽  
Trade Relations ◽  
Belt And Road ◽  
Trade Relationship ◽  
The Belt And Road

PurposeThe purpose of this paper is to evaluate Chinese indirect trade relations in the global trade network to observe if the objectives identified by Cai (2017) in the Belt and Road Initiative (BRI) are being fulfilled, especially with Latin America and the Caribbean (LAC) countries.Design/methodology/approachUsing data from the UNCTAD (2016) for the period 2011–2015, a normalized exports network is built. It is analyzed with the Forgotten Effects Theory and the PageRank algorithm. A Monte Carlo experiment with 10,000 replicates is performed to account for its volatility.FindingsThe paper identifies one instance in which China's peripheral countries are importing raw materials and commodities -–oil products – to produce low technological value-added products, which, in turn, are exported to China. LAC countries do not have significant indirect trade relations with China when the former is the origin country, while the latter is the destination in a trade relationship. The trade network has a clear core-periphery structure, with China belonging to its core, although being only the fourth most central node in the network.Originality/valueThis paper contributes with both a new methodology for the analysis of indirect trade relations and the results found for China under the BRI and its trade relationship with LAC economies.

scholarly journals THE SINO-WESTERN BALKANS RELATIONS WITHIN "BELT AND ROAD" INITIATIVE AMIDST THE WORLD’S GRAPPLING WITH THE RISE OF CHINA

TEME ◽  
2021 ◽  
pp. 145
Author(s):  
Sanja Arezina
Keyword(s):  
Belt And Road Initiative ◽  
Western Balkans ◽  
Positive Direction ◽  
The Great Recession ◽  
Rise Of China ◽  
Belt And Road ◽  
Eastern European Countries ◽  
Basic Hypothesis ◽  
The One ◽  
The Belt And Road

The Sino-Western Balkans cooperation has advanced significantly since the Great Recession and the Eurozone crisis. Relations were developed at the bilateral and multilateral levels, within the "One Belt, One Road" Initiative (Belt and Road Initiative – BRI) which was promoted in 2013 and which included the previously established Mechanism of Cooperation between China and the Central and Eastern European Countries ("17+1" Mechanism). Although the Chinese President Xi Jinping called BRI a "project of the century" in 2017, new international circumstances caused by the intensified the Sino-US rivalry and the COVID-19 pandemic made the Chinese leadership reconsider activities and funding abroad, and adjust the new 14th Five-Year Plan with changes that have taken place in the past five years. They decided that China will focus on "dual circulation" in the coming period, i.e. to reduce the numerous activities and investments (and loans) within the BRI, and to redirect funds to investing in domestic capacities. In this article, the author discusses the China-Western Balkans relations from 1949 until 2013 when the BRI implementation started, the factors influencing China’s cooperation with the Western Balkans and analyzes the progress of cooperation after the start of the BRI implementation compared to the previous period. In order to prove the basic hypothesis, that Sino-Western Balkan cooperation within the "Belt and Road" Initiative will continue to develop in a positive direction, despite the influence of negative factors, and above all due to the good results achieved within the "Belt and Road" Initiative in 2013, the author uses the structural-functional analysis, comparative analysis, induction and deduction.

INTRODUCTION: SOUTHEAST ASIA AND THE BELT AND ROAD INITIATIVE: THE POLITICAL ECONOMY OF REGIONALISM, TRADE, AND INFRASTRUCTURE

2020 ◽  
pp. 1-20
Author(s):  
HONG LIU ◽  
KONG YAM TAN ◽  
GUANIE LIM
Keyword(s):  
Southeast Asia ◽  
Regional Integration ◽  
Developing Economies ◽  
Regional Level ◽  
Belt And Road Initiative ◽  
Wealth Creation ◽  
Special Issue ◽  
Belt And Road ◽  
The Impact ◽  
The Belt And Road

Since its launch in late 2013, the Belt and Road Initiative (BRI) has become a significant factor in shaping China’s economic and diplomatic relations with the world. China’s increasing clout presents opportunities as well as challenges, especially for the developing economies of the Association of Southeast Asian Nations (ASEAN) which constitute major sites for investment and trade alongside the BRI routes. This special issue examines whether and to what extent China’s economic ascendancy has impacted the proposed ASEAN Economic Community and the respective nations in the region. It deals with this question by grounding the analysis along three themes — institutions at a regional level, industry/sector, and particular ASEAN countries’ economic relationship with China. A total of 12 articles are presented to illuminate the state of affairs at the regional level and in specific ASEAN economies. They point to the importance of managing trade and investment flows stemming from China’s increasingly sophisticated national firms. This in turn hinges on forging ‘rules of the game’ at both the multilateral and bilateral levels, which potentially leads to mutually beneficial industrialization and long-term wealth creation. In addition to summarizing key findings of the articles in the special issue, this introductory essay examines some of the key themes confronting ASEAN in its engagement with the BRI such as institutions, global supply chains, and economic strategies. It concludes with a brief discussion on the impact of the COVID-19 pandemic on the BRI in Southeast Asia, and on ways to enhance regional integration.

The One Belt One Road Initiative: An Enabler of Entrepreneurship or Big Business in Developing Countries

2020 ◽  
Vol 5 (1) ◽  
Author(s):  
Sivakumar Velayutham
Keyword(s):  
Developing Countries ◽  
Small Group ◽  
Global Economy ◽  
Economic Structure ◽  
Belt And Road Initiative ◽  
Economic Prosperity ◽  
One Belt One Road ◽  
Belt And Road ◽  
The One ◽  
The Belt And Road

In March 2015, China proposed the Belt and Road Initiative (OBOR) as its signature initiative to advance economic prosperity of the countries along the Belt and Road. The initiative promises economic development including entrepreneurial development and prosperity to mainly developing countries in Asia, Central Europe, and Africa. Entrepreneurship drives economic change and innovation while at the same time expanding opportunity and unleashing the initiative of people. Entrepreneurs are crucial to building prosperous societies that deliver opportunity to all. Recent evidence however suggests that the entrepreneurial economy is faltering and a small group of giant companies dominate the global economy. This paper seeks to critically appraise the possible effects of OBOR on entrepreneurship in developing countries along its route. Will OBOR revitalise entrepreneurship in developing countries or further intensify the dominance of the economy by a small group of giant companies. Empirical study indicates a high emphasis on large firms in the economic structure of OBOR countries (Novosak and Jurčík, 2018). This paper seeks to illustrate why OBOR is proving to be more of a Bane rather than a Boon to entrepreneurship in developing countries further promoting the dominance of the economy by big corporations.

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