China’s Belt and Road initiative: In giant trade Belt, Road to new growth rush

China is hosting the Belt and Road Forum (BRF) for international cooperation to discuss strategy of the initiative and accelerate the pace of its implementation. Various high-level delegations, that include 29 Heads of States, are going to attend this meeting.

Belt and the Road initiative

• China’s One Belt One Road (OBOR) comprises, overland Silk Road Economic Belt (the belt) and 21st century Maritime Silk Road (the road) to foster trade and enter new markets
It aims to connect Asia, Europe and Africa
The Belt comprises of three overland routes:
- Connecting China, Central Asia, Russia and Europe
- Linking China with the Persian Gulf and the Mediterranean Sea through Central Asia and West Asia
- Connecting China with Southeast Asia, South Asia and the Indian Ocean
The Road refers to 21st century Maritime Silk Road which comprises of two routes:
- From China’s coast through the South China Sea and the Indian Ocean
- From China’s coast through the South China Sea to the South Pacific

Significance of OBOR for China:

It will boost domestic growth in China which has slipped recently by opening new markets for Chinese goods and will help export excess capacity in certain sectors such as steel and cement
It will also help China in expanding its economic diplomacy
It visualizes a shift from developed markets of western Europe to developing economies in Asia
It also aims to develop provinces in central and western China instead of the developed east coast region

Concerns raised by India against OBOR:

India has its reservations about a section of the project.
The China-Pakistan economic corridor(CPEC) passes through Gilgit-Baltistan region of Kashmir which India claims are illegally held by Pakistan
India considers the CPEC corridor as a challenge to its sovereignty as it passes through a region which is illegally held by Pakistan

India’s response to the Belt and Road Initiative:

Indian response should be based on long term interest and not short term concerns
We can develop common standards with the fastest growing economies in Asia, to help facilitate trade, investment and business engagement
We can also offer a new cooperation framework in South Asia that will be centered around current global challenges
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