China's Silk Road Initiative | What India should do!

[amoy]

india got no scoop in land route,
mountains ranges at north and paki at northwest,
any route land or sea has to be safe and BS free,so land route not gonna be think about,
sea route serves dual purpose trade to not just to middle east but also africa and security purpose of making a powerful navy.

gotta be extremely cautious abt the overland route as it's to pass through landlocked C. Asia where Russia is vigilant against penetration into its supposed sphere of influence. meantime Pipeline-STAN's r vying with Russia for energy market share.

as a sidenote India's Tajik air base is unlikely to have Russian's blessing.

Russia used to be lukewarm abt economic integration of SCO (such as the SCO Bank) as it's overlapping with its Eurasian Union aspiration. besides the way ahead is rough owing to latent islamist hurdles too.

comparatively the maritime route seems much viable. Iran is an ideal foothold en route hopefully. China and Iran have conducted joint naval drills at the Gulf. furthermore China is Iran's top trading partner. bilateral cooperation will b enhanced once sanctions on Iran r lifted completely. previously Chinese energy firms had to give up exploration in Iranian fields and banks were penalized for transactions with Iran.

~Tapa talks: Orange is the new black.~

 

[The enlightened]

gotta be extremely cautious abt the overland route as it's to pass through landlocked C. Asia where Russia is vigilant against penetration into its supposed sphere of influence. meantime Pipeline-STAN's r vying with Russia for energy market share.

as a sidenote India's Tajik air base is unlikely to have Russian's blessing.

Russia used to be lukewarm abt economic integration of SCO (such as the SCO Bank) as it's overlapping with its Eurasian Union aspiration. besides the way ahead is rough owing to latent islamist hurdles too.

comparatively the maritime route seems much viable. Iran is an ideal foothold en route hopefully. China and Iran have conducted joint naval drills at the Gulf. furthermore China is Iran's top trading partner. bilateral cooperation will b enhanced once sanctions on Iran r lifted completely. previously Chinese energy firms had to give up exploration in Iranian fields and banks were penalized for transactions with Iran.

~Tapa talks: Orange is the new black.~

India is building its own land route. Russia is a part of it, so no worries.

 

[Ancient Indian]

@Yusuf I have a doubt actually.

How safe is this silk road of china in IOR?

Lost time I heard pirates robbing left and right in the Bay.

China should seek GOI help in this project instead of insulting its sovereignty .

 

[Samar Rathi]

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[Zebra]

https://www.weforum.org/agenda/2016...al&utm_source=twitter.com&utm_campaign=buffer

Why is China building a New Silk Road?

Written by
Anna Bruce-Lockhart Editor, World Economic Forum
Published
Sunday 26 June 2016

China is reviving the historic Silk Road trade route that runs between its own borders and Europe. Announced in 2013 by President Xi Jinping, the idea is that two new trade corridors – one overland, the other by sea – will connect the country with its neighbours in the west: Central Asia, the Middle East and Europe.

The project has proved expensive and controversial. So why is China doing it?

There are strong commercial and geopolitical forces at play here, first among which is China’s vast industrial overcapacity – mainly in steel manufacturing and heavy equipment – for which the new trade route would serve as an outlet. As China’s domestic market slows down, opening new trade markets could go a long way towards keeping the national economy buoyant.

Hoping to lift the value of cross-border trade to $2.5 trillion within a decade, President Xi Jinping has channelled nearly $1 trillion of government money into the project. He’s also encouraging state-owned enterprises and financial institutions to invest in infrastructure and construction abroad.


“It is not an economic project, it is a geopolitical project — and it is very strategic,” Nadège Rolland, an analyst at the National Bureau for Asian Research, told foreignpolicy.com. He's not alone in suspecting China of a tactical repositioning in the global economy; it's clear that relationships with the ASEAN region, Central Asia and European countries stand to improve significantly if China directs more of its capital into developing infrastructure overseas.

Moreover, by striking up economic and cultural partnerships with other countries, China is signalling its intention to become a dominant player in world affairs.

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[amoy]

How China’s Silk Road Will Transform Eurasian Infrastructure
© AFP 2016/ JOHANNES EISELE

The scope of investments and further possibilities within the Chinese imitative of the New Silk Road is considered the largest in Eurasia.

© AP PHOTO/ ANDY WONG
Multi-Billion Silk Road: China Embarks on Investment Charm Offensive in Europe

The project is more than just a group of new transportation corridors linking China with Europe. In fact, the New Silk Road is a new model of economic partnership in Eurasia.

The initiative includes several transit corridors from western China to Europe which can be divided into three groups – the Northern Route, Sea Route, and the Southern Route.

The Northern Route is considered the most promising among the others. It would go via Kazakhstan and Russia. The Sea Route would include transit routes via Kazakhstan as well as ports of the Caspian Sea for transit to Turkey. The Southern Route would bypass Russia via Kyrgyzstan, Uzbekistan, Turkmenistan, Iran and Pakistan with an access to the Indian Ocean.

According to analysts, switching from traditional sea routes to land transportation will take time. So, potential transit countries would try to attract Chinese investments to modernize their inland transportation infrastructure.

© SPUTNIK/ ALEXANDER ASTAFYEV
Joint EEU-Silk Road Project Should Move to Practical Phase – Former Kyrgyz PM

Land transportation is more expensive than transportation by sea. Transportation of a container from China to Europe costs on average $350-500 and takes 40-60 days while railway transportation costs nearly $5,000 and takes 10-15 days.

In order to reduce costs, China may move production closer the border with Kazakhstan or even across the border, Sultan Ahmed bin Sulayem, CEO of DP World, said during the recent Astana Economic Forum.

Astana wants to be the key part of the Silk Road transportation chain. Bin Sulayem proposed that final assembly of Chinese-produced goods should be established in Kazakhstan. There are also plans for building transportation hubs in the country to consolidate and distribute shipments of Chinese products, Regnum news agency reported.

What is more, integration is planned between the New Silk Road and the Eurasian Economic Union (EEU), comprising Russia, Belarus and Kazakhstan.

In May, it was reported that the EEU was reading for talks with China on a trade and economic agreement. Currently, the union is considering a project to integrate both initiatives, establishing a common market.

© SPUTNIK/ ANDREI ALEKSANDROV
Golden Opportunity: Baltic States Jumping on China's Silk Road Bandwagon

Besides Russia and Astana, the Baltic countries are also interested in cooperation with China on the New Silk Road.

Estonia, Latvia and Lithuania sent high-ranking governmental delegations to a recent forum in Astana.

Estonia wants to attract investments as a transit state in close proximity to Finland and other Scandinavian countries. Among the main advantages of working with Estonia are warm water ports, modern terminals and qualified personnel.

The Baltics also have the same railway gauge as Russia and Kazakhstan which would facilitate their integration into the New Silk Road infrastructure.

 

[I_PLAY_BAD]

No matter how good your plan is, you always have to check your pocket. Your country has been struggling with double deficits for decades. Your internal infrastructure, education, R&D,etc, are all suffering from the lack of fund. Increase your spending in one direction means cutting the fund from another direction.

So, yes, funding is an issue.

So that is how Chinese ended up with 250 % of GDP worth debts !!!
Constant spending brings its own consequences.....

 

[I_PLAY_BAD]

India has been boasting about its knowledge economy and R&D hub since 1990s, and you are still using the word "will". That tell us there is something wrong with your plan.

As far as knowledge and R&D is concerned our both countries are no different.
Both countries produce talents who migrate to western nations for higher studies and research.
India, acceptable that we do not have a matured economy and infrastructure yet so people leave for better places.
What about China ? You talk all about your economic growth, infrastructure, manufacturing, soft power, money, regional dominance, silk route, this and that and still you have a mass exodus of students and professionals leaving China. So basically there is a problem with your system despite tons of opportunities for your citizens as you boast. Can we take that your own citizens are still not satisfied with your achievements or there are no actual achievements at all (when problems overshadow solutions all achievements become null and void) ?

 

[I_PLAY_BAD]

As far as Silk route is concerned there must be zero co-operation from India as far as there is no reciprocity from China on all issues. 'Give and take' is the new normal of foreign policy and trade.

 

[Mikesingh]

I think China is biting more than it can chew with billions of dollars being invested from Asia to Europe to the Middle East. But what needs to be understood is that these are not economic projects, they are geopolitical projects — and of strategic significance.

For eg., the CPEC. All this hype is nothing but a facade to hide the fact that Gwadar will soon become a Chinese naval base which they desperately need to dominate the Strait of Hormuz and the IOR. Pakistan is just a bit player with crumbs thrown at it. The CPEC is primarily a logistics route to supply their naval fleet at Gwadar through Xinjiang. Gwadar has been leased out to the Chinese by the Pakis for 40 years!

It suits Pakistan too as a Chinese base at Gwadar provides a shield against any Indian offensive action against Pakistan as the Chinese would then get involved too.