New Silk Road Economic Belt–Spearhead of China’s Westward Strategy

THE new Chinese leadership’s revitalization of China’s foreign policies became evident during President Xi Jinping’s recent state visits. President Xi revealed China’s new concepts of international relations in response to an increasingly complex global environment throughout trips to four Central Asian countries from September 3 to 14 and his participation in the 2013 Shanghai Cooperation Organization summit.

Community of Shared Destiny and Common Interests

Trade， economic， social and cultural ties between China and Central Asian countries have advanced remarkably since the founding of the Shanghai Cooperation Organization （SCO） in 2001. Over the decade from 1992 to 2001， bilateral trade between China and five Central Asian countries – Turkmenistan， Kazakhstan， Kyrgyzstan， Tajikistan and Uzbekistan – grew from US $420 million to US $5.5 billion. By 2012 this figure had skyrocketed to more than US $50 billion. China is now the largest trade partner of the five countries and largest buyer of oil and gas from the region.

China and Central Asian countries have established within the SCO framework the three mechanisms of anti-terrorism military drills， regular meetings between defense ministers， and periodical dialogues between senior national security officials. The SCO annual meeting acts as a high-level strategic platform for China， Russia and four Central Asian countries – Kazakhstan， Kyrgyzstan， Tajikistan and Uzbekistan – to coordinate and promote political， diplomatic and economic ties.

Originating in endeavors in the 1990s by China， Russia， Kazakhstan， Kyrgyzstan and Tajikistan to strengthen confidence-building and disarmament in the border regions， the SCO has undergone constructive evolution over the past years. It has now become a sub-regional cooperation framework linking China， Russia and Central Asia. This accomplishment testifies to new heights in the friendly and mutually supplementary economic， political and social ties between China and Central Asian countries. It is also an example of successful sub-regional cooperation in combating terrorism， extremism and separatism， and safeguarding stability in border regions.

As the relationship between China and Central Asia enters a new historical stage， all countries concerned are considering ways of consolidating bilateral ties and planning for the future. In his recent visit to the region President Xi laid bare the “Chinese thoughts” on the issue， and reiterated China’s resolve to promote friendly relations with Central Asian countries.

During President Xi’s September tour China established strategic partnerships with Turkmenistan and Kyrgyzstan. China moreover decided to deepen the comprehensive strategic partnership it has with Kazakhstan， and signed a treaty of friendly cooperation with Uzbekistan in the interests of advancing their strategic partnership. China is the first country to establish a strategic partnership with Turkmenistan， whose status of permanent positive neutrality is recognized by the UN General Assembly. In every sense， therefore， Xi’s September tour of Central Asia realized a comprehensive strategic upgrading of bilateral relations with countries in the region.

Xi reiterated in his speeches the Chinese government’s stance of respecting the independent choices of peoples in Central Asia on their respective development paths， and of mutual support on the c0re issues of sovereignty， territorial integrity and national stability and security. Xi made clear that China is agreeable to mutual assistance in all matters that facilitate growing stronger together with Central Asian countries. This principle is fundamental to construction of a community of shared destiny and common interests between China and Central Asia.

No Intention of Building a Sphere of Influence

Closer ties between a big country at the center of world politics and its smaller neighbors often spark suspicions of intentions to build a sphere of influence. Given its geographical vicinity， Central Asia has long been a focal point of political and security significance for Russia. After the 911 terrorist attacks the U.S. entered the region， setting up eight deployment centers/military supply bases. And the 2005 “Tulip Revolution” in Kyrgyzstan heightened suspicions of a U.S. strategy to construct a second Eastern Europe minus China and Russia. It is hence no surprise that world media view developments of the China-Central Asia relationship from the narrow perspective of geopolitical interests. Certain commentators have gone so far as to interpret China’s overtures towards Central Asia as the pursuit of greater geopolitical clout which will trigger rivalry between big powers – namely China and Russia – in the region.

Xi dismissed such misgivings during his recent trip to Central Asia. In his September 7 speech at Nazarbayev University in Astana， Kazakhstan， the Chinese president stated unequivocally that China neither seeks dominance over regional issues nor harbors intentions to build a sphere of influence. China’s strategic goal in Central Asia is to enhance mutual trust， friendliness and cooperation with countries in the region in order to achieve common development and prosperity.

A partnership based on common development and prosperity has immense potential. Central Asia’s oil and gas reserves are among the biggest globally， and constitute pillars of local economy. China is a stable， trustworthy long-term buyer of oil and gas from the region. Of the 127 billion cubic meters of natural gas China consumed last year， 25 billion cubic meters， or 18 percent， came from Central Asia. Two gas pipelines linking China and the region are in operation. A third from Kazakhstan will be completed within the year and be operational in 2014. During Xi’s September visit China and Turkmenistan reached an agreement on the laying down of a fourth pipeline. Once in operation， China’s annual gas imports from Turkmenistan， Kazakhstan and Uzbekistan will total 80 billion cubic meters. Long-term and stable cooperation in the energy sector is hence critical to the energy strategies of all concerned.

The escalation of China-Central Asia relations opens up fresh opportunities for Chinese companies investing in oil and gas exploration in Central Asian countries. On September 4， Xi and his Turkmen counterpart Kurbanguly Berdymukhamedov inaugurated the Galkynysh gas field， jointly developed by the two countries. Days later the Chinese president struck a deal with Kazakhstan that gives China a stake in the giant Kashagan oil field. And at the SCO summit in Bishkek， Kyrgyzstan， Xi called for the establishment of an energy club wherein SCO members can coordinate their energy policies and interests.

A Historic Blueprint

The highlight of Xi’s September visit， however， was the suggestion he raised in his speech at Nazarbayev University that China and Central Asia join hands in building the Silk Road Economic Belt. It marked the first explicit plan China has put forward on integrated intercontinental economic cooperation.

Xi proposed that constructing an economic cor- ridor along the ancient Silk Road that extends from the West Pacific coast in the east to the Baltic Sea in the west would build closer， deeper and broader economic ties between Eurasian countries.

Planning and construction should be in five stages. First， countries en route must report on their respective economic development strategies. On such basis they can then exchange ideas and formulate plans and measures towards regional cooperation. Second， a thoroughfare between the Pacific Ocean and the Baltic Sea will be opened， so completing a transport network connecting East， West and South Asia. Third， all countries concerned must hold discussions and take concrete actions to facilitate trade and investment. The Silk Road Economic Belt， with a population of three billion， has huge market potential. Fourth， efforts must be made to boost local currency exchange and settlement. This will protect the region from financial risks and enhance its international competitiveness. Fifth， all countries concerned should enhance people-topeople exchanges.

The idea of the Silk Road Economic Belt embodies China’s unwavering commitment to an open and free world economy and international economic cooperation. It is an attempt to share the benefits of economic and energy cooperation between China and Central Asian countries with neighboring regions， so promoting regional economic integration. The sluggish world economy has given rise to all manner of trade protectionism and regional economic blocs. This trend must be checked and reversed if the world economy is to grow evenly. China’s proposal of a Silk Road Economic Belt is an inclusive plan based on the country’s faith in the market economy and free trade. It is expected to expand the global market and stimulate circulation of production factors worldwide.

A century ago English geopolitist Sir Halford John Mackinder held that the Eurasian “heartland，”of which Central Asia is a part， is a decisive factor of global competition. Today the conventional geopolitical value of Central Asia has been redefined by the geo-economic prospect induced by a rising China. The Silk Road Economic Belt proposal reflects China’s desire to steer away from outmoded power politics and embrace integration with Central Asia and beyond in pursuit of common prosperity.

It is still too early to say what impact this economic belt will have on the contours of the world economy. But one thing is clear： as the U.S. forges its alliances under the Trans-Pacific Partnership Agreement） （TPP） and the Transatlantic Trade and Investment Partnership （TTIP）， and Russia advocates a Eurasian Economic Community （EAEC） among the Commonwealth of Independent States， the proposed Silk Road Economic Belt gives China a voice on international economic integration.