CHINA’s One Belt One Road initiative - Why needed?

United States is the largest economy in the world so far followed by People’s Republic of China as second largest but It is expected that China with its ONE BELT ONE ROAD initiative might take a bigger place not only in European market but also in Central Asia, Middle East and Africa. This has forced developed counties to reconsider their ties with its European and some allies in Middle East and Its economic policy for future.

On the other hand, China which has always used its ancient silk route which passes through Central Asia, West Asia, Middle East leading towards Europe. Central Asia includes Kazakhstan, Kyrgyzstan, Uzbekistan, Turkmenistan and Tajikistan and Middle East includes Cyprus, Egypt, Iran, Iraq, Israel, Bahrain, Jordan, Kuwait, Saudi Arabia, Syria, Turkey, and Yemen etc. It has always proved to be very complex, lengthy and costly route in terms of trade for China as there are so many countries involved and region itself is land locked. (Upper Portion of he map in blue)

Most of China’s energy needs are fulfilled by the countries in Middle East but the route followed through ocean is lengthy and also passes through Malaysian port called Strait of Malacca that makes the route even further longer (US influence on this port is also a factor against China.

(Lower red portion mentioned route of map 2)

Hence China has initiated One Belt One Road trading route which has two major components, one belt is land based that is SILK ROAD ECONOMIC BELT (SREB) which will china to trade through land mostly from Russia to central European countries like Austria, Croatia, Czech Republic, Germany, Hungary, Poland, Slovakia, Slovenia, Switzerland, Netherlands. Other belt is ocean based that is MARITIME SILK ROAD (MSR) whose major part is China-Pakistan Economic Corridor (CPEC) connecting China’s Kashgar city to Gwadar port through Pakistan then leading to Central Asia and Middle East through Indian ocean.

The trade from Middle East that took place in 45 days to cover 8000km long distance will now take in just 10 days to cover 3000km with CPEC or MSR. And obviously the cost of trade would decrease significantly as well as this route is a lot shorter, more secure and easily accessible for China through Pakistan. Also the Gawadar port is situated very near to Middle East hence industrial set up at Gwadar city will produce goods for China and will make them readily available for transporting them through shipping to the Middle East and Central Asia.

Map shows all three routes to be used under ONE BELT ONE ROAD INITIATIVE:

                              

With $4-8 trillion investment and $46 billion investment for CPEC in particular for ONE BELT ONE ROAD initiative, China will be able to reach the markets of central Asia, Middle East as well as Europe and some part of Africa with less trading cost and consuming lesser time. And CPEC will allow also the Asian countries to take the benefit of trading routes set by the economic corridor and regional needs can be fulfilled as well as it provides great chances of economic growth to the land locked west Asia (Uzbekistan, Kazakhstan etc.) We only hope it brings peace and stability to the Asian region in near future and the vast gap of economy growth in Europe and Asia declines and Asia becomes as developed continent as Europe.

It is obvious fact that China might be able to grab the major portion of European markets as Chinese historically largest investment in "One BELT ONE ROAD" has no match with any such investment or economic policy of any other developed country till today. Indeed it will be a game changer for not only China but for Asian countries like Pakistan in particular.

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