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China pledges $124 billion for new Silk Road as champion of globalisation

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webfact    24,345

China pledges $124 billion for new Silk Road as champion of globalisation

By Brenda Goh and Yawen Chen

REUTERS

 

r6.jpg

Chinese President Xi Jinping makes a toast during the welcoming banquet for the Belt and Road Forum at the Great Hall of the People in Beijing, China May 14, 2017. REUTERS/Damir Sagolj

 

BEIJING (Reuters) - Chinese President Xi Jinping pledged $124 billion (96.2 billion pounds) on Sunday for his new Silk Road plan to forge a path of peace, inclusiveness and free trade, and called for the abandonment of old models based on rivalry and diplomatic power games.

 

Xi used a summit on the initiative, attended by leaders and top officials from around the world, to bolster China's global leadership ambitions as U.S. President Donald Trump promotes "America First" and questions existing global free trade deals.

 

"We should build an open platform of cooperation and uphold and grow an open world economy," Xi told the opening of the two-day gathering in Beijing.

 

China has touted what it formally calls the Belt and Road initiative as a new way to boost global development since Xi unveiled the plan in 2013, aiming to expand links between Asia, Africa, Europe and beyond underpinned by billions of dollars in infrastructure investment.

 

Xi said the world must create conditions that promote open development and encourage the building of systems of "fair, reasonable and transparent global trade and investment rules".

 

Hours before the summit opened, North Korea launched another ballistic missile, further testing the patience of China, its chief ally. The United States had complained to China on Friday over the inclusion of a North Korean delegation at the event.

 

MASSIVE FUNDING BOOST

 

Xi pledged a major funding boost to the new Silk Road, including an extra 100 billion yuan ($14.50 billion) into the existing Silk Road Fund, 380 billion yuan in loans from two policy banks and 60 billion yuan in aid to developing countries and international bodies in countries along the new trade routes.

 

In addition, Xi said China would encourage financial institutions to expand their overseas yuan fund businesses to the tune of 300 billion yuan.

 

Xi did not give a time frame for the new loans, aid and funding pledged on Sunday.

 

Leaders from 29 countries attended the forum, as well as the heads of the United Nations, International Monetary Fund and World Bank.

Britain's finance minister told the summit his country was a "natural partner" in the new Silk Road, while the prime minister of Pakistan, Nawaz Sharif, a close Chinese ally, praised China's "vision and ingenuity".

 

"Such a broad sweep and scale of interlocking economic partnerships and investments is unprecedented in history," Sharif said.

 

White House adviser Matt Pottinger said the United States welcomed efforts by China to promote infrastructure connectivity as part of its Belt and Road initiative, and U.S. companies could offer top value services.

 

India refused to send an official delegation to Beijing, reflecting displeasure with China for developing a $57 billion trade corridor through Pakistan that also crosses the disputed territory of Kashmir.

 

"No country can accept a project that ignores its core concerns on sovereignty and territorial integrity," said Indian foreign ministry spokesman Gopal Baglay, adding that there were concerns about host countries taking on "unsustainable debt."

 

China plans to import $2 trillion of products from countries participating in its Belt and Road initiative over the next five years, Commerce Minister Zhong Shan said.

 

UNEASE OVER SUMMIT

 

But some Western diplomats have expressed unease about both the summit and the plan as a whole, seeing it as an attempt to promote Chinese influence globally. They are also concerned about transparency and access for foreign firms to the scheme.

 

Australian Trade Minister Steven Ciobo said Canberra was receptive to exploring commercial opportunities China's new Silk Road presented, but any decisions would remain incumbent on national interest.

 

"China is willing to share its development experience with all countries," Xi said. "We will not interfere in other countries' internal affairs. We will not export our system of society and development model, and even more will not impose our views on others."

 

"In advancing the Belt and Road, we will not re-tread the old path of games between foes. Instead we will create a new model of cooperation and mutual benefit," Xi said.

 

North Korea, which considers China its sole major diplomatic ally and economic benefactor, raised eyebrows when it decided to send a delegation to the summit.

 

The North Korean delegation largely kept a low profile at the summit, and there was no evidence that its presence had affected participation despite U.S. misgivings.

 

FINANCIAL INCLUSIVENESS

 

Xi said the new Silk Road would be open to all, including Africa and the Americas, which are not situated on the traditional Silk Road.

 

"No matter if they are from Asia and Europe, or Africa or the Americas, they are all cooperative partners in building the Belt and Road."

 

The idea of cooperation and inclusiveness extends to funding projects and investments along the new trade routes, which are being developed both on land and at sea.

 

"We need joint effort among Belt and Road countries to boost financing cooperation," Zhou Xiaochuan, governor of China's central bank, said.

 

To sustain the projects, Belt and Road nations should allow companies to play a key role, as government resources are limited, Zhou said.

 

The active use of local currencies will also help to mobilise local savings, lower remittance and exchange costs, and safeguard financial stability, he said.

 

At the forum, finance ministries from 27 countries, including China, approved a set of principles that will guide project financing along the new Silk Road.

 

Germany, which was not among the countries that approved the financing guidelines, said its firms were willing to support the Belt and Road initiative, but more transparency was needed.

 

Some of China's close allies and partners were at the forum, including Russian President Vladimir Putin, Cambodian Prime Minister Hun Sen and Kazakh President Nursultan Nazarbayev.

 

There were also several European leaders attending, including the prime ministers of Spain, Italy, Greece and Hungary.

 

Chinese state-run media has spared no effort in its coverage of the summit, including broadcasting an awkwardly-named English-language music video "The Belt and Road is How" sung by children from countries on the new Silk Road.

 

(Additional reporting by Elias Glenn, Kevin Yao, Thomas Peter, Michael Martina and Sue-Lin Wong; Writing by Ben Blanchard and Ryan Woo; Editing by Randy Fabi and Jane Merriman)

 
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-- © Copyright Reuters 2017-05-15

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canuckamuck    17,394

This is the all roads lead to Beijing initiative. Based on an older model of course.

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BEVUP    303
2 minutes ago, canuckamuck said:

This is the all roads lead to Beijing initiative. Based on an older model of course.

Ever since Hong Kong was handed back - What a win

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garyk    433
Posted (edited)

Dream on. How many times have I heard this nonsense.

Edited by garyk

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ilostmypassword    6,753
13 minutes ago, BEVUP said:

Ever since Hong Kong was handed back - What a win

Not sure what Hong Kong has to do with this.  Could you explain?

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BEVUP    303
16 minutes ago, ilostmypassword said:

Not sure what Hong Kong has to do with this.  Could you explain?

Didn't the British hand it back to them

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Thaidream    4,348

The whole purpose of this is to find new markets for China to access natural resources and food to keep its population docile and the Communist Party in charge. In addition, since Donald Trump cancelled the Trans Pacific Partnership (TPP) China is moving quickly to fill the void. The Chinese present a clear and present danger yet countries are willing to sell their souls to accommodate the Chinese hegemony   The Us business community is also helping China accrue huge amounts of foreign reserves.  For example- Apple's I-Phone is made in China as well as replacement parts for the US automotive industry.

No one is against fair trade but the Chinese are not  allowing fair trade and Trump is backing off because he needs China to defuse the Korean situation. Trump's new BFF President Xi is taking America for a ride and it's not down memory lane.

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ilostmypassword    6,753
1 hour ago, BEVUP said:

Didn't the British hand it back to them

It's true the British handed it back to them as per the terms of the original treaty.  Do you think the UK had much of a choice? But even it the UK hadn't complied with the treaty and China had meekly acquiesced to that, do you think it would make a significant material difference to China's situation  and policies today?

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Jonmarleesco    1,621
3 hours ago, webfact said:

Chinese President Xi Jinping pledged $124 billion (96.2 billion pounds) on Sunday for his new Silk Road plan to forge a path of peace, inclusiveness and free trade ...

Not to mention greater Chinese influence.

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midas    1,179

Why does Thailand have to be the only country that sent FIVE MINISTERS while nearly all of the countries simply sent their head of state? I wonder how much that is costing this country?

 

Quote

Thailand: five ministers: Minister of Foreign Affairs Don Pramudwinai, Minister of Transportation Arkhom Termpittayapaisith, Minister of Commerce Apiradi Tantraporn, Minister of Digital for Economy and Society Pichet Durongkaveroj, and Minister of Science and Technology Atchaka Sibunruang

 

https://geopolitics.co/2017/05/13/list-of-attendees-to-the-belt-and-road-summit-in-beijing/

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boomerangutang    15,548

                           My general reaction to Chinese mega-projects is; they're probably anti-environment.  If given a choice, Chinese bosses will do as their Thai underlings do:  scrape away all greenery, flatten the remaining soil, and cover it with concrete and asphalt.  If they had their way, they would cover their entire countries with roads and buildings, and maybe stick a few plastic bushes/flowers around, to remind people of nature.

 

4 minutes ago, midas said:

Why does Thailand have to be the only country that sent FIVE MINISTERS while nearly all of the countries simply sent their head of state? I wonder how much that is costing this country?

https://geopolitics.co/2017/05/13/list-of-attendees-to-the-belt-and-road-summit-in-beijing/

                                   I had a friend who was a professional interpreter.  She was hired to accompany a delegation of Thais (a dozen or so) to a Chinese city for a biz meeting.  She told me that, as soon as the meeting was over, all the Thais (all were men) gathered around her and implored her like hyperactive little boys, to help them find whore houses in the Chinese city.

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well of course i am pro west but i have to say that chinas methods of global expansion seem to be far superior to americas.

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elgordo38    9,505
6 hours ago, webfact said:

BEIJING (Reuters) - Chinese President Xi Jinping pledged $124 billion (96.2 billion pounds) on Sunday for his new Silk Road plan to forge a path of peace, inclusiveness and free trade, and called for the abandonment of old models based on rivalry and diplomatic power games.

This will only benefit China period. 5 Trains of Chinese exports will leave the terminal and only 1 will come back with imports. Check out the Silk Road Show program weekly on Channel News Asia it is an eye opener. The stretch through Kyrgyzstan was really brutal showing demonstrators looking for higher wages and unions shot in the street. Local governments have sold their soul to the devil. China is literally enveloping these countries economically and body and soul. It is no Silk Road it is the road to total domination country by country who are broke and in disrepair and see China as their life preserver with a long string/rope attached. Its dancing with the devil. 

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elgordo38    9,505
Posted (edited)
4 hours ago, Thaidream said:

The whole purpose of this is to find new markets for China to access natural resources and food to keep its population docile and the Communist Party in charge. In addition, since Donald Trump cancelled the Trans Pacific Partnership (TPP) China is moving quickly to fill the void. The Chinese present a clear and present danger yet countries are willing to sell their souls to accommodate the Chinese hegemony   The Us business community is also helping China accrue huge amounts of foreign reserves.  For example- Apple's I-Phone is made in China as well as replacement parts for the US automotive industry.

No one is against fair trade but the Chinese are not  allowing fair trade and Trump is backing off because he needs China to defuse the Korean situation. Trump's new BFF President Xi is taking America for a ride and it's not down memory lane.

Your on a winning streak. Second good read of the day. 

Edited by elgordo38

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BANGKOK 22 September 2017 00:36
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