New Silk Road

The New Silk Road is a project of the People's Republic of China. The aim is to improve the land and sea routes between Europe and the Asian region. Table.Briefings provides all the latest news. Where does the name New Silk Road come from? Officially, the project of the People's Republic of China is called One Belt, One Road. In other words, one belt, one road. Or also Belt and Road Initiative (BRI). However, the project is popularly known as the New Silk Road. It was launched in 2013. The name goes back to the German geographer Ferdinand von Richthofen. In 1877, he used the name to describe the caravan routes between the Mediterranean region and Central and East Asia, but these routes were already in use in ancient times. Silk was transported to the west, wool, gold and silver to the east. China has taken up this idea again. One Belt, One Road aims to make freight transportation between Europe and China more efficient. To this end, various routes are being opened up through infrastructure measures. For example, by building ports for the sea routes and railroads and railroad lines for the land routes. Which economic belts does the New Silk Road cover? The names of the project are confusing. One Belt, One Road is not about just one Silk Road, nor is it about just one belt. Rather, an entire network of corridors is to connect a large number of countries. There are two different projects. The new land routes are referred to as the Economic Belt. Six corridors are to form the new Silk Road: The second project is called the Maritime Silk Road. This refers to nine different corridors that form the sea route of the New Silk Road. Which countries are part of the New Silk Road? A total of 140 countries belong to the New Silk Road. As part of the Belt and Road Initiative, China has concluded so-called Memorandums of Understanding (MoU) with them. These are agreements that are intended to guarantee cooperation. China has also concluded an MoU with the African Union, i.e. an entire alliance of countries. In Europe, 18 of the 27 member states have concluded such an agreement. Romania was the first country in 2015. Although not all countries that have signed a corresponding MoU are located along the corridors of the New Silk Road, they are nevertheless affected by it. For example, a new railroad line is to be built in Kenya. It connects the capital Nairobi in the interior of the country with the port city of Mombasa in the south-east. In Djibouti, the Chinese are building a new port that will be connected by rail to Addis Ababa, the capital of Ethiopia. The country itself has no access to the sea. How is China financing the New Silk Road? The Belt and Road Initiative is expected to cost a total of USD 900 billion. China is financing the New Silk Road primarily through four elements. With the help of state-owned commercial banks, the New Silk Road Fund, the specially founded Asian Infrastructure Investment Bank (AIIB) and the New Development Bank (NDB). The Belt and Road Initiative is not financed by China alone. China is the largest shareholder in the Asian Infrastructure Investment Bank with thirty percent of the equity. In addition to China and Russia, Brazil, India and South Africa are also involved in the New Development Bank. Both banks are multilateral banks that focus on infrastructure projects. How does the financing of the New Silk Road work? The banks and funds mostly provide loans to countries that have infrastructure projects as part of the New Silk Road. A port, a bridge or a railroad line, for example. However, China is very restrictive when it comes to securing loans. For example, China has given assurances that it will be the first creditor to be serviced in the event of state bankruptcy, which has consequences in international politics. Other lenders are becoming more hesitant because they have to fear that they will not receive any payment at all in the event of an emergency. There are also contractual clauses that allow China to demand immediate repayment of the borrowed money if the People's Republic does not agree with the policies of the partner country. What are the benefits of China's New Silk Road? Officially, One Belt, One Road is intended to strengthen trade links between Asia and Europe. The economic development of many regions could be driven forward and cultural exchange promoted. Projects in the fields of tourism and healthcare are also planned. The New Silk Road will help the Chinese economy to sell excess capacity from the construction and steel industries, but the New Silk Road is also a sign of the geopolitical and global economic goals of the People's Republic of China. Many critics fear that China wants to make poorer countries politically compliant and exploit the raw materials. At the expense of the local population. Environmental or social standards play only a subordinate role in the infrastructure measures of the Belt and Road Initiative. The future of the New Silk Road Readers can find out how the New Silk Road is progressing from the Table.Media editorial team, which reports on all relevant news relating to One Belt, One Road in German.