What is "One Road, One Belt " ?
Chinese economic growth is definitely unprecedented; the hard work of the Chinese people has created the poor inward-looking agricultural country to a global manufacturing powerhouse. The stability and governance of the CCP have elevated China as the world’s second-largest economy after the USA.
The initiative proposed by Chinese President Xi Jinping also an adaptation of the historical Silk Road – could sow the seeds for a new geopolitical era. At the heart of “One Belt, One Road” lies the creation of an economic land belt that includes countries on the original Silk Road through Central Asia, West Asia, the Middle East and Europe, as well as a maritime road that links China’s port facilities with the African coast, pushing up through the Suez Canal into the Mediterranean. Below points would capitalize the Sri Lankan Involvement in the plan, to begin if you make a close observation of the root, the point on Sri Lanka would complete the map, any other country can be replaced or renegotiated, this could be a strong barging chip and it could be one of the reason’s that China is interested in investing in Sri Lanka?
Historical Roots?
The Silk Road was a network of trade routes, formally established during the Han Dynasty. The road originated from Chang' now Xian) in the east and ended in the Mediterranean in the west, linking China with the Roman Empire. As China’s silk was the major trade product, German geographer Ferdinand von Richthofen coined it the Silk Road in 1877. It was not just one road, rather a series of major trade routes that helped build trade and cultural ties between China, India, Persia, Arabia, Greece, Rome and Mediterranean countries. It reached its height during the Tang Dynasty but declined in the Yuan dynasty, established by the Mongol Empire, as political powers along the route became more fragmented. The Silk Road ceased to be a shipping route for silk around 1453 with the rise of the Ottoman Empire, whose rulers opposed the West.
During the Ming dynasty in the Yongle Emperor's reign, Chinese relations with Sri Lanka reached the highest levels at that era; Admiral Zheng He's Treasure voyages visited Sri Lanka mainly times also fought in the Ming–Kotte War. Sri Lanka was a tributary state of the Ming Empire for many years. Conflict with King Alakeshvara and rumors that King Parakambadus son’s family tree still livening in China and Chairman Mao's close relationship with Sri Lankan Prime Minister Sirimavo Bandaranaike gives the two counties a historical bond that cannot be shattered. So it’s in Sri Lanka's interest that we should remind the present generation about the Sri Lankan - Chinese relationship each time we sit down for negotiations.
Is it good for Sri Lanka?
In general fact, the Geographical location of Sri Lanka builds in trade, but the complicated political factor of it can be debated in different topics. Some would say that China is trying to invade Sri Lanka economically (Similar to what Russia is doing with Ukraine and other European countries) maybe it's reasonable to think that way by looking at the recent activities.
Currently our involvement in international trade is low compared to other regional countries; in general knowledge, commerce needs building up partnerships and cooperations between nations. since we are at a very powerful place on the map, whats lacking is proper global trade deals that would support our interest than the Chinese. As in any trade agreement, each party would want to get the higher advantage of the deal, and that’s why we need the best Sri Lankan business minds sitting with Chinese.
Why did the Colombo Port City Stop?
The Colombo port city makes interesting dialogs, out of all these debates, the most common one would be "Because it was started during the previous government” Actually it can be many reasons, mainly the Indian Ocean is dominated by the powerhouse India, and since China was poking interest in Sri Lanka made a lot of speculations of gaining the power of the region, the NATO-backed west would not want any Chinese power growth along Indian ocean. With ongoing complications with South China Sea issues, world superpowers are closely monitoring the developments and the relations of China. Also, Chinese state own companies selling submarines to regal countries opened up eyes for a possible military dominance in the region.
According to “George Friedman” NATO and the western security policies involved carrying out a regional power balance around the world, their military presence in reigns like Japan / South Korea / Iraq / Israel / Philippines etc. Helps them to control trade and the peace of the region and their homeland. If the port city continues as scheduled it would be a very strong point on the map, which they rather avoid if possible.
Sri Lankan government should be looking into Indian and western investment in order to be a fair contributor towards their non-allegiance foreign policy. Chinese military power doubled in the past few years. with the new aircraft carrier ‘Liaoning’ it's important for China to have strong diplomatic relations with regional counties. This is also a challenge to China, with that being said no big scale projects would be easy, as it seems, while China challenges the world just remember,
1. The American economy is 3 times bigger than the Chinese.
2. American military budget is over 800 million
3. Chinese military budget is less than 100 million.
4. Chinese own 1 aircraft Carrie, where the USA alone owns 19 submarines with proven oil reserves over 35, 000,000,000 bbl.
Matala Airport and Hambanthota Port?
Hambantota port didn’t come existence with regard to Mahinda Rajapaksa’s hometown (or maybe it did) but Around the 1st century CE, with a furnace powered by monsoon winds was built near Embilipitiya, which used wind-based air supply to produce high carbon steel. This steel was exported to Rome and other European areas for the manufacture of armor and swords, with ships sailing to a port in Hambantota to obtain steel.
In 2002 Sri Lankan Prime Minister Ranil Wickremesinghe unveiled the "Regaining Sri Lanka" programme, which identified the Hambantota Seaport for development. The proposals for the port area include a refinery, petrochemical related industries, and a coal-powered thermal power station and a desalination plant.
I’m not sure if President Mahinda Rajapaksa’s government saw the business modal of Hambantota as a re-exportation hub and a fuel bunkering area, (maybe they did) but I'm sure these ideas were discussed and was trying to accompany the interest of both China, Sri Lanka and international maritime routes. Anyhow experts have made their comments on the importance of Hambantota port and it’s fair enough to concede that it’s high potential area for future development.
Chinese Diplomatic Policies?
At present CCP party is the world biggest political party, with over 88 million memberships higher than the total population of Germany, its constant economic stability is one reason that Chinese economic decisions can be stable. There is a lot of criticism about Chinese leadership but fairly should praise how Chinese leaders take care of their countries sovereignty, homeland security and their economy while managing over 1000 million people. Meanwhile, we worry that China has ulterior motives for naval expansion and energy security. What the skeptics fail to understand is that securing economic growth is at the core of national security, as it legitimizes the party’s rule. Unlike the western counties, to ease worries, President Xi Jinping has emphasized “Three ”
1. No interference in the internal affairs of other nations
2. Does not seek to increase the so-called “sphere of influence”
3. Does not strive for hegemony or dominance.
some could still argue or debate this " Formal Approach of invention" but if you take Chinese history of 5000 years, it's clear that Chinese governance system and political theories are mainly formed using Taoism, Confuses teaching, and China has been war for many years but never has tried to invade a country.
Current Sri Lankan Stand?
The current Sri Lankan stand is unclear not only for Chinese and the western countries but even for our own government, which I think is a good thing. Sri Lanka was one of the founding members of the Non-Aligned Movement (NAM) and since then our Foreign affairs followed the Non-Aligned Foreign Policy for decades. Recent visits of Sri Lankan PM Ranil Wickramasinghe, President Maithripala Sirisena, and former President Mahinda Rajapaksa to China in covering their cooperation in Sri Lankan Economy widely explain the importance of the Chinese involvement in building a smoother economy to its people, but also It makes us shift our interest towards left countries. Our leaders know that we hold a strong barging chip with our location and that we are looked over by Indian and American Backed western countries
The previous government was widely focused on the counties international co-operation and trade deals with Iran and the Ex-Presidents close relations with Libya and corneal Gadhafi, which the government did a fairly good negotiation in funding the war against the LTTE but also projected a negative picture on western media. Which labeled Former president Rajapaksa as a dictator.
It’s good that leaders of Sri Lanka look at the Indian market and the west so that it would give strong leverage when building up new involvements in the one road one belt concept. Despite the criticism by some left movements in Sri Lanka (as happened in 1980’s which moved trade to Singapore) we should make the best out of it.
What to Negotiate?
1.It’s important that we never hand over the whole project at once, without releasing 15 hectares, start with 5, it also gives a long time leverage in future negotiations.
2.If you look at the pros and cons of the situation Sri Lankan national debt Can be a huge factor Chinese would take for grunted, to tackle that we should open or even consider cooperation’s with India, Japan or western counties as investors to the port city and other port projects.
3.Since One belt, one road was published on media as the big master plan of president Xi, the success of it would demonstrate Chinese leaders vision and the future economic growth. Sri Lankan should hold this fact and always make demands upon it.
4.Propose a 30day free entry visa for Hong Kong, and business visa system for Sri Lankans to enter Chinese market this would open up opportunities for young university graduates and entrepreneurs.
5.Propose a medium scale business startups in cooperation with south Chinese free trade zones and improve trade deals in China in the fields of traveling/ tea/gems/ IT etc.
6.Propose a special interest rate on funding national projects to Sri Lanka.
Such a vast project will need funding?
Normally big scale projects are funded by the World Bank, IMF, and ADB but for China, they have their own regional three financial resources Three financial institutions have been set up to support its development, which has met some resistance in the West given they provide alternatives to the current financial provides.
Silk Road Infrastructure Fund
Launched in February 2014, the China-led US$40bn Silk Road Infrastructure Fund invests in One Belt, One Road infrastructure projects. The fund is capitalized mainly by China’s forex reserves and is intended to be managed like China’s sovereign wealth fund. Jin Qi, who serves as the assistant to the PBOC governor, will be the fund’s chief executive.
Asian Infra Investment Bank
Founded in October 2014, the AIIB aspires to be a global development bank with 21 Asian member countries (China, India, Thailand, Malaysia, Singapore, the Philippines, Pakistan, Bangladesh, Brunei, Cambodia, Kazakhstan, Kuwait, Laos, Myanmar, Mongolia, Nepal, Oman, Qatar, Sri Lanka, Uzbekistan and Vietnam), with registered capital of US$100bn.
New Development Bank
The NDB is a BRICS multilateral development bank established on 15 July 2014, by Brazil, Russia, India, China and South Africa. The bank was seeded with US$50bn initial capital, with the intention to increase capital to US$100bn. The bank will be headquartered in Shanghai. Each country will have one vote and no country will have veto power.
Sources:XINDE MARINE NEWS
Editor: Yasiru Ranaraja
Please Contact Us at：
admin@xindemarine.com
.gif)
