I came across this 29 March 2015 Chinese release on Xinhuanet which outlines Chinese leader Xi Jinping’s ‘One Belt One Road’ initiative. It lays out 18 Chinese provinces and numerous cities, economic zones and facilities that are going to shaped in this exciting vision. Most material in English I have come across so far looks at the dynamics of OBOR outside China but not far much inside. I put the article through Google Translate and have done some touching up. I am now sharing this with fellow investors for your reading interest (like where to make money from this great economic development?)
This is the original text in Chinese.
The National Development and Reform Commission, the Ministry of Foreign Affairs, the Ministry of Commerce on the 28th jointly issued a “push to build the Silk Road Economic Zone and the 21st century maritime Silk Road vision and action.” This vision and action presents in detail the proposition of ‘One Belt One Road’ based on current affairs, principles of co-development, framework, the key points of cooperation and mechanism. The document states that China is willing to work with the countries along the border to continuously enrich and improve the content and methods of cooperation along the route and formulate a timetable and a roadmap to actively link national development and regional cooperation planning along the route.
‘One Belt One Road’ direction of focus
Silk Road Economic Belt: focus on China through Central Asia, Russia to Europe (Baltic Sea); China through Central Asia, West Asia to the Persian Gulf, the Mediterranean; China to Southeast Asia, South Asia, the Indian Ocean.
The 21st century Maritime Silk Road: the focus of the direction from the Chinese coastal ports to the South China Sea to the Indian Ocean, extending to Europe; from China’s coastal ports over the South China Sea to the South Pacific.
Map of One Belt One Road | Source: Map.Ps123.net
Core provinces: Xinjiang and Fujian
In total 18 Chinese provinces are drawn up in the planning. They are Xinjiang, Shaanxi, Ningxia, Gansu, Qinghai, Inner Mongolia, Heilongjiang, Jilin, Liaoning, Guangxi, Yunnan, Tibet, Shanghai, Fujian, Zhejiang, Guangdong, Hainan, Chongqing.
Xining, Chengdu, Zhengzhou, Wuhan, Changsha, Nanchang, Hefei.
15 port constructions:
Shanghai, Tianjin, Ningbo – Zhoushan, Guangzhou, Shenzhen, Zhanjiang, Shantou, Qingdao, Yantai, Dalian, Fuzhou, Xiamen, Quanzhou, Haikou, Sanya.
2 international hub airports:
Principle of ‘One Belt One Road’
- Abide by the purpose and principles of the UN Charter.
- Adhere to open cooperation.
- Adhere to harmony and tolerance.
- Adhere to market operation.
- Adhere to mutual benefit and win-win situation.
- Focus on cooperation.
- Communicate policies.
- Contact and dialogue.
- Unimpeded trade.
- Financial intermediation.
- Understanding and support from the people.
- Open environment.
China will give full play to its comparative advantages in various regions of the country and adopt a more proactive and open strategy to strengthen the cooperation between the East and the West and comprehensively enhance the level of the open economy.
Plans for Northwest, Northeast China
- Xinjiang: to build the Silk Road economic belt core area.
- Shaanxi: to build a reformed, open inland region in Xi’an.
- Ningxia: Promote an experimental reformed open, inland economic zone in Ningxia.
- Gansu, Qinghai: to speed up the development of Lanzhou, Xining.
- Inner Mongolia: to improve contact and dialogue with Russia and Mongolia.
- Heilongjiang: perfect railway access to Russia and regional railway network.
- Heilongjiang, Jilin, Liaoning: improve cooperation with the Russian Far East land and sea transport, promote the construction of Beijing – Moscow Eurasian high-speed transport corridor, building an important window to the north open.
Plans for Southwest region
- Guangxi: to speed up the Gulf of Tonkin Economic Zone and the Pearl River – Xijiang economic zone open development, and build an ASEAN-oriented international channel, to create the southwest, south-central region to open up new strategic fulcrum.
- Yunnan: Promote the construction of international transport corridors with neighbouring countries, build a new high ground for economic cooperation in the Greater Mekong Subregion, and become a hub for South and Southeast Asia.
- Tibet: Promote border trade and tourism and cultural cooperation with Nepal and other countries.
Plans for inland area
- Chongqing: to build an important support for the development and opening up of Chongqing West .
- Chengdu, Zhengzhou, Wuhan, Changsha, Nanchang, Hefei: to create an inland open economic zone.
- Zhengzhou, Xi’an: support the construction of airports, international dry ports, to strengthen the inland ports and coastal and border ports customs cooperation, cross-border trade to pilot e-commerce services.
Plans for coastal, Hong Kong, Macao and Taiwan regions
- Shanghai: accelerate construction of Shanghai Free Trade Area.
- Fujian: support the construction of the 21st century maritime Silk Road core area. Promote the Construction of the Blue Economic Experimental Zone in the Fujian Straits.
- Zhejiang: to promote the construction of Zhejiang marine economic development demonstration area, Zhoushan Islands new construction.
- Hainan: to increase international island tourism development and opening up efforts.
- Hong Kong and Macao: active participation and help ‘One Belt One Road’ construction.
- Taiwan: Make proper arrangements for the Taiwan region to participate in the construction of ‘One Belt One Road’.
- Shenzhen Qianhai, Guangzhou Nansha, Zhuhai Hengqin, Fujian Pingtan: deepening cooperation with Hong Kong, Macao, Guangdong, Hong Kong and Macao to build the Bay Area.
Plans for 15 port constructions
Strengthen the port construction of Shanghai, Tianjin, Ningbo – Zhoushan, Guangzhou, Shenzhen, Zhanjiang, Shantou, Qingdao, Yantai, Dalian, Fuzhou, Xiamen, Quanzhou, Haikou and Sanya.
If you are not moved by the scale of such a development, consider one of the targets of ‘One Belt One Road’
promote the construction of Beijing – Moscow Eurasian high-speed transport corridor
This is a 9000 – 12000km route that will in future, be commuted in less than 33 hours by high-speed rail moving in excess of 300km/h.
Harmony CRH 380A high-speed train developed in China | Copyright: Khalidshou
At the moment, China is already operating the fastest and second fastest high-speed railway in the world. The Harmony CRH 380A which is a domestic-developed train achieved a test speed of 486.1km/h. In addition, China has the most challenging landscape for rail operators – consider for example the longest bridge in the world, the 165km-long Danyang-Kunshang Grand Bridge which is part of the Beijing-Shanghai High-Speed Railway.
Longest bridge in the world Danyang-Kunshang Grand Bridge in China | Source: Wanhuajing.com
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Soh Tiong Hum is Director of TerraSeeds Market Technician Pte Ltd. TerraSeeds is a trading educator in Singapore since 2005.
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