Showing posts with label Silk Road. Show all posts
Showing posts with label Silk Road. Show all posts

Thursday, May 03, 2018

Why China wants to rebuild Syria - Sara Hsu

Sara Hsu
Rebuilding war-torn Syria might cost around US$250 billion and China raised its hand to participate. Financial analyst Sara Hsu figures out what it behind that offer, while the rest of the world tries to steer clear from Syria, for Triple Crisis. China sees some clear interests, she writes.

Sara Hsu:
China’s choice to fund Syrian reconstruction also appears to be economically motivated, in large part because Syria provides an important pathway along China’s Silk Road. On the ancient Silk Road, the city of Aleppo acted as a key market for buying and selling international goods, and the west coast of the country continues to provide access to the Mediterranean Sea. At present, Syria has the potential to be an important logistics hub. Not only that, but the construction of infrastructure itself will generate income for Chinese firms that have shown interest in taking part. This will aid Chinese firms, especially since the Asian nation is going through a period of slowing economic growth that has led to lower rates of infrastructure investment. 
In addition, serious security will help ensure that Chinese investments in the region will remain intact. Some of these are located in Egypt, Iran, Turkey, and Saudi Arabia. The region is essential to Chinese investment in energy and infrastructure, and is viewed as an important crossroads between Asia and Europe. The security of this region can help to stabilize Xinjiang, home to Uighur separatists that China views as a threat to security and an important node on China’s new belt and road. 
The U.S., Europe, and Gulf Arab allies are steering clear of funding reconstruction in Syria, as they believe that the wrong side won the Civil War. These nations have called for Assad’s departure as a precondition for receiving reconstruction aid, as they believe Assad is responsible for myriad atrocities carried out on his own people. The U.S. took the side of moderate Syrian rebels. For his part, Assad has stated he will reject aid from nations that supported the opposition during the war. Syria has received aid from Iran, Russia, and China, and will likely continue to do so. 
Despite the opposition of the West against Assad, China’s decision to support the current Syrian government does not appear to be motivated by anti-Western sentiment or the desire to compete for influence with the United States. There are those who rally around the Chinese flag due to opposition to the United States, for sure, but these include less powerful nations, like Syria or Iran, that are politically and/or ideologically opposed to U.S. hegemony in the region and in the world. 
In conclusion, China’s position of support for Assad’s Syria underscores its security and economic interests in the region. While any measure of support for a particular regime may be viewed as political, China is attempting to refrain from engaging in directly political activities in the country and in the Middle Eastern region. China’s aim is to make economic gains through One Belt One Road, employing its own firms in the construction of much-needed infrastructure, and attempting to ensure security in order to do so. While the West may dislike China’s support of the Assad regime, China’s involvement in the reconstruction process is likely to bolster its role in the Middle East and strengthen its global soft power going forward.
More at Triple Crisis.

Sara Hsu is a speaker at the China Speakers Bureau. Do you need her at your meeting or conference? Do get in touch or fill in our speakers' request form.

Are you looking for more experts on China's One Belt, One Road program? Do check out this list.  

Wednesday, January 21, 2015

Chances along China´s new silk road - Sara Hsu

Sara Hsu
+Sara Hsu 
Massive investments along the planned new silk road, and planned new economic zones, might offer cities in poorer provinces like Xinjiang and Yunnan great opportunities to develop, writes financial analyst Sara Hsu in the Diplomat.

Sara Hsu:
The northern Silk Road represents an opportunity to transport resources from Western China, and countries West of China, to the east, and development of areas along the road may entice migration within China from east to west. Several cities have sought to be a part of this project. Zhengzhou in Henan province lies close to the planned start of the New Silk Road in Xi’an, and plans to fast-track its development plans for its airport, high speed rail, and other projects, aiming to become an aviation and economic hub. Horgos, on the border with Kazakhstan, a land port to central Asia, was approved in 2014 as a city and is in the process of developing a special economic zone. 
Other areas have already received investment in anticipation of increased activity along the New Silk Roads. In the northern region, Lanzhou New Area was established in September 2012 and is a planned city for 500,000 residents; it is attempting to become a high-tech research center. A high-speed railway, the Lanxin railway, linking Urumqi in Xinjiang with Xining in Qinghai along the New Silk Road, was opened less than one month ago. In the southern region, a long road was sculpted through the hilly region between Kunming, capital of Yunnan, to the Laotian border in 2008. A railway line running from Kunming to Hekou, on the border of Vietnam, is expected to be finished this year. An expressway between Kunming and Ruili, on the border of Myanmar, is in the process of being built.
Prior development along the northern New Silk Road has lagged since this region is extremely barren and mountainous, crossing the Gobi Desert, encompassing many mountain passes, and moving through a landlocked region far from any sea. Development in the southern region has been equally challenging given the highly mountainous terrain. Creation of economic development zones and infrastructure will build up these areas. 
As these underdeveloped regions grow, additional development measures will need to be taken, especially regarding the provision of water in the northern pass. Attention must also be paid to enhancing the education and skills of the poor farmers and herders on the planned northern and southern Silk Roads to ensure that development is inclusive, not just profitable for larger enterprises and resource users on the east coast. If carried out in a balanced way, the New Silk Road could have a big impact on cities dotted along the corridor.
More in the Diplomat.

Sara Hsu is a speaker at the China Speakers Bureau. Do you need her at your meeting or conference? Do get in touch or fill in our speakers´request form.

Are you interested in other experts in China´s outbound investments? Do check our latest update.