In the present globalized world, the economic corridors have become an important tool for regional cooperation and development. The economic corridor highlights the integration of infrastructure improvement with various trade and investment opportunities, and it incorporates to address the social and other outcomes of increased connectivity. China is a most populated country of the world and most of the Asian countries particularly the Southeast Asian economies are dependent on China, as China is a key trading partner with these countries. The concept of Belt and Road Initiative (BRI)was actually taken from the idea that the Central Asian countries situated along the old Silk Road could get advantages from well-established transport infrastructure. Because of the fact that most of the Central Asian countries have small economies with lesser potential for investment, therefore, the overland transportation becomes expensive as compared to sea shipment. China introduced a new idea of maritime road which runs from Chinese coast through the Southeast Asia to Indian Ocean and then to Europe. The old Silk Road connected China with the western part of civilization through the ancient trading of silk, tea and ceramics, resultantly, this brought China closer to the rest of the world.
During the market reforms in 1970’s, People’s Republic of China has become greatly independent for its sustained welfare without seeking any foreign inflow and technology. After the great global recession, China is facing several modern day problems including slow technological advancement, dropping of marginal capital product and low household consumption. In order to tackle these problems, China has launched Asian Infrastructure Investment Bank ‘AIIB’, together with BRI project. In quest of oil and other natural resources, China wants to build connections with Central Asian countries via both physical and technological access. The BRI is aimed at providing other countries road and rail access to China via sea ports to strengthen economic growth; on the other hand, fiber connectivity gives the virtual access and connectivity.
In 2013, China’s President, Xi Jinping proposed the new concept of “Silk Road Economic Belt” during his visit to Central and South East Asia, which later on was called as “One Belt and One Road” initiative (一带一路, yidai yilu). He argued,” the concept will help to promote China cooperation with Central Asia and South East Asia in the field of trade, connectivity, culture and exchange. In November 8, 2014, President Xi Jiping granted 40 billion US$ for Silk Road initiative to provide infrastructure and solid platform for ICT related projects. It is one of the reforms in Chinese close ideologies towards a liberal state. The area covered by BRI possesses 55% of the world GNP, 70% of the global population and 75% of the known energy reserves. It, therefore, becomes a main component of the regional economic strategy of the President Xi Jinping’s foreign policy.
Six economic corridors have been proposed of the BRI project by China:
- New Eurasian Land Bridge
- China-Mongolia-Russia Corridor
- China-Central Asia-West Asia Corridor
- China-Indochina Peninsula Corridor
- China-Pakistan Corridor
- Bangladesh-China-India-Myanmar Corridor
Some Asian countries including India and Japan are against the initiative and assertion it as Chinese long-term Marshall Plan strategy to gain geopolitical preeminence in the Asia and Asia Pacific. India, particularly, has strong reservations about it and blaming that the recent years ambitious projects i.e. AIIB and BRI, of Chinese diplomacy reflect the end of the Beijing Peaceful Rise Policy and are alarming the West about China’s grand chess move. Moreover, consider it as the “Internationalization of Yuan”, creating alternative routes for Chinese economics in order to shape a more suitable political and secure environment for China. The US and few European countries have also shown their concerns about it and considered it Beijing’s expansion policy to rise in the world.
It is more likely that due to the BRI and AIIB initiatives of China, and the US initiated Trans-Pacific Partnership (TPP) will lead towards regional blocks and disintegration of trade between US and China. On the other hand, the US-Sino competition will lead towards strengthening of economic institutions by developing trade routes throughout the whole of Asia and Asia-Pacific. Furthermore, it will give to China more confidence in reshaping the global world order. Resultantly, the balance of technology and growth is drifting slowly and gradually towards Asia from Europe. Asia is a dense populated region with more than 2.8 billion people, living in a land fertile for IT and communication industry, with cheap labor and capital, rich raw resources and tremendous absorbing capacity for new technologies and developments. All these factors are molding the situation in favor of emerging Asian countries and will probably shift the regional balance towards Asia.
Based on the above facts, it can be assumed that in the next two decades, the emerging Asian countries may stand as the strongest opponents to the US supremacy in Asia and Asia Pacific. Furthermore, the impact of the BRI will enhance the entrance of ICT in leisure, health, retail, security and business activities. Likewise, the other developments, it contributes in promoting the digital culture in e-government, e-business and e-commerce. Finally, the study can be considered as unique as it critically assesses the future of the One Belt, One Road initiative and provides immense scope for the future studies on this hot topic.