Modern Version of Silk Road

Chinese President Xi Jinping hosted a two-day international meeting for his economic initiative called One Belt One Road in Beijing. While China appeals its significance of making peace and prosperity under Chinese leadership, major economies including United States or Japan are still skeptical on true intention of Beijing. A modern version of Silk Road is possibly a new framework for Chinese hegemony in Asia.

One Belt One Road is an initiative for economic cooperation to promote infrastructural development of the country along the ground or maritime corridor that resembles the ancient trade route between the East and West, Silk Road. In the meeting in Beijing, 29 national leaders, including Russian President Vladimir Putin, and other over one hundred representatives participated. “We are making new model of economic cooperation through building One Belt One Road,” declared Xi in the opening ceremony.

China did not hesitate offering bargaining chips. Xi pledged additional 100 billion Chinese Yuan for Silk Road Fund established in 2014 for implementing the initiative and another 60 billion Chinese Yuan for monetary support for developing countries. “We are not intervene internal politics of other nations and not exporting or coercing social system or model of development,” insisted Xi, trying to make difference from Western model of economic cooperation, mainly led by U.S.

Xi administration embarked on this initiative in 2013, when Asia-Pacific countries were negotiating for Trans-Pacific Partnership, which was proved to be a rule-making effort against growing China. Under its economic leadership, China hopes to cast its influence to the Asian nations through building roads, power plants, railroads or ports. For financial implementation, China established Asia Infrastructure Investment Bank, new financial organization competing with Asia Development Bank led by U.S. and Japan. China seems to be building a new economic block to save its wealth.

While China hopes over 60 countries to participate in the initiative, those countries represent only 30% of world economy. U.S. or Japan refrained from sending top leader to Beijing with reluctance of helping enhancement of Chinese hegemony. India is highly skeptical on China’s close relationship with Pakistan for building a route between western China and Indian Sea through Pakistan.

Japan has not completely realized where Xi administration is going to. While Japan has not determined how long it should take distance from One Belt One Road, Japanese corporations are worried about being left behind of new development business in Asia. Politics and economy are contradicting each other as always seen in the relationship with China.