Historical roots

The Silk Road was a network of trade routes, formally established during the Han Dynasty. The road originated from Chang'an (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 but 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.

Rolling out the red carpet

Making friends

The Asia Development Bank estimates that Asia needs US$8tn to fund infrastructure construction for the 10 years to 2020. China well knows its development is linked to Asia and beyond and, in part, is banking its future on responding to its neighbours’ huge infrastructure needs via One Belt, One Road.

Meanwhile, China’s growing domestic market means the chance for the region and the world to capitalise by providing goods and services. The initiative is not without its challenges; cooperation and coordination with partner countries over the long term are paramount for it to be a lasting legacy. 

Some worry that China has ulterior motives for naval expansion and energy security. What the sceptics miss is that securing economic growth is at the core of national security, as it legitimises the party’s rule. To ease worries, President Xi Jinping has emphasised “Three Nos”

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

Domestic Silk Road Plan

One Belt, One Road could have as much impact on China’s internal economy as it will have internationally. China’s top priority is to stimulate the domestic economy via exports from industries with major overcapacity such as steel, cement and aluminium.

Many will be build-transfer-operate schemes in which large SOEs will lead the way, but smaller companies will follow. The domestic plan divides China into five regions with infrastructure plans to connect with neighbouring countries and increase connectivity.

Each zone will be led by a core province: Xinjiang in the Northwest, Inner Mongolia in the Northeast, Guangxi in the Southwest and Fujian on the coast.