Saturday

29th Apr 2017

Opinion

Europe: The other end of China's Silk Road

  • China is coming closer to European markets (Photo: dolmansaxlil)

All of the attention around Xi Jinping’s recent European trip was focused around his visit to Moscow in time for the May Day military parade.

By focusing so singly on the Moscow stop, however, the importance of the route he took was missed.

Dear EUobserver reader

Subscribe now for unrestricted access to EUobserver.

Sign up for 30 days' free trial, no obligation. Full subscription only 15 € / month or 150 € / year.

  1. Unlimited access on desktop and mobile
  2. All premium articles, analysis, commentary and investigations
  3. EUobserver archives

EUobserver is the only independent news media covering EU affairs in Brussels and all 28 member states.

♡ We value your support.

If you already have an account click here to login.

Coming soon after the President’s visit to Pakistan in which he laid out the China-Pakistan Economic Corridor (CPEC), this trip affirms one of the key routes of the Silk Road Economic Belt - running through Kazakhstan, Russia and Belarus to ultimately end in Europe.

This final link is the key which Europe needs to wake up to, to understand that this Chinese outward push is one that is both a reality and one that can advance European interests.

The Silk Road Economic Belt route of the ‘One Belt, One Road’ initiative advanced by Xi is going to become the cornerstone foreign policy of the current Chinese administration. Enmeshed in the idea of returning China to its place at the center of global power, the initiative has led to the fanning out of a number of economic and trade corridors from Beijing.

The precursor to all of the ones currently talked about (a latticework of routes stretching out from China’s ports around the world through the Maritime Silk Road, through Pakistan in the CPEC, through Bangladesh-Myanmar and to India in the BCIM) was the route through Central Asia.

Initiated as part of a strategy to develop China’s western regions, the idea was to help reconnect Xinjiang to Central Asia, and ultimately through the region to European markets. For Beijing, Europe is the other end of the Silk Road Economic Belt.

In trying to implement its strategy, China has made a very conscious effort to reach out to Europe, in terms of official statements and an eagerness to try to find ways of working together on making this strategy work.

At this point it has gone beyond rhetoric. As well as pouring massive amounts of money in helping infrastructure across the former Soviet space, they have also looked at undertaking large investment projects in Belarus, Ukraine and other countries on Europe’s south-eastern periphery.

Closer to Europe

An economic force is sweeping along the Silk Road bringing China ever closer to European markets.

To some this will be seen as a threat. Chinese goods getting a quicker route to European markets will only place more pressure on already threatened European industries.

But this is a dynamic that is going to happen anyway and is already underway. Far better to try to focus on the other side of the equation and the potential opportunities.

Not only in terms of high end luxury and technical goods which Europe continues to manufacture which are so keenly desired by the ever-growing middle class Chinese consumer market which can travel back along this route, but also in terms of the development it will bring along the way to countries that Europe has long sought to help along the path of economic development.

This is something that is particularly true in Central Asia.

Europe has long seen Central Asia as a region it has been trying to support. The current Latvian Presidency has made the region a particular priority. As well as the potential economic opportunities (that Central Asians welcome), the region is one that has fraught internal dynamics.

European entities like the EU and OSCE are amongst the only ones that have been able to help bridge some of these divides - providing a set of lessons and experiences that China is simply unable to replicate, but is keen to learn from.

On the economic side of the equation, Chinese firms have been pushing into Central Asia and encountering all sorts of difficulties be it in terms of local governance or security issues.

This is a space that European companies and international institutions like the EBRD have long worked in and have developed a number of strategies for dealing with these very particular regional problems.

There is an opportunity here.

Building missing links

For Europe, China offers the opportunity to magnify effect - Europe’s economic and political force is substantial, but when bolstered by Chinese capacity and means, becomes an even more substantial force.

As well as the $40 billion Silk Road fund, there is the nascent Asian Infrastructure Investment Bank (AIIB) and the slowly developing BRICS Bank, and the sometimes talked of Shanghai Cooperation Organization (SCO) Development Bank.

And China has continued to sign massive bilateral deals in countries along the route, with a particular focus in Central Asia. Admittedly some of this money is hyperbole around official high level visits, but go on the ground across the region and it is impossible to deny the presence of the Chinese funding - tangible as it is in roads, pipelines, railway projects, energy infrastructure and construction across the region.

There is also a larger political point to be made here about China’s relationship with the European Union.

The EU has long sought to find ways to engage with China in a productive manner - Central Asia and the larger Silk Road Economic Belt offers an opportunity to work with China on something that is of direct interest to Europe, but also is clearly a strong strategic priority from the very top of Xi Jinping’s administration.

For Beijing, Europe is the other end of the Silk Road - Europe needs to seize this opportunity to help advance its own interests.

Raffaello Pantucci is director of international security studies at Rusi, a think tank in the UK

Stakeholder

China to revive ancient Silk Road

The Chinese “Belt and Road” initiative aims to connect Asia, Europe and African countries. It covers more than 60 countries along the ancient Silk Road with a population of 4.4 billion and US$21 trillion GDP.

Time to gear up European climate diplomacy in Beijing

The launch of the Asian Infrastructure Investment Bank heralds a new era of cross-continental financing for future energy markets, but a push for gas and failures to abide by good governance could doom the potential for a better tomorrow.

Column / Brexit Briefing

May's drive for one-party Brexit state

Snap election will kill off attempts to reopen debate on second referendum and inflict further damaged on confused opposition.

News in Brief

  1. Vote of no confidence prepared against Spanish PM
  2. Syria to buy Russian anti-missile system
  3. Germany seeks partial burka ban
  4. Libya has no plan to stop migration flows
  5. EU has no evidence of NGO-smuggler collusion in Libya
  6. Poland gets 'final warning' on logging in ancient forest
  7. Commission gives Italy final warning on air pollution
  8. Romania and Slovenia taken to court over environment policies

Stakeholders' Highlights

  1. European Healthy Lifestyle AllianceCharlotte Hornets' Nicolas Batum Tells Kids to "Eat Well, Drink Well, Move!"
  2. ECR GroupSyed Kamall: We Need a New, More Honest Relationship With Turkey
  3. Counter BalanceParliament Sends Strong Signal to the EIB: Time to Act on Climate Change
  4. ACCARisks and Opportunities of Blockchain and Shared Ledgers Technologies in Financial Services
  5. UNICEFRace Against Time to Save Millions of Lives in Yemen
  6. Nordic Council of MinistersDeveloping Independent Russian-Language Media in the Baltic Countries
  7. Swedish EnterprisesReform of the European Electricity Market: Lessons from the Nordics, Brussels 2 May
  8. Malta EU 2017Green Light Given for New EU Regulation to Bolster External Border Checks
  9. Counter BalanceCall for EU Commission to Withdraw Support of Trans-Adriatic Pipeline
  10. ACCAEconomic Confidence at Highest Since 2015
  11. European Federation of Allergy and Airways60%-90% of Your Life Is Spent Indoors. How Does Poor Indoor Air Quality Affect You?
  12. European Gaming and Betting AssociationCJEU Confirms Obligation for a Transparent Licensing Process

Latest News

  1. EP chief faces questions after homophobic 'summit'
  2. EU signals Northern Ireland could join if united with Ireland
  3. One year later: EU right to open internet still virtual
  4. Rethinking Europe's relationship with Turkey
  5. Mob storms Macedonian parliament
  6. MEPs retain secrecy on office spending
  7. May accuses EU-27 of 'lining up against Britain'
  8. Resurrected Renzi to regain leadership of Italy's ruling party

Stakeholders' Highlights

  1. Nordic Council of MinistersNordic Region and the US: A Time of Warlike Rhetoric and Militarisation?
  2. European Free AllianceEFA MEPs Vote in Favor of European Parliament's Brexit Mandate
  3. Mission of China to the EUXinhua Insight: China to Open up Like Never Before
  4. World VisionViolence Becomes New Normal for Syrian Children
  5. International Partnership for Human RightsTime to Turn the Tide and End Repression of Central Asia's Civil Society
  6. European Free AllianceAutonomia to Normalnosc - Poland Urged to Re-Grant Autonomy to Silesia
  7. UNICEFHitting Rock Bottom - How 2016 Became the Worst Year for #ChildrenofSyria
  8. Malta EU 2017Green Light Given for New EU Regulation to Bolster External Border Checks
  9. ACCAG20 Citizens Want 'Big Picture' Tax Policymaking, According to Global Survey
  10. Belgrade Security ForumCall for Papers: European Union as a Global Crisis Manager - Deadline 30 April
  11. European Gaming & Betting Association60 Years Rome Treaty – 60 Years Building an Internal Market
  12. Malta EU 2017New EU Rules to Prevent Terrorism and Give More Rights to Victims Approved