Saturday

18th Aug 2018

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.

Read and decide

Join EUobserver today

Support quality EU news

Get instant access to all articles — and 18 year's of archives. 30 days free trial.

... or join as a group

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.

News in Brief

  1. Germany and Greece strike deal on taking back migrants
  2. Merkel confronts far-right critics: '2015 will not be repeated'
  3. UN: Predictable disembarkation process urgently needed
  4. Slovenia set to select former comedian as prime minister
  5. Polish president to veto election rule helping big parties
  6. MEPs blast UK 'alphabetical approach' on citizens rights
  7. EU hits back over Salvini's blame for bridge collapse
  8. Poll: Sweden's social democrat-led government set to win again

EU's moment of truth in Khan al-Ahmar

EU states have spoken out in strident terms against the Israeli demolition of another Palestinian community - but what are they prepared to do to stop the war crime?

Stakeholders' Highlights

  1. ACCACompany Law Package: Making the Best of Digital and Cross Border Mobility,
  2. IPHRCivil Society Worried About Shortcomings in EU-Kyrgyzstan Human Rights Dialogue
  3. UNESDAThe European Soft Drinks Industry Supports over 1.7 Million Jobs
  4. Mission of China to the EUJointly Building Belt and Road Initiative Leads to a Better Future for All
  5. IPHRCivil society asks PACE to appoint Rapporteur to probe issue of political prisoners in Azerbaijan
  6. ACCASocial Mobility – How Can We Increase Opportunities Through Training and Education?
  7. Nordic Council of MinistersEnergy Solutions for a Greener Tomorrow
  8. UNICEFWhat Kind of Europe Do Children Want? Unicef & Eurochild Launch Survey on the Europe Kids Want
  9. Nordic Council of MinistersNordic Countries Take a Stand for Climate-Smart Energy Solutions
  10. Mission of China to the EUChina: Work Together for a Better Globalisation
  11. Nordic Council of MinistersNordics Could Be First Carbon-Negative Region in World
  12. European Federation of Allergy and AirwaysLife Is Possible for Patients with Severe Asthma

Latest News

  1. EU gets record response on 'summertime' consultation
  2. 'Nativism' and the upcoming Swedish and Bavarian elections
  3. Former Malta opposition leader fears for his life
  4. Women shun EU-funded site for female entrepreneurs
  5. Building a Europe more resilient to terrorism
  6. Brexit talks resume as chance of 'no deal' put at 50:50
  7. US trial sheds light on murky Cyprus-Russia links
  8. Burned cars fuel Swedish election debate

Stakeholders' Highlights

  1. PKEE - Polish Energy AssociationCommon-Sense Approach Needed for EU Energy Reform
  2. Nordic Council of MinistersNordic Region to Lead in Developing and Rolling Out 5G Network
  3. Mission of China to the EUChina-EU Economic and Trade Relations Enjoy a Bright Future
  4. ACCAEmpowering Businesses to Engage with Sustainable Finance and the SDGs
  5. Nordic Council of MinistersCooperation in Nordic Electricity Market Considered World Class Model
  6. FIFAGreen Stadiums at the 2018 Fifa World Cup
  7. Mission of China to the EUChina and EU Work Together to Promote Sustainable Development
  8. Counter BalanceEuropean Ombudsman Requests More Lending Transparency from European Investment Bank
  9. FIFARecycling at the FIFA World Cup in Russia
  10. Nordic Council of MinistersOECD Report: Gender Equality Boosts GDP Growth in Nordic Region
  11. Centre Maurits Coppieters“Peace and Reconciliation Is a Process That Takes Decades” Dr. Anthony Soares on #Brexit and Northern Ireland
  12. Mission of China to the EUMEPs Positive on China’s New Measures of Opening Up

Join EUobserver

Support quality EU news

Join us