One Belt, One Road is China’s largest infrastructure and investment project. China’s “One Belt, One Road” strategy aims to develop economic and social linkages amongst the countries it passes through to revive the ancient Silk Road. Project covers 65% of global population and 40% of global GDP. China’s planned economy grew almost 10% each year from 1978 to 2014.
China initiated the initiative in 2013 to expand its exports and imports. Through this initiative, China seeks to establish trade and social links with other nations and economic blocs. This endeavor focuses on the expansion of the Chinese export markets through bilateral economic ties that will become strategic partnerships and alliances. The yuan is utilized as a trade currency, and one of China’s goals is to raise the rate of trade exchange in this currency, which will assist strengthen the yuan globally while reducing trade exchange costs and settlement times.
For the geopolitical axis, all maritime and land channels were planned to achieve additional geopolitical goals that may lead to future partnerships. More than 100 countries and international organizations have signed Belt and Road Initiative cooperation agreements and invested $5.4 billion in 28 projects in diverse countries. 4,000 rail links connecting China to Asian and European countries were also built. China and other countries have invested $70 billion.
This initiative comprises developing rail networks, oil and gas pipelines, power lines, the internet, and marine infrastructure.
This initiative includes the New Eurasian Land Bridge, The China-Indochina Peninsula Economic Corridor (CICPEC), China–Central Asia–West Asia Economic Corridor (CCAWEC), China-Pakistan Economic Corridor (CPEC), and the Bangladesh, China, India and Myanmar Economic Corridor (BCIM). China will contribute $126 billion if each participant pays for its own infrastructure. Asian Infrastructure Investment Bank (AIIB) and Silk Road Fund give loans.
Half of its six Middle East lines travel through or end on the Mediterranean. China’s foreign policy is to stabilize the Middle East, which is known for wars and terrorism. European optimism and pessimism were split. Chinese funding thrilled Eastern and Central Europe. Germany, France, and many western European countries, especially northern ones, were suspicious.
Transatlantic Trade and Investment Partnership (TTIP) is a direct rival. China’s low interest rates are blamed for developing countries’ debt. In a scathing rebuttal to Trump’s protectionist policies, the Chinese president vowed to reject “protectionism.” All cooperation projects in the initiative would be guided by market principles, according to the Chinese president.