BELT AND ROAD INITIATIVE, an examination within the context of China’s emergence as a regional and global power

Abstract

Since 2013, the Belt and Road Initiative (BRI, in Chinese, Yi Dai Yi Lu, 一带一路) has become the milestone of China's economic diplomacy. With a geographic coverage of over 60 countries in Asia, Middle East, North Africa and Europe. BRI represents China’s greatest initiative to promote economic growth in the world through infrastructure developments. This research is divided into three chapters which analyse this ambitious project in the intent of clarifying the widespread uncertainty about China’s motivations and means within BRI. The first chapter explores the strategic policy framework of the Initiative, which turns out to be a flexible, open and inclusive project that lies on the five “cooperation priorities”: policy coordination, infrastructure connectivity, unimpeded trade, financial integration and people-to-people bond. It has no formal institutional structure, but crosses into already established regional and international legal, economic and political regimes. The second chapter shifts to BRI’s economic and financial framework, observing that China’s economic pressures pushed the country to turn into an active driver of the regional and global economy. Since the CCP’s legitimacy is inextricably linked to the economic growth, BRI’s economic dimension, through a “multilateral” approach, aims to support Chinese industries in their penetration of foreign market through economic factors such as trade, overseas direct investments, financial support and new financial vehicles (Asian Infrastructure Investment Bank - AIIB and Silk Road Fund- SRF). The third chapter takes into consideration the countries touched by BRI’s land route analysing their importance within the project and their acceptance of Chinese’s investment volume. The nature of this economic initiative is aimed to create a community of shared destiny, in which countries can share mutual benefits and coexist peacefully along the trade routes. It represents the Chinese response to the change of geopolitical scenarios, to the global economic crisis: a globalisation with Chinese characteristics. The thesis shows how the Belt and Road Initiative represents the Chinese implementation of “soft power” through a multilateral channel instead of an aggressive approach. However, there is an increasing confusion behind the motivations and the means behind BRI’s employment. Because of the lack of transparency, ambitious projects without a defined plan, legal uncertainty, some countries are suspicious of China’s economic initiative, considering the BRI as an unveiled mean aimed at serving a wide range of domestic interests and expanding Chinese influence.