The Belt and Road Initiative is China’s new, massive Silk Road. The ancient Silk Road was a trade route between China and Eastern Europe. It helped to exchange ideas, culture, inventions and unique products across much of the world. The stakes and economic potential for the new Silk Road are much greater, and the U.S. is conspicuously absent. The Belt and Road Initiative presents a unique opportunity for the world’s most powerful nations to work together for economic good.
In 2013, China’s president, Xi Jinping, announced the initiative aiming to improve his country’s slowing economic growth. It proposes to improve connectivity and cooperation among countries across Asia, Africa and Europe. The Silk Road economic “belt” is land-based and is expected to connect China with Central Asia and Europe. The “road” is sea-based and proposes using coastal ports to link China, Africa and Europe.
In early 2016, Gov. Gina M. Raimondo announced RhodeWorks, a much smaller project but important to the future of the state’s residents and businesses. RhodeWorks is a plan to rebuild roads and bridges, extend bike paths and create hubs of innovation based on 5G technology. The plan is expected to cost $4.9 billion over 10 years.
China’s Belt and Road Initiative is also infrastructure-centered and proposes building an extensive network of roadways, railways, maritime ports, power grids, and oil and gas pipelines in nearly 70 countries. Funding has been provided mostly by Chinese institutions and spending on the initiative could reach $1.3 trillion by 2027, according to Morgan Stanley.
Suppressing the Belt and Road Initiative has become part of America’s strategy.
The greatest resistance to China’s efforts comes from the U.S. and India. While U.S. enterprises are interested, the government has gotten in the way because of geopolitical competition. Following the election of Donald Trump, suppressing the Belt and Road Initiative has become part of America’s strategy. This trend is growing, but it is unlikely to stop China. U.S. foreign policymakers promote a narrative of Chinese aggression to justify their policy of opposition. On July 20, 2018, Secretary of State Mike Pompeo unveiled the administration’s Indo-Pacific Economic Vision, an investment program with partners Australia and Japan. It calls for U.S. direct investment of $113 million in addition to the U.S. International Development Finance Corp. making $60 billion available in loans to companies for investment in new technology, energy and infrastructure.
Pompeo did not mention China by name, but he left no doubt about the purpose of the program. “We all want all nations, every nation, to be able to protect their sovereignty from coercion by other countries. We want the peaceful resolution of territorial and maritime disputes,” Pompeo said. “Our engagement excludes no nation.”
In 2018, Rhode Island companies exported $1.2 billion worth of goods to Asia-Pacific Economic Cooperation countries, trade that helped support more than 10,000 jobs.
The Belt and Road Initiative would benefit significantly from America’s participation, rather than the U.S. settling for the role of spoiler. Joining the initiative would help the U.S. wield political influence and increase opportunities for American construction, engineering and tech. n
Cynthia Tomaz and Karen Wu are MBA students at the University of Rhode Island.
