China’s One Belt, One Road also known as Belt and Road Initiative is one of the most ambitious projects that are focused on foreign and economic development. The President Xi of China announced this project in the year 2013. The main objective of this OBOR project is to strengthen the economic leadership of china throughout China’s neighboring regions. China wants to do this through a vast program of infrastructure building.
However, many foreign analysts are viewing China’s initiative of Belt and Road through a geopolitical lens. They say Beijing attempts to acquire political leverage over its neighboring countries. There are many analyses argues that show that OBOR is largely motivated by the economic concerns of China.
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Connectivity in different aspects
The OBOR initiative of china will focus on the energy, transport, and information infrastructure. All these things will connect the countries in Asia, Europe, and Africa. This project also includes much other connectivity of networks such as seas routes, air, internet, pipelines, gas, and many more. There will be a focus on power grids connection in this initiative.
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Financial integration
Along with OBOR, China also wants an improvement in the cooperation in monetary policy and an expansion of the currencies settlement. The country is setting up a regional development financial institution to look after all these financial integration matters. China’s focus is also on the exchange between countries and increasing cross-border cooperation.
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Uninterrupted trade
China has a goal to encourage two-way investments so that it can reduce trade barriers. One Belt, One Road initiative has many other key highlights that include increased efficiency of the regional economic integration. This is all about establishing trade with other countries and regions to open free trade areas. Till now, the country has signed around 14 free trade agreements with 20 countries.
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Bonding with people from different countries
One of the objectives of this initiative is to bring people together from neighboring countries to share their ideas, thoughts, and information. This would be highly useful in terms of academic and cultural exchanges.
China’s plans for its One Belt One Road Project
In 2013, President Xi of China announced this project during his official visits to Indonesia and Kazakhstan. The project included Maritime Silk Road and the overland Silk Road Economic Belt. Both of these plans together called the One Belt, One Road initiative.
According to China’s president, this network would not only expand the international use of Chinese currency but will also ensure strong connectivity with its neighbors. China also aims to build fifty special economic zones along with the physical infrastructure.
Challenges for the One Belt One Road Project
Numerous challenges are related to the initiative. One of them is the increased risk of political instability in many countries. Other challenges that might impact the initiative are related to the regulatory and legal systems in the countries.
Many of these countries that are with initiative are still developing so there will be differences in the legal and regulatory systems. Also, these countries may not have been checked for foreign investments.
This research is done by Eddiee Broke who works as an assignment editing helper in Australia.
Australia canceling the One Belt One Road project with China
Earlier, Australia was also a part of China’s massive Belt and Road Initiative. But, recently, the Australian foreign ministry approved the cancellation of four memoranda of understanding and agreements with China and other countries including Iran and Syria,
While canceling the deal with China, the foreign ministry stated that the initiative is inconsistent with Australia’s foreign policy or it can have adverse impacts on their foreign relations.
China hopes to achieve with the One Belt One Road project
Behind the initiative of China, there are both economic and geopolitical motivations. China wants to promote a vision of a more assertive China by slowing the growth of trade relations with the United States.
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