With a civilization more than 2000 years old, Chinese founded the first trade route from that went from Asia to Europe, named after their most exported product, “The Silk Road”.
The Chinese President Xi Jinping launched a new Silk Road
We can thus debate that globalization began in -138 BC, with the foundation of this bundle of trade routes that was absolutely amazing for the time. What is sure is that the impact of this network has been huge throughout the world, and this kept going for many years. That’s why in 2013, Chinese President Xi Jinping launched the crazy bet of creating a new Silk Road, in memories of that glorious Chinese time.
Also called “One Belt One Road”, it consists of a network of roads, railways and pipelines meant to link China to the rest of the world. But in addition to many buildings and physical facilities, this project is also willing to develop the largest cooperative platform in the world. Indeed, the goal is also to facilitate political and socio-cultural exchanges, in addition to economic trade. More than 100 countries have already shown interest to participate in this initiative as they can all also benefit from it.
The new Silk Road is expected to reach 65% of the world’s population, 1/3 of the world’s GDP and ¼ of all the world trade or goods and services. This suggests the influence and immensity of the future investments that are to come. This could, therefore, transform the future of the economic market as we know it today and give a new turning point for globalization.
The new Silk Road: China’s goals behind this initiative
Although China’s influence is not negligible, they do not want to stop there. Progress is still possible and China is will do everything it takes to maximize its power. Feeling neglected not to be a part of the G7, China thus wants to expand its influence on international even more. And with this new trade road to Europe, passing through the Middle East and Scandinavia, China has every chance to develop its power. In addition, a sea route is also part of the project, which will strengthen its influence from Asia to Venice.
This approach is expected to be flourishing from an economic point of view as well. Despite the slowdown in their last year’s growth, China is investing heavily in the new Silk Road to boost trade and make their GDP regain rapid growth as before. Thanks to this initiative, the RMB should be much more used, which will strengthen its image and maybe its potential as an “international currency”. Because the dollar is today way too preeminent compared to the place of the United States in the current world economy.
In addition, these new routes will also connect the most remote Chinese regions. This will enable the poorest provinces, in the eastern and southern regions, to benefit from this opportunity of this new connection to the world to develop their economic growth. As well as exporting to other continents their excess capacity. Jonathan Krane, KraneShares’ CEO even declared “We believe the OBOR initiative is creating a new paradigm in global investing […] (it) will receive trillions of dollars of investment over the next decade and should increase the economies and trade of both China and the participating nations.”
Opportunities for partner countries
Although China has a lot to gain from this project, other countries involved in the new Silk Road should also benefit greatly from it. This could, for example, reduce the infrastructural deficit of some developing countries (Pakistan for example). In addition, the GDP of the partner countries will naturally increase thanks to the rising trade in goods and services between both countries.
All of this will be facilitated by this platform of exchange and global cooperation. China is, therefore, more than ever, an ideal market to invest. In view of their huge population, they already represent a huge market for any industry. They are numerous, enrich themselves more and more and love foreign products. So if you were hesitant to enter this market that seems so far and inaccessible, do not hesitate any longer! Some sectors should still benefit more than others from this initiative.
This is particularly the case for the sectors in construction and engineering, as well as the manufacturers of capital goods and producers of raw materials. However, all investors are welcome. And since it may seem scary to try your luck in such a different market on the other side of the world, our digital marketing company is there to help you and ensure maximum visibility for your company in China. With all these keys in your hand, your success is guaranteed! So do not miss out on this chance and the future opportunities that the new Silk Road is about to offer.
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