The New Silk Road - China EmergingsteemCreated with Sketch.

in #china7 years ago

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China has been preparing for the moment that is at hand. They are investing billions of dollars in new infrastructure projects throughout Eurasia. These countries are not asking for this investment but Chinese businesses as well as Chinese government agencies are soliciting these countries with billions of dollars in investment projects to connect the rest of the world to China through the "New Silk Road" OR "One Belt, One Road". Chinese investors are going to lend as much as $8 trillion dollars for infrastructure projects in 68 countries.

Picture from Council on Foreign Relations.

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Many countries will receive loads of money to rebuild, upgrade or add critical and necessary roads, bridges and train systems. This will increase production and transportation processes needed for a thriving and bustling economy.

Many countries that will not benefit are those that have much higher poverty rates and do not have the tools or current economy to begin to produce domestic product. Many countries have concerns when it comes to what China's ultimate geopolitical objective is. While these countries need basic necessities such as clean drinking water, food, and clothing these governments will be restricted to infrastructure projects unless the deal makers add provisions to invest in other parts of the countries needs.

Why is China doing this?

The most obvious reason is that opening up to new markets will keep China's national economy strong.
This mega project could help poorer countries to the south of China, and increase global trade. China also believes this will help the more rural and less developed regions within its own country. Lastly Chinese industrial overcapacity - in the creation of steel and heavy equipment - could outsource to these new outlets along the New Silk Road; In turn this will allow them to transition manufacturing to new high end industrial goods.

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