What is it?
One belt one road popularly known as the Belt and Road Initiative is project which was started by the current Chinese president Xi Jingping. The major objective behind this project was to create trade routes among China and the other countries in Central Asia, Europe and Indo-pacific countries.
In other words, the Belt and Road Initiative is the complete and comprehensive network of railways, roads, oil pipelines, ports and other infrastructures which successfully connects China to other parts of the world.
This initiative was first announced back in 2013 as an homage to the ancient trade routes connecting Europe to Asia.
What are its objectives?
- China wants to expand its international relations by expanding its influence. Since China is not a part of G7 Countries. Therefore, China has initiated this project to have its influence to rest of the world.
- In the age of digital and virtual currencies, China has seen a slowdown in its GDP. For this reason, China expects this project to be a successful project to boost its economy by boosting its trade. By this road, China is expecting to find a new market for its products.
- Exporting goods is the primary reason for China’s exceptional growth. This country has enough labor and the resources to produce in excess of capacities.
- China is an economic power. But Yuan hasn’t much value compared with western countries. Thus, this new initiative is aimed to boost the value of China’s currency. It will successfully strengthen the job of Yuan as an international currency like we are accustomed to the US dollar.
- This initiative is also aiming to remove the regional disparities in China. We all know that Eastern and the Southern regions of China are not particularly rich or developed. With this initiative, these regions will be connected to the rest of the world without lagging behind.
What could possibly affect this project?
- Under this project few countries have a very low credibility. Most of them are in huge debts. Connecting to this new project may being prosperity to them. However, it can also bring debt or economic pressure to China itself.
- The Middle Eastern countries like Iran, Syria, and Afghanistan could bring potential threat this project in the form of terrorism.
- The aim behind this initiative may good. However, once felt exploited the poor countries could revolt in the form of revolutions. This revolution has already taken place in countries like Africa, Sri Lanka, and Myanmar which couldn’t keep up with their debts. This new initiative may not bring any profits from the poor countries. Thus, only the poor countries may need to face massive debts.
How it could affect India?
As of now India has good dominance in the Indian Ocean. However, the involvement of the Chinese government could lead to stain to this dominance. If Chinese government interferes in the marine time route through the Indian Ocean, then it could lead to serious problem or even a new cold war. India risks of getting into isolation from all of its neighboring countries since China is expanding its trade.