China's One Belt One Road Initiative and Private International Law

Poomintr Sooksripaisarnkit,Sai Ramani Garimella

• Publisher: Routledge
• Year: 2018
• ISBN:
  9781351348447
• Edition: 1
• Topic: Derecho
• Subtopic: Derecho internacional

The concept of the One Belt One Road initiative (OBOR) was raised by the President of the People's Republic of China in October 2013. The OBOR comprises the 'Silk Road Economic Belt' and the '21st Century Maritime Silk Road', encompassing over 60 countries from Asia to Europe via Southeast Asia, South Asia, Central Asia, West Asia, and the Middle East. The overall objective of the OBOR is to encourage the economic prosperity of the countries along the Belt and Road and regional economic cooperation, encourage mutual learning between different civilizations, and promoting peace and development. However, countries along the Belt and Road routes of the OBOR project have diverse laws and legal systems. It is not difficult to envisage problems relating to harmonisation of laws and rules in trade between countries along the OBOR routes or otherwise. These problems can potentially cut through the core of the very objective of the OBOR itself.

Integration in China's One Belt One Road Initiative explores possible challenges to the success of the OBOR arising from the situational interface of diversity of laws, with the focus primarily on issues associated with private international law. It shows the latest state of knowledge on the topic and will be of interest to researchers, academics, policymakers, and students interested in private international law issues pertaining to the OBOR routes as well as private international law in general, Asian studies, and the politics of international trade.

1 The role of private international law in the context of the One Belt One Road initiative

Poomintr Sooksripaisarnkit, Sai Ramani Garimella

Introduction

So one would ask: why is private international law much of a concern in China’s One Belt One Road (OBOR) initiative? Indeed, it is a theme of this book that private international law should be a prime focus for this initiative to succeed. Yet academic discourses so far reveal blatant ignorance regarding this crucial branch of law. At the same time, the Chinese government, who initiated this gigantic project, has focused its mind only on building infrastructure in support of this initiative. This chapter will start in the first part by explaining what is, exactly, the OBOR. Then, in the second part, it will explain a branch of law called ‘private international law’ or ‘conflict of laws’ and what it entails and why it is crucial to the success of the OBOR. Then, in the third part, the authors will summarise the concerns brought up in each chapter of this book, all of which call for the immediate attention of the Chinese government, governments of other countries and those involved in the OBOR.

One Belt One Road initiative – what is it?

The OBOR is seen as ‘an ambitious economic diplomacy initiative’, and for President Xi Jinping, this initiative is supposed to be ‘his one and only major foreign policy initiative during his administration’.¹ President Xi mentioned the idea to build the ‘Silk Road Economic Belt’ and the ‘21st-century Maritime Silk Road’ during his visit to Central Asia and Southeast Asia in October 2013.² These two projects are collectively known as the OBOR. However, an academic commentator maintained that the idea of building the OBOR could be traced back at least to October 2011 in Warsaw during the meeting of ‘22 heads of government from Central and Eastern Europe (CEE)’ during which the then Prime Minister Wen Jiabao of China broke the news that China had been consulting with academics since 2010 on the thought of developing economically closer ties between countries along the old Silk Road.³ The pioneering of the Silk Road happened in 138 BC when Zhang Qian, an official during the Han Dynasty, received an order from Emperor Wudi to travel to where is now Tajikistan to form a coalition against the Xiongnu, a tribe dominating China’s north and northwest borders who, from time to time, posed dangers to the security of China.⁴ Subsequently, Zhang Qian was ordered to make another expedition in 115 BC. It was recorded that after he arrived at Wusun ‘at the southern part of Issyk Kul Lake in southeast Uzbekistan’, he sent his subordinates to foster relationships with ‘Dayueshi, Afghanistan, Iran, India, and other native states which led to the trade between Han China and Persia’.⁵ Areas which came to be known as the Silk Road during those periods stretched from Changan (or, in modern days, Xi’An) to Istanbul. The Silk Road consisted of three major parts: ‘(1) Eastern section beginning in Changan, and running along the northern and southern borders of the Talamakan Desert to the Pamir Mountains; (2) Central Asian section crossing the Pamirs and the Central Asian region of Samarkand and (3) Western section that runs through Persia to the Mediterranean’.⁶ The ancient Maritime Silk Road was developed later during the third century, and the maritime trade of China was further enhanced during the Tang Dynasty (618–907). Its route started at Guangzhou and Quanzhou before proceeding through the Malay Archipelago and then through the Persian Gulf.⁷

To reinvent this history in the twenty-first century, over 60 countries are included in the OBOR project. These countries span across Southeast Asia, South Asia, Central Asia, Northeast Asia, Central and Eastern Europe, Africa, Australasia and the Middle East.⁸

Southeast Asia	Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, Timor-Leste, Vietnam
South Asia	Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, Sri Lanka
Central Asia	Afghanistan, Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, Uzbekistan
Northeast Asia	Mongolia, Republic of Korea
Central and Eastern Europe	Albania, Belarus, Bosnia and Herzegovina, Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Macedonia, Moldova, Montenegro, Poland, Romania, Russia, Serbia, Slovenia, Turkey, Ukraine
Africa	Ethiopia, South Africa
Australasia	New Zealand
Middle East	Bahrain, Egypt, Iran, Iraq, Israel, Jordan, Kuwait, Lebanon, Oman, Palestine, Qatar, Saudi Arabia, Syria, United Arab Emirates, Yemen

As explained by the National Development and Reform Commission:

The Silk Road Economic Belt focuses on bringing together China, Central Asia, Russia, and Europe (the Baltic); linking China with the Persian Gulf and the Mediterranean Sea through Central Asia and West Asia; and connecting China with Southeast Asia, South Asia, and the Indian Ocean. The 21st-Century Maritime Silk Road is designed to go from China’s coast to Europe through the South China Sea and the Indian Ocean in one route, and from China’s coast through the South China Sea to the South Pacific in the other.⁹

To support the success of this OBOR project, six international economic cooperation corridors have been created: ‘the New Eurasia Land Bridge; China-Mongolia-Russia; China-Central Asia-West Asia; China-Indochina Peninsula; China-Pakistan; and Bangladesh-China-India-Myanmar’.¹⁰ These six international economic cooperation corridors are explained as follows:

1. 1 The New Eurasia Land Bridge Economic Corridor
   The New Eurasia Land Bridge, also known as the Second Eurasia Land Bridge, is an international railway line running from Lianyungang in China’s Jiangsu province through Alashankou in Xinjiang to Rotterdam in Holland. The China section of the line comprises the Lanzhou-Lianyungang Railway and the Lanzhou-Xinjiang Railway and stretches through eastern, central and western China. After exiting Chinese territory, the new land bridge passes through Kazakhstan, Russia, Belarus and Poland, reaching a number of coastal ports in Europe. Capitalising on the New Eurasia Land Bridge, China has opened an international freight rail route linking Chongqing to Diusburg (Germany), a direct freight train running between Wuhan and Mêlník and Pardubice (Czech Republic), a freight rail route from Chengdu to Łódź (Poland) and a freight rail route from Zhengzhou to Hamburg (Germany). All these new rail routes offer rail-to-rail freight transport as well as the convenience of ‘one declaration, one inspection, one cargo release’ for any cargo transported.
2. 2 The China-Mongolia-Russia Economic Corridor
   Linked by land, China, Mongolia and Russia have long established various economic ties and co-operation by way of frontier trade and cross-border co-operation. In September 2014, when the three country’s heads of state met for the first time at the Shanghai Co-operation Organisation (SCO) Dushanbe Summit, agreement was reached on forging tripartite co-operation on the basis of China-Russia, China-Mongolia and Russia-Mongolia bilateral ties. At the same meeting, the principles, directions and key areas of trilateral co-operation were defined. The three heads of state also agreed to bring together the building of China’s Silk Road Economic Belt, the renovation of Russia’s Eurasia Land Bridge and the proposed development of Mongolia’s Steppe Road. This commitment will strengthen rail and highway connectivity and construction, advance customs clearance and transport facilitation, promote cross-national co-operation in transportation and help establish the China-Russia-Mongolia Economic Corridor. In July 2015, the three leaders held the second meeting in the Russian city of Ufa. The second summit saw the official adoption of the Mid-term Roadmap for Development of Trilateral Co-operation between China, Russia and Mongolia.
3. 3 China-Central Asia-West Asia Economic Corridor
   The China-Central Asia-West Asia Economic Corridor runs from Xinjiang in China and exits the country via Alashankou to join the railway networks of Central Asia and West Asia before reaching the Mediterranean coast and the Arabian Peninsula. The corridor mainly covers five countries in Central Asia (Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan and Turkmenistan) as well as Iran and Turkey in West Asia.
   At the third China-Central Asia Co-operation Forum held in Shandong in June 2015, a commitment to ‘jointly building the Silk Road Economic Belt’ was incorporated into a joint declaration signed by China and the five Central Asian countries. Prior to that, China had signed bilateral agreements on the building of the Silk Road Economic Belt with Tajikistan, Kazakhstan and Kyrgyzstan. China had concluded a co-operation document with Uzbekistan on the building of the Silk Road Economic Belt. This was aimed at further deepening and expanding mutually beneficial co-operation in such areas as trade, investment, finance, transport and communication. The national development strategies of the five Central-Asian countries – including Kazakhstan’s ‘Road to Brightness’, Tajikistan’s ‘Energy, Transport and Food’ (a three-pronged strategy aimed at revitalising the country) and Turkmenistan’s ‘Strong and Happy Era’ – all share common ground with the establishment of the Silk Road Economic Belt.
4. 4 China-Indochina Peninsula Economic Corridor
   During the Fifth Leaders Meeting on Greater Mekong Sub-regional Economic Co-operation held in Bangkok in December 2014, Chinese Premier Li Keqiang put forward three suggestions with regard to deepening the relations between China and the five countries in the Indochina Peninsula. The suggestions were (1) jointly planning and building an extensive transportation network as well as number of industrial co-operation projects, (2) creating a new mode of co-operation for fundraising and (3) promoting sustainable and coordinated socio-economic development. Currently, the countries along the Greater Mekong River are engaged in building nine cross-national highways, connecting east and west and linking north to south. A number of these construction projects have already been completed. Guangxi, for example, has already finished work on an expressway leading to the Friendship Gate and the port of Dongxing at the China-Vietnam border. The province has also opened an i...