Belt and Road Initiative

Chinese Version of "Marshall Plan"?

Da Hsuan Feng, Hai Ming Liang

• Publisher: WSPC
• Year: 2019
• eBook ISBN: 9789811200526
• Topic: Politics & International Relations
• Subtopic: Geopolitics
• Index: Politics & International Relations

This book views the Belt and Road Initiative (BRI), a bold and all-encompassing 21st century global effort by China, with unprecedented perspectives. The BRI could be summarised as a 'revitalization' of China's ancient land-based and maritime silk roads, but it should be noted that its impact on China and the world stands on the foundation of omnipresent economics and how China transforms its mindset in the 21st century.

Though initiated by China, the BRI's implementation has been a many-to-many effort from the start. This multi-regional and multi-national effort is distinctly different from the one-to-many effort of the Marshall Plan. The two meaning-defining chapters of this book, 'Omnipresent Economics: The Belt and Road Initiative Underpinning' and 'Supercontinent, Neo-Renaissance and Cultural Communications: The Millennium Mindset Transformations Induced by the Belt and Road Initiative', have made it abundantly clear that the BRI discussions presented are unique.

The discussions of this book could shed new light on the BRI, a long-term and profound initiative by China, which in today's global discussions and debates, are entirely confined to geopolitical and economics arenas.

Contents:

• Omnipresent Economics: The Belt and Road Initiative (BRI) Underpinning
• Supercontinent, Neo-Renaissance and Cultural Communications: The Millennium Mindset Transformations Induced by the Belt and Road Initiative
• Belt and Road Initiative to a Greater America
• The Last Great Chance for Planet Earth: Belt and Road Initiative?
• Belt and Road Initiative Could Boost United States' Manufacturing
• Why Donald Trump's Economic Plan is a Non-Starter
• How the United States Can Work with China on the Belt and Road Initiative
• Separate Asia Infrastructure Investment Bank and Belt and Road Goals Complement Each Other
• Australia Could Be a Springboard for Chinese Firms
• Chinese Firms Can Learn from Japan's ASEAN Strategy
• Chinese-Foreign Links are Key to Win-Win Investment
• The Benefit of Extending China-Singapore Ties
• New Mindset for Singapore's Participation in the Belt and Road Initiative
• Singapore Can Be 'Global Meeting Ground': Starting with a 'Center for Research on China and India'
• The Next Stop for Singapore: Cognitive City
• China's Pakistan Bourse Stake to Boost Ties
• Chinese Enterprises Need a Sense of Mission in Pakistan
• China Should Deepen Malaysian Cooperation
• China Should Legalize Filipino Domestic Helpers
• Thailand Can Be ASEAN's Headquarter of Belt and Road Initiative
• Thailand Can Be Belt and Road Initiative Smart City Flagship
• How Myanmar's Understanding of China is Paving the Way for Economic Success
• Misconceptions Hamper Sino-India Cooperation
• Belt and Road Initiative Can Help Push Yuan Internationalization
• Hong Kong Must Do More to Join the Belt and Road Initiative
• Hong Kong in the Next Two Decades: 'De-Cocoonization' May Be the Key
• Guangdong, Hong Kong, and Macao Can Play Key Role in the Belt and Road Initiative
• Education: The Underpinning of Belt and Road Initiative
• Fostering Islamic Finance Poses Challenges
• China Should Help Develop Islamic Finance Standards
• Blockchain Could Unblock Routes to Global Success
• Sharing Economy is a New Source of Growth
• The Future of China, a Reflection

Readership: Students, professionals and general public interested in the belt and road initiative of China.Belt and Road Initiative;One Belt One Road;Omnipresent Economics;Neo-Renaissance;Education;Supercontinent00

Chapter

1

Omnipresent Economics: The Belt and Road Initiative (BRI) Underpinning

The “Belt and Road Initiative”¹, or BRI, is a Chinese initiative of the 21st century and is now receiving global attention and scrutiny. Although one could say that BRI’s underlying intention is to revitalize the ancient silk roads, albeit land- or maritime-based, there is one aspect which makes it fundamentally different from the ancient ones, and that is: it is not “organic”. As such, the BRI places unprecedented demands on China and the Chinese people to shoulder greater global responsibilities. In this sense, BRI is very timely since the world is currently confronted by serious economic challenges. It is hoped and anticipated that by its proper execution, BRI can lift the world out of such a molasse.

On May 14, 2017, in Beijing, a BRI Global Collaboration Forum was held. Not only was the Forum enthusiastically attended by 30 national leaders and some 130 national senior officials, it was also participated by leaders from the entrepreneurial and economic arenas. At the Forum, the global academic communities engaged in two major areas of discussions and debates. One was on the “true” meaning of BRI, while the other was on the designing of a future roadmap. Naturally, various theoretical models were deployed to carry out the respective analyses.

In this chapter, we will propose a founding theoretical underpinning for BRI known as “omnipresent economics.” In a nutshell, the “omnipresent economics” is based on the Chinese BRI’s normative power, which includes mutual learning, mutual benefits, peaceful collaborations, openness and inclusiveness. It leverages Chinese cultural values and Chinese development modus operandi in working with the Western countries to enhance mutual understanding and promotion. Furthermore, omnipresent economics is the foundation of cross-cultural fusion and innovation and can bring about the so-called collaboration with Western countries of the “third party market”. Finally, it will also be the economics for the new and innovative global industries of cultural, mobile-internet and smart manufacturing products.

1.1Current Theories Have Difficulties Analyzing the BRI

From the start, the BRI is not and should not be merely an economic implementation; neither is it confined to technologies, geopolitics or cultural interactions. In fact, it is in some sense a combination of all of the above. Indeed, only when one can incorporate all the diverse areas into the discussion, can one understand the BRI’s profound, inherent meaning. In fact, to develop a theoretical model for BRI is to palpably amalgamate the ways and means of all nations involved.

Let us at this point summarize some of the various theoretical models proposed by Chinese and foreign experts to analyze the BRI.

First, a significant number of experts deployed international relations as a theoretical model to study the BRI. Their theme is that in order to compete with the Western world, especially the United States, the BRI should be regarded as China’s westward strategy. However, as one of BRI’s underlying propositions is to enhance unimpeded trade and financial integration, utilizing international relations as a means will surely deviate from its basic intention.

Another group of experts utilized geopolitical theories to analyze BRI. As is well known, it would not be incomplete to tackle economic challenges without seriously including the related political challenges. In fact, the latter is often entangled in a convoluted manner with the former. However, just as the weather where “all politics are local”, it is, therefore, not surprising that the priorities of nearly all nations, if not all, are that “localities” should and must be how benefits can be derived through economic development and international collaborations. Clearly, since BRI is to assist nations to enhance their “localities,” simply utilizing geopolitics to study it would at best be inadequate.

There were also some who utilized regional economic theories to analyze BRI. Of course, since BRI intends to offer public services, public products and to share the Chinese development experiences and models for global economic consideration, this is naturally outside the regional economic theories domain.

Another area in which experts utilized to analyze BRI is the so-called cultural economic theories. It is well known that having profound cultural appreciation can certainly enhance connectivity for people-to-people, and often do create cultural products. Such products will increase unimpeded trade and financial integration. However, it is questionable whether culture and economics together can smooth out the kinks in the communications of policies and reduce the difficulties in infrastructures connectivity. Furthermore, issues such as how to ensure that BRI nations can accept and recognize Chinese culture and products, and create a common future for nations are all fundamental challenges. In these regards, the cultural economic theories alone hardly seem possible to assist BRI to reach such lofty goals.

We should also mention that there are experts who use the economic development theories as a foundation for BRI. While such theories are more applicable to developing and newly emerging nations, they are neither appropriate for the developed nations, nor the financial and communications arenas.

There are experts who utilized the globalization concept to explain BRI. It should be noted that while many of humanities’ challenges, such as economic, political and environmental problems are naturally global in texture and thus tend to diminish national sovereignties, which are local in nature. In this respect, it is important to stress that BRI is not an initiative where China, when tackling such challenges, intends to or will interfere with the sovereignty and internal affairs of other countries!

There are still others who based their BRI analyses on a plethora of theories, such as history and geography; environmental conservation; healthcare; education and culture; regionalism; ethnicity and religions; public diplomacy; citizen diplomacy; regional diplomacy; global value chain; global production networks; global supply networks; global governance; public goods; national image; public opinions; public policies and trusts; etc. Unfortunately, they are all in one way or another touching part of the BRI landscape, but not its entirety.

1.2The Insufficiencies of BRI Founding Theories

With the above-mentioned shortcomings, and in accordance with BRI’s inherent meaning, some experts had introduced the following founding theories: the “global value dual-circulation” theory, “global connectivity” theory, and “joint modernization” theory.

Within the “global value dual-circulation” framework, BRI serves as the China-led platform connecting Asian, European and African countries, facilitating balanced economic and societal governance while at the same time enhancing domestic production capabilities. All with the eventual goal of promoting a peaceful rise global governance system.

There is one serious, if not, fatal flaw of global governance, and, that is, BRI is not and cannot only encompass Asia, Europe and Africa. Any nation or nations with the intention and capacity to collaborate within the BRI-defined mission is/are welcome to proactively participate. Therefore, without the participation of the United States (US), Japan and major European Union (EU) countries, BRI via global governance would be very difficult, if not highly deficient.

The main point for the global connectivity theory is to ensure that any flow processes between nations, be it human, commercial or technological, can be simplified and seamless. In this regard, such connectivity networks must be based on the foundation of equality. Once this is established, they can reduce many previously “unconnected” areas between nations along the BRI route and establish win-win and common-future systems through them. This will be in line with the BRI that should not and cannot be a solo act but a chorus.

Undoubtedly, all of the above theories should and must be based on a profound understanding of the ways and means of other nations. After all, if BRI were merely to “connect”, how could one expect that it can, on the one hand, find an effective path for the global economic development and the other highlight the Chinese wisdom and modus operandi to revitalize and stabilize the global economy?

The basic point embedded in joint modernization means that it must be led by an international community, a community that reflects a diverse make-up among BRI member countries. With this, it will reach the shared interest goals on different levels. The central mission is to attain a win-win outcome by seeking international cooperation, and in the pursuit of the sustainable development, provide inseparable consideration to population and environmental factors.

The main difficulty of this theory is that it lacks the necessary complexity to meet the current needs. For example, if it is only concentrating on development, then it misses cross-cultural communication. Furthermore, we are aware that along the BRI route, some regions or nations have already achieved the modernization plateau. Therefore, the different needs of such regions and nations should and must be considered.

1.3BRI is an Omnipresent Economics

With the above-mentioned deficiencies of various theories, we proposed another “founding model” which we shall refer to as the “omnipresent economics” theory.

The overall definition of “omnipresent economics” was presented at the beginning of this paper. Here we would like to further stress that the omnipresent economics is also a description of China taking a proactive role to understand the history, culture, ways and means and aspirations of emerging and developing countries. It leverages the infrastructural development and the capacity of the international community as “dual cores”. With that, it will strengthen collaborations in many areas, such as culture, finance, environmental conservation and others. This will allow the emerging and developing nations to incorporate their economic growth and societal progress, by leveraging on China’s wisdom and solutions for economic growth and societal progress.

In short, the omnipresent economics, as we have stated from the very start of this article is that it must in nature be all-inclusive and peaceful.

The genesis of the omnipresent economics is as follows: In 2008, there was a deep global financial crisis. Since then, global economy has been facing great hurdles to recover from that crisis. It was obvious that the entire Western world made great effort to recover, yet the crisis lingers on. Facing such a dilemma, China as the second largest economy need to shoulder this responsibility. It needs to proactively understand and appreciate the global development trend, and to enhance the economic fusion of nations and cross-cultural collaborations. It also needs find ways to stabilize and improve the international financial system. We believe that only through this manner can China understand the global development needs, and carry out the necessary efforts to benefit humanity. Indeed, this is how China as a newly risen economic power can benefit humanity.

The omnipresent economics is manifested in five areas. They are (a) collaboration with the US, (b) collaboration with Europe, (c) collaboration with newly emerging and developing countries, (d) China’s self-development needs and (e) stabilize and improve the international financial system.

Undoubtedly, in the last century, the United States through the internet provided the world with public products and services. It did so by introducing the so-called “three chips”: “potato chips”, “film chips”, and “silicon chips”, respectively. In China, such products and services were greatly and broadly accepted by the public. For example, whether it be the McDonald’s or KFC’s, the meaning of the first chip is the underlying US fast-food culture. The second of course is the US cultural values depicted by Hollywood film industries. The third of course is the US innovative culture, represented by the internet, computers and smart devices. There is no doubt that by promoting these three chips globally, the US would not only have significantly promoted the Western economic wellbeing, but also pushed forth the global economic and societal wellbeing.

Yet, there is now a major and deep transformation which took place in the 21st century. It is the presence of the “omnipresent economy”, an economy which is propelled by the mobile internet as well as smart devices. In this arena, the US is no longer the leader today — China is. In fact, as far as internet and network payment arenas are concerned, in 2015, China’s payment reached a whopping US$334 billion, which is three times higher than the US’. Furthermore, the market size of this business in China is experiencing double-digit growth. Even in nations along the BRI route, such as the 600 million ASEAN nations, some 250 million individuals, around 41% of the total population, are now smart devices users. In fact, there is a significant expansion of the market for smart devices and mobile internet in ASEAN. Annually it commands some many tens of billions of US dollars. If the US and China could enhance their collaborations, seeking new opportunities as joint economic engines, they can certainly hold on to all the opportunities which will be presented by the “omnipresent economy”!

There is one clear example where the US and China can effectively collaborate, and that is the cultural division of labor in creating innovative economic opportunities. For example, in “Screens Without Frontiers”, it is well known that while China has “kung fu” and “panda bear”, Hollywood has Kung Fu Panda. In fact, sky is the limit for this arena. In 2020 and beyond, the Chinese movie market for the 1.4 billion people shall reach 500 billion RMB annually. This means that if the US and China can deepen their collaborations in this area, creating more Kung Fu Panda–like products, in which cultural familiarization will allow the Chinese population to accept with ease, it can readily capture the robust Chinese market. Furthermore, such movies can also be exported to nations along the BRI route and receive additional lucrative opportunities for US and China.³

Even though the Chinese and US cultures are vastly different, in our opinion, they can nevertheless be combined, cohabitated and co-innovated. With the Kungfu Panda example as a guide, we are convinced that, in order to develop an amalgamated culture which is neither Chinese nor US, it is a prerequisite to have a mindset of patience, understanding the strengths and weaknesses of each other, and the willingness to ensure a “two-way street”. It is critical that US and China corporations engaged in the collaboration understand the required “separation of labor” behind the scene to develop a “new cultural sense.” With this as the modus operandi in the collaboration, US and Chinese companies can together create new products to deliver palpable economic benefits to the people of both countries and nations along the BRI route.

Following this line of thought, the economic opportunities created by the US and China cultural division of labor may very well be a success case study. Such a study could become a model for all nations along the BRI route. In this manner, it can greatly enhance the cross- and mutual-cultural understanding and connectivity between China and such nations and it could be the foundation to create additional cultural products in each nation’s economic developments.

As China and US deepen their collaborations, and creating a new generation of three-X products beyond three chips, it will definitely stimulate nations in the BRI route to innovate and create new public products and services. This will enhance the economic and social developments of such nations. Ultimately, such developments will be recognized by nations at all corners of the world, and shall deliver benefits to humanity.

As for collaborations with Europe, it is important to recognize that BRI must be a global joint effort and not China’s solo performance. The world is now manifesting economic fatigue and a palpable sign of a downward slide. With this as the backdrop, China is proposing the so-called “third party market cooperation”, whose primary aim is to assist the world out of its doldrums. In this proposition, China intends to partner with Europe in joint bidding, joint production and joint investment in a third party, which usually is a developing country. It is through this process that Ch...

Table of contents

• Cover
• Halftitle
• Series Editors
• Title
• Copyright
• Contents
• Preface
• About the Authors
• Chapter 1 Omnipresent Economics: The Belt and Road Initiative (BRI) Underpinning
• Chapter 2 Supercontinent, Neo–Renaissance and Cultural Communications: The Millennium Mindset Transformations Induced by the Belt and Road Initiative
• Chapter 3 Belt and Road Initiative to a Greater America
• Chapter 4 The Last Great Chance for Planet Earth: Belt and Road Initiative?
• Chapter 5 Belt and Road Initiative Could Boost United States’ Manufacturing
• Chapter 6 Why Donald Trump’s Economic Plan is a Non–Starter
• Chapter 7 How the United States Can Work with China on the Belt and Road Initiative
• Chapter 8 Separate Asia Infrastructure Investment Bank and Belt and Road Goals Complement Each Other
• Chapter 9 Australia Could Be Springboard for Chinese Firms
• Chapter 10 Chinese Firms Can Learn from Japan’s ASEAN Strategy
• Chapter 11 Chinese–Foreign Links are Key to Win–Win Investment
• Chapter 12 The Benefit of Extending China–Singapore Ties
• Chapter 13 New Mindset for Singapore’s Participation in the Belt and Road Initiative
• Chapter 14 Singapore Can Be “Global Meeting Ground”: Starting with a “Center for Research on China and India”
• Chapter 15 The Next Stop for Singapore: Cognitive City
• Chapter 16 China’s Pakistan Bourse Stake to Boost Ties
• Chapter 17 Chinese Enterprises Need Sense of Mission in Pakistan
• Chapter 18 China Should Deepen Malaysian Cooperation
• Chapter 19 China Should Legalize Filipino Domestic Helpers
• Chapter 20 Thailand Can Be ASEAN’s Headquarter of Belt and Road Initiative
• Chapter 21 Thailand Can Be a Belt and Road Initiative Smart City Flagship
• Chapter 22 How Myanmar’s Understanding of China is Paving the Way for Economic Success
• Chapter 23 Misconceptions Hamper Sino–India Cooperation
• Chapter 24 Belt and Road Initiative Can Help Push Yuan Internationalization
• Chapter 25 Hong Kong Must Do More to Join the Belt and Road Initiative
• Chapter 26 Hong Kong in the Next Two Decades: “De–Colonization” May Be the Key
• Chapter 27 Guangdong, Hong Kong, and Macao Can Play Key Role in the Belt and Road Initiative
• Chapter 28 Education: The Underpinning of Belt and Road Initiative
• Chapter 29 Fostering Islamic Finance Poses Challenges
• Chapter 30 China Should Help Develop Islamic Finance Standards
• Chapter 31 Blockchain Could Unblock Routes to Global Success
• Chapter 32 Sharing Economy is a New Source of Growth
• Chapter 33 The Future of China, a Reflection
• Bibliography
• Index