2015.12

Historic Silk Routes

Key Routes of “The Belt and Road Initiative”� Silk Road Economic Belt:

� 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

� Connecting China with Southeast Asia, South Asia and the Indian Ocean

� 21st Century Maritime Silk Road:

� From China's coast to Europe through the South China Sea and the Indian Ocean

� From China's coast through the South China Sea to the South Pacific

Source: Research Department, Bank of China

Territory under “the Belt and Road”

Source: CCTV, 2015.04.13

Geopolitical Significance of Silk Road

� “Who rules East Europe commands the Heartland; Who rules the Heartland commands the World Island; Who rules the World Island commands the World.” - Halford Mackinder (English geographer), Democratic Ideals and Reality (1918)

� The “World Island” refers to the Eurasian continent; the “Heartland” refers to the regions along the ancient Silk Road, including Central Asia (e.g. Afghanistan) and part of the Middle East

� The United States and Russia struggle to exert influence over this region

� The U.S.-led New Silk Road Initiative

� Russia-led Eurasian Union Plan

The Five Countries in Central Asia

New Silk Road Initiative of the U.S.� In June 2011, Obama announced plans to withdraw U.S. troops from

Afghanistan� In July 2011, the then US State Secretary Hilary Clinton during her visit to

India called for a New Silk Road Initiative to reinvigorate trade across borders

� Building of a north-south economic belt with Afghanistan, Pakistan and India as the axis, which connects closely with countries including Turkmenistan in Cental Asia

� Development of “hardware”(infrastructure) and “software” (trade and investment) in the region

� Support for economic integration in the region by countries in other areas such as the U.S., European Union and Japan

Source：Council on Foreign Relations

The Eurasian Union Plan of Russia� On 3 October 2011, the then Prime Minister of Russia, Vladimir Putin, put forward his

vision of the creation of the Eurasian Union on the basis of the Customs Union ofRussia, Belarus and Kazakhstan

� On 18 November 2011, the presidents of Russia, Belarus and Kazakhstan signed anagreement setting a target of establishing the Eurasian Union by 2015

� On 29 May 2014, the presidents of Russia, Belarus and Kazakhstan signed the treatyon the Eurasian Economic Union (EEU), which came into effect on 1 January 2015

� On 2 January 2015, Armenia

became a member of the Union.Others including Kyrgyzstan andTajikistan have expressed interestin joining.

� The EEU is focused on economicobjectives: to advocate freemovement of goods, capital,services and people; and topromote coherent economic andcurrency policies among memberstates Source：Newscast Media

Milestones of “The Belt and Road Initiative”2013.09.07 President Xi Jinping introduced the “Silk Road Economic Belt” initiative in

Kazakhstan

2013.10.03 President Xi Jinping introduced the “21st Century Maritime Silk Road” initiative in Indonesia and proposed for the first time the establishment of the Asian Infrastructure Investment Bank (AIIB)

2014.10.24 The Memorandum of Understanding on Establishing the AIIB was signed in Beijing by 21 Asian countries, including China, India and Singapore

2014.11.08 The Chinese Government announced the creation of the US$40 billion “Silk Road Fund” to promote regional development in Asia

2015.03.28 The session of Jointly Building the “21st Century Maritime Silk Road” was held during the Boao Forum for the Asia Annual Conference

The National Development and Reform Commission, Ministry of Foreign Affairs, and Ministry of Commerce jointly issued the “Vision and Actions on Jointly Building Silk Road Economic Belt and 21st Century Maritime Silk Road”

2015.03.31 Deadline for countries to apply for the prospective founding membership of AIIB

2015.06.29 Signing Ceremony of the AIIB's Articles of Agreement in Beijing;Among the 57 Prospective Founding Members, 50 of them that had completed the domestic treaty processes signed the Agreement

Leadership Team for Advancing the Development of “The Belt and Road Initiative”

Chairman:

� Zhang Gaoli (Member of the Politburo Standing Committee, Vice-Premier of the State Council)

Vice-Chairmen:

� Wang Huning (Member of the Politburo, Director of Policy Research Office of the CPC Central Committee, and Head of the Office of the Central Leading Group for Comprehensively Deepening Reforms)

� Wang Yang (Member of the Politburo, Vice-Premier of the State Council)

� Yang Jing (Secretary of the Communist Party’s Central Committee Secretariat, State Councilor, and Secretary-General of the State Council)

� Yang Jiechi (State Councilor, and Secretary-general of the Foreign Affairs Leading Group)

The “Belt and Road” Framework� To advocate peace and cooperation, openness

and inclusiveness, mutual learning and mutual benefit

� To promote practical cooperation in all fields

� To build a community of shared interests,

destiny and responsibility featuring mutual political trust, economic integration and cultural inclusiveness

The “Belt and Road” Cooperation Priorities� Policy coordination

� To build a multi-level intergovernmental macro policy exchange and communication mechanism

� Facility connectivity� To facilitate connectivity of transport , energy, and communication

infrastructure

� Unimpeded trade� To promote cooperation in investment , trade and emerging industries,

and to eliminate investment and trade barriers

� Financial integration� To build a currency stability system, investment and financing system

and credit information system in Asia

� People-to-people bond� To promote cultural and academic exchanges, cooperation in areas

such as sports, tourism, technology and medical development, as well as communication among youth and political organizations

The “Belt and Road” Cooperation Mechanisms� Bilateral cooperation

� Signing of cooperation MOUs or cooperation plans

� Multi-lateral cooperation

� Shanghai Cooperation Organization (SCO), ASEAN Plus China (10+1), Asia-Pacific Economic Cooperation (APEC), Asia-Europe Meeting (ASEM), Asia Cooperation Dialogue (ACD), Conference on Interaction and Confidence-Building Measures in Asia (CICA), China-Arab States Cooperation Forum (CASCF), China-Gulf Cooperation Council Strategic Dialogue, Greater Mekong Subregion (GMS) Economic Cooperation, and Central Asia Regional Economic Cooperation (CAREC)

� International forums and exhibitions at regional and subregional levels

hosted by countries along the Belt and Road

� Boao Forum for Asia, China-ASEAN Expo, China-Eurasia Expo, etc.

Participation by China’s Various Regions� Northwestern and northeastern regions

� Cooperation with Central, South and West Asian countries, and Russia

� Southwestern region

� Cooperation with South Asian and Southeast Asian countries

� Coastal regions, and Hong Kong, Macao and Taiwan

� Pacesetter and main force in “The Belt and Road Initiative”

� Inland regions

� Advocating internal and external communications and connecting the eastern, central and western regions

The Belt and Road Initiative: Six

Economic Corridors

Source: HKTDC Research

China-Pakistan Economic Corridor

� Focus on the development of Gwadar Port, energy projects, transportation infrastructure and industrial parks

� From Kashgar, Xinjiang in the north to Gwadar port in the south, featuring building of highway, railway, oil and gas, and fibre optics cable networks

� On April 20, 51 memorandums of understanding (MOUs) and agreements were signed between China and Pakistan

� Investments of US$ 46 billion

Source: Wen Wei Po, 2015.04.23

Thailand Railway ProjectsChina-Thai cooperation project on the development of double-track railway�MOU signed in October 2013

�Routes

� Bangkok - Kaeng Khoi

� Kaeng Khoi - Map Ta Phut

� Kaeng Khoi - Nakhon Ratchasima

� Nakhon Ratchasima – Nong Khai

�Non-high speed railway routes with a total length of 870 kilometres

�North south railway routes passing through lands in the north of Bangkok, connecting Yunnan, Thailand, Malaysia and Singapore

�Under discussion in June 2015, foundation to be laid by the end of 2015, operation will commence by the end of 2017

Japan-Thai railway cooperation project�MOU signed on May 27, 2015

�Routes:

� Northern Line:Bangkok - Chiang Mai (high speed rail)

� South-eastern Line:Kanchanaburi – Bangkok -Sakaeo(From single-track to double-track)

� North-eastern Line:Feasibility study is underway

Cooperation with Europe� On June 6, 2015, Chinese Foreign Minister Wang Yi and Hungarian

Minister of External Economy and Foreign Affairs Peter Szijjarto

signed an MOU on the cooperation under the framework of the “Silk

Road Economic Belt” and the “21st Century Maritime Silk Road” in

Budapest.

� Hungary has become the first European country to sign a

cooperation agreement for China's new "Silk Road" initiative

Participation by state-owned enterprises:

A case study of China Merchants Group

Hong Kong’s Participation

�HKSAR Government

�Public participation

� Silk Road Development Association

� 21st Century Silk Road Education Foundation

� Maritime Silk Road Society

� The Asia Global Institute, jointly established byThe Fung Global Institute and The University of Hong Kong

Objectives of the Maritime Silk Road Society� To support and complement China’s “The Belt and Road Initiative”

and assist Hong Kong in taking full advantage of this initiative, leveraging the city’s strong business, cultural and people-to-people ties with the Maritime Silk Road provinces and cities and the ASEAN and South Asian countries;

� To research and explore the developmental opportunities brought by “The Belt and Road Initiative”;

� To foster exchanges in trade, financial, economic, cultural, academic and educational exchanges between Hong Kong and the “Belt and Road” regions (especially the core coastal provinces of the Maritime Silk Road and ASEAN countries);

� To enhance public understanding of the history, cultures and contemporary developments of the “Belt and Road” regions (especially the provinces and cities along the Maritime Silk Road and ASEAN countries); and to encourage young people to seize the developmental opportunities provided under “The Belt and Road Initiative” .

Organization Chart

Members

�Corporate Member

� Institutional Member

� Individual Member

�Student Member

Activities and Projects� Seminars

� 2015.10.17 – “A Macro History of Sino-Foreign Maritime Communication:

Retrospect and Prospect” seminar by Professor Billy So, Chair Professor and Head

of Division of Humanities of HKUST

� 2016.01.23 – “The Belt and Road Initiative from An International Perspective”

(TBC) presentation by Dr. Su Ge, President of China Institute of International

Studies

� Business Exchange

� 2015.11.09 – MSRS Delegation attended the three-day China Investment Forum

2015 in Prague, Czech Republic

� 2016.02.27 – “The Belt and Road Initiative – Combining Hard Power with Soft

Power” Conference

� Youth Activities

� Study tour to Fujian Quanzhou

� Operation Zhang Qian – Student Summer Internship Programme

Thank You!

http://maritimesilkroad.org.hk