Chinese economist makes pitch for New Silk Road

MANILA, Philippines - A leading Chinese economist made a pitch yesterday on China’s proposed New Silk Road, an economic corridor seen as a modern version of the historic network of ancient trade routes between Europe and Asia.

In a forum at the Asian Institute of Management, Zhang Yuyan, director and professor of the Institute of World Economic and Politics at the Chinese Academy of Social Sciences, said the new economic corridor could improve trade from China to the rest of the globe. 

“The Silk Road economic belt focuses on bringing together China, Central Asia, Russia and Europe; 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,” Zhang said. 

Furthermore, 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. 

Responding to a question from the audience on whether the enhanced trade route from China to the rest of the world could also be abused by illegal drug traders, Zhang said while he is not an expert on the topic, he is very well aware China is against drugs. 

“Drugs in China are illegal. We punish the traders,” he said.

“It’s criminal. We are very against it. We are very much against it.” 

President Duterte has said most of the drugs coming to the Philippines are from China. 

In all, Zhang said the New Silk Road initiative has five major goals – promote policy coordination, promote connectivity, provide unimpeded trade, financial integration and people-to-people bonds. 

He said that while some people are suspicious of China’s intentions, this should not be the case. 

Zhang said China is willing to give other countries a ride as it renews ties with them.

Chinese companies will be strongly encouraged to invest in countries along the New Silk Road and China welcomes investments from those countries, he added. 

Dubbed as “One Belt, One Road,” the New Silk Road is seen pushing through despite the territorial dispute between China and its neighbors, and may even help ease tension. 

The New Silk Road is meant to expand economic cooperation among neighbors in the region.

Essentially, the New Silk Road aims to create a massive trade loop to link Asia, Europe and Africa through the construction of massive infrastructure such as railways and ports.

Through it, China envisions a region of “more capital convergence and currency integration,” which means currency exchanges will become fluid and easy.