Development of “An economic belt of the Silk Road” is declared a priority of national policy of the People’s Republic of China. The projects realized within the concept of development of “An economic belt of the Silk way” will become priorities of national policy of China in the sphere of transport infrastructure. The Chinese news agency reports that it was declared by the Deputy Prime Minister of the State Council of the People’s Republic of China Zhang Gaoli.
China intends to revive the Great Silk Road of antiquity as the project of multilevel economic integration on Central Asian space. This initiative was put forward by the president of the People’s Republic of China Xi Jinping during his foreign visits in 2013.
To implement this project the Chinese government already allocated $40 billion for development of transport infrastructure and service. The project assumes construction of new roads and the railroads, and development of key seaports within the international transport corridors.
This project has many dimensions. One is to foster greater interdependence of peripheral countries with China. Gains from trade require better transportation; these construction projects give a concrete form to the policy. Of course China may then hope that these areas will provide political support, by not encouraging people to cross the border without permission. It also creates gains from trade in Xinjiang; rising incomes might lessen complaints by local minorities. So domestic and international politics matter, but in a way that could create gains for all.
Second, it provides transport routes that do not cross into Russia. Overland transport is generally more costly than using water, but the main shipping lines to Europe go past the Arabian peninsula through the Suez Canal in Egypt. There is a concern with economic security in this entire undertaking.
Third, coming off of its domestic infrastructure spree, there are a lot of firms inside China with a vested interest in seeing that the “gravy train” of funding for new roads and rail lines continues. (At least two of China’s previous senior leaders were trained as civil engineers and worked on dams and other large projects, so this is not a new feature of China’s political economy.)