Current Affairs
Maritime Silk
Road
(01) What is Maritime Silk Road (MSR) initiative?
(02) Why new MSR?
(03) How to implement MSR?
(04) India’s
stand on Maritime Silk Road
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(01) What is MSR initiative?:
·
Chinese President Xi Jinping @ Shanghai Cooperation Organization
(SCO) summit in Bishkek (in 2013)
·
Chinese PM (Premier) Li Keqiang @ ASEAN + China summit in Brunei (in 2013)
·
Connect 12 inland Chinese regions with 14 neighboring countries.
(revive ancient silk road)
·
Get new export markets
·
Secure lanes to import raw material.
·
Counter the influence of USA
and Russia.
(02) Why new MSR?:
Reason #1: Economic reasons
·
Subprime crisis => global economic crisis => Fed Tapering (less
FDI and import orders from US and EU)
·
Result? China’s
“Export & FDI” driven economic model is losing its effect.
·
China needs to find new export
markets (those 14 neighbor countries).
·
Just like India
has “Rich Coastal areas Vs poorly developed interior regions.”
·
The growing disparity between Coastal China
Vs Inland China
= creating social problems, helping extremists and junta demanding for
democracy. Hence China needs
to develop those 12 inland regions (mostly located in Western Part of China).
Reason #2: Defusing tension
·
Since 2011, because of South China Sea dispute, China’s relations became bitter with - Cambodia, Laos,
Thailand, Malaysia and Japan. New Silk
Road policy seems to be aimed at defusing tensions- via soft
language and economic offer.
·
This can be seen as China’s “olive branch” to ASEAN
countries.
Reason #3: Countering US + Russia
·
China wants to counter / balance
following:
Ø
USA’s Pivot Policy in Asia Pacific
Ø
USA’s proposed Trans-Pacific Partnership (TPP)
Ø
USA’s support for democratic transition in Myanmar
Ø
USA’s security cooperation with Singapore, the Philippines,
Indonesia, Malaysia, Thailand
and Brunei.
Ø
Russia’s proposed “Customs Union” (now
Crimea will give them access Black sea and Suez Canal.)
Reason #4: Strategic supply lines
·
Strait of Malacca= pirate infested waters but >80% of imports
to China
come from this route. China
wants to secure this lane.
·
China wants to gain access to Bengal Bay
and Indian Ocean = Need better relations with Myanmar and ASEAN.
(03) How to implement Maritime Silk Road?:
·
The gist of New
Maritime Silk Route is
Ø
Develop port cities along the silk route
Ø
Above the wind region: Indian Ocean
·
Below the wind region: Malacca, South China Sea, Java Sea and
Far East.
·
Via these port cities, link Asia and Africa
with Chinese hinterland.
·
This will be implemented via 2+7 cooperation framework.
“TWO” = consensus on two issues
|
Strategic relation
|
Strategic relations with “good” neighbors.
Signed strategic partnership agreements with Kyrgyzstan and Turkmenistan.
|
|
Economic cooperation
|
With Chillar countries in Central Asia, China signed
preferential trade agreements, gave them cheap loans.
Heavy investments via Chinese PSUs. Mainly in
energy (oil-gas pipelines) and transport (railway, highway and ports).
Joint infrastructure projects (rail-road-ports)
Even proposed Asian Infrastructural Investment
Bank. Its offices will be setup in the capital cities of various Maritime
silk road countries.
|
“SEVEN”
proposals
·
Sign China-ASEAN good neighbor treaty
·
Get maximum benefit from China ASEAN FTA
·
Conclude RCEP by 2015. China led Regional Comprehensive Economic
Partnership (RCEP) = the FTA between ASEAN and China, Japan, South Korea,
India, Australia and New Zealand);
eliminate trade barriers.
·
Regional financial cooperation (to prevent subprime/ BoP crisis)
– recall that China
gave maximum funding to BRICS Bank’s emergency fund against Fed Tapering.
·
Maritime cooperation- Already working on Gwadar (Pak), Hambantota
(Sri Lanka) and Chittagong (Bangladesh).
Proposal for Bangladesh-China-India-Myanmar (BCIM) corridor
·
security cooperation
·
People to people contact for culture, science and environment.
(04) India’s
stand on Maritime Silk Road:
·
Chinese Officials discussed this with (former) NSA Shivshankar
Menon and asked India to
join in the Maritime Silk road (MSR) project.
·
But no decision taken
·
Presently, India
has two opposite options:
Ø
Work together with China,
let Chinese gain presence in Indian Ocean and
reap the collateral economic benefits from this project.
Ø
Don’t work with China,
and prevent Chinese influence in Indian Ocean.
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