China’s 6 Magical Economic Corridors “One Belt, One Road” The Silk Route

China’s 6 Magical Economic Corridors “One Belt, One Road” The Silk Route

Syed Gilani

China is investing a huge amount of its financial resources around US$900 billion in a project known as the One Belt One Road {The Silk Route} As one of President Xi Jinping’s key policies, the OBOR project aims to connect China with 60 countries, setting up potential trade with a further 4.4 billion people across the globe. The economic implications are enormous, valued at US$21 trillion, whilst also boosting China’s GDP by 25%. China’s economy has recently stumbled, this should help it expand again and reach its 6.8% projected growth rate by easing exports and tightening international relations and global affairs.

The 6 corridors demonstrated below run between: China-Mongolia-Russia Economic Corridor (CMREC); New Eurasian Land Bridge (NELB); China-Central and West Asia Economic Corridor (CCWAEC); China-Indo-China Peninsula Economic Corridor (CICPEC); China-Pakistan Economic Corridor (CPEC); and Bangladesh-China-India-Myanmar Economic Corridor (BCIMEC).

China-Pakistan Economic Corridor (CPEC), one of the first of the 6 corridors to start construction is receiving $46bn and a further injection of $1.6bn agreed in August. The scale and scope of how large this is, the investment from China is approximately 20% of Pakistan’s GDP. Construction of the CPEC is already well underway and gaining momentum with roads of 502km already constructed. With an expected completion date of 2017 it has been given priority and a fast track by the Pakistani Government says, Prime Minister Nawaz Sharif. In theory, it should have a positive knock-on effect on the economy creating railways, roads, power plants, and hence jobs and investments. The corridor is being supported by the world’s largest solar power plan costing $1.5bn and a hydro power plant worth $1.6bn. The whole CPEC project brings about 4.5% in projected GDP growth. [

Most importantly, other planned corridors in the OBOR initiative aim to connect China to the Middle East, giving it direct access the Arabian Sea and the energy-rich Persian Gulf markets whilst also closing the distance by at least 10,000km. Oil-rich countries in the gulf still face major challenges when it comes to exporting their oil. Only recently has Iran come out saying they have a lot more oil than countries are demanding. The passage is set to ease this problem with neighboring countries already signing deals with the exporter.

“The port of Gwadar has awesome vital noteworthiness for China, and is seen as a contrasting option to the Strait of Malacca, through which more than 80% of the oil imported by China instantly streams, the examiner noted. “As is known, this strait if accurately controlled by the United States,” he included (OBOR) initiative – this scheme seeks to boost integrated economic growth between Eurasia through mega infrastructure projects. The OBOR project includes 6 corridors under two roads, the New Silk Road Economic Belt running west towards Europe through Russia and Central Asian and the 21st Century Maritime Road focuses on reaching Europe through South Asia and Southwest Africa.

The port of Gwadar has awesome vital noteworthiness for China, and is seen as a contrasting option to the Strait of Malacca, through which more than 80% of the oil imported by China instantly streams.

• Syed Gilani; chief marketing and business development@ALPHA KNITS Ltd, Nairobi, Kenya, East Africa. A former Marketing Head at the CRESCENT GROUP, Pakistan.

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