China’s Security of Supply

Richard (Rick) Mills
Ahead of the Herd

 

Page 2 of 3

 

The Silk Routes, collectively known as the "Silk Road", referred to a 7,000 mile network of interlinking trade routes that were used for three millennia. They connected China, India, Tibet, the Persian Empire, the Mediterranean countries and parts of North and East Africa.

 

map

 

One Belt, One Road

 

President Xi Jinping launched China’s “One Belt, One Road” (OBOR) initiative in 2013. The stated aim was to connect major Eurasian economies through infrastructure, trade and investment.

 

 

One Belt One Road, A Brilliant Plan

 

The “Belt” refers to a network of overland road and rail routes and oil and NG pipelines planned to run along the major Eurasian Land Bridges - China-Mongolia-Russia, China-Central and West Asia, China-Indochina Peninsula, China-Pakistan, Bangladesh-China-India-Myanmar. They’ll stretch from Xi’an in central China through Central Asia reaching as far as Moscow, Rotterdam, and Venice.
 
The “Road” is a network of ports and other coastal infrastructure projects from South and Southeast Asia to East Africa and the northern Mediterranean Sea.

 

“A network of new “South-South” trading routes connecting Asia, the Middle East, Africa and Latin America are set to revolutionize the global economy. Trade and capital flows between emerging areas of the world could increase tenfold in the next forty years. In the same way that trade between the developed nations exploded in the 1950s and 1960s, we expect the 21st Century to see turbocharged trade growth between the emerging nations." HSBC Global Research

 

“In all trade corridors in which China participates, strong growth is anticipated. So strong in fact that it is no exaggeration to highlight this as the emergence of a new world trade order; by 2030, China will effectively be fulfilling the central trade role occupied by the US and the EU today.” The Super-Cycle Report, Standard Chartered Research 2010

 

The China Global Investment Tracker is a comprehensive data set covering China’s well over $1 trillion in energy, mining, real estate and high-tech global investment and construction activity.

 

An article published by the New York times ‘The World According to China’ by Gregor Aisch, Josh Keller and K.K.Rebecca Lai says China has displaced the United States and Europe as the leading financial power in large parts of the developing world. Here’s where China has the most influence, based on its share of foreign investment since 2005.

 

 

From ZDNet we get the above map and the following snippet:

 

“Living in the United States, the scale of foreign investment by Chinese companies isn't so obvious. Much of the $57.8 billion of Chinese investment in the U.S. since 2005 has been in the finance sector. I didn't comprehend the scale of the Chinese investment until I visited Ethiopia earlier this month where nearly all the construction projects -- including a major light rail line -- were being done by Chinese firms (sub-Saharan Africa has the most investment from China of any region). Many huge factories on the outskirts of the capital city are joint projects between China and Ethiopia with the flags of both countries flying side-by-side. The redevelopment of a major road was paid for by Chinese government and is now dubbed "Ethio-China Friendship Avenue." In other words, the scale of Chinese investment is overtly apparent in Ethiopia and many other countries around the world, if not as obvious in the developed world.”

 

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