China wants 'new Silk Road' One Belt One Road project to help it dominate world trade

Updated

The Chinese Government has opened a two-day summit in the capital Beijing to consolidate its massive global development project called One Belt One Road, or the New Silk Road project.

President Xi Jinping will host 28 world leaders and representatives from another 70 countries to sell his hugely ambitious signature project.

The plan is to build a vast network of new trade routes across the globe, multiple high-speed rail networks to penetrate Europe, massive ports across Asia and Africa and a series of free-trade zones.

Closer to home, it will cement Chinese influence in the Pacific in countries like East Timor, Fiji and Papua New Guinea.

China is going to spend up to a trillion dollars on infrastructure projects and hopes to bind more than 65 countries and two thirds of the world's population to its economy.

Economists have likened the project to a modern day Marshall Plan — which helped secure the US as the world's superpower after World War II — but it's much bigger.

In today's terms, the US only spent about $130 billion on the Marshall Plan. China is hoping to spend much more.

It is an attempt by the Chinese to secure global dominance at a time when the United States is stepping back, and on the domestic front to keep growth and wealth strong for decades to come.

China's aim is to lift trade by $2.5 trillion in a decade by flooding world markets with cheap, high-quality Chinese goods.

It is empire-building on a scale the world has not seen before.

Professor Wang Yiwei from the China and Globalisation think tank said: "After Trump took power, he stopped the TPP and became isolationist".

"China is the biggest rising power and we welcome other countries along with us to achieve our great rejuvenation, our China dream," he said.

Modern efficiency for ancient trade routes

The One Belt One Road project is already in action at the industrial hub of Chongqing in southern China.

In its massive logistics centre, containers are moved 24 hours a day onto trains that move Chinese goods like iPads and car parts west into Central Asia, Russia and Europe.

The trains, which are 2 kilometres long, travel 12,000 kilometres to reach distribution points in Germany in just 13 days, reviving ancient trade routes with modern efficiency.

Spokeswoman for the Chongqing Logistics City, Gu Xin, said the trains were a game changer in providing reliable, secure and cheap access to world markets.

"The new trade routes will bring more business and big international companies here. It will open southern China and Chongqing to the world," she said.

Car company Lifan at Chongqing is producing exactly the kind of products China wants to push onto the world markets.

Every two minutes a high-quality SUV comes off the assembly line and they retail at just $12,000.

They are already exporting to 30 countries and Lifan president Mu Gang said they were successful because they focused on innovation and responded quickly to consumer needs and demands.

"Technology-wise, design, workmanship, quality — all those kinds of things are a system, a comprehensive system in our company and the way we do things," he said.

Lifan is also the model company for the One Belt One Road initiative. It is privately owned and driven by the needs of the market, not the demands of the state.

Mu Gang said the moribund state-owned enterprises in China would have to reorientate if the plan was to be successful.

"There is a joke here in China: state-owned enterprises only care for the mayor, and the privately-owned enterprises, we are focused entirely on the market. It is completely different," he said.

Challenges in and out of China

The city of Chongqing has already seen the benefits of One Belt One Road. It has economic growth rates of 11 per cent — almost double the national average.

It is hoped that what is happening in Chongqing is just the beginning.

But there are huge challenges ahead if success in Chongqing is to be replicated.

"China is a Communist state run by a hierarchical leadership and many of the Western countries are democratic and opposition parties can have different plans," Professor Wang said.

He said coordination and planning would be difficult.

The countries along One Belt One Road are a mix of cultures and systems. Some are not market economies and half are Islamic with different laws. Some, such as Turkey and Egypt, are unstable so it is harder to build and maintain projects.

Other critics, like Tom Miller from Gavekal Dragonomics who recently published a book on the subject, said the massive project lacked definition and detail.

Jorge Wuttke, the president of the EU Chamber of Commerce in China, wrote in the Financial Times that he feared the trade could all be one-way.

He said for it to be a success, China would have to truly open its markets and lift regulatory barriers or One Belt One Road would be in danger of becoming a huge white elephant.

"We are worried that in the next decade the initiative will be remembered as 'One Belt and One Trap', a waste of resources that depends too heavily on lumbering and inefficient state-owned enterprises," he said.

China says One Belt One Road is about partnership and cooperation and is pushing ahead.

Topics: business-economics-and-finance, globalisation---economy, economic-trends, world-politics, china, asia

First posted</s>India on Saturday ruled out participation in China’s mega One Belt One Road summit in Beijing, citing its objections to the $46 billion China-Pakistan Economic Corridor, that passes through Pakistan-administered Kashmir.

In a statement, a day ahead of the launch of the two-day summit in Beijing, India said that “Guided by our principled position in the matter, we have been urging China to engage in a meaningful dialogue on its connectivity initiative, ‘One Belt, One Road’ which was later renamed as ‘Belt and Road Initiative’. We are awaiting a positive response from the Chinese side.

“Regarding the so-called ‘China-Pakistan Economic Corridor’, which is being projected as the flagship project of the BRI/OBOR, the international community is well aware of India’s position. No country can accept a project that ignores its core concerns on sovereignty and territorial integrity.”</s>In what is being called a major geostrategic initiative, China on Sunday inaugurated the two-day Belt and Road summit in Beijing.

The meeting called the Belt and Road Forum (BRF) is being attended by 29 heads of state and governments including Prime Minister of Pakistan Nawaz Sharif and his Sri Lankan counterpart Ranil Wickremesinghe, besides official delegations from other South Asian countries.

Leaders and officials from various countries including Russia, US, Japan, UK, Germany and France are attending the meeting.

India, on the other hand, has decided to boycott the multi-nation economic project, which is pegged at $1 trillion. New Delhi is protesting the controversial economic corridor's transversing through the disputed territory of Pakistan-occupied Kashmir (PoK).

With the economic corridor creating a flutter across the world media, here is what different world leaders had to say about it.

Nawaz Sharif



 Sharif said that the multi-billion dollar China-Pakistan Economic Corridor was an economic project open to all nations in the region and it "must not be politicised", in an apparent reference to India.

As CPEC is closely linked to OBOR, Sharif also spoke on the larger economic corridor.

"The fact is that OBOR belongs to all of us, those who are participating in it and those who are not as yet. Obor has truly become a global community. As Obor unfolds across continents we see it fostering inclusion, creating tolerance and promoting acceptance of cultural diversity," he said.

Nepal's deputy prime minister Prakash Sharan Mahat hailed the OBOR initiative of the Chinese government.

"The Chinese president's announcement to contribute an additional 100 billion yuan (around $14.5 billion) to the Silk Road Fund is a piece of good news for neighboring countries like Nepal that have recently joined the Belt and Road Initiative," Mahat said.

The foreign minister added that Nepal wishes to receive more investments from China to develop inter-connectivity and infrastructure projects within the framework of the Belt and Road Initiative.

Turkish president Recep Tayyip Erdogan met his Chinese counterpart in Beijing on Sunday and reportedly extended his support to the initiative.

"It will be an initiative that would put an end to terrorism. This cooperation model would be beneficial for everyone," Erdogan said at the Belt and Road Forum for International Cooperation earlier in the day," Erdogan was quoted by Sputnik News as saying.

Vladimir Putin



 Russian president Vladimir Putin praised the initiative while addressing the gathering at the summit.

"We welcome China’s One Belt, One Road initiative. By proposing this initiative, President Xi Jinping has demonstrated an example of a creative approach toward fostering integration in energy, infrastructure, transport, industry and humanitarian collaboration, about which I have just talked at length," Putin said.

Alexis Tsiparis



 Greek prime minister Alexis Tsiparis is one of the few western leaders to grace the occasion. He said, "In these times, when the temptation is great to respond to the crisis of globalisation by increasing isolation, and by raising walls, this initiative highlights a vision of connectivity, cooperation and dialogue across Europe and Asia but also other parts of the world."

President Maithripala Sirisena as well as his prime minister Wickremesinghe have been vocal supporters of the deal.

In April 2016, Wickramasinghe had said, "Both Sri Lanka and China are deepening reforms, in the process of which we see huge potential for cooperation. "Sri Lanka is ready to seek more economic cooperation opportunities with China."

Sirisena in February 2017 had assured full support to his Chinese counterpart Xi Jinping on his maritime silk route which is an intrinsic part of the OBOR.

British finance minister Philip Hammond said London was "ready to work with all Belt and Road partner countries to make a success of this initiative".

German Economy Minister Brigitte Zypries called for transparency to ensure that the calls for investment bids are "non-discriminatory".</s>– The Belt and Road Forum for International Cooperation opened in Beijing, China on May 14.The event was attended by high-level leaders from 29 nations, the United Nations Secretary General, the President of the World Bank (WB), the Director General of the International Monetary Fund (IMF).The Vietnamese delegation was headed by President Tran Dai Quang.The two-day forum, under the theme “Belt and Road: Cooperation for Common Prosperity” will have the Leader Roundtable, and high-level dialogues among ministers, enterprises and scholars.Minister of Industry and Trade Tran Tuan Anh is scheduled to join the discussion about trade connectivity; Minister of Planning and Investment Nguyen Chi Dung will attend the talks on policy connectivity; and President of the Vietnam – China Friendship Association Nguyen Xuan Thang will participate in the dialogue on people-to-people exchanges.Addressing the opening ceremony, Chinese President Xi Jinping said China will pour an additional 100 billion CNY (14.5 billion USD) into the Belt and Road initiative.According to the National Development and Reform Commission of China, the country’s investment in projects related to the initiative has totaled 60 billion USD since 2013. Most of China’s upcoming overseas investment will go to the initiative’s member nations.Once completion, the Belt and Road Initiative is expected to create a large economic and trade network, covering a region with 4.4 billion people, the combined GDP of 21 trillion USD.The forum will close on May 15 with the release of a Joint Statement of the Leader Roundtable.-VNA</s>Alwihda Info | Par peoplesdaily - 15 Mai 2017 modifié le 15 Mai 2017 - 19:41 

 Xi spoke of the myriad challenges the world faces: sluggish trade and investment, wobbling economic globalization, increasingly unbalanced development, impact from large-scale migration of refugees and immigrants, as well as wars, conflicts and terrorism. Chinese President Xi Jinping on Monday elaborated on what had inspired him to come up with the Belt and Road Initiative, stressing that it is aimed at galvanizing global cooperation and is open to all. 

 

 Xi made the remarks at the Leaders' Roundtable Summit at the Belt and Road Forum for International Cooperation in Beijing. 

 

 "The Belt and Road development does not shut out, nor is it directed against, any party," Xi told the summit. Proposed in 2013, the Belt and Road Initiative is a grand plan to connect Asia with Europe and Africa along, and beyond, ancient trade routes by putting in place an unparalleled trade and infrastructure network. 

 

 At Monday's summit, Xi spoke of the myriad challenges the world faces: sluggish trade and investment, wobbling economic globalization, increasingly unbalanced development, impact from large-scale migration of refugees and immigrants, as well as wars, conflicts and terrorism. 

 

 Countries are exploring their own ways to deal with these challenges and have put forward many good development strategies and initiatives, but it is difficult to rely on a single country to manage or solve the global problems, Xi said, citing the inter-dependence between nations. Only by aligning their policies and integrating economic factors and resources in a global scale can countries create synergy to promote world peace, stability and shared development, he noted. 

 

 Under these circumstances, the world may well draw wisdom and strength from the ancient Silk Road, which features the spirit of peace and cooperation, openness and inclusiveness, mutual learning and mutual benefit, Xi said. 

 Though originating from China, the Belt and Road Initiative belongs to the whole world, while its development goes beyond regions, stages of development, and civilizations, according to the president. 

 He described the Belt and Road development as a "brand of cooperation" that is open and inclusive, and a global public good jointly provided by all parties. 

 Under the Belt and Road framework, Xi explained, all parties can join hands to meet the global challenges in the principle of extensive consultation, joint contribution and shared benefits. 

 

 The initiative also enables countries to create new development opportunities and impetus, and leverage their comparative advantages for win-win results, to make progress toward building a community of shared future for mankind, he said. 

 

 Xi said he is glad to see positive responses to and extensive support for the initiative from the international community, with more than 100 countries and international organizations already engaging in it. A total of 29 foreign heads of state and government leaders attended the two-day forum. 

 

 China to host 2nd Belt & Road forum in 2019</s>The two-day forum in Beijing is an opportunity for China to explain to other countries its grand vision to revive and expand the Silk Road trade routes, and help fund developing countries' infrastructure projects to boot

BEIJING, China – It’s been touted as China’s premiere economic and foreign policy event of the year.

The Belt and Road Forum for International Cooperation, to be hosted by President Xi Jinping himself and attended by 28 other leaders, will take place from May 14 to 15 in Beijing.

Events will take place in various venues, including the China National Convention Center in Beijing Olympic Park, Great Hall of the People, and the Yanqi Lake International Convention Center.

What’s this forum all about? Here are some bite-sized facts for you.

Belt and Road Initiative – The forum is where China explains to other countries its Belt and Road Initiative, a grand strategy to revive and expand the ancient Silk Road trade routes. The Chinese government defines it as a "China-proposed trade and infrastructure plan connecting Asia with Europe and Africa." It was first announced by President Xi Jinping in 2013. (READ: FAST FACTS: China's Belt and Road Initiative)

Two components – The BRI is composed of the Silk Road Economic Belt and 21st Century Maritime Road, hence, “belt” and “road.” The “belt” is mainly a land-based trade route while the “road” involves a sea route connecting archipelagic countries.

65 countries, 3 continents, billions of dollars – The belt and road aims to connect countries of Asia, Europe, and Africa to each other primarily through infrastructure projects to be funded, in part or in whole, by China. These ports, roads, railways, and bridges will connect all countries who wish to be part of the “belt” and “road.”

50 cooperation documents – This is the number of cooperation documents on infrastructure projects expected to be signed during the Belt and Road Forum, according to Chinese officials. Before the forum, China already signed 46 cooperation agreements with 39 countries and regions interested in the BRI.

28 visiting heads of government – The list of confirmed heads of state and government attending the forum include Philippine President Rodrigo Duterte, Russian President Vladimir Putin, Turkish President Recep Tayyip Erdogan, and several European and Southeast Asian leaders. They will take part in two Leaders’ Roundtable Summits both taking place on Monday, May 15.

Around 30 ministers, senior officials – Some countries, like the United States, France, Iran, and Germany, will not be represented by heads of state or government. Instead, their delegations will be led by ministers, ambassadors, or other high-level officials. For the US, it will be National Security Council senior director for Asia Matthew Pottinger. For Germany, it will be Minister of Economic Affairs Brigitte Zypries. Even North Korea is sending a representative – Kim Yong-jae, Minister of External Economic Relations, according to South Korean news reports.

Over 80 leaders of international groups – The list includes United Nations Secretary-General Antonio Guterres, International Monetary Fund Managing Director Christine Lagarde, and World Bank Group President Jim Yong Kim.

1,500 participants – Aside from leaders, members of the academe, journalists, and business leaders are expected to participate in the forum.

Addressing criticism for Belt and Road Initiative – The Belt and Road Forum is an opportunity for China to explain the BRI more comprehensively to countries who remain wary of the project and China’s intentions. Some countries say the BRI is too “China-centric” and designed to benefit only China, to the possible detriment of other countries.

This criticism is said to be one reason why China changed the program’s original name, which was “One Belt, One Road Initiative.” They dropped the use of “one” which appeared to indicate China’s dominance in the initiative.

China has sought to allay such fears, saying the initiative will only take flight if championed by other countries. Thus, they avoid language that puts China at its center.

State-run newspaper China Daily, for instance, defined the BRI as an initiative that “aims to expand connections between Asia and the rest of the world.” – Rappler.com</s>Belt and Road initiative brings benefits to all : forum delegates 

 Alwihda Info | Par peoplesdaily - 14 Mai 2017 modifié le 14 Mai 2017 - 14:52 

 The ancient Silk Road represents an extraordinary accomplishment in terms of its cultural significance, praised Helga Zepp LaRouche, chair of the Germany-based Schiller Institute, explaining that it needs unparalleled courage and efforts to build it. The Silk Road spirit followed by the Belt and Road initiative offers pioneering ideas for contemporary international cooperation, the delegates told the People’s Daily upon the arrival of the Belt and Road Forum for International Cooperation, agreeing that the proposal will bring benefits to all. 

 

 Along the ancient Silk Road in history, people from different countries, nations, religions, beliefs, and culture backgrounds managed to share peace and development, while today’s Belt and Road initiative also eyes for common interests of en-route nations, hailed Robert Lawrence Kuhn, a US investment banker. 

 

 Kuhn, who is now in Beijing for the forum, also told in a discussion on the initiative one year ago when the US presidential campaign was underway that the public will, a century later, find out that today’s discussion on Belt and Road far outweighs the importance of any election rounds. 

 

 The ancient Silk Road represents an extraordinary accomplishment in terms of its cultural significance, praised Helga Zepp LaRouche, chair of the Germany-based Schiller Institute, explaining that it needs unparalleled courage and efforts to build it. 

 

 She added that the silk and porcelain as well as the techniques to make them were exported to other parts of the world along the ancient Silk Road, while in today’s world, all the countries involved in the initiative have been provided with a chance to access to the most advanced technologies and updated knowledge. 

 

 The initiative has brought the world fresh development outlook and vitality in just three-plus years after it was put forward, LaRouche stressed. 

 

 What the Belt and Road initiative carries forward is a spirit that the whole mankind could join efforts to realize their goals and brace for bright future, said Muhammad Zamir Assadi, reporter with Independent News Pakistan. 

 

 History has proven that the Silk Road, which honors the spirit of “peaceful cooperation, openness and inclusiveness”, has benefited all of the contributors. The en-route countries and their public are now duplicating the history. 

 

 It is not easy for an international cooperation program to ensure an all-reaching equality, openness and respect, but the “Belt and Road” development has up to now done a good job in this regard, Paul J. Kohlenberg, research fellow at German Institute for International and Security Affairs, told the People’s Daily. 

 

 The all-shared benefits can be attributed to the tribute to the spirit of “peaceful cooperation, openness and inclusiveness” paid by China as the initiator. 

 

 China has reiterated that it will never bully smaller nations no matter how developed it will be, Kuhn agreed, adding that the Belt and Road initiative was based on the principle of united cooperation, shared development, equal-footed benefits and win-win outcomes. 

 

 The Turkish public are optimistic over the Belt and Road, said Selçuk Çolakoğlu, director of Center for Asia-Pacific Studies under International Strategic Research Organisation (USAK) of Turkey. 

 

 Hailing China’s decision to make cooperation as the keynote of its diplomacy, Çolakoğlu said that if all countries could unite together for cooperation, their citizens would enjoy prosperous economy, stable politics and colorful culture through international and regional systems. 

 

 Some key words in the roadmap of the initiative, including “road”, “belt”, “corridor” and “bridge”, means that what the proposal pursues is equality, inclusiveness and connectivity rather than a centered or dominant position, stressed Zhao Lei, professor at Institute for International Strategic Studies affiliated to the Party School of the Central Committee of the CPC. 

 

 Pursuit of Belt and Road Initiative "not to reinvent the wheel"</s>India on Saturday refused to be a part of China's One Belt One Road (OBOR) initiative citing its objections to the $46 billion China-Pakistan Economic Corridor, that passes through Pakistan-administered Kashmir.

Citing the CPEC that is being touted as a flagship part of OBOR, External Affairs Ministry spokesperson Gopal Baglay said: "No country can accept a project that ignores its core concerns on sovereignty and territorial integrity."

In a statement, a day ahead of the launch of the two-day summit in Beijing, he said: "Guided by our principled position in the matter, we have been urging China to engage in a meaningful dialogue on its connectivity initiative, 'One Belt, One Road' which was later renamed as ‘Belt and Road Initiative'.

"We are awaiting a positive response from the Chinese side.

"Regarding the so-called 'China-Pakistan Economic Corridor', which is being projected as the flagship project of the BRI/OBOR, the international community is well aware of India's position. No country can accept a project that ignores its core concerns on sovereignty and territorial integrity."

China is organising the two-day Belt and Road conference in Beijing starting Sunday which will be attended by 29 Heads of State including Russian President Vladimir Putin and a US delegation, and see the participation of over 100 countries.

India's non-participation comes as the top leadership of Pakistan, Sri Lanka, Maldives and Myanmar are attending, while Bangladesh and Nepal are sending high-level delegations. Bhutan is not attending.

On Friday, Nepal officially inked a deal with China on OBOR for development of cross-border connectivity.

The $46-billion CPEC is part of OBOR, Chinese President Xi Jinping's signature foreign policy initiative.

New Delhi firmly opposes this corridor of Beijing's project linking Xinjiang in China and the Gwadar port in Pakistan because it passes through Pakistani-administered Kashmir. India lays claim to the disputed region.

The general view was that India attending the forum might amount to surrendering its claim over the region.

However, Beijing has repeatedly sought to allay New Delhi's fears, saying China will not change its position on the Kashmir dispute between India and Pakistan. Beijing terms the dispute as bilateral.

Citing other problems, Baglay said: "We are of firm belief that connectivity initiatives must be based on universally recognised international norms, good governance, rule of law, openness, transparency and equality.

"Connectivity initiatives must follow principles of financial responsibility to avoid projects that would create unsustainable debt burden for communities; balanced ecological and environmental protection and preservation standards; transparent assessment of project costs; and skill and technology transfer to help long term running and maintenance of the assets created by local communities. Connectivity projects must be pursued in a manner that respects sovereignty and territorial integrity."

Noting India shares the international community's desire for enhanced physical connectivity and believes that it should bring greater economic benefits to all in an equitable and balanced manner," Baglay said it was "working with many countries and international institutions in support of physical and digital connectivity in our own immediate and near neighbourhood".

He said that expansion and strengthening of connectivity was an integral part of India's economic and diplomatic initiatives and referred to New Delhi's Act East policy that focuses on the 10 nations of the Association of Southeast Asian Nations (Asean) and the Trilateral Highway project underway to link India, Myanmar and Thailand.

Baglay said that under New Delhi's Go West strategy, it engaged with Iran on the Chabahar Port and with Iran and other partners in Central Asia on the International North South Transport Corridor. India, Iran, and Afghanistan have signed a trilateral agreement to develop the Chabahar port that will will be vital to link south and central Asia.

He also referred to the Bangladesh, Bhutan, India, Nepal (BBIN) motor transport agreement saying it is an initiative that is aimed at enhancing logistics efficiencies in the South Asian region.

"We are also actively considering acceding to TIR (Transports Internationaux Routiers or International Road Transports) Convention," he said. The TIR Convention establishes an international customs transit system.</s>The Belt and Road Initiative is a grand ambitious plan to connect Asia with Europe and Africa along, and beyond, ancient trade routes by putting in place an unparalleled trade and infrastructure network. It was proposed by the Chinese President Xi Jinping in 2013. Some describe Xi’s scheme as the biggest development push in history. It can turn out to be the largest ever infrastructure project requiring nearly a trillion- dollar investment across the globe. By some estimates, China plans to pump $150.billion into such projects each year.

As per reports, there are plans for pipelines and a port in Pakistan, bridges in Bangladesh and railways to Russia — what China calls a “modern Silk Road”. Other high-profile schemes include a $1.1 billion port project in Sri Lanka, a high-speed rail link in Indonesia and an industrial park in Cambodia.

So far, the initiative has won support from more than 100 countries and international organisations, of which over 40 have signed cooperation agreements with China.

A total of 29 foreign heads of state and government leaders are attending the ongoing Belt and Road Forum in Beijing. Other delegates at the forum include officials, entrepreneurs, financiers and journalists from over 130 countries, and representatives of key international organisations. India skipped the meet.</s>Upset at the China-Pakistan Economic Corridor (CPEC) passing through Pakistan-occupied Kashmir (PoK), India is unlikely to send a high-level representative to attend China’s ambitious Belt and Road Summit in Beijing starting tomorrow, signalling its strong displeasure at the inclusion of CPEC as part of the Belt and Road Initiative. Sources in Delhi confirmed that no high-level representative will be sent to attend the two-day summit. However, there is a possibility that India may send a junior diplomat to witness the summit proceedings, sources said.

There was no official announcement by the Ministry of External Affairs (MEA) regarding India’s participation in the summit. Sources said that a decision has not been taken yet. The May 14-15 summit is set to be attended by 29 heads of state and governments, including one of India’s strategic partners — Russian President Vladimir Putin. Most of India’s neighbours are attending the One Belt One Road (OBOR) summit, which is Chinese President Xi Jinping’s pet project.

With CPEC being India’s reason for staying away, Pakistan Prime Minister Nawaz Sharif’s presence is expected to dominate the discourse. He is accompanied by four chief ministers and five federal ministers. Sri Lankan Prime Minister Ranil Wickremesinghe, Nepal’s Deputy Prime Minister and Minister of Finance Krishna Bahadur Mahara are also attending, apart from delegations from Bangladesh and Maldives.

Among the major powers, US, France, Germany and UK have confirmed their participation. While India has objected to OBOR on the basis of CPEC through official diplomatic channels, the sharpest comment was made by Foreign Secretary S Jaishankar in January this year. He said that China has not been sensitive about India’s sovereignty and did not consult New Delhi on its US$ 54 billion project with Pakistan, referring to the CPEC.

Responding to questions at the second edition of the Raisina dialogue, Jaishankar had said, “China is a country which is very sensitive on matters concerning its sovereignty… So we would expect that they would have some understanding of other people’s sensitivity about their sovereignty. CPEC passes through a piece of land, which we call Pakistan-occupied Kashmir, which is a territory that belongs to India and is illegally occupied by Pakistan… So the fact that such a project has been initiated without consultations with India, I would imagine, people will understand what the Indian reaction to that would be. So I think in approaching the CPEC, there needs to some reflection on how a country like India would see that is part of India, would feel… I am sorry to say that we have not seen signs of that so far.”

Jaishankar’s comments came a day after Prime Minister Narendra Modi said that “connectivity in itself cannot override or undermine the sovereignty of other nations”. “Only by respecting the sovereignty of countries involved, can regional connectivity corridors fulfill their promise and avoid differences and discord,” Modi had said, in his inaugural address at the Raisina Dialogue in January.

While India has raised the CPEC issue at various levels, including at the highest level with Chinese President Xi Jinping at the BRICS summit in Goa last October, Jaishankar’s comments were the most critical and clear articulation.

Last week, in a bid to assuage New Delhi’s concerns, Chinese ambassador to India Luo Zhaohui even offered to rename CPEC, insisting it was an economic cooperation and connectivity enhancement project devoid of “sovereignty issues”. However, his comments suggesting the renaming of the CPEC were later deleted by the Chinese embassy from his speech posted on the embassy website.

Last week, a Chinese official in Delhi also suggested that non-participation could lead to a situation where New Delhi would have “no voice” on Xi’s ambitious OBOR initiative to build seven economic corridors. “If India doesn’t attend the forum, the Chinese people will ask questions. It will give a feeling that you’re not constructive,” the official had said. “If you’re absent, you have no voice.”

The official had also suggested that China’s agreement with Pakistan for CPEC wouldn’t affect any “future settlement” of the Kashmir issue.

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The Government of China begins a two-day summit in Beijing, in an attempt to raise international support for its Belt and Road Initiative.