China’s NDRC released new action plan One Belt, One Road initiative [ Current Affairs ]
According to the, China’s top economic planning agency, the National Development and Reform Commission (NDRC) released a new action plan One Belt, One Road initiative. The initiative will establish new routes linking Asia, Europe and Africa.
Two Parts of One Belt, One Road initiative plan:
- A new Silk Road Economic Belt (SREB) – it is linking China to Europe that cuts through mountainous regions in Central Asia and
- The Maritime Silk Road (MSR) - it links China’s port facilities with the African coast and then pushes up through the Suez Canal into the Mediterranean Sea.
The word Belt is referred as a planned network of overland road and rail routes, oil and natural gas pipelines, and other infrastructure projects that will stretch from Xi’an in Central China, through Central Asia, and ultimately reach as far as Moscow, Rotterdam, and Venice.
The scope of the initiative will extend well beyond infrastructure construction. It also includes efforts to promote greater financial integration and use of the Renminbi, Chinese Currency, by foreign countries.
Benefit to China by this infrastructure projects:
- To provide stimulus to help cushion the effects of the deepening slowdown of China.
- The Belt and Road will improve China’s internal economic integration and competitiveness and spur more regionally balanced growth.
- Increased investment in energy and mineral resources, particularly in Central Asia, could also help reduce China’s reliance on commodities imported from overseas, including oil transiting the Strait of Malacca.
- Enhance Beijing’s diplomatic leverage in the region.
- Published on: May 5, 2015