Wednesday, December 6

The Belt and Road Initiative: A Key Pillar of the Global Community of Shared Future (Part 3)

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Maritime connectivity is steadily improving. Cooperation is expanding in shipping among the ports of participating countries, and the efficiency of cargo transportation has seen notable increase.

The annual cargo throughput of the Port of Piraeus in Greece has increased to above 5 million twenty-foot equivalent units (TEUs), making it the fourth largest TEU port in Europe and a leading TEU port in the Mediterranean.

The Gwadar Port in Pakistan has seen major progress and is marching towards the goal of becoming a logistics center and industrial base.

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Preliminary work is currently under way on the Kyaukphyu Deep-sea Port project in Myanmar, including geological exploration and environmental and social assessment.

The annual throughput of bulk cargo at Hambantota Port in Sri Lanka has increased to 1.21 million tonnes.

The Vado Gateway terminal has become the first semi-automatic terminal operating in Italy.

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The Lekki Deep-sea Port in Nigeria has been completed and entered service, becoming a major modern deepwater port in Central and Western Africa.

The Silk Road Maritime network has continued to expand. By the end of June 2023, it had reached 117 ports in 43 countries, and more than 300 well-known Chinese and international shipping companies, port enterprises and think tanks, among other bodies, have joined the Silk Road Maritime association.

A marine environment forecast and support system that focuses on areas along the Maritime Silk Road offers services to more than 100 cities in participating countries.

The Air Silk Road has made notable progress. The aviation route network between participating countries is expanding rapidly, and the level of air connectivity is steadily improving.

China has signed bilateral air transport agreements with 104 BRI partner countries and opened direct flights with 57 partner countries to facilitate cross-border transport.

Chinese enterprises are active participants in civil aviation infrastructure cooperation with partner countries including Pakistan, Nepal and Togo, helping to develop the local civil aviation industry.

A BRI cooperation platform proposed by the Civil Aviation Administration of China was established in August 2020, improving mechanisms and platforms of civil aviation exchanges and cooperation among participating countries.

During the Covid-19 pandemic, a direct line of the Air Silk Road linking Zhengzhou in Henan Province and Luxemburg did not suspend its air or freighting services, and transported a large amount of supplies. It served as an air lifeline between China and Europe, and contributed to keeping international industrial and supply chains stable.

International inter-modality transport channels continue to enjoy stable development. These channels include the China-Europe Railway Express, the China-Europe Land-Sea Express Line, the New International Land-Sea Trade Corridor, and the Lianyungang-Khorgos New Eurasian Land-Sea Expressway.

The China-Europe Railway Express has now reached more than 200 cities in 25 European countries, comprising 86 routes passing through the main regions of the Eurasian hinterland at a speed of 120 km per hour. Its logistics distribution network covers the entire Eurasian continent. By the end of June 2023, the cumulative volume of the China-Europe Railway Express had exceeded 74,000 trips, transporting nearly 7 million TEUs and over 50,000 types of goods in 53 categories such as automobiles, mechanical equipment, and electronic products, to a total value of more than US$300 billion.

The China-Europe Land-Sea Express Line has emerged from scratch to become the third trade channel between China and Europe, after traditional sea routes and the China-Europe Railway Express. In 2022, more than 180,000 TEUs were transported through this line, with rail trips exceeding 2,600.

The routes of rail-sea freight trains of the New International Land-sea Trade Corridor cover 18 provinces and equivalent administrative units, in central and western China, transporting goods to 300-plus ports in more than 100 countries.

3. Unimpeded, convenient and efficient trade

Facilitating trade and investment is a major task in building the Belt and Road. The participating countries have worked hard to promote trade and investment liberalization and facilitation, remove investment and trade barriers, and improve the business environment within the region and in all related countries. Efforts have been made to build free trade zones, broaden trading areas, improve trade structure, expand areas of mutual investment and industrial cooperation, establish a more balanced, equal and sustainable trading system, and develop mutually beneficial economic and trade relations, so as to make the “pie” of cooperation bigger.

Trade and investment are expanding steadily. From 2013 to 2022, the cumulative value of imports and exports between China and BRI partner countries reached US$19.1 trillion, with an average annual growth rate of 6.4 percent. The cumulative two-way investment between China and partner countries reached US$380 billion, including US$240 billion from China. The value of newly signed construction contracts with partner countries reached US$2 trillion, and the actual turnover of Chinese contractors reached US$1.3 trillion. In 2022, the value of imports and exports between China and partner countries reached nearly US$2.9 trillion, accounting for 45.4 percent of China’s total foreign trade over the same period, representing an increase of 6.2 percentage points compared with 2013; the total value of imports and exports of Chinese private enterprises to partner countries exceeded US$1.5 trillion, accounting for 53.7 percent of the trade between China and these countries over the same period.

Trade and investment liberalization and facilitation is improving. BRI participating countries continue to uphold multilateralism and free trade, working hard to create a sound institutional environment for closer economic and trade relations. Positive progress has been made in the alignment of working systems, coordination of technical standards, mutual recognition of inspection results, and online verification of electronic certificates.

By the end of August 2023, more than 80 countries and international organizations had subscribed to the Initiative on Promoting Unimpeded Trade Cooperation Along the Belt and Road, proposed by China. China had signed 21 free trade agreements with 28 countries and regions. On January 1, 2022, the Regional Comprehensive Economic Partnership (RCEP) agreement entered into force, creating the world’s largest free trade zone in terms of population size and trade volume. The RCEP and the BRI overlap and complement each other in terms of participating countries and regions, as well as areas and contents of cooperation, forming a new dynamic of economic and trade cooperation in Asia.

China also works actively towards joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the Digital Economy Partnership Agreement.

China has signed bilateral investment agreements with 135 countries and regions, and conventions for the avoidance of double taxation (including arrangements and agreements) with 112 countries and regions. It has achieved Authorized Economic Operator mutual recognition with 35 partner countries, and has signed third-party market cooperation documents with 14 countries.

China has established a “single-window” cooperation mechanism with Singapore, Pakistan, Mongolia, Iran and other partner countries, and signed cooperation documents on customs inspection and quarantine, effectively improving the efficiency of customs clearance at border ports.

Trade and investment platforms are playing a growing role. China International Import Expo (CIIE) is the world’s first import-themed national-level expo and has been held for the past five years. It has resulted in a cumulative intended turnover of nearly US$350 billion, and about 2,000 launches of new products. With diverse participants from many countries and regions, the CIIE has become a global platform for international procurement, investment promotion, cultural exchanges, and open cooperation.

The influence of key exhibitions continues to expand; these include China Import and Export Fair (Canton Fair), China International Fair for Trade in Services, China International Fair for Investment and Trade, China International Consumer Products Expo, Global Digital Trade Expo, China-Africa Economic and Trade Expo, China-Arab States Expo, China-Russia Expo, China-CEEC Expo & International Consumer Goods Fair, China-ASEAN Expo, and China-Eurasia Expo. All of these have provided a strong boost to trade and investment cooperation among participating countries.

The Hong Kong SAR has held the Belt and Road Summit eight times, and the Macao SAR has held the International Infrastructure Investment and Construction Forum 14 times, which have played an important role in advancing economic, trade and investment cooperation along the Belt and Road.

Industrial cooperation is deepening. BRI participating countries have worked hard to foster a paradigm of cooperation based on coordinated development, mutual benefit, and win-win outcomes, which has given a strong boost to upgrading industrial structures and optimizing industrial chains in the countries involved.

The participating countries have jointly promoted cooperation on industrial capacity, expanded cooperation in traditional industries including steel, non-ferrous metals, building materials, automobiles, engineering machinery, resources and energy, and agriculture, explored cooperation in emerging industries such as the digital economy, new energy vehicles, nuclear energy and technology, and 5G, and carried out tri-party and multiparty market cooperation, thus advancing mutual complementarity and providing mutual benefits to all parties.

By the end of June 2023, China had signed agreements on industrial capacity cooperation with more than 40 countries. China Mining Conference & Exhibition and China-ASEAN Mining Cooperation Forum & Exhibition serve as important platforms for participating countries to conduct mining capacity cooperation.

The Shanghai Cooperation Organization (SCO) Demonstration Base for Agricultural Technology Exchange and Training has supported advances in agricultural science and technology under the BRI, and promoted economic and trade cooperation in agriculture among participating countries.

Jointly constructed by China and Pakistan, the K2 and K3 units of the Karachi Nuclear Power Plant have been completed and are in operation, utilizing China’s Hualong One nuclear technology.

The Ulba Fuel Assembly Plant, a successful joint venture between China and Kazakhstan, is now operational.

The China-ASEAN Forum on Peaceful Uses of Nuclear Technology has served as a bridge to establish connectivity, enabling BRI participating countries to cooperate on nuclear technology and promote growth and people’s wellbeing.

More than 70 overseas industrial parks have been built by Chinese enterprises together with governments and enterprises in partner countries. The China-Malaysia and China-Indonesia “Two Countries, Twin Parks” projects, the China-Belarus Great Stone Industrial Park, the China-UAE Industrial Capacity Cooperation Demonstration Zone, and the China-Egypt TEDA Suez Economic and Trade Cooperation Zone are making steady progress.

4. Diverse dynamics of financial integration

Financial integration is an important pillar of BRI cooperation. Participating countries and relevant institutions have carried out multiple forms of financial cooperation, created new models, expanded the channels, diversified the parties involved, and improved the mechanisms for investment and financing. They have promoted policy-based finance, development finance, commercial finance, and cooperative finance to support BRI cooperation, and worked to build a long-term, stable and sustainable investment and financing system that keeps risk under control.

Source: The State Council Information Office of the People’s Republic of China