Belt and Road - A corner stone for an open world economy

Note: The following article is taken from the Chinese-language "Commentaries on International Affairs".

The second Belt and Road Forum for International Cooperation concluded on Saturday, with a joint communiqué issued following the leaders’ roundtable meeting. Attendees resolved to promote international cooperation at sub-regional, regional and global levels through partnerships such as the Belt and Road Initiative and other cooperation strategies, aimed at a brighter shared future and common prosperity. They also envisaged Belt and Road Forum meetings on a regular basis with possible follow-up events.

Chinese President Xi Jinping meets the press at the closing of the Second Belt and Road Forum for International Cooperation in Beijing on April 27, 2019. [Photo: Xinhua]

Compared with the first Belt and Road Forum two years ago, this year’s edition has achieved 283 pragmatic results and the signing of cooperation projects worth over $64 billion. Such a large number of high quality outcomes, across a wide variety of sectors, is witness to the steady progress of the Belt and Road initiative. It is proof that more and more countries are stepping forward to become solid partners in the search for interconnectivity, joint cooperation, development and prosperity through the Belt and Road.

The Belt and Road Initiative is keeping pace with the underlying historical trends, resolving a series of deadlocks and bottlenecks, and through ongoing development and innovation, proving to the world that only an open economy will bring benefits to the world population. Over the past six years, thanks to joint efforts by all parties, the Belt and Road has created the fundamental structure of interconnectivity, by initiating six international economic cooperation corridors across Europe and Asia, as well as interconnected networks of railways, roads, waterways, airways, pipelines, and information highways. A large number of cooperation projects have taken root, with more than 150 countries and international organizations having signed Belt and Road cooperation documents with China. According to reports issued by the World Bank, the Belt and Road Initiative has increased trade flows among participating countries by up to 4.1 percent, decreased average shipping times across the world by between 1.2 and 2.5 percent, and reduced aggregate trade costs by between 1.1 and 2.2 percent worldwide. The Belt and Road has also boosted the world’s direct investment, promoted world trade, created job opportunities, and positively affected the economic development of low-income countries.

The Belt and Road Initiative is actively eliminating barriers obstructing global economic development, promoting reform in the global governance system, and laying a solid foundation for achieving common development and prosperity. As an advocate for the Belt and Road Initiative, China has been expanding imports, decreasing its trade surplus of goods with countries along the initiative, and has been steadily increasing service trade, becoming an important market for those countries’ exports.

A research report, “China: Belt and Road is taking shape” issued by the UK’s Standard Chartered Bank shows that multiple tiers of financial institutions are taking part in Belt and Road funding, including international financial institutions such as the World Bank, policy banks, commercial banks and insurance companies. The report also expects that “development financing” and commercial banks will play an increasing role in meeting the financing needs of Belt and Road projects.

President Xi Jinping takes a group photo with foreign leaders and heads of international organizations during the leaders' roundtable meeting of the Second Belt and Road Forum for International Cooperation at the Yanqi Lake International Convention Center in Beijing, April 27, 2019. [Photo: Xinhua]

There is a consensus among all participants that high-quality common development under the Belt and Road initiative should be pursued. This consensus will help all parties focus on development and thereby improve productivity and the general wellbeing of their respective economies. At the 2nd Belt and Road Forum, the delegations proposed the Beijing Initiative for the Clean Silk Road, which demonstrates a resolution on all sides to enhance international cooperation, promote integrity and combat corruption; the International Coalition for Green Development on the Belt and Road was established; major financial institutions of China, the UK, France, Singapore, Pakistan, the UAE and other countries and regions signed up to the Green Investment Principles for Belt and Road Development, a platform for cooperation on green development; the delegations agreed that to pursue development under the Belt and Road Initiative, it is necessary to support the United Nations 2030 Agenda for Sustainable Development, to adopt internationally recognized rules, standards and best practices, to strike a balance in economic development, social progress and environmental protection, and to achieve common development for the benefit of all participants; China’s Ministry of Finance issued the Debt Sustainability Framework for Participating Countries of the Belt and Road Initiative, signaling China’s commitment to work with Belt and Road countries on improving debt management and building a feasible financing system for sustainable and inclusive growth.

The Belt and Road Initiative is a strong boost to well-connected partnerships because its goals are down-to-earth and reflect the will and needs of the peoples. Former Deputy Prime Minister of Thailand, Surakiart Sathirathai, in reference to a phrase in ancient Taoist text, compared the Belt and Road Initiative to gentle and nourishing water, which "benefits everyone, but does not threaten anyone." Statistics from China’s Ministry of Commerce indicate, by the end of 2018, China’s overseas economic and trade cooperation zones paid $2.4 billion in taxes to host countries and created 270,000 jobs. At the 1st Belt and Road CEO Conference this year, the entrepreneurs agreed to deals worth $64 billion. This is strong evidence that Belt and Road cooperation answers the demands for better lives.

When great virtue runs its course, everyone works for the common interest of all. President Xi Jinping said: Belt and Road cooperation embraces the historical trend of economic globalization, responds to the call of improving the global governance system and meets the desires of the people for a better life. President of Mozambique, Filipe Nyusi, echoes this view: Unilateralism and isolationism lead to more lonely islands in the sea of poverty; the Belt and Road Initiative underpins a historical trend of increased connectivity between peoples. On the way to the community of a shared future, people from around the world stand hand-in-hand in joint pursuit of better lives.