WORLD: Indian Diplomat Speaks P.26 | BUSINESS: Easing the Euro P.36

VOL.58 NO.6 FEBRUARY 5, 2015 WWW.BJREVIEW.COM

SETTING SAIL The Maritime Silk Road initiative breathes new life into an old trade route

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VOL.58 NO.6 FEBRUARY 5, 2015 CONTENTS

EDITOR’S DESK BUSINESS 02 The Silk Road Reborn 14 COVER STORY 38 Market Watch THIS WEEK CULTURE 44 Revisiting Quanzhou’s Cultural COVER STORY Heritage 18 China’s New Diplomatic Horizon A port town with a long and storied One expert’s analysis history 20 ‘Marshall Plan’ Copycat Allegations Misleading FORUM China’s trade initiatives have important 46 Should Kowtowing Be Practised differences Among Young Students? 21 Visions of the Maritime Silk Road A Second Wind for an Ancient Route Collected academic excerpts High hopes pinned on revived Maritime EXPAT’S EYE 48 Rated Parental Guidance WORLD Silk Road A very Chinese Piety 28 Reading Between the Lines How journalism shapes diplomacy on the ground WORLD 30 Unraveling Mysteries Chinese and Indians share their P.26 | ‘Two Bodies With One Spirit’ impressions Indian ambassador’s insight NATION 32 Protecting Mother Nature CULTURE New environmental legislation meets | changing needs P.42 Cultures in Concert Music is the universal language

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A News Weekly Magazine Published Since 1958 President: Li Yafang Vice President: Qi Wengong Associate Editors in Chief: Li Jianguo, Huang Wei, Wang Yanjuan, Zhou Jianxiong, Ding Zhitao Assistant President: Li Zhenzhou Executive Editor: Ding Zhitao

Assistant Executive Editors: Zan Jifang, Liu Yunyun, Yu Shujun, Production Director: Yao Bin Editorial Administrators: Liu Xinlian, Shi Bosen Commentators: Zhang Zhiping, Lan Xinzhen, Yan Wei Opinion/Culture Editor: Yan Wei The Silk Road Reborn World Editor: Liu Yunyun Nation Editor: Zan Jifang Business Editor: Yu Shujun A national plan guiding the construction of in cooperation on an equal footing with Web Editor: Chen Ran the Silk Road Economic Belt and the 21st partner economies on country-to-country Editorial Consultants: Joseph Halvorson, Kieran Pringle, Eric Daly, Century Maritime Silk Road is currently in the and regional levels, as well as to promote Kylee McIntyre Staff Reporters: Tang Yuankai, Ding Ying, Wang Jun, Yin Pumin, works and is expected to be released soon. cultural exchanges between the parties Pan Xiaoqiao, Yuan Yuan, Wang Hairong, Yu Lintao, Zhou Xiaoyan, The One Belt and One Road initiatives, which concerned. Bai Shi, Li Fangfang, Deng Yaqing, Ji Jing have attracted worldwide participation, rep- Against the backdrop of the recent Photo Editor: Wang Xiang Photographer: Wei Yao resent some of the leading programs of their global financial crisis, the need to bolster Art: Li Shigong kind with respect to the ongoing process of international cooperation has become Art Director: Wang Yajuan Chief Designer: Cui Xiaodong economic globalization. increasingly apparent to all. The 21st Designer: Zhao Boyu The 21st Century Maritime Silk Road Century Maritime Silk Road allows regions Proofreading: Ma Xin was first proposed by President Xi Jinping and countries to together build a strategic Distribution Director: Hu Keqiang while visiting Indonesia in October 2013. platform from which economic growth Advertising Director: Yang Jincheng In scale and ethos, the initiative can be might be spurred. Additionally, it repre- Human Resources: Zhang Yajie Marketing/PR Director: Pan Changqing seen as a continuation of the legacy of sents an attempt by China and partner Legal Counsel: Yue Cheng its ancient predecessor, which stretches countries to promote the facilitation of North America Bureau back some 2,000 years. The scheme was communication, understanding, tolerance Chief: Huang Wei first put forward at a time when strategic and cooperation in the global community, Tel/Fax: 1-201-792-0334 E-mail: [email protected] partnership between China and its ASEAN with the normalization of peaceful rela- Africa Bureau counterparts had entered its 10th year. tions being the ultimate goal. Chief: Li Jianguo Underlying this concept is to galvanize In recent years, owing to its fast-growing Africa Managing Editor: Francisco Little relations between China and Southeast economy, China has frequently been identi- Tel: 27-71-6132053 E-mail: [email protected] Asian countries in the pursuit of common fied by some as a potential threat. However, prosperity among all concerned. the 21st Century Maritime Silk Road provides General Editorial Office Tel: 86-10-68996252 At present, the scope of the initiative is positive proof that China’s rise will not be Fax: 86-10-68326628 not limited merely to China and Southeast achieved at the expense of other countries’ English Edition Tel: 86-10-68996259 Asian countries but has expanded to incor- interests but that, conversely, the country Advertising Department porate countries in South Asia, Central Asia, will hold true to the fundamental principle of Tel: 86-10-68998164 Africa, the Asia-Pacific and Europe, with the mutually beneficial cooperation in terms of E-mail: [email protected] Distribution Department long-term goal of economic and trade inte- international relations and trade. Tel: 86-10-68310644 gration in sight. Therefore, the scheme does Just like the ancient maritime silk route, E-mail: [email protected] not solely pertain to the interests of China which evolved from economic and trade Published every Thursday by and its partners, but represents a blueprint exchanges between the East and West, the BEIJING REVIEW, 24 Baiwanzhuang Lu, Beijing 100037, China. for global economic and cultural exchanges. modern successor hopes to emulate its an- Overseas Distributor: China International Book Trading The initiative clearly demonstrates cestor in furnishing all regions involved in the Corporation (Guoji Shudian), P. O. BOX 399, China’s intention to further open up to scheme with more opportunities for growth Beijing 100044, China Tel: 86-10-68413849, 1-416-497-8096 (Canada) the outside world and its desire to engage and prosperity. n Fax: 86-10-68412166 E-mail: [email protected] Website: http://www.cibtc.com General Distributor for Hong Kong, Macao and Taiwan: Peace Book Co. Ltd. 17/Fl, Paramount Bldg, 12 Ka Yip St, Chai Wan, HK WRITE TO US Tel: 852-28046687 Fax: 852-28046409 Beijing Review (ISSN 1000-9140 USPS 2812) is published weekly in the Send an e-mail: [email protected] United States for US$64.00 per year by Cypress Books, 360 Swift Avenue, Suite 48, South San Francisco, CA 94080 Please provide your name and address along with your submissions. Submissions may be edited. News Postage Paid at South San Francisco, CA 94080 CHINA...... RMB6.00 U.S.A...... USD1.70 AUSTRALIA...... AUD3.00 UK...... GBP1.20 CANADA...... CAD2.60 SWITZERLAND...... CHF2.60 POSTMASTER: Send address changes to Beijing Review, JAPAN...... JPY188 EUROPE...... EURO1.90 TURKEY...... YTL5.00 HK...... HKD9.30 NEPAL...... RS40 Cypress Books, 360 Swift Avenue, Suite 48, South San Francisco, CA 94080 北京周报英文版 2015年第6期 ISSN 1000-9140 广告许可证 0171号北京市期刊登记证第733号邮发代号2-922·国内统一刊号：CN11-1576/G2 国内零售价：人民币6.00元

2 BEIJING REVIEW FEBRUARYFEBRUARY 5,5, 20152015 http://www.bjreview.com THIS WEEK SHI YALEI

FOOD FOR LUCK Locals are given free porridge to mark the Laba Festival on January 27 in Qiankou Township, Huangshan in east China’s Anhui Province. The festival falls on the eighth day of the 12th lunar month every year and dates back to over 1,000 years ago. In ancient times, the Chinese would cook porridge on this day as a tribute to the God of Agriculture. The festival is also intended to celebrate the harvest and pray for blessings in the upcoming year. The porridge typically consists of eight ingredients, including rice, peanuts, green beans, red beans and lotus seeds. The ingredients used vary from place to place.

http://www.bjreview.com FEBRUARY 5, 2015 BEIJING REVIEW 3 THIS WEEK SOCIETY ZHU JIANLUN China, and more than 400,000 people are engaged in social work. In 2014, 2.35 billion yuan ($382.8 million) was invested in social work, up 40.7 percent year on year. There are more than 30,000 registered social organizations in China as of 2014, said MCA spokesperson Chen Rifa, adding that of that number about 5,000 committed violations in 2014. Overseas Talent China has expanded its program to attract overseas talent by adding 55 introduction plans to the latest brain- gain list. Overseas personnel introduced by the plans will enjoy preferential policies in visa applications, residence permits, settling in China as well as exit/entry convenience equal with members of the influential Thousand Talent program initiated in December 2008, the People’s Daily reported on January 25. More overseas personnel have come to China thanks to the talent introduction Wonderful and White programs. Since 2008, the Thousand Talent program has introduced more than A tourist enjoys the scenery in Jilin of northeast China’s Jilin Province on January 22. 4,100 overseas staff, with local governments attracting more than 30,000, according to official figures. By the end of 2013, more than 1.44 National Park China established the Sanjiangyuan million overseas Chinese students had Nature Reserve in 2000. Five years returned to China, with returnees in 2013 China plans to build a national park in later, a 7.5-billion-yuan ($1.2-billion) five times the number in 2008. the Sanjiangyuan region, the cradle of ecological conservation project was The newspaper cited biologist Shi the Yangtze, Yellow and Lancang rivers launched in the region. In last January, Yigong with Tsinghua University and in northwest China’s Qinghai Province. a second-phase conservation project COLORFUL physicist Pan Jianwei with the University A guideline for the park has been for Sanjiangyuan started with an invest- SHOW of Science and Technology of China, completed by a design institute under ment of 16 billion yuan ($2.54 billion). both among the first group of Thousand the State Forestry Administration. The Thanks to the efforts, the forest cov- A visitor looks at a water-color Talent program scientists to come back painting at China Water Color park will cover more than 30,000 erage rate in Sanjiangyuan increased to China, the backbone of the country’s square km, including the rivers’ sources Art Show, which kicks off on from 3.2 percent in 2004 to 4.8 percent January 23 in Beijing innovation. in Madoi, Zhidoi and Zadoi counties. If in 2012, and is expected to reach 5.5 New rules on foreigners’ permanent LU PENG the plan is given the green light, con- percent by 2020. residence in China are in the pipeline struction can begin as early as the end and expected to take effect before the of this year. Careers in Social Work yearend, which will further highlight At an average altitude of 4,000 preferential policies. meters on the Qinghai-Tibet Plateau, The Ministry of Civil Affairs (MCA) on the Sanjiangyuan region is a paradise January 26 named 42 prominent social for herders and wildlife, such as the workers to encourage more people to Pay Rise Tibetan antelope. take up the profession. Over 40 million civil servants and “Sanjiangyuan boasts an ecosys- The professionals work with mental employees of government-sponsored tem comprising of glaciers, meadows health patients, individuals, families, institutions will be given, on average, a and wetlands. It’s not common in China, groups and communities, said MCA monthly salary increase of about 300 even Asia, and has scientific value,” said social work division head Wang Jinhua. yuan ($48), a senior official said on Wang Enguang, chief engineer with There are 159,000 registered social January 23. Qinghai’s forestry department. workers and assistant social workers in “The increase is not big,” said Li

4 BEIJING REVIEW FEBRUARY 5, 2015 http://www.bjreview.com THIS WEEK JIANG HONGJING Zhong, spokesman of the Ministry of Human Resources and Social Security, at a press conference, who added previ- Twenty ous media reports of a 60-percent pay raise were not accurate. The adjustment coincides with Twenty efforts to unify the pension system for A child gets an eye private-sector employees, civil servants test at a juvenile and employees of government- visual protection base sponsored institutions, according to the in Chengdu, Sichuan spokesman. Province, on January 28. Pension reform aims to replace It is the first non- the current system, which sees non- profit juvenile visual public employees paying into their own protection base in the pensions while civil servants and staff “It will be the first city and it aims to help of government-sponsored institutions time for Tibet young people better enjoyed pensions without contributing protect their eyesight. anything. to regulate sky Figures from The adjustment plan, which will burials using the National Health see the first basic salary increase since legislation, which and Family Planning 2006, also aims to optimize the salary shows respect Commission show that structure by merging some additional more than 25 percent allowances or merit payments into the and offers of primary students and basic salary, Li said. protection for the more than 50 percent of The basic salary had constantly millennium-old middle school students accounted for a decreasing proportion tradition.” are near-sighted in of civil servant’s incomes since 2006, China. which Li said was unreasonable. Samdrup, an official with the Standing Committee of the Sky Burial Legislation Tibet Regional People’s

Tibet Autonomous Region will make a Congress the local legislature that concluded its according to an industry expert. law to better protect sky burials, a tradi-  annual session on February 23, passed a Jin Jian, Deputy Director of the tional ritual that has drawn controversy bill to better regulate sky burials, covering China Internet Network Information after guides began leading tour groups issues like management of the site, envi- Center (CNNIC), said that online to view the ceremony. ronmental protection and qualifications of economy accounts for 7 percent of the Sky burial is a Tibetan and ritual hosts. nation’s GDP, up from 3.3 percent in the Mongolian tradition in which bodies previous year. are fed to vultures and other predatory Online Population Chinese consumers are eager birds. It is regarded an act of generos- to spend online. Internet retail sales China’s netizen population, the world’s ity and a ritual that allows the soul to totaled 331 billion yuan ($52.54 billion) ascend to heaven. largest, reached 648 million at the end in the first 10 months in 2014, up a stun- The Tibet Regional People’s Congress, of 2014, 16 million more than in June, ning 55.6 percent over 2013. CHEN YEHUA Media Awards President of Xinhua News Agency Cai Mingzhao (left) presents award of news teams in developing countries to Al Jazeera English at the awarding ceremony for the World Media Summit (WMS) Global Awards for Excellence in Beijing, on January 27. The WMS Global Awards for Excellence was the first comprehensive global news awards covering multiple media formats—spanning traditional print, photography, video and integrated media. The awards are designed to be authoritative, credible and globally influential. They are open to news organizations, professionals, teams and organizations from around the world.

http://www.bjreview.com FEBRUARY 5, 2015 BEIJING REVIEW 5 THIS WEEK ECONOMY

receive different advertisements. ging service, on January 21. ZHANG JIANCHENG WeChat Advertisement The advertising program marked a The Beijing-Moscow high-speed WeChat, now China’s most-used instant major step in WeChat’s commercializa- rail project was proposed by Chinese messaging smartphone app with about tion. The app, which was launched in Premier Li Keqiang during his visit 468 million monthly active users, has January 2011, has established itself as to Russia last October. Li said that kicked off an advertising program on its a super gateway connecting its huge China was ready to advance the estab- content-sharing platform. user pool with other third-party services, lishment of a Eurasian high-speed Advertisements for Coca-Cola such as online shopping and taxi hail- transport corridor linking Beijing and Co., BMW Brilliance Automotive ing. However, the advertising program Moscow. Ltd. and smartphone maker Vivo marks the most straightforward method Local newspaper Beijing Times re- Communication Technology Co. Ltd. to date of earning revenue. ported that about 1.5 trillion yuan ($242 were shown on the night of January 25 billion) was expected to be invested in in the Moments timeline of WeChat, Beijing-Moscow Rail LANTERN building the new line that would cut which is run by Tencent Holdings Ltd. train travel time from Beijing to Moscow The first high-speed rail link between SURGE The advertisements look like to two days. Currently, a one-way trip Beijing and Moscow will run for more Facebook’s News Feed, and users are A worker produces lanterns takes six days. than 7,000 km and span three coun- given the right to opt out of the adver- in Wuyi County, east China’s The China-Russia high-speed corri- tries—China, Kazakhstan and Russia, Zhejiang Province, on January tisements if they are not interested. dor will be a key project in the Silk Road according to the Information Office of 26. Market demand for lanterns Tencent said that “a rather intel- surges before the Spring Economic Belt China has proposed. the Beijing Municipal Government. The ligent technology” is used to push the Festival, China’s New Year, which The proposed trade route covers China office made the revelation in a post on ads to their targeted audiences or, in falls on February 19 this year and Central Asian Countries, aiming to Sina Weibo, a Twitter-like microblog- other words, different WeChat users will deepen the connection between China and those countries.

PEI XIN Bad Loans The non-performing loan ratio of China’s commercial banks rose to 1.29 percent in the fourth quarter of 2014, official data showed on January 23. The ratio was up from 1.16 percent at the end of September 2014, the China Banking Regulatory Commission (CBRC) said. Commercial banks’ bad debt ratio stood at a five- year high of 1.3 percent in the second quarter of 2010. Despite the rise in the bad debt ratio, Wang Zhaoxing, Vice Chairman of the CBRC, said that the risk in China’s banking sector is “under control” with the banks’ capital adequacy ratio and provision coverage ratio both at healthy levels. At the end of November 2014, Chinese commercial banks’ capital adequacy ratio, which reflects a lender’s capacity to cushion potential losses with its capital, stood at 12.93 percent, up 0.75 percentage point from one year earlier. Cheaper Gas Aussie Acquisition A car fills up at a gas station in Shanghai, on January 26, when the National Development and Reform Australian private equity group Commission, China’s top economic planner, announced the 13th consecutive cut on retail prices of gasoline Blackstone has sold a piece of real es- and diesel since July 2014. tate overlooking the landmark Sydney China’s domestic fuel prices are reduced when international crude prices change by more than 50 yuan ($8) per Harbor Bridge and the Sydney Opera ton within a 10-working-day period. House for AU$415 million ($327 million)

6 BEIJING REVIEW FEBRUARY 5, 2015 http://www.bjreview.com THIS WEEK YANG BAOSEN ing the world’s largest smartphone market. Motorola Mobility, the American mobile device subsidiary of Chinese IT company Lenovo, unveiled three smartphones in Beijing that day to appeal to a market that sees intense competition between Apple, Samsung and homegrown brands Xiaomi and Huawei. Motorola Mobility, headquar- tered in Chicago, quit selling phones in China as well as some other markets in the Asia-Pacific region and Europe in 2013, after it was bought by Google Inc. Lenovo acquired the company from Google for $2.9 billion early last year and has since prepared to re- launch the brand in more emerging markets. Company officials said that coming back to China and other emerging markets will help Motorola Mobility become profitable. Landmark U.S. Deal China CNR Corp. Ltd., a leading From Red to Black manufacturer of locomotives in China, Bullet trains prepare to depart the Beijing South Railway Station, the starting point of the Beijing-Shanghai announced a subway export contract High-Speed Railway in the north, on January 26. with the United States on January 26. It In 2014, the total ridership on the Beijing-Shanghai high-speed line exceeded 100 million. is the country’s first foray into the U.S. A surge in passenger traffic turned the high-speed rail route profitable for the first time in 2014, its third year of rail transit market. operation. China CNR will sell 284 subway trains worth $670 million to the transportation regulator in Massachusetts to equip Boston’s Red and Orange to Chinese property giant Dalian Wanda Shanghai will continue to optimize subway lines, according to the an- Group. The transaction is expected to its economic structure and focus on nouncement. close in March. LITTLE LAMB, innovation, Yang revealed in a govern- The subway trains are designed to Wanda bought Gold Fields House LARGE INCOME ment work report at the annual meeting run 102 km per hour and up to 129,000 in Sydney’s business district from of the municipal legislature. km a year on regular maintenance for Blackstone’s portfolio company, Valad. A veterinarian vaccinates a lamb The report shows Shanghai’s ambi- at least 30 years. in Qinglong Manchu The Chinese company also plans Gold Fields House had been owned Autonomous County, tion to become an international center by Blackstone since 2011 when it bought Qinhuangdao, north China’s for technological innovation. It said that to tap markets in New York, Washington up the interests of Australian property Hebei Province, on January 25. research and development expenditures and other U.S. cities. It will set up a R&D Animal husbandry has greatly base in the United States to promote group Valad, its first major Australian increased local income will account for above 3.6 percent of acquisition. The property was built in the the city’s GDP in 2015. Aircraft engines, localized production by recruiting and 1960s and has been used as offices. YANG SHIYAO scientific research of the human brain training locals. and artificial intelligence will be the The United States contract means main focus. that , throughout the value chain, GDP Farewell China’s rail companies now cover the Shanghai, China’s largest business hub, world’s six continents. has abandoned GDP growth targets to Hello Moto China has been accelerating at- emphasize the quality and efficiency of Motorola announced its return to tempts for overseas investment in its rail the economy, Mayor Yang Xiong said China’s mobile phone market on technology, with cooperative talks with on January 25. January 26, two years after abandon- 28 countries underway.

http://www.bjreview.com FEBRUARY 5, 2015 BEIJING REVIEW 7 THIS WEEKWORLD XINHUA/AFP

  POLAND BRAZIL Survivors are overcome with emotion upon Children play in the water at Madureira their arrival at the former Auschwitz Park during a heat wave in Rio de Janeiro concentration camp in Oswiecim on January on January 25 26 to attend a ceremony marking the 70th anniversary of the liberation of the camp by Soviet troops on January 27, 1945  THE PHILIPPINES Police transport the dead bodies of soldiers killed in a clash with Muslim rebels in the town of Mamasapano on January 26 as renewed violence threatens a peace accord between the government and rebels XINHUA/AFP

8 BEIJING REVIEW FEBRUARY 5, 2015 http://www.bjreview.com  SAUDI ARABIA U.S. President Barack Obama talks with Saudi Arabia’s new King Salman bin Abdulaziz Al Saud after arriving in Riyadh on January 27 to offer his condolences over death of King Abdullah bin Abdulaziz XINHUA XINHUA/MARIOS LOLOS XINHUA/AFP XINHUA  GREECE Syriza party leader Alexis Tsipras poses for photographers after taking an oath at the Presidential Palace in Athens on January 26

 THE UNITED STATES Workers clear snow at Times Square in New York City on January 26 following an overnight blizzard that swept across the city and surrounding areas http://www.bjreview.com FEBRUARY 5, 2015 BEIJING REVIEW 9 THIS WEEKPEOPLE & POINTS

 Cyberspace Regulator Lu Wei has been elected to the inaugural Coordination Council of the NETmundial Initiative for advancing Internet governance worldwide. He is the only member representing governments and intergovernmental organizations in Asia and Oceania in the agency. Lu, 55, is minister of the Cyberspace Administration of China, which is in charge of China’s cybersecurity and Internet policy. A former journalist, he assumed the Heritage Protection current post in May 2014 after having served as vice president of Xinhua News Agency, vice mayor of Beijing and vice minister of the State Council Gains Urgency Information Office. Outlook Weekly The NETmundial Initiative was launched in August 2014 by a coor- January 19 dinated action of the World Economic Forum, the Internet Corporation for Assigned Names and Numbers and the Brazilian Internet Steering In recent years, the importance of cultural Committee. The inaugural Coordination Council will be in place for a period heritage protection has been increasingly of 18 months to ensure the development of the initiative during its startup driven home. There are three ways in which phase. culture is preserved: through written documents, cultural relics and the oral tradition. Of the three, cultural heritage is arguably more evocative and vivid than its other two Can Smog Control Target Be Met? counterparts and sails closer to historical reality, as history is inevitably embellished and Caijing Magazine exaggerated in the telling. It could be argued January 19 that cultural artifacts serve to compensate The Beijing Municipal Environmental Protection Bureau announced on for some of the disadvantages of written January 4 that the city’s PM2.5—airborne particles smaller than 2.5 microns documents. in diameter that can enter the blood stream directly if inhaled—declined Contemporary Chinese society lacks by 4 percent last year, with the number of days where heavy pollution was the appropriate level of awe for cultural rel- experienced dropping by 13 year on year. ics that stand witness to history, which may The rate of decrease for the major air pollutant PM2.5 falls short of the 5-percent target account for the destruction of cultural relics laid out for last year in the city’s Clean Air Action Plan 2013-17. If the rate is projected onto in some areas. The evaluation system for of- the next three years, the target of reducing PM2.5 by 25 percent by 2017 against 2012 level ficials should not overly focus on economic becomes unattainable. growth. In recent years, although officials’ Severe air pollution in China has pushed the government to launch a war against smog. In re- awareness of heritage protection has been cent years, measures such as cutting down on coal use have been implemented across the country. improved, some have co-opted the field as China’s capital Beijing has taken the most forceful measures including restrictions on car purchasing a means of boosting their local economy, and removing heavily pollutant factories out of the city. often to the detriment of what they were In intensity and scale, the measures taken by Beijing have dwarfed all efforts made elsewhere in originally sworn to protect. For example, his- China in the area of air pollution control. Despite all this, however, the municipality still failed to meet torical streets have been transformed into its goal for last year. Therefore, it is up in the air whether or not other cities can successfully reach commercial hubs to earn profits. In reality, their respective goals. What is certain is that the difficulties and pressures lying ahead will be of an unprecedented magnitude.

“We cannot afford to be penny wise “The point of making a safe and and pound foolish, lest we meet one controllable IT environment is to goal and lose another. We should also better protect national security not live beyond our means or be more rather than ousting foreign firms.” Zuo Xiaodong, Vice President of the China interested in the here and now while Information Security Research Institute, on the ignoring our long-term interests.” recently published first security standard for the Xi Jinping, Chinese President, stressing the cloud-computing industry of China importance of environmental protection on January 22

10 BEIJING REVIEW FEBRUARY 5, 2015 http://www.bjreview.com THIS WEEK

tients to secure a registration number. Simplifying Hospital As patients’ complaints mount, it is clear that more needs to be done by both hospitals and the health authorities. In addition to improv- Registration ing the quality of large public hospitals, more Worker’s Daily use should be made of their smaller, less busy January 22 counterparts. Private capital should be encour- aged to invest in the area of medical services so In China, registering to see a specialist in a large as to boost supply of medical resources. public hospital often proves to be an ardu- A more forceful crackdown should be im- ous process. Although the government has posed upon ticket dealers through measures wheeled out measures to tackle this problem, such as restricting repeated registration. Those such as enabling registration via the phone and who fail to register after multiple attempts Internet, the difficulties inherent in the process should also be accorded priority. Furthermore, have not been significantly abated. patients who have already undergone basic Some old problems remain: Medical re- treatment in community or private hospitals sources are inadequate; the popular belief that should be given preference in registering in big larger hospitals offer better-quality treatment hospitals. than smaller ones leads to patients swarming Finally, people should be guided to seek to the former regardless of the severity of their treatment for minor ailments in community illness; and the prevalence of registration ticket hospitals in order to reduce pressure on their touts has made it even more difficult for pa- larger counterparts.  University Reform Explorer

Chen Shiyi, a physicist, has been appointed the second president of the South University of Science and Technology of China in Shenzhen, south China’s Guangdong Province, replacing though, relatively few historical streets are Zhu Qingshi who recently retired. The university, known as the first autonomous institution of fit for the purposes of either recreation or higher learning in the country, has established a council to oversee its operations, providing an tourism. alternative to the prevalent system of appointing officials to run universities. Economic development and cultural Chen, 59, earned a PhD in mechanics from Peking University in 1987. He conducted heritage protection do not run contrary to mechanics research at Los Alamos National Laboratory of the United one another but are equally important and States from June 1987 to February 1990 as a post-doctoral fellow. indeed interdependent in nature. During the From July 2002 to June 2004, Chen served as a professor and chair of construction of the Three Gorges Dam—the Johns Hopkins University’s Mechanical Engineering Department. He world’s largest hydropower facility—from was elected as an academician of the Chinese Academy of Sciences 1994 to 2009, both goals were taken into in December 2013, one month following his appointment as vice consideration and a balance was struck be- president of Peking University. tween the two. Chen is widely recognized for his achievements in statistical theory, computation of fluid turbulence, mesoscopic physics and Lattice Boltzmann computational methods.

“The government should reduce the “Although the target is lower intervention in industrial restructuring than that for 2014, it will still and focus on creating an innovative take a lot of hard work to environment for economic transformation meet.” to increase efficiency and social fairness.” Huang Libin, a senior official with the Li Wei, head of the State Council’s Development Research Ministry of Industry and Information Center, on the government’s role as China enters a period of Technology, announcing an 8-percent slower but steadier growth growth target for China’s industrial output in 2015 on January 27

http://www.bjreview.com FEBRUARY 5, 2015 BEIJING REVIEW 11 12 BEIJING REVIEW FEBRUARY 5, 2015 http://www.bjreview.com http://www.bjreview.com FEBRUARY 5, 2015 BEIJING REVIEW 13 SHEN BOHAN A NATURAL HARBOR: The Shihu Harbor in Quanzhou, Fujian Province, bustles with business on May 12, 2014. The harbor has a history of more than 1,500 years and was one of the starting points of China’s ancient Maritime Silk Road

COVER STORY A SECOND WIND FOR AN ANCIENT ROUTE The 21st Century Maritime Silk Road initiative is expected to bring benefits to countries and regions along the route By Yin Pumin

hina’s going-out development strategy and revitalizing the ancient Silk Road in a mutu- sailed from China’s eastern coast, passing is manifested most through the One ally beneficial fashion, experts say. Southeast Asia, the southernmost tip of India Belt and One Road initiatives. The Silk and East Africa, all the way to the Persian Gulf CRoad Economic Belt and the 21st Century Cooperation potential and the Red Sea, strengthening economic Maritime Silk Road, both put forward by Chinese ties and cultural communication of the re- The Maritime Silk Road dates back to President Xi Jinping in 2013, signify China’s com- gions along the route. 2,000 years ago, when ancient merchants mitment to further opening up its economy The new Maritime Silk Road is expected

14 BEIJING REVIEW FEBRUARY 5, 2015 http://www.bjreview.com to further communication and cooperation Center for International Economic Exchanges, a mist, said that the initiative will create trade and between China and the countries and regions Beijing-based think tank. investment opportunities in infrastructure and along the route through trade, investment, cul- The initiative to build the 21st Century construction, including transportation, ports, tural and currency exchanges. Maritime Silk Road was proposed by President pipelines, power generation and environmental “Compared with the Silk Road Economic Xi during his visit to Indonesia in October 2013 projects, as well as stimulating energy and re- Belt, the Maritime Silk Road is of more signifi- to deepen economic and maritime links and source exchanges, consumption and tourism. cance,” said Mei Xinyu, a senior researcher at integrate all the existing cooperation mecha- “We think the initiative is underpinned by the Chinese Academy of International Trade nisms among the countries along the route. a mutually beneficial approach and a strong and Economic Cooperation, a think tank affiliat- “With China playing a more important desire from China to export excess capacity, ed with the Chinese Ministry of Commerce. “The role in global trade, the new Maritime Silk invest abroad and diversify its foreign exchange route originates from China’s backyard, where it Road will be a new type of trade route link- reserves. China has competitive edges in capital has relatively matured economic and trade ties ing China and the rest of the world in a and expertise, while many Asian countries face with ASEAN members. The new concept will new globalized era,” said Han Feng, Deputy large financing gaps,” Chang said. help upgrade trade ties.” Director of the CASS’ National Institute of She said that the establishment of the Wang Xiaopeng, an expert on maritime International Strategy. China-led Asian Infrastructure Investment Bank and border studies at the Chinese Academy of Zheng Yongnian, Director of the East Asian (AIIB) in October last year demonstrated the Social Sciences (CASS), said that the initiative Institute of the National University of Singapore, regional desire to cooperate. With authorized could help China and its partners build strategic said that the new Maritime Silk Road will open capital of $100 billion, the AIIB will be up and trust and manage disputes through break- new ship routes for increasing the flow of running before the end of 2015. throughs in the economic sphere. goods, information, tourists, students, busi- The Asian Development Bank estimates “Politicians in those countries will have to nesses, technologies and scientific knowledge infrastructure financing demand in Asia will be get bilateral ties back on track, because they between China and many other countries. around $8 trillion between 2010 and 2020. The can’t afford the consequences of missing out “It will open the door for China to go to latest HSBC global research report also said that on opportunities provided by China’s growth,” the rest of the world, after more than 30 years China’s infrastructure sector has the capacity Wang said. of reform and opening up and inviting foreign to meet the needs of Asia and further abroad. “All in all, the initiatives are two programs of business in,” Zheng said, adding that going out It also said China’s overseas investment should the grand going-out strategy adopted by China will be a major theme for Chinese capital in the also generate demand for its exports and help in recent years,” said Xu Hongcai, Director of coming years. take up the economic slack. s s the Department of Information under the China Chang Jian, Barclays’ chief China econo- “Since the investment will be in roads,

Proposed Reach of the New Maritime Silk Road

The Mediterranean China

Saudi Arabia The Red India The Pacific Ocean Sea The South The Arabic Sea China Sea Africa

The Strait of The Indian Ocean Malacca

http://www.bjreview.com FEBRUARY 5, 2015 BEIJING REVIEW 15 railways, ports and airports, it should benefit Secretariat in February 2011, said all parties, due to lower trade costs. Investing there is historical and practical in infrastructure along the Belt and Road basis for ASEAN and China to co- routes will serve to develop new export mar- operate under the framework of kets for China, generate better longer-term Maritime Silk Road vision. returns on its foreign reserves, and act as “The now ASEAN member another channel through which China can nations and China built good internationalize its currency, complemented and frequent trade cooperation by the likely boost to trade flows,” the HSBC 600 years ago, evidenced by the report said. great voyage to Southeast Asia by Chang said that more than 30 potential Admiral Zheng He (1371-1433) partner countries had expressed interest so far, during the Ming Dynasty (1368- accounting for more than 60 percent of world’s 1644),” he said. population and 30 percent of global GDP. Since ancient times, Southeast “We think the new Silk Road plan offers a Asia has been an important hub structured platform to leverage comparative along the historical Maritime Silk advantages, improve economic cooperation Road. and increase synergies across the region. Lee said that nine countries New growth areas will be cultivated and new out of the 10-member ASEAN are competitive edges could emerge through maritime nations and ocean trade strengthening value-added, innovation, invest- with China is vital for the development and market activities,” Chang said. ment of ASEAN members. She said that by building interdependent re- China and the ASEAN coun- lationships based on shared economic interests, tries have labeled the past 10 the initiatives would deepen political linkages, years the “Golden Decade” for their relations and have coined the improve mutual understanding and foster long- term “Diamond Decade” for the term stability in the region. next 10 years, which they hope will “The agreement to set up the AIIB by coun- feature more practical cooperation tries that have territorial disputes with China especially the ports which are essential for the and regional economic integration. suggests lower geopolitical risk and a lower international trade, are very poor and need to China is the largest trade partner of the be upgraded. probability of military conflicts,” she said. ASEAN nations, while the ASEAN ranks as “China has strong experience and technol- However, the HSBC report warns that de- China’s third-largest. Their bilateral trade ogy in infrastructure construction as well as the tails of the allocation and management of the amounted to $443.61 billion in 2013, around 5.7 capital, and ASEAN hails China’s initiatives in Silk Road fund are yet to be determined and times that of 2003. establishing the AIIB,” Lee noted. financing and operational risks could endanger Also in 2013, ASEAN received $8.6 billion He said that ASEAN is set to build a single the Belt and Road strategy. of direct investment from China, a significant market economic community spanning the As most Chinese enterprises are still at an 60.8-percent increase year on year and rep- 10-nation bloc by 2015 and ASEAN can benefit early stage of overseas investment, there is resenting 7.1 percent of total capital inflow to from building the Maritime Silk Road as it will ample room for improvement in areas such as ASEAN. The two sides are determined to push spur the economic development of ASEAN. due diligence, environmental protection and this figure to $500 billion by 2015 and $1 trillion “Besides, the Maritime Silk Road can also working standards, according to the report. by 2020. promote people-to-people exchanges and Chen Yingming, Executive Vice President enhance understanding between China and of the Shanghai-based China Port and Harbors Southeast Asia-oriented ASEAN as well as countries among ASEAN it- Association, said that as a majority of ASEAN The willingness of China and ASEAN members self,” Lee said. nations have long coastlines and important to build the 21st Century Maritime Silk Road will Luo Renjian, a researcher with the Institute regional ports, the new Maritime Silk Road inject impetus into upgrading the ASEAN-China of Transportation Research under the National will help link growth centers like Shanghai, Free Trade Area over the long term, industry Development and Reform Commission, said Singapore and Penang in Malaysia, as well as experts say. regional connectivity is a top priority for China develop new regional hubs, such as Jakarta in ASEAN Community Affairs Development and ASEAN members, with Thailand, Malaysia, Indonesia and Danang in Viet Nam. Director Danny Lee said the creation of the Indonesia and Viet Nam already upgrading their “From a long-term perspective, the new new Maritime Silk Road is a very good concept pipelines, port facilities, and land and sea tele- Maritime Silk Road will fully support trade, state and will bring new opportunities for China and communications. and private investment, industrial productivity ASEAN to cooperate in many sectors, such as “With growing shipping activities between and the service industry,” Chen said. trade, infrastructure and cultural exchange. China and ASEAN members, big multinational Lee said infrastructure in ASEAN countries, Lee, a Singaporean who joined the ASEAN corporations, especially from developed mar- 16 BEIJING REVIEW FEBRUARY 5, 2015 http://www.bjreview.com CNSPHOTO investors in the Maldives, and is considering in- of the maritime space of the Beibu Gulf with vestment in a bridge to link Malé, the country’s Viet Nam and work on a tourism project that al- capital, and its international airport. lows people to travel between Guangxi and the In fact, China is already involved in many ASEAN countries on cruise ships, according to major maritime projects in South Asia. In Sri Chen Wu. Lanka, state-owned China Harbor Engineering Luo Baoming, Party chief of Hainan, said Co. (CHEC) has started a large project to help the the province is well-positioned to be a part of country reclaim land for a new business district the new Maritime Silk Road project, given that in Colombo. CHEC also signed a memorandum it serves as the southern gate of the country, of understanding with Sri Lankan port authori- administering about 2 million square km of the ties on the joint operation of Hambantota Port. South China Sea. “In fact, the Maritime Silk Road initiative pro- Sansha, China’s youngest and southern- vides equal opportunities for all Asian countries, most city, could become a hub and supply including China itself,” said Liu Shuguang, a base, Luo said. With its tropical climate and professor with Qingdao-based Ocean University beautiful scenery, Sansha can jointly de- of China. velop tourism with neighboring countries Since the announcement of building the and gradually develop into a world-class 21st Century Maritime Silk Road, China’s coastal travel spot and prompt economic ties with BROUGHT TOGETHER BY TRADE: Visitors select provinces have been trying to become the key Southeast Asian countries, Luo said. commodities at an hubs along the new Maritime Silk Road. Luo added that the Yangpu Economic exhibition booth during the Fujian is one of the areas that have been Development Zone, located on the north- 11th China-ASEAN Expo actively engaged in developing its ports, particu- western coast of the province, has the in Nanning, southwest larly the one in Quanzhou, a city recognized by potential to turn into the logistical and indus- China’s Guangxi Zhuang UNESCO as the starting point of the maritime trial base for the road. Autonomous Region, on September 16-19, 2014 road, said Zheng Xincong, Mayor of Quanzhou. The Yangpu zone has one 35,000-ton “Although the authorities are still doing berth, one 20,000-ton berth and three 3,000- research to decide which provinces will be in- ton berths, with three 20,000-ton berths under volved, Quanzhou is in full swing to upgrade the construction, according to the zone’s official ancient port,” Zheng Xincong said, adding that website. kets, could move manufacturing facilities to improving the port’s customs clearance is high Liu with the Ocean University of China sug- Southeast Asia to take advantage of cheaper on the agenda of the local government. gests that different provinces should set up labor and raw materials, and then sell the prod- With current cargo capacity of over 1.7 distinct projects to match their strategies. ucts back to China at a profit,” said Luo. million TEUs, or 20-foot equivalent units, the “The Maritime Silk Road initiative triggered Quanzhou Port has embarked on a large infra- active responses from a number of provinces, Opportunities for all structure development program to increase but these provinces should plan in accordance In mid-December last year, the Maldives of- total capacity. with their own situations, rather than blindly fol- ficially joined China’s 21st Century Maritime Silk The port, at an important location on the lowing suit,” he said. Road initiative. sea transport network, has opened about 130 “For instance, since Fujian has developed “Looking from a purely economic stand- shipping routes, establishing trade with 28 trade relations with South Pacific countries, the point, the Maritime Silk Road will be a platform countries and regions that include Indonesia province should focus on facilitating maritime to exchange cultural values as well as be an and the Philippines. exchanges with that region,” Liu said. asset for academic and research-orientated Meanwhile, as a city with long history of Because Guangxi Zhuang Autonomous initiatives, whereby both countries can share trade, Quanzhou is also planning to further Region is in the Pan-Beibu Gulf Economic Rim, expertise,” said Ali Hameed, former Vice Foreign strengthen its advantageous industries, includ- which involves such countries as Viet Nam and Minister of the Maldives. ing costume, tea and ceramics, to develop the Malaysia, Guangxi might concentrate on coop- “I believe strongly that the time is ripe for city into an export-oriented trade center. eration with those countries, he said. the ancient silk route to be reborn again and to Apart from Fujian, south China’s Guangxi “Meanwhile, more efforts should be made develop a bridge of connectivity, friendship and Zhuang Autonomous Region and Hainan to improve infrastructure in the coastal prov- mutual development between China and the Province are also making efforts to develop a inces, such as ports and railways, in a bid to Maldives,” he added. maritime industry. connect overseas market with China’s inland The Maldives was always an important stop Chen Wu, Governor of the Guangxi Zhuang regions,” Liu added. n along the ancient Maritime Silk Road. “China Autonomous Region, said the Maritime Silk welcomes its active participation in the new Road idea brings a golden opportunity to maritime initiative,” Xi said during his visit to the Guangxi, considering ASEAN has been Guangxi’s country in September last year. largest trade partner for 13 consecutive years. Xi has pledged support for Chinese The region will enhance joint exploitation [email protected] http://www.bjreview.com FEBRUARY 5, 2015 BEIJING REVIEW 17 COVER STORY CHINA’S NEW DIPLOMATIC HORIZON A new geopolitical vision for China will see more active global engagement By Robert Lawrence Kuhn

tive for China’s foreign policy and it is certainly The One Belt and One Road initiatives more engaged with the world. Speaking to [the Silk Road Economic Belt and the 21st The author is an senior officials at the 2014 Central Conference Century Maritime Silk Road] are Xi’s new plan international corporate on Work Relating to Foreign Affairs, Xi described for multinational development and exemplify strategist and China’s new diplomacy. his strategic thinking. Actualizing the initia- political/economics Articulating the “strategic objectives tives by appealing broadly to the roughly 50 commentator in the and principal tasks of foreign affairs work,” Xi countries that have signed on, Xi created United States stressed safeguarding China’s core interests, the $40-billion Silk Road Fund to comple- crafting a conducive international environment the more general $100-billion Asian ment and hastening the nation’s emergence Infrastructure Investment Bank. n “inflection point” in mathematics as a great power. China, he said, should Speaking to the Sixth Ministerial occurs when there is a change of cur- “make friends and form partnership networks Conference of the China-Arab States Avature, say from concave to convex, at throughout the world” and “strive to gain more Cooperation Forum in Beijing in June 2014, a particular point on a curve. There is now, at understanding and support from countries all President Xi enumerated principles of work- this particular point of time, an inflection point over the world” for the Chinese dream [of the ing together that apply broadly to the 21st occurring in China’s diplomacy, as the coun- renewal of the Chinese nation]. Moreover, China Century Maritime Silk Road (from Xi’s book try changes from reactive to pro-active in its should “develop a distinctive diplomatic ap- The Governance of China). “Looking back international relations. Future historians may proach befitting its role of a major country” in on the history of exchanges between the characterize this transformation as one of the an increasingly multipolar world. Chinese and Arab peoples, we immediately defining geopolitical trends of the first half of Xi recognizes that China cannot compete think of the land Silk Road and the maritime the 21st century. for global leadership by power alone. Economic spice route. Our ancestors ‘crossed the I am pleased to see China’s emergence but and military strength, while necessary, are not desert for months on end on post-horses,’ too many outside the country are not—they sufficient. There must also be a moral or ethi- and ‘sailed the oceans day and night,’ put- worry, openly or privately, about what a strong cal component to China’s development: China ting themselves at the forefront of friendly China may do. The so-called “China threat” is must ride the high road, offering an alternative exchanges between different nations in the real in that many believe it to be real. But do geopolitical vision that is in some sense superior ancient world,” he said. these people know the real China? to that of the West. China, Xi asserted, should Philosophically, to promote the Silk Road Late Chinese leader Deng Xiaoping (1904- “see to it that equal importance is attached to spirit, Xi described four fundamental principles: 1997) once said that China should “keep a low justice and benefits, stress faithfulness, value boosting mutual learning between civilizations, profile and bide our time.” His directive is often friendship, carry forward righteousness, and fos- respecting each other’s choice of development misinterpreted as advising that China, like a ter ethics.” path, focusing on mutually beneficial coopera- growing lion, should lie low while strengthening A few days after the conference, at a study tion and advocating dialogue and peace. itself so that eventually it can pounce. In fact, session of the Political Bureau of the Central Practically, to implement the Silk Road Deng wanted China to focus on building its own Committee of the Communist Party of China spirit, Xi called for Chinese and Arab sides “to economy so that, in addition to enhancing the on regional free trade, Xi called for China to be both farsighted and down-to-earth” and standard of living of the Chinese people, China “participate and lead, make China’s voice heard, suggested a “1+2+3” cooperation pattern: could never again be bullied by foreign powers and inject more Chinese elements into interna- “1” refers to cooperation in energy, the whole and would finally take its rightful place among tional rules.” To effect such historic change to industrial chain of oil and natural gas; “2” refers the great nations of the world. the world order, Xi is reshaping the diplomatic to “two wings”—one being infrastructure and Has China’s “time” now come? Chinese landscape with new global thinking of “active the other being trade and investment, including President Xi Jinping has given his clearest direc- engagement.” Chinese investment in energy, petrochemicals,

18 BEIJING REVIEW FEBRUARY 5, 2015 http://www.bjreview.com ZHANG GUOJUN

JOINING HANDS: The First China-Arab Towns Forum opens on June 17, 2014, in Quanzhou, southeast China’s Fujian Province, one of the major ports along the ancient Maritime Silk Road agriculture, manufacturing, and services in the China would assume increasing responsibility games of jousting over slivers of land or sea Arab states; “3” refers to using three advanced for world peace and prosperity. In seeking the but are the synergistic accretions of advanced technologies—nuclear energy, space satellites moral optimum, China may have to tear up old education, knowledge creation and technology and new energy—as breakthrough levers. scripts, which may be in China’s own best inter- utilization. For China to fulfill its potential as a global ests. I do not advocate that China follows the leader, it must gain the world’s respect for its For its part, the United States should reject U.S. model; it must pursue its own self-interests, principles and philosophies, not only for its the Cold War mentality of “containing China,” as which stress improving the standard of living economy and military. This involves appre- resisting China’s rise would be both archaic and and the country’s increasing prominence and ciation for China’s self-determined “road of self-defeating. Of course there would remain prestige. To secure the former, China requires development” and for its political system. areas of contention—balance of trade, human international stability. To enable the latter, China This is a larger topic but such appreciation rights and territorial disputes—but different must take the moral high ground in interna- can develop only with a kind of convergence, political systems should not be one of them. tional affairs. where China’s political system continues to Politico-economic theories constructed in the China becomes a leading nation by as- reform, with increasing transparency and free- 18th and 19th centuries have little utility in the serting, not by resisting, moral leadership, dom, and where foreigners come to understand 21st century, where all nations seek optimized even if problems are complex. I applaud that pragmatic competence managing China’s models of free markets and government regu- China for assuming more responsibility in complex society trumps idealistic ideologies of lation that by nature can be neither generalized promoting global stability. In today’s world, multi-party democracies. nor static. the real conflict is not between opposing For China not to view the United States I believe that it is in the national interests of political systems but rather between the as its adversary, not as a threat to its system China and the United States to work together forces of modernity, competence and devel- and government, Washington will have to such that their foreign policies begin to con- opment and those of ignorance, exploitation accept that the Western democratic model verge. Surely there are nationalistic issues, and and oppression. may not be ideal for all nations at all times conflicts can compound when parochial media As such, China’s increasing engagement (the recent Middle East should teach this focus on disputed borders. But border disputes with global diplomacy should be celebrated. n lesson). The United States must appreciate do not determine national wealth, and national that China must continue to determine and dignity is not ultimately measured by maps. The develop its own system. real achievements of nations—increasing citi- In my dream of a post-adversarial world, zens’ standard of living—are not the zero-sum [email protected] http://www.bjreview.com FEBRUARY 5, 2015 BEIJING REVIEW 19 COVER STORY ‘MARSHALL PLAN’ COPYCAT ALLEGATIONS MISLEADING The development initiatives championed by China will benefit all nations involved By Liu Ying

countries along the proposed Belt and Road, initiatives are platforms created by China for The author is a over 50 have responded positively. countries along their routes to share develop- researcher with the The U.S. economy experienced rapid ment opportunities. They are proposed by Chongyang Institute growth during WWII, and the Marshall Plan China but are not under its sole control, dem- for Financial Studies aimed to export excess U.S. production capacity onstrating China’s willingness to take on more at Renmin University by developing the European economies. There responsibilities as a major country and play a of China have been claims that the Chinese initiatives more active role in global governance. have the same purpose of exporting China’s The Marshall Plan helped the reconstruction excess production capacity. But it would be of the war-torn economies of comparatively more accurate to say that the economic stimu- industrialized European countries. But the hinese President Xi Jinping in 2013 pro- lus effects of the construction of the belt and One Belt and One Road initiatives aim to drive posed the construction of the Silk Road road will benefit other countries alongside their the economic development of participating CEconomic Belt and the 21st Century routes much more than China itself. countries—most of which are still at the initial Maritime Silk Road to foster common devel- Moreover, the Marshall Plan not only stage of industrialization, marked by weak de- opment between China, Europe and Asia. To weakened the economic policy autonomy velopment foundations and poor infrastructure. promote the initiatives, China has set up the of aid recipient countries but also came with Therefore the task of the Chinese initiatives is $40-billion Silk Road Fund and spearheaded additional requirements. Through a series of much more challenging. the establishment of the $100-billion Asian institutional arrangements, it helped lower tariff The One Belt and One Road initiatives are Infrastructure Investment Bank. barriers for U.S. products to enter European meant to forge a community of destiny of par- Since the One Belt and One Road initia- countries and expand their market share as ticipating countries, which pursues all-inclusive tives were proposed, they were interpreted by well as establish the dominant role of the U.S. development through improving connectivity some observers as the Chinese answer to the dollar in global trade. By contrast, the One Belt and building a broad market spanning Asian and historical U.S. initiative called the Marshall Plan. and One Road initiatives aim to enhance con- European economies with an Asia-Pacific free Officially known as the European Recovery nectivity among participating countries in terms trade area as part of it. In the implementation Program, the Marshall Plan invested $17 billion of policy, infrastructure and trade networks, process, the individual needs of each participat- in the rebuilding and bolstering of European facilitate monetary circulation and increase the ing country will be given full consideration. economies after World War II (WWII). However, understanding of their people. They represent China has already become the largest trad- this interpretation ignores essential differences the mutually beneficial cooperation between ing partner of more than 120 countries and between the two. developing countries. regions around the world and the largest export Politically, the Marshall Plan aimed at In the Marshall Plan, the United States was market of about 70 countries and regions. boosting the United States’ influence in in a dominant position while the European As such, the implementation of the One Belt Europe after WWII in order to confront the countries receiving U.S. aid were subordinate. and One Road initiatives will not only promote Soviet Union-led camp. Thus, its fundamen- But the Chinese initiatives are based on the China’s economic growth and transition but tal role was to serve the U.S. Containment equality and mutual benefit of all participants. also contribute to the development of the world Strategy. But the Chinese initiatives do not Both the Asian Infrastructure Investment Bank economy. n target any third party or exclude any specific and the Silk Road Fund are open and inclusive. country. They are not politicized, instead Their investment will also be denominated in advocating cooperation for common devel- U.S. dollars rather than the Chinese currency, opment. Thus far, among the more than 60 the yuan. Actually, the One Belt and One Road [email protected] 20 BEIJING REVIEW FEBRUARY 5, 2015 http://www.bjreview.com COVER STORY VISIONS OF THE MARITIME SILK ROAD human resources, vast markets, and natu- Beijing Review presents a series of edited excerpts of essays written ral resources. Some Arab countries today are facing political unrest that affects their by foreign experts from countries that will be affected by the 21st Century economic development. They are in need of Maritime Silk Road initiative. Each of our contributors offers a unique Chinese support—particularly Egypt, which has a long tradition of friendship with China. perspective on the opportunities and obstacles inherent in this ambitious, Today, China needs Arab gas and oil as well collaborative and far-reaching initiative. as Arab markets. They could complement each other in any industrial or additional projects from which both sides will benefit. China has come to African and Arab coun- Mohamed Noman Galal (former the Arab-Chinese relations will be immense. tries to help develop their infrastructure, build Egyptian Ambassador to China and a The New Maritime Silk Road and the schools and hospitals, and train their human Silk Road Economic Belt, which was also resources. In the future, this will be a credit scholar on Chinese studies) proposed by President Xi while visiting and a great asset to Chinese-Arab and African Kazakhstan in September 2013, along with The 21st Century cooperation. It will be a landmark as well as a the new Suez Canal, will be three mainstays benchmark for future cooperation with Western Maritime Silk Road and to world trade and the global economy. They the new Suez Canal proj- countries. will strengthen Chinese economic, trade and China in the past was keen on exclusively ect launched by Egypt in cultural relations with the whole world. Thus, 2014 can work together developing trade ties, contrary to modern they will represent a new civilization based Europe that promoted colonialism under the to promote Arab-Chinese on Chinese traditions, concepts, principles trade and cultural rela- guise of civilization and Christianity. China and values as well as its vision for interna- in the future will continue to build a world tions. These relations date tional relations. back to the ninth century. civilization through dialogue, trade and in- The new global civilization will be pro- vestment. Egypt and the Arab world, in turn, If history could guide moted in the 21st century by China and the future relations, one could anticipate that will contribute in the same way. This will Egypt as one that is based on harmony, co- consolidate globalization with soft power as the new Maritime Silk Road will contribute im- operation and reconciliation rather than wars mensely to the development of these relations a base rather than dominating globalization and cut-throat competition that prevailed in through hard power. to a new and unprecedented level. The Chinese the 19th and 20th centuries under Europe and the Arabs represent two pillars of the 21st- and America. This new civilization will be a Srikanth Kondapalli century global economy—both in terms of reflection of the Arab Muslim intrinsic ingre- economic relations and cultural interaction. dient of a peaceful approach and Chinese (a professor at the The new Suez Canal is under construc- traditional culture based on the concept of Center for East tion and should be fully functional within harmony. It should be noted that neither the Asian Studies at two years. This new Suez Canal will provide a Egyptians nor the Chinese have a missionary waterway for big tankers and ships to cross history. Jawaharlal Nehru from the Red Sea to the Mediterranean, I anticipate the One Belt and One Road University in New carrying goods from Asia to Europe and initiatives and the new Suez Canal will have Delhi, India) vice versa. Additionally, it will also feature an unprecedented contribution, in an in- economic zones and cultural centers on its novative way, to develop China, Egypt and President Xi Jinping, on banks. Along with the new Maritime Silk Road the world at the same time. China and Arab a visit to Kazakhstan in September 2013, from China to Europe, it will be a pillar for the countries have the factors to achieve out- called for adopting an innovative model of enhancement of trade and communication. standing economic development through cooperation in building the new economic Thus the prospects of the new initiative on beneficial cooperation, with each boasting corridor connecting China with Central Asia http://www.bjreview.com FEBRUARY 5, 2015 BEIJING REVIEW 21 and Europe, better known as the Silk Road incidents in the South China Sea and the 2014 or during President Xi’s visit to India last Economic Belt. Subsequently, during his Gulf of Aden pose challenges. Indeed, more September—indicating a measured response. visit to Indonesia in October of the year, than half of piracy incidents globally were in Indian responses are also concerned with its Xi proposed the idea of the 21st Century Southeast Asia in 2014. These could be re- “strategic autonomy” principle, guarding sover- Maritime Silk Road connecting China with solved with bilateral and multilateral efforts. eignty issues and diplomatic reciprocities. While Southeast Asia, the Indian Ocean and Secondly, China and other countries India is keen to endorse mutually beneficial Africa. Major benefits of the initiatives need to consider the clashing sovereignties aspects of the Silk Road initiative, it is weighing include supplying sustainable energy to in the regions where the Silk Road and infra- the long-term geo-strategic impact of such energy-starved countries, enhancing mu- structure projects are to be built. While China projects. tually beneficial trade between regional has resolved 12 of its 14 land-based territo- countries, expanding tourism and providing rial disputes, India is expressing reservations Zamroni Salim (a researcher at the more avenues for strategic engagement in on projects passing through Kashmir’s Economic Research Center under the the post-Cold War era. northern areas. The South China Sea is also As the second largest economy in the an area of contention. These issues could be Indonesian Institute of Sciences) world today, China is poised to take advantage resolved through bilateral and multilateral The idea of the Silk Roads of these initiatives. Politically, recent trends coordination. is not a matter of who demonstrate China’s outward orientation as it Thirdly, the amount of capital necessary proposes it first, but is seeks a more active presence in the emerging to undertake the infrastructure projects in instead a matter of how global and regional orders. these regions is staggering. China made we see the common Economically, these strategic initiatives significant outlays—over $40 billion for goal to increase coun- will help China restructure its economic model the New Development Bank of the BRICS; tries’ welfare together. from inviting foreign investment and establish- about $42 billion for the Asian Infrastructure Cooperation and mutual ing export-oriented joint ventures and special Investment Bank; $40 billion for the Silk trust should be devel- economic zones to that of exporting capital Road project and about $46 billion in oped by regional and initially for infrastructure development and Pakistan. While other countries and agen- global communities. The establishing manufacturing zones abroad. cies will also contribute to the infrastructure spirit of the 21st Century Maritime Silk Road As the largest trading partner of over 128 projects, China—with nearly $4 trillion in and the efforts of connectivity development countries and regions, China aims to enhance foreign exchange reserves—has taken the around the globe must be seen as a positive mutual economic interdependence across vast lead. Nevertheless, given the relatively low way to increase prosperity for all. swathes of regions. per-capita income in the areas falling under How can a maritime country like Indonesia Strategically, these initiatives could the Silk Road projects, some concerns were share in the mutual benefits promised by the cushion China well within its defined “good- raised on whether these stimulus packages Maritime Silk Road? In recent times, Indonesia neighborliness” policy and overcome any are economically viable in the long run. has neglected the development of its maritime effects of the United States’ “rebalancing” in However, the major challenge for these sector. As an archipelago country, Indonesia has the region. As American pressure mounted projects comes from the geopolitical and geo- a great opportunity to seize its potential and on China to be a “responsible power” and strategic issues—the responses of the major provide a real improvement in the livelihood of “security provider” in the last decade, powers like the United States and Russia and its people. Beijing’s initiative provides fresh opportuni- regional powers. The United States first an- Indonesia’s prosperity and political sover- ties in the diplomatic sphere at the least, and nounced a “re-balancing” strategy in 2010, eignty depend highly on maritime development. at most offers leverage in the global and re- although it has struggled to gather steam and Indonesian President Joko Widodo declared at gional power transitions of the 21st century. with the withdrawal of troops from Afghanistan the Ninth East Asia Summit on November 13, However, these ambitious projects face and focus on North Africa and the Middle East, 2014, that Indonesia should be the fulcrum of acute, if not insurmountable, difficulties. China could still actively pursue its own strategy. the maritime world. The two strategies outline Firstly, much of the area that the conti- Another major challenge stems from Russia, key objectives; namely, developing inward nental and the Silk Road belt pass through which has a strong position on CSTO. While maritime routes through the ocean highway is prone to terrorist attacks. Southwest China gathered strength in the Central Asian or Tol Laut, in addition to its outward-oriented and Central Asia have seen a sharp rise in region through the Shanghai Cooperation maritime strategy. Both of these strategies to terrorism in the last decade targeting in- Organization, Beijing was unable to replace achieve maritime sovereignty are coherent with nocent civilians and infrastructure projects Russian influence in the region as evidenced by the 21st Century Maritime Silk Road. as well. Multibillion-dollar projects such as little progress in free trade proposals or military How can ASEAN countries in general— the Iran-Pakistan-India and Turkmenistan- security initiatives. and Indonesia in particular—reap the mutual Afghanistan-Pakistan-India gas pipeline While India is one of the founding members benefits by exploiting the Maritime Silk Road? projects have not been completed partly of both the BRICS Bank and Asian Infrastructure Cooperation between China, Indonesia, and due to instability in the region. These attacks Investment Bank, it declined to endorse the other countries geographically adjacent to have spilled over even in China’s Xinjiang and Maritime Silk Road idea during former Chinese the Maritime Silk Road may be implemented beyond. And on the maritime routes, piracy State Councilor Dai Bingguo’s visit in early through, but is not limited to, infrastructure 22 BEIJING REVIEW FEBRUARY 5, 2015 http://www.bjreview.com and connectivity development. The 21st Specifically for Indonesia, the bilateral co- the jurisdiction and economic autonomy of our Century Maritime Silk Road infrastructure operation may be viewed as a framework for a neighbors. and investment funds could be an alterna- much wider scope of cooperation beyond sea From the perspective of game theory, the tive source of economic development in the infrastructure and related industries, to also coherent efforts of China, Indonesia and other ASEAN region. include railway and land transportation, logistics, countries to achieve maritime prosperity should China already pledged to provide a mas- fishery, etc. As part of the constructive efforts to be seen as a cooperative project, not as a sive investment fund for the development manifest the maritime fulcrum, President Jokowi prisoner-dilemma game. Mutual trust, coopera- of infrastructure and connectivity along the has proposed the development of around 24 tion and conflict management should be at the countries adjacent to the project. The total sea ports to serve the ocean highway from the forefront of our relations as we seek to increase amount of around $50 billion will trigger West to the East. prosperity for the people of our nations, includ- the development of basic infrastructure and The promising 21st Century Maritime ing through the implementation of the 21st promote international trade and investment. Silk Road initiative and Indonesia’s Maritime Century Maritime Silk Road. n The idea of taking part through production Fulcrum should not been seen as political ob- networks align with the characteristics of the stacles, and should instead be welcomed as ASEAN Economic Community as a single ways to increase economic development and market and production base. people’s prosperity together without hindering [email protected] ZHENG HUANSONG

CONSTRUCTION UNDER WAY: Workers from Shanghai Urban Construction Group at a construction site of a subway in New Delhi on September 6, 2014. Ever since entering the Indian market in 2007, the group has finished construction of multiple subway tunnels and stations in New Delhi http://www.bjreview.com FEBRUARY 5, 2015 BEIJING REVIEW 23 HOTEL INFORMATION

Valentine’s Day Celebrations at the Ritz-Carlton Beijing In February, the most romantic month, we offer the best way to surprise you and your loved ones: a romantic dining experience at our restaurants Yu, Aroma, Barolo and the Lounge.

Blissful Treats at Yu Beijing Hot Pot at Aroma Yu Chinese restaurant sets the mood for Come in out of the romance with a dinner exclusively created by ex- cold and warm your- ecutive Chinese Chef self up with the classic, Ku Chi-fai, bringing traditional Beijing hot guests a memorable pot. As an all-day din- Valentine’s Day ex- ing restaurant, Aroma perience. Highlights offers international of the menu include gourmet experiences dishes like steamed featuring mouth-wa- egg white & crab with tering Chinese, Indian, yellow wine as well as Japanese, South Asian ence it. braised live grouper and Western dishes Reservations: 86-10-59088180 with black truffle from an open kitchen January 1-February 28 sauce. We collaborate setting, with exciting 5 p.m.-11 p.m. with LukFook Jewelry desserts for sweet endings. 198 yuan per set to bring more surpris- es and delights to you Reservations: 86-10-59088161 and your loved ones. Every diner has a chance February 1-28 Romantic Rendezvous at to win an 18k diamond necklace of 5,000 yuan 6 p.m.-10 p.m. Barolo ($800) from LukFook Jewelry. The delectable 386 yuan per person On this Valentine’s Day, Barolo will be Chinese cuisine at Yu includes an experience as 538 yuan per person on Saturdays fully decorated by flowers provided by fine and elegant as its jade namesake suggests, Roseonly—a Beijing-based floral brand—to as seven luxurious private chambers await at Blissful Moments at the create the most romantic night for you and every comer to provide you and your special your loved ones. Indulge in exquisite Italian someone an intimate and sumptuous gastro- Lounge cuisine by Chef Ivan Fargnoli amidst a sweet nomic affair. Enjoy our ro- seduction of senses and a delightful treat. Reservations: 86-10-59088111 mantic love-inspired A romantic dinner is offered to lovers which February 14 afternoon tea. comprises lobster cappuccino with salted 6 p.m.-10 p.m. Indulge with your- croissants, Barbajada and complimentary 388 yuan for two persons self or share with a dueto of oysters. loved one. Delicate Every diner can enjoy a 100-yuan gift cou- foods including pon provided by love Roseonly. Couples also Delightful Treats at Aroma smoked salmon and Arouse your desire with a romantic dinner stand a chance to take back home a limited edi- caviar sandwiches, tion of Roseonly flower gift box as a lucky draw at Aroma, stimulate your loved ones’ palate with strawberry éclair and flavors of the ocean flowing from our imported prize, which is worth over 1,000 yuan ($160). raspberry macaroons Early booking entails a priority in purchasing oysters and lobster and tease yourself with the are elegantly pre- velvety array of desserts. It will be a sin to miss Roseonly flowers on Valentine’s Day. Classic sented on a three- Italian cuisine with a modern twist is served this. tiered silver stand for Reservations: 86-10-59088161 in the quiet elegance and cozy ambiance of you to fall in love with! What more could you ask Barolo, where dining provides an exceptional February 14 for? 6 p.m.-10 p.m. Italian experience, defining the Italian lifestyle in Reservations: 86-10-59088180 Beijing. 568 yuan per person, including a glass of February 14, 1:30 p.m.-5:30 p.m. bubbly sparkling champagne Reservations: 86- 268 yuan per person 10-59088151 468 yuan per couple including two glasses February 14 of bubbly rose 6 p.m.-10 p.m. 1,314 yuan per Chocolate & Wine at the person

Lounge *Above rates are Our sommelier has perfectly paired four subject to 15% service types of homemade Ritz-Carlton chocolate by charge mixing finest chocolates with four distinct styles of sweet wines. Don’t just taste wine—experi-