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Download-Map.Jpg (1200×1182) Running head: HOW BALD EAGLE FLIES ON THE NEW SILK ROAD How Bald Eagle flies on the New Silk Road How China’s new strategy (One Belt and One Road) affect the U. S’s policy and economy Zhange Li California Maritime Academy HOW BALD EAGLE FLIES ON THE NEW SILK ROAD 2 Abstract China’s One Belt One Road strategy is establishing a new cooperation framework; it allows China to participate and even dominate some countries’ economic development. Central Asia, an area that left behind the world-economically and politically, recently became a hot spot of China’s new outlook. However, Central Asia has not received enough attention from the US. Central Asia plays a significant role in international energy security, human rights issues and terroristic threats. This thesis addresses China’s influences in Central Asia, what’s the role The US plays in this region, and how The US should react to China’s new strategy in Central Asia. Keywords: One Belt One Road, Central Asia, Maritime disputes HOW BALD EAGLE FLIES ON THE NEW SILK ROAD 3 Since China’s Reform and Opening up policy (改革开放政策) implemented in the late 1970s, China went through a significant transformation from a government-dominated economy to a market-oriented economy. Thanks to the Deng Xiaoping’s （Former President/Chairman of China）and his policy, China has surpassed the US and became the largest economy in the world in 2014 (CIA, 2018). Today, China is facing a different situation from the 1970s. China is the biggest exporter and the largest trading nation in the world and is undergoing one of the fastest economic growth in the world. However, the Chinese government is still facing many economic challenges. Pressures from the domestic economy and the international market are slowing China down on its way to a renaissance. The United States and China, as the biggest trading partner and rival, their economic and political policy deeply interact with each other. On one hand, China is seeking solutions for its issues by strengthening cooperation with the US; on another, China is facing charges from the US for controlling the exchange rates and the Chinese government also accuses the US to starting a Trade War (Lu, 2018). According to one of the Chinese government’s white paper, “Trade and economic relations between China and the United States are of great significance for the two countries as well as for the stability and development of the world economy” (State Council, 2018, 1). Indeed, China and the United States’ interactions are not only the matters of two countries, but they also have wider influences on a global level. In 2013, President Xi visited Kazakhstan and Indonesia respectively and proposed to build the Silk Road Economic Belt and the 21st-century Maritime Silk Road (B&R). Later that year, the Third Plenary Session of the 18th CPC (Communist Party of China) Central HOW BALD EAGLE FLIES ON THE NEW SILK ROAD 4 Committee announced turning the B&R to a national strategy. For people who are familiar with the modern history of China, the Reform and the Opening up policy that changed China’s economic development in the recent forty years was also mentioned in Chairman Deng’s speech first, then became a national strategy in the CPC Central Committee. As almost forty years ago China’s Opening up policy brought them to the global trading community, the US stood as a mentor and partner. Today, the B&R shows the ambitions of China to become a geopolitical leader. That has brought China to a competitive position with the US. What are the challenges that US is facing from China’s B&R? How are US policy- makers addressing these challenges? Are there any opportunities for the US to catch? This thesis will discuss how bald eagle (the US) flies (US imposes their influence) on the New Silk Road. To address the questions of how China’s B&R affects the US and how the US policymakers should react, this thesis will break the question into multiple parts. The thesis will discuss different countries’ political influences on this policy by their geographical locations. This thesis will use case studies and analysis how B&R will impact, or benefit the US in this region. Finally, it will come up with one or multiple possible policy recommendations. One Belt and One Road Initiative The Belt and Road Initiative (一带一路) is the name for the “Silk Road Economic Belt” on the land and the “21st Century Maritime Silk Road” on the Ocean. China acclaim that is the B&R has become the “most popular global product” and the “most promising HOW BALD EAGLE FLIES ON THE NEW SILK ROAD 5 international cooperation platform” (Zhao & An, 2018,1). The Chinese government will always follow the regulations of the United Nations charters, keeps opening for cooperation, accommodates harmony together with partners to keeps market operation, to achieve a Win- Win situation. China aims to build a new type of international system with cooperation and a “win-win” system as the core, building a partnership that is not confrontational and non-aligned. States should respect each other’s sovereignty, dignity, territorial integrity, respect each other’s development paths and social systems, and respect each other’s core interests and major concerns (Xi, 2018). (SciVal & Scopus, 2017) The B&R includes “Five Main Depictions”; the Silk Road Economic Belt includes three: first, from northwest China, northeast Asia, Russia, Europe, and the Baltic Sea; the second is from northwest China through Central Asia, West Asia to the Persian Gulf, and the Mediterranean; the third is from southwest China through the Indo-China Peninsula to the Indian Ocean. The 21st Century Maritime Silk Road includes two: the first is to cross the HOW BALD EAGLE FLIES ON THE NEW SILK ROAD 6 South China Sea from China's coastal ports to the Indian Ocean through the Straits of Malacca, and to Europe. The second is to cross the South China Sea from China's coastal ports and extend to the South Pacific (Office of B&R, 2017). The B&R’s main framework includes six major international economic cooperation corridors: New Asia-Europe Continental Bridge, China-Mongolia-Russia, China-Central Asia-West Asia, China-Indochina Peninsula, China-Pakistan, Bangladesh-China-India- Myanmar. Within all the regions above, China will establish a multimodal transportation and connection network, includes roads, railways, shipping, aviation, pipelines, and space. The B&R will start with a small group of partner countries first, depends on the outcomes of the cooperation, China will decide how the next stage will be. China is also planning to build some important ports and node cities to prosper maritime cooperation (Office of B&R, 2017). Even though Western scholars started questioning the B&R’s true intention since the first day China published it, it is undeniable that the B&R is getting more attention from the international society. From May 14 to 15, 2017, China held the “One Belt, One Road” International Cooperation Summit in Beijing. This summit forum was the highest-profile international event under the framework of “One Belt, One Road.” It was also the highest- level and largest multilateral diplomatic activity sponsored and hosted by the country since the founding of the People's Republic of China. It was an important symbol of China's remarkable international status and influence. Heads of state and government from 29 countries attended the conference, consisting of more than 1,500 delegates from more than 130 countries, and more than 70 international organizations, covering all major regions of the five continents. HOW BALD EAGLE FLIES ON THE NEW SILK ROAD 7 During the forum, China signed agreements on cooperation with more than 20 countries and international organizations on the Belt and Road. China has signed agreements with Cambodia, Turkey, Pakistan, and other countries to strengthen infrastructure construction and promote transportation cooperation and signed intergovernmental economic and trade cooperation agreements with 30 countries. President Xi Jinping announced that China would hold the second "One Belt, One Road" international cooperation summit forum in 2019, and a follow-up liaison mechanism for the summit forum will be set up to lay a solid foundation for the long-term development of the Belt and Road. China proposed to increase the capital of the Silk Road Fund by 100 billion RMB to encourage financial institutions to carry out RMB overseas fund businesses, with a scale of about 300 billion RMB (Ya, 2017) Background of the B&R Both the Silk Road Economic Belt and the 21st Maritime Silk Road were named after the “Silk Road,” a trading route that connected China and Europe thousands of years ago. Understanding the significance of the Ancient Silk Road to Chinese culture will help readers to have a better understanding of B&R. This section will discuss the background of the the current B&R, including the historical context, the current social background, and the international background. Historical Contexts The Silk Road refers to the commercial trade route that originated in ancient China and connected to Asia, Africa, and Europe. In a narrow sense, the Silk Road generally refers to the Silk Road on the land. In a broad sense, it is divided into the Silk Road on both the Land and Maritime realm. HOW BALD EAGLE FLIES ON THE NEW SILK ROAD 8 The Ancient Silk Road on land formed between 2nd and 1st B.C. during the Han Dynasty of China. The iconic-event was when the Emperor Wu sent Zhang Qian to visit the Western regions, taking the capital Chang’an (now Xi'an) as the starting point, through Gansu, Xinjiang, to Central Asia, West Asia, and connecting the land passages of the Mediterranean countries.
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