ARTURO OROPEZA GARCÍA COORDINATOR CHINA The Belt and Road Initiative A Global Transformation 0. inicio.indd 4 6/15/20 15:32 0. inicio.indd 4 6/15/20 15:32 China The belt and road initiative A global transformation 0. inicio.indd 3 6/15/20 15:22 0. inicio.indd 4 6/15/20 15:22 China The belt and road initiative A global transformation Arturo Oropeza García Coordinator 0. inicio.indd 5 6/15/20 15:22 UNIVERSIDAD NACIONAL AUTÓNOMA DE MÉXICO INSTITUTO DE INVESTIGACIONES JURÍDICAS DR. PEDRO SALAZAR UGARTE Director DRA. ISSA LUNA PLA Secretaria Académica LIC. RÁUL MÁRQUEZ ROMERO Secretario Técnico China. The Belt and Road Initiative. A Global Transformation Arturo Oropeza García, Coordinador Primera edición, 2020 © 2020, Universidad Nacional Autónoma de México / Instituto de Investigaciones Jurídicas Circuito Maestro Mario de la Cueva s/n, Ciudad Universitaria, México, D.F. Delegación Coyoacán, C.P. 04510 ISBN: 978-607-97629-3-3 Las opiniones expresadas en este libro son responsabilidad exclusiva de los autores y no reflejan necesariamente la posición de las instituciones a las que pertenecen. Queda rigurosamente prohibida, sin autorización escrita del titular del derecho, la reproducción o distribución total o parcial de esta obra por cualquier medio o procedimiento, bajo las sanciones establecidas por la ley. Impreso y hecho en México / Printed and made in Mexico 0. inicio.indd 6 6/15/20 15:22 Table of contents 13 Introduction ARTURO OROPEZA GARCÍA Institute of Legal Research National Autonomous University of Mexico CHAPTER I. A VISION FROM AMERICA 19 The New Silk Road or the rise of China´s Geopolitical Power ARTURO OROPEZA GARCÍA Institute of Legal Research National Autonomous University of Mexico (Mexico) 65 The relevance of 5G in the Digital Silk Road JULEN BERASALUCE IZA Professor and researcher at the Center for Economic Studies of El Colegio de México (Mexico) 91 2025-30. A history of two worlds: Latin America in the face of “The Belt and Road Initiative” CARLOS JUAN MONETA Director of a Master Degree on Economy and Business with Asia Pacific and India Universidad Nacional de Tres de Febrero, (Argentina) 117 Legal risks in financing “One Belt and One Road”: China’s dilemma DONG SHENG ZANG Associate Professor of Law, Director of Asian Law Center, University of Washington School of Law (USA) 0. inicio.indd 7 6/17/20 15:00 139 The Imminence of the Belt and Road Initiative in Latin America: commentary from Brazil, Chile and Mexico ARTURO OROPEZA CASAS Master of International Economic Law from Stanford University and visiting attorney at King & Spalding LLP (Mexico) CATARINA DACOSTA FREITAS Master of International Economic Law from Stanford University and Associate at Jones Day (Brazil) DIEGO RAMOS BASCUNAN Master of International Economic Law from Stanford University and Associate at Pellegrini y Cía (Chile) CHAPTER II. THE PERSPECTIVE OF CHINA 157 Practical measure to push forward China-SPC BRI Cooperation CHEN XIAOCHEN Director of International Studies Department of Chongyang Institute for Financial Studies at Renmin University of China (RDCY). (China) CHANG YUDI Intern reseach fellow, Chongyang Institute for Financial Studies, Renmin University of China WANG LIANgyiNG Student at School of International Studies, Renmin University of China 175 The One Belt and One Road Initiative: beyond the world trading system LI XIXIA Associate Professor in International Law, Institute of International Law, Chinese Academy of Social Sciences (CASS). (China) 201 The importance of the One Belt One Road chinese initiative and its features SUN JIE Institute of World Economics and Politics, Chinese Academy of Social Sciences (CASS). (China) 0. inicio.indd 8 6/15/20 15:22 215 Is China reshaping its neighboring environment through the Belt and Road Initiative? LIN MINwaNG Deputy Director of the Center for South Asia Studies, Fudan University. (China) CHAPTER III. A VISION FROM ASIA 239 China’s Belt and Road Initiative (BRI): an Indonesian perspective EVI FITRIANI Head, Miriam Budiardjo Resource Center (MBRC)Senior Lecturer, International Relations Department Faculty of Social and Political Sciences (FISIP), Universitas Indonesia. (Indonesia) 255 Belt and Road Initiative and its impact on central Asia KEMEL TOKTOMUSHEV Research Fellow, Institute of Public Policy and Administration, University of Central Asia, Kyrgyz Republic .(Kyrgyzstan) China’s ‘One Belt, One Road’ in South Asia: economic 263 considerations from India and Pakistan JabiN T. JACOB Fellow,Institute of Chinese Studies and Associate Editor, China Report.Delhi.(India) Sri Lanka and China BRI strategies 279 JANaka WijayaSIRI Research Fellow and Head of International Economic Policy Research at Institute of Policy Studies. (Sri Lanka) NUwaNTHI SENARATNE Institute of Policy Studies of Sri Lanka 309 OBOR project: the case of Russia SVETLANA P. GLINKINA Professor, Head of the Academic Department of International Economic and Political Studies, Institute of Economics, Russian Academy of Sciences.(Russia) 0. inicio.indd 9 6/15/20 15:22 ARTEM YAKOVLEV Junior researcher, Institute of Economics, Russian Academy of Sciences, Assistant of General Economic Theory chair 327 The OBOR initiative within the framework of the Russia- China relationship NikOLay SHKOLyaR Economic adviser Embassy of Russia in Mexico, professor and PhD in International Economics. (Russia) IRINA SHKOLyaR Head of International Department, Russian Academy of Foreign Trade 341 One Belt One Road: an asian perspective BadaR ALAM IQBAL Professor School of economics and Finance Monarch University (Zug) Switzerland. (India) ARTI YadaV Professor, Department of Commerce, Daulat Ram College University of Delhi, India 355 The OBOR Project. Economic Initiatives around Afghanistan. Cooperation or competitions between stakeholders SayED MAHDI MUNADI Former Researcher at Center for Strategic Studies, MFA, Afghanistan; currently Patron of “Center for Afghanistan and Asia Studies”(CAAS) Kabul. (Afghanistan) 379 One Belt One Road: the India perspective PULIN B. Nayak Centre for Development Economics, Delhi School of Economics. (India) 0. inicio.indd 10 6/15/20 15:22 “The Belt and Road Initiative calls for exchange between nations and civilizations for mutual understanding, rather than mutual resentment. It is important to remove, rather than erect walls between each other, take dialogue as the golden rule and be good neighbors with each other ” “We should build the Belt and Road into a road of innovation. In- novation is an important force powering development. The Belt and Road Initiative is new by nature and we need to encourage innovation in pursuing this initiative”. XI JINPING, 2017 0. inicio.indd 11 6/15/20 15:22 0. inicio.indd 4 6/15/20 15:32 Introduction The first opening and reform of China in 1978 comes as an obligatory act, as an exogenous alternative that helps to alleviate the serious social lags of food, clothing, and housing suffered by the Chinese population as a result of the eco- nomic insufficiency of its post-revolutionary period. In its millenary trajectory, as the oldest living society on Earth, China had never opened, so its opening was quite an event that generated innumerable concerns both in its internal life and in a global society that had already forgotten its impor- tance and its historic success. The first reform and opening of China, oriented towards the Pacific, which was its strategic strength, was conducted as an experiment in an economic orbit that China did not know. Despite this, China managed its opening with great talent in spite of its structural and financial weakness and its lack of experience in inhabi- ting the capitalist world of development and the market. After 42 years, the economic, social, and political successes of its decision to open itself up to the global world of its time are beyond doubt, and these succes- ses are entirely well known. From the China of Deng Xiaoping of 1978, that launches a project of global reform within the framework of its economic weakness and large social needs, we moved, in 2012, to a China of Xi Jinping, which, in line with its shocking economic and geopolitical success, warns us of a second phase of reforms and opening, now toward the West, through the launch of the BRI project (Belt and Road Initiative). Since its start, the BRI is presented as a project of great dimensions that invol- ves more than 70 countries from Asia, Eastern Europe, and Africa; approximately 70% of the world population, 55% of the world economic GDP, and 75% of the world oil and gas reserves. 13 0b. Introduccion.indd 13 6/15/20 15:22 Oropeza From a China, apprentice of the global phenomenon, we now turn to a China that takes the banner of 21st century economic development and, through the BRI, invites the majority of the world population to the integration of a new stra- tegy of fairer and more reasonable development. The global society that contemplated the opening of China in the seventies with surprise and carelessness, faced with the strength of the now second world economy, wonders about the terms of the strategy and dimensions of the BRI, and together with it, about the economic and political objectives that China is pursuing with it. President Xi Jinping announced the BRI in Kazakhstan in 2013, and he ratified its maritime part in Indonesia in the same year. However, the structure and content of the BRI are still in their formative stage, where a good part of its central aspects are expectations. Nevertheless, in 2015, the National Development and Reform Commission (NDRC), in coordination with the Ministries of Trade and Foreign Affairs, through the agreement entitled Vision and Actions on Jointly Building Silk Road Economic Belt and 21st-Century Maritime Silk Road, issued the statement of its objectives, background, and general projects. To date, this Program contains the general elements of the proposal. The fact that it is an international coope- ration initiative for a more reasonable and fairer global governance stands out among its objectives.