POLITECNICO DI MILANO China’s “Belt and Road” Initiative and Its Spatial Impacts in Europe: Case study on projects in European countries with “B&R” involving Graduation Thesis Master of Urban Planning and Policy Design School of Architecture Urban Planning Construction Engineering(AUIC) ZHANG ZHEN KAI Supervisor: Prof. Valeria Fedeli Student Number:850133 2019 I Abstract: China proposed a global strategy, “The Silk Road Economic Belt and the 21st-century Maritime Silk Road” (“B&R”), in 2013. It is an initiative of jointly building an economic corridor along the route of ancient “silk road” with countries on it. As of April 30, 2019, 131 countries and 30 international organizations have signed cooperation documents with China on the “B&R”. China came up with a few interventions e.g. China railway express and China-Central and Eastern European Countries cooperation (also known as “17+1”) to adapt “B&R” with European countries. Plenty of projects are developing or developed under “B&R” and “17+1”, the impacts of these projects in terms of urban developing can be concluded to urban transformation, migration, urban integration and urban desertification. To better succeeded the goals of the “B&R”, Communications and cooperation on both governmental and civil fields need to be strengthened and deepened to jointly face the challenges. Key words: “Belt and Road”, Urban transformation, Spatial impact, China, Europe. II Abstract in Italiao: Nel 2013 la Cina ha proposto una strategia globale, “zona economica della via della seta e la via della seta marittima del XXI secolo”("B&R"). È un'iniziativa di costruzione congiunta di un corridoio economico lungo il percorso dell'antica "via della seta" con i paesi su di esso. Al 30 aprile 2019, 131 paesi e 30 organizzazioni internazionali hanno firmato documenti di cooperazione con la Cina sul "B&R". La Cina presenta alcuni interventi, ad es. China railway express e cooperazione Cina-Europa centrale e orientale (nota anche come "17 + 1") per adattare "B&R" ai paesi europei. Molti progetti si stanno sviluppando o sviluppando sotto "B&R" e "17 + 1", gli impatti di questi progetti in termini di sviluppo urbano possono essere conclusi con la trasformazione urbana, la migrazione, l'integrazione urbana e la desertificazione urbana. Per raggiungere meglio gli obiettivi del "B&R", è necessario rafforzare e approfondire le comunicazioni e la cooperazione in campo sia governativo che civile per affrontare congiuntamente le sfide. Parola chiave: “Nuova via della seta”, trasformazione urbana, impatto spaziale, Cina, Europa. III Acknowledgement: I would like to give my sincerest thanks to my supervisor Prof. Valeria Fedeli. For her help and guidance in all aspects. I want to also give my highest gratefulness to my parents for always believing in me. And finally, I give my greatest appreciation to my fiancé Joyce, for her meticulous care and support. IV Chapter 1. Introduction - 1 - 1.1 Foreword - 1 - 1.2 Research purposes - 1 - 1.3 Methodology - 1 - Chapter 2. Literature Review - 2 - 2.1 Overview of the “Silk Road” - 2 - 2.1.1 the Ancient Silk Road - 2 - 2.1.2 the Modern Initiative (“B&R”) - 3 - 2.2 The progress of “B&R” - 4 - 2.3 Motivations, purposes and principals of the “B&R” - 6 - 2.3.1 the motivations and purposes - 6 - 2.3.2 the five main principals - 8 - 2.4 Studies and Debates of the “B&R” - 11 - 2.4.1 Economics and Political Perspective - 11 - 2.4.2 Urban Perspective - 12 - 2.4.3 A new Marshall plan? - 12 - Chapter 3. Intervention of the "B&R" - 13 - 3.1 the China Railway Express (Trans-Eurasia Logistics) - 13 - 3.2 Financial Support - 15 - 3.2.1 the Asia Infrastructure Investment Bank - 15 - 3.2.2 the EX-IM Bank - 15 - 3.2.3 the Silk Road Fund - 16 - 3.3 “17+1” China-Central and Eastern Europe Cooperation (China-CEEC) - 16 - Chapter 4. "B&R" Projects in Europe - 18 - 4.1“B&R” adaptation in Europe - 18 - 4.2 Projects overview - 19 - 4.3 Typology of the Projects - 19 - 4.4 List of projects - 19 - Chapter 5. Project Atlas and Analysis - 30 - 5.1 Infrastructure Projects - 33 - 5.1.1 Bar-Belgrade Motorway - 33 - 5.1.2 Budapest-Belgrade-Skopje-Athens Railway - 38 - 5.1.3 Power plants in Bosnia and Herzegovina (BiH) - 41 - V 5.2 Industrial business projects - 42 - 5.2.1 Port of Piraeus - 42 - 5.2.2 Yanfeng Automotive Interior Systems - 44 - 5.3 SWOT Analysis - 46 - 5.3.1 Strengths - 46 - 5.3.2 Weaknesses - 47 - 5.3.3 Opportunities - 48 - 5.3.4 Threats - 48 - 5.4 Spatial impacts of the Projects - 49 - 5.4.1 Urban transforming and developing - 49 - 5.4.2 Migration - 50 - 5.4.3 Urban integration - 51 - 5.4.4 Land idleness and urban desertification - 51 - 5.4.5 Environmental influences - 51 - Chapter 6. Conclusion - 53 - References - 54 - Annex - 58 - 1. Countries signed “B&R” MoU listed in time - 58 - VI Chapter 1. Introduction 1.1 Foreword In earlier this year, March 23th, 2019, Chinese leader Xi Jinping and Italian Prime Minister Giuseppe Conte signed together the “Memorandum of Understanding” of “Belt and Road Initiative(B&R)”. Hence, Italy has become the biggest economy (world rank 8) among all the joined countries, which is the first ‘G-7’ member joining the “B&R” of China. The "B&R" has been initiated for six years. Most of the countries that signed documents with China in the first years are developing ones. However, since 2018, many developed countries have also signed cooperation documents with China. That implicated the “B&R” can not only benefit cities in developing countries in terms of infrastructures and urbanization, but also It can help developed countries with reviving their economics. 1.2 Research purposes Most of the existing studies and discussions are focused on the fields of economics and geography, which studied the impacts of the “B&R” on the regional and national perspective. In addition, with influence of political factors, these researches are limited in a general discussion. However, there are few studies in the impacts of the “B&R” on urban development and spatial transformation, especially on European cities. As a Chinese student majoring in “urban planning and policy design” at Politecnico di Milano, the author believes that it is feasible and necessary to study the relationship between the “B&R” and urban development in Europe. It will help us to better understand the opportunities and threats of the “B&R” therefore leveraging on it to explore the potential benefits in the future. 1.3 Methodology In this thesis, the author firstly introduces the background of China's "B&R", then reviews the existing literature and identifies what are missing. Next, the author will conduct both quantitative and qualitative analysis on the projects related to the "B&R". By doing that, the author hopes to delineate the development models of “B&R” projects in Europe and their specialties and impacts on urban space. - 1 - Chapter 2. Literature Review 2.1 Overview of the “Silk Road” 2.1.1 the Ancient Silk Road The term “Silk Road”(Seidenstraße in German), was firstly used German Geographer Ferdinand von Richthofen in his book: “China: The results of My Travels and the Studies Based Thereon” published in 1877, which concludes his results of 5-years study in China(1868-1872).In his book, Richthofen defined the silk road as the trade route that originated from Han Dynasty(202 BCE-8CE). In narrow sense, the “Silk road” refers to this specific route starting from Xi’an (Capital of China in Han dynasty), passing through Xinjiang to reach Middle Asia, Western Asia and Mediterranean, whose initial purpose was surprisingly not for silk trade but to import jade from neighboring countries. With Zhang Qian as the first envoy to open up the route, following with years of wars between ancient China and Xiongnu, the silk road was eventually formed by 105BCE. Widely speaking, the “silk road” is considered as the general name of the trade route between ancient China and other countries in different region e.g. the “maritime silk road” take Guangzhou as starting point to establish a seaway trade road to Japan, Southeast Asia, South Asia , Arabian Peninsula and Africa since Han dynasty; the “Prairie Silk Road“ extended Northward from inner Mongolia to connect with Mongolia. And the “Southwest Silk Road” starting from Chengdu passing through Yunnan province to arrive India and Myanmar1. 1 For the sake of simplicity and comprehensibility, all the names of countries and regions are their current names. - 2 - Figure 1. Ancient Silk Road and Ancient Maritime Silk Road source: Wikipedia: Silk Road 2.1.2 the Modern Initiative (“B&R”) “The Belt and Road Initiative(B&R)" or "One Belt One Road (OBOR)", is a global development strategy adopted by Chinese authority in 2013. "The Belt” is the abbreviation of "The Silk Road Economic Belt", which is a regional economic cooperation strategy inspired by the Ancient Silk Road. It takes the Chinese mainland as its starting point and two routes are diverged, with one passing through Central Asia and Russia, then reaching Europe; and the other from Xinjiang through Pakistan to the Indian Ocean, crossing Central Asia, West Asia to the Persian Gulf and the Mediterranean countries. "The Road", on the other hand, refers to "the 21st Century Maritime Silk Road", which is along the ancient Maritime Silk Road, starting in mainland China, from the coastal port to the South China Sea to the Indian Ocean, extending to Europe, or from the coastal ports of China. Cross the South China Sea to the South Pacific.