Will New Silk Route change the world we know?

in #trade6 years ago (edited)


Hi,
even if you are an ignorant and generally don't care about global politics, you probably have heard about tensions on a line Washington - Moscow - Bejing, because even main-stream media talk about it. You may wonder: "Yeah, and what's new about that?". True, those three are never ending rivals and fight all the time for one thing: dominance. Today I would like to start my presentation about China politic plan for overcoming USA as global dominant.

New Silk Route Ladies and Gentlemen!

First of all:

Answer is pretty simple. USA have grounded their world-dominance on most modern and one of the biggest armies around the world. The following list is sourced from the 2017 edition of "The Military Balance" published annually by the International Institute for Strategic Studies:

Here, a little bit of history, British Empire was one of the greatest created by human being. Their greatest power was Navy forces which were able to fast relocate armies and were controlling most important attribute of our world: money. Why money? British Empire was funded because of trade, trade generates money so who controls sea trading routes, controls the trade and is able to take tremendous profit out of it.

Is it same today? What do you think when you hear word: China? Maybe "Made in China"? It's obvious that Chinese economy stands mostly on production and products that are later exported around the world, mostly to USA, what is funny honestly speaking - why in a second.
Below you may find Trade Balance of China with top 10 countries and a snap from live view of cargo movement on South China Sea:



All right, so we know now that sea routes are crucial for China development and future prosperity, we know as well that they struggle with USA about dominance at international stage. Why basing on sea routes and sea trade is so dangerous for China? Simply because USA are able to block entire sea movement around their country in matter of hours. Below a map presenting USA military installations and short comparison of navy forces.


Aircrafts:

Destroyer Warships:

Submarines:

Having said so, you can see how dependent from USA is China. So the question is, what they are going to do with this? China is trying to reactivate, or maybe it is better to say move, Silk Route from seas to land. Building tremendous amounts of railways, highways and setting up economic corridors. The goal is simple and clear, building an alternative for current situation to weaken position of United States around the world. Is it possible? Time will tell. Currently many investments are under construction or deals for them are already signed. What you need to know is the fact that around 80% of Chinese government consists of people after technical studies. They got an idea and now will try to implement it.


What is really important, plans of New Silk Route creation, include countries which are said to have greatest GDP growth in upcoming years. As well it forecasts cooperation with parties which are not strongly related or dependent from USA, example can be Myanmar or Pakistan. In order to make the dream come true, China is trying to establish trade-free zone (RCEP) between countries visible on a map later below. As for now, negotiations were tough and rather without progress. Most of those countries were included into project named TPP - Trans Pacific Partnership - together with USA, however decision of Donald Trump was to stop developing TPP idea. As a natural outcome we may expect that some of those countries will push for agreement with China, because as it was already said - trade generates money.

There are much more tools and ideas created by China to make their future come true. We won't see the change overnight, maybe many of New Silk Route aspects will have to be discarded. The whole topic of New Silk Route is tremendous and I would like to expand it in future entries. I hope you enjoyed this introduction and will come here back for more.
Stay tuned!
BR
Michal

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To the question in your title, my Magic 8-Ball says:

As I see it, yes

Hi! I'm a bot, and this answer was posted automatically. Check this post out for more information.

China's silk road initiative is one way trade. Countries that got in early a little peeved about it. Venezuela was suppose to be an important piece in the silk road. The communist party is in a race, they need to get their systems in place before they collapse.

The wealthy in China are trying to get their money out of the country because they don't think the communist can stay in power. Centralization of power never works, their economic reforms only delayed the end of communism in the country.

My money is on communism in China collapsing within the next 5-10 years. I don't think the communist will dominate. If China ever becomes a free market economy then they will control 30% of the worlds GDP.

Hi,
I won't agree with statement that this is one way trade, on example of Pakistan: https://steemit.com/news/@deerdance/gwadar-baby
Besides that, my money is on communism party won't fail in China - external forces have no power there to destabilize the country.

Time will tell, communism fails from within not by external forces. We have our own problems in the west to fix anyways.

China Uncensored does a good job covering Chinese news in a comedic way. I recommend digging deeper after. Keep in mind the Chinese government pays for positive media coverage and has a growing influence in western universities (just like western propaganda). If you get a chance look into how Chinese loans for oil devastated Venezuela when the price drop. Venezuela should of never took the loans in the first place.

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