Trade Routes Connectivity through Belt and Road Initiative and Its Implications

Abstract

The "Belt and Road initiative” by the Chinese government, involving 65 countries and regions, and about 63% of the world population, is attracting fast growing interest across different countries. The vision of China is to build faster connectivity routes and increase trade along the land- and sea-based Silk Road, linking Asia with Europe and Africa. New roads, railroads, pipelines, ports, airports, and inland telecommunications links are to boost the efficiency of overland travel and economic transactions across Europe and Asia (Eurasia). The Belt and Road thus symbolizes global economic and cultural networking based on mutual interaction and cooperation. Since China’s dependence on foreign oil and gas is so high, obtaining reliable transport routes and diversifying transport routes by procuring oil and natural gas from the energy-rich Central Asian region through the construction of the land-based Silk Road is of critical importance to China’s energy security. First, this paper therefore aims to investigate the OBOR’s development potentials trade routes to Europe from Asia across the Strait of Malacca and Suez Canal. Through this trade route, Egypt can play a major role in China’s Belt and Road initiative due to its strategic geographic location. Second, this paper focuses on oil and gas import trade routes from the Middle East to China (connecting Kyaukpyu to Kunming) crossing Myanmar. The trade link allows China to import crude oil from the Middle East and Africa without passing the Straits of Malacca and into the South China Sea. In addition, the paper also presents the role of Kra canal which might become potential new trade route in OBOR project. Finally, this paper reveals many points of cooperation with the Eurasia Initiative (EAI) of the Korean government and ways to construct a Silk Road Express and transcontinental railroads to promote peace on the Korea Peninsula. As a result, Korea can expend international trade in participating in OBOR initiative. Consequently, this study develops the trade routes by fostering greater and faster connectivity between China and Europe via intermadiate points in Central, West, and South Asia as well as Russia. Although this paper lacks in the empirical analysis, the results support the valuable conclusion for trade connection routes from East to West.