With much discussion over the trade along, and participation in projects aligned to the One Belt, One Road scheme, there has been little examination of which currencies will fund such activities. This article discusses the role of the Chinese RMB and Russian ruble.
China’s plans for a large scale inauguration of President Xi Jinping’s One Belt, One Road dreams lie in tatters after India pulled out of next month’s “Belt Road Forum” to be held in Beijing. The first OBOR summit has been snubbed by Indian Prime Minister Modi due to concerns that attending it would give China India’s approval over the disputed territories of Kashmir promoted by China as part of its China-Pakistan Economic Corridor.
A common question when it comes to financial assessments of China’s huge Silk Road plans is how to finance the entire initiative. The anticipated expenditure estimates suggest a cumulative investment over an indefinite timescale variously put at between US$4 trillion to US$8 trillion.
By Dezan Shira & Associates The China-Pakistan Economic Corridor (CPEC) is a key component of China’s OBOR ambitions, and also closer to home – the two countries share a common border. It is important when studying the economic dynamics of the New Silk Road to understand that China has more than trade as a motivating factor. Beijing is concerned[…..]
The recent arrival of a Chinese freight train that had travelled from Yiwu, a consumer electronics manufacturing hub in Zhejiang province, to London’s Barking station has had many China commentators expressing opinions suggesting this is about to become a regular service and will compete favorably with shipping. Brexit watchers expecting renewed UK-China trade agreements seem[…..]
By Dezan Shira & Associates Turkmenistan’s position in China’s OBOR initiatives remains somewhat off the radar. It is remote, harbors a long and dangerous border with Afghanistan, and is the only Central Asian country not to have presented itself as a candidate to join the WTO. It is a strong willed nation, proud, and determined to[…..]
By Dezan Shira & Associates China has long courted and enjoyed a healthy relationship with Iran, and hand in hand with this relationship is its diplomatic and trade links with the Gulf and Arab states. Balancing the region’s differing religious beliefs and other regional tensions with the concerns of the United States has thus far been a[…..]
The redevelopment of Russia’s Far North-Western Arkhangelsk Port to Deep Water facilities has profound implications for Russian and Chinese shipping and the development of the Northern Sea Route. Regional Governor Igor Orlov has stated that the first stage of the port on Russia’s North-West Arctic coastline will be operational by 2025. The port has[…..]
China and Saudi Arabia recently sealed US$65 billion in deals between the two nations. Saudi Arabia also has a One Belt, One Road (OBOR) type initiative named “Saudi Vision 2030” and the new bilateral investment deals cater for both.
China and Russia have loosely suggested at plans to link northeast Asia with Alaska, via the Bering Straits. This would connect the Chukotka Peninsula in Eastern Russia and the Seward Peninsula in Alaska, thus connecting North America with Asia.