Silk Road Economic Belt Has Many Challenges

The Silk Road Economic Belt is a road of immense potential for the development of the countries along it. China is the biggest country in this area. Besides, India and Pakistan are also developing at great strides. Thus, this region is playing a crucial role not only in global economic scenario but also in the future of developing countries as well.

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China is becoming the powerhouse of the world economy. Not only it contributes largely towards global trade, but also takes the lead in several fields such as economy, technology, education, defense and many more. It leads to remarkable achievements in each sphere. Besides, it also reaps benefits through lower prices of its products and helps developing countries to finance their development successfully.

At present, the country is working out ways to bring its vast deserts and mountain ranges closer together. This is done with the help of Silk Roads, which is huge connectivity projects, which connect all parts of the country. These will make the areas accessible from one side to the other.

China wants to become a major exporter of vital products including petroleum, oil, gas, electricity and all sorts of manufactured goods. It plans to build railroads and bridges throughout the length of Silk Road. These will link up the western areas with the eastern areas. This will further enable the access of these areas to other parts of the world.

There are many other benefits of this strategic route. Besides, it has great strategic locations, which are located between Asia, Europe and North America. Countries that are bordering on it have direct access to the Middle East and Russia. It can be easily integrated into the international market. In this way, the country can become a major exporter of consumer goods Silk Road economic belt.

China believes that this initiative is beneficial for the global economy. However, it is also essential for maintaining the territorial integrity of its borders. Irrespective, of the fact whether you like it or not, you cannot push your country towards the Asian sub-continent. Further, India and Pakistan are an issue. China does not want to antagonize India. The corridor was supposed to be the vehicle for softening bilateral relationship but that hasn’t happened so far.

In spite of that, China has built a huge trade deficit with India. It is creating a huge problem for itself. On the contrary, India is appreciating the presence of the Belt and Road. Recently, China proposed the idea to develop the connectivity through Nepal and China to the Middle East. It is expected that with the success of the project, there will be further cooperation and talks between India and China.

It is evident that the Silk Road Economic Belt and Road project are a part of Chinese foreign policy. Besides, it is essential for improving relations with all its neighboring countries. However, New Delhi needs to prepare itself for tougher competition with the western countries. The current scenario does not favor India in any case.

For starters, China believes that it is India that is its competitor and not the US. It is also convinced that it is a much better partner to put in place. If China is going to succeed, it will have to take a number of other important issues into consideration. The northeast area, for instance, will have to be handed over to China.

There are a number of unresolved issues. For instance, the northeast is not included in the China-ASEAN economic cooperation agreement. This means that northeast people are not benefited and do not enjoy equal trade. There is no benefit in buying products from China, if you are not getting the same for your own items.

Secondly, the road is going to go through Pakistan. Whether this can be beneficial economically does not remain unanswered. Besides, India may find it difficult to visit Pakistan since there will be heightened security situations.

The US is apprehensive about China’s expanding global ambitions. This is mainly because China is investing a lot in the United States. The US needs to balance out this by developing stronger relationships with countries in the south.

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