The Arctic Silk Road: A Huge Leap Forward for China and Russia

The Arctic Silk Road: A Huge Leap Forward for China and Russia

The Arctic Silk Road: A Huge Leap Forward for China and Russia

The Silk Road, renamed the Belt and Road Initiative (BRI), is developing infrastructure along land and sea trade routes. However, little is known about China’s initiative in the Arctic Circle, which represents a new route that Beijing is now able to develop thanks to technology together with the strategic partnership with Russia.

Involving about 65 countries and affecting 4.4 billion people, constituting thirty percent of the world’s GDP, together with a total investment from Beijing that could surpass a trillion dollars, the is an immense project that requires a lot of imagination to grasp the intentions of the Chinese leadership. With a host of projects already in progress, and some almost completed (the Sino-Pakistan Corridor known as CPEC is archetypical), the overland and maritime routes are developing side by side. Plenty of ink has been used detailing Beijing’s intentions regarding the East-West connections of the super Eurasian continent. Pipelines, railway lines, fiber-optic cables, telecommunications infrastructure and highways dominate discussions, together with talks about costs, feasibility studies, the question of security, and the return on investment. The land Silk Road is certainly an imposing challenge that is not just commercial in nature but sets the foundation for greater cultural and social integration between neighbouring countries. It is a project that in the long term aims to blend together the Eurasian continent and overcome the contradictions contained therein through win-win cooperation and economic development.

The maritime route is a more structured project, tied mainly to two intrinsic needs of the People’s Republic of China. The first is commercial and concerns the need for Beijing to ship its goods along established routes, creating ports and supply facilities along the way. The objective is to increase profits from cargo ships, especially when they return to China filled with goods, as well as to create new global sorting centers at ports set up along the maritime silk road. Important examples can be found in Pakistan with the development of the Gwadar port. The first phase was completed in 2006, and the second has been in progress since 2007, though the port was inaugurated in November 2016 and has been operational since. The project should be completed in the coming decades, with potentially 45 anchorage points, drainage of the approaching canal to about 20 meters, and a total trade turnover of over 400 million tonnes. The major benefit of this arrangement is to divide goods according to necessity, value and supply, choosing between an overland or maritime route. The port of Gwadar is connected principally through pipelines to the Chinese city of Kashi. This is a great example of how diversification can be achieved with the maritime route, used mainly for transportable goods, while the Gwadar port becomes an important hub in the oil and gas trade, especially thanks to progress in methane and regasification technology.

Other major maritime silk-route destinations include Venice and Athens, with the port of Piraeus already owned by COSCO of China for many years, a company that specializes in port activities and the integration of harbours along the maritime silk road based on the model of the Gwadar port. Venice is currently only a reminder of the ancient Silk Road, but if its past role is to be reprised, where in its modern garb it would today be the final landing point of the South Sea BRI, it would certainly require large investments to feed a network of dense exchanges. China would then have a maritime route in Southern Europe that is linked mainly overland to its northern corridor.

The other reason (that are less well known) pushing the People’s Republic of China to invest in such extensive maritime routes concerns the naval doctrine adopted by the Chinese navy. The United States maintains a remarkable ability to project power across all five continents thanks to the size of its navy, which has grown quite steadily over the last century. Beijing realized that possessing such power projection would undergird the viability of its maritime routes, guarding against pirates as well as as obviating the possibility of a naval blockade in time of war, something always on the back of the minds of Chinese strategists……More Here

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