One Belt One Road will be 12 times America’s Marshall Plan after adjusting for inflation

According to a business report, China’s One belt One Road initiative will create six transnational China-centric economic corridors:

  1. a new Eurasian land bridge of freight trains connecting the port of Lianyungang in Jiangsu province to Rotterdam
  2. a Mongolia-Russia corridor
  3. a Central Asia-West Asia corridor
  4. an Indochina peninsula corridor
  5. a Pakistan corridor
  6. a Bangladesh-China-India-Myanmar corridor

“One Belt, One Road” is also invoked for China’s infrastructural investments in other parts of Southeast Asia, North Africa, as well as various countries in Central and Western Europe. While “One Belt, One Road” investments follow predetermined routes, other associated investments are being tagged on as a code word for China’s outbound global strategy.

The rationale is global connectivity, which defines the 21st century. It is part and parcel of what the World Economic Forum calls the Fourth Industrial Revolution. China is a central hub for the world’s production, supply, logistics and value chain. “One Belt, One Road” will deepen China’s infrastructural, economic, institutional and cultural connectivity with key parts of the globe. Not only will this enhance China’s global rapport and influence, it will also help counter exposure to geopolitical risks inherent in America’s “Asia rebalancing”, and China’s own energy security challenge and other imponderables in the South China Sea.

“One Belt, One Road” doesn’t translate into offloading surplus capacity in commodities such as steel and coal; it involves exporting excess capital to invest in productive infrastructure across the globe.

Projected investments are estimated to benefit 4.4 billion people in 65 countries. The total size, according to some estimates, could be more than 12 times America’s Marshall Plan to aid post-second-world-war Western Europe, in comparable money-of-the-day terms.

Besides infrastructural investments in ports, high-speed rail, power generation and other utilities, there are ancillary private-sector investment opportunities in real estate, telecoms, e-commerce, financial, tourism, education, creative industries and green technologies. “One Belt, One Road” is not a one-way street of China’s outbound investments. There is also huge export potential for Western products, technologies and services to enter China.

Hong Kong trade and Development has more information

1) The New Eurasia Land Bridge Economic Corridor
The New Eurasia Land Bridge, also known as the Second Eurasia Land Bridge, is an international railway line running from Lianyungang in China’s Jiangsu province through Alashankou in Xinjiang to Rotterdam in Holland. The China section of the line comprises the Lanzhou-Lianyungang Railway and the Lanzhou-Xinjiang Railway and stretches through eastern, central and western China. After exiting Chinese territory, the new land bridge passes through Kazakhstan, Russia, Belarus and Poland, reaching a number of coastal ports in Europe. Capitalising on the New Eurasia Land Bridge, China has opened an international freight rail route linking Chongqing to Duisburg (Germany); a direct freight train running between Wuhan and Mělník and Pardubice (Czech Republic); a freight rail route from Chengdu to Lodz (Poland); and a freight rail route from Zhengzhou to Hamburg (Germany). All these new rail routes offer rail-to-rail freight transport, as well as the convenience of “one declaration, one inspection, one cargo release” for any cargo transported.

(2) The China-Mongolia-Russia Economic Corridor
Linked by land, China, Mongolia and Russia have long established various economic ties and co-operation by way of frontier trade and cross-border co-operation. In September 2014, when the three country’s heads of state met for the first time at the Shanghai Co-operation Organisation (SCO) Dushanbe Summit, agreement was reached on forging tripartite co-operation on the basis of China-Russia, China-Mongolia and Russia-Mongolia bilateral ties. At the same meeting, the principles, directions and key areas of trilateral co-operation were defined. The three heads of state also agreed to bring together the building of China’s Silk Road Economic Belt, the renovation of Russia’s Eurasia Land Bridge and the proposed development of Mongolia’s Steppe Road. This commitment will strengthen rail and highway connectivity and construction, advance customs clearance and transport facilitation, promote cross-national co-operation in transportation, and help establish the China-Russia-Mongolia Economic Corridor. In July 2015, the three leaders held a second meeting in the Russian city of Ufa. This second summit saw the official adoption of the Mid-term Roadmap for Development of Trilateral Co-operation between China, Russia and Mongolia.

(3) China-Central Asia-West Asia Economic Corridor
The China-Central Asia-West Asia Economic Corridor runs from Xinjiang in China and exits the country via Alashankou to join the railway networks of Central Asia and West Asia before reaching the Mediterranean coast and the Arabian Peninsula. The corridor mainly covers five countries in Central Asia (Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan and Turkmenistan) as well as Iran and Turkey in West Asia.
At the third China-Central Asia Co-operation Forum, held in Shandong in June 2015, a commitment to “jointly building the Silk Road Economic Belt” was incorporated into a joint declaration signed by China and the five Central Asian countries. Prior to that, China had signed bilateral agreements on the building of the Silk Road Economic Belt with Tajikistan, Kazakhstan and Kyrgyzstan. China had also concluded a co-operation document with Uzbekistan on the building of the Silk Road Economic Belt. This was aimed at further deepening and expanding mutually beneficial co-operation in such areas as trade, investment, finance, transport and communication. The national development strategies of the five Central Asian countries – including Kazakhstan’s “Road to Brightness”, Tajikistan’s “Energy, Transport and Food” (a three-pronged strategy aimed at revitalising the country), and Turkmenistan’s “Strong and Happy Era” – all share common ground with the establishment of the Silk Road Economic Belt.

(4) China-Indochina Peninsula Economic Corridor
During the Fifth Leaders Meeting on Greater Mekong Sub-regional Economic Co-operation, held in Bangkok in December 2014, Chinese Premier Li Keqiang put forward three suggestions with regard to deepening the relations between China and the five countries in the Indochina Peninsula. The suggestions included: (1) to jointly planning and building an extensive transportation network, as well as number of industrial co-operation projects; (2) creating a new mode of co-operation for fundraising; and (3) promoting sustainable and co-ordinated socio-economic development. Currently, the countries along the Greater Mekong River are engaged in building nine cross-national highways, connecting east and west and linking north to south. A number of these construction projects have already been completed. Guangxi, for example, has already finished work on an expressway leading to the Friendship Gate and the port of Dongxing at the China-Vietnam border. The province has also opened an international rail line, running from Nanning to Hanoi, as well as introducing air routes to several major Southeast Asian cities.

(5) China-Pakistan Economic Corridor
The concept of the China-Pakistan Economic Corridor was first raised by Premier Li Keqiang during his visit to Pakistan in May 2013. At the time, the objective was to build an economic corridor running from Kashgar, Xinjiang, in the north, to Pakistan’s Gwadar Port in the south. At present, the two governments have mapped out a provisional long-term plan for building highways, railways, oil and natural gas pipelines and optic fibre networks stretching from Kashgar to Gwadar Port. According to a joint declaration issued by China and Pakistan in Islamabad in April 2015, the two countries will proactively advance key co-operation projects, including Phase II of the upgrade and renovation of the Karakoram Highway (the Thakot-Havelian section), an expressway at the east bay of Gwadar Port, a new international airport, an expressway from Karachi to Lahore (the Multan-Sukkur section), the Lahore rail transport orange line, the Haier-Ruba economic zone, and the China-Pakistan cross-national optic fibre network.

(6) Bangladesh-China-India-Myanmar Economic Corridor
In a series of meetings during Premier Li Keqiang’s visit to India in May 2013, China and India jointly proposed the building of the Bangladesh-China-India-Myanmar Economic Corridor. In December 2013, the Bangladesh-China-India-Myanmar Economic Corridor Joint Working Group convened its first meeting in Kunming. Official representatives from the four countries conducted in-depth discussions with regard to the development prospects, priority areas of co-operation and co-operation mechanisms for the economic corridor. They also reached extensive consensus on co-operation in such areas as transportation infrastructure, investment and commercial circulation, and people-to-people connectivity. The four parties signed meeting minutes and agreed the Bangladesh-China-India-Myanmar Economic Corridor joint study programme, establishing a mechanism for promoting co-operation among the four governments.

The government of China released the vision and plan in 2015

SOURCES – South China Morning Post, HKTDC, China Government