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Connotations, Economic Impacts and Key Measures of “One Belt and One Road” Strategy Head of Research Department of Foreign Economic Relations Zhao Jinping

Connotations, Economic Impacts and Key Measures of “One Belt and One Road” Strategy Head of Research Department of Foreign Economic Relations Zhao Jinping

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Page 1: Connotations, Economic Impacts and Key Measures of “One Belt and One Road” Strategy Head of Research Department of Foreign Economic Relations Zhao Jinping

Connotations, Economic Impacts and Key Measures of “One Belt and One Road” Strategy

Head of Research Department of Foreign Economic Relations Zhao Jinping

Page 2: Connotations, Economic Impacts and Key Measures of “One Belt and One Road” Strategy Head of Research Department of Foreign Economic Relations Zhao Jinping

3

Contents

2

Framework and Measures for Promoting "One Belt and One Road" Strategy

3

1

3

Connotations of "One Belt and One Road" Strategy

DRC Research Department of Foreign Economic Relations 部

Overlook on Economic Impacts of "One Belt and One Road" Strategy

Page 3: Connotations, Economic Impacts and Key Measures of “One Belt and One Road” Strategy Head of Research Department of Foreign Economic Relations Zhao Jinping

China has become a great power in the world

GDP %发达经济体 占全球比重( )

27.5

10.5

6.9

5.4

4.6

3.7

22. 4

6. 5

4. 9

3. 7

3. 4

2. 8

0 10 20 30

US

JPN

GER

FR

UK

ITY

1991

2013

GDP %新兴经济体 占全球比重( )

1.7

2.3

1.7

0

0.6

0.8

0.8

0.2

0

12.3

3

2.5

2.8

1.7

1.1

0.6

0.4

0.2

04812

Chi na

Brazi l

Indi a

Russi a

ROK

Indonesi aSouthAfri caMal aysi a

Vi etnam

1991

2013

DRC Research Department of Foreign Economic Relations

GDP of developed economies in the world’s total (%)

GDP of emerging economies in the world’s total (%)

Page 4: Connotations, Economic Impacts and Key Measures of “One Belt and One Road” Strategy Head of Research Department of Foreign Economic Relations Zhao Jinping

China issued the Vision and Actions on Jointly Building Silk Road Economic Belt and 21st-Century Maritime Silk Road

Historical inheritance, major power responsibility, opening-up and inclusion, cooperation and win-win, external and internal cultivation, marine and land coordination, east and west orientations, economy and trade first, facility interconnection, role of market-- Connotations of “One Belt and One Road”

Page 5: Connotations, Economic Impacts and Key Measures of “One Belt and One Road” Strategy Head of Research Department of Foreign Economic Relations Zhao Jinping

The Silk Road region has playing an increasingly important role in the global economy

40. 8

3631. 8

31. 7

51. 2

28. 5

61

0

20

40

60

80

100人口

GDP

外资净流入

出口进口

工业

农业

% of the worl d' stotal

Population

Agriculture

Industry

OutportsImports

Net foreign capital inflow

Page 6: Connotations, Economic Impacts and Key Measures of “One Belt and One Road” Strategy Head of Research Department of Foreign Economic Relations Zhao Jinping

3

Contents

1

Framework and Measures for Promoting "One Belt and One Road" Strategy3

2

3

Connotations of "One Belt and One Road" Strategy

DRC Research Department of Foreign Economic Relations

Overlook on Economic Impacts of "One Belt and One Road" Strategy

Page 7: Connotations, Economic Impacts and Key Measures of “One Belt and One Road” Strategy Head of Research Department of Foreign Economic Relations Zhao Jinping

The economic development of the Silk Road region has made more obvious contributions to the global growth

Annual average economic growth rate (%)

World, 2.8

World, 2.6

World, 2.4

World, 2.7

Silk road,3.7

Silk road,6.7

Silk road,4.7

Silk road,5.1

0 2 4 6 8 10

1990—2000

2000—2010

2010—2013

1990—2013

World Silk road

Contribution of Silk Road to global growth rate

(%)

Silk road region,17.8

Silk road region,44.3

Silk road region,41.3

Silk road region,33.7

China, 9

China, 20.7

China, 26.2

China, 17

0 10 20 30 40 50

1990—2000

2000—2010

2010—2013

1990—2013

Silk road region China

DRC Research Department of Foreign Economic Relations

Page 8: Connotations, Economic Impacts and Key Measures of “One Belt and One Road” Strategy Head of Research Department of Foreign Economic Relations Zhao Jinping

The economic growth of the Silk Road region is highly dependent on cross-border trade and investment growth

Dependence on trade (%)

World, 15.7

World, 19.7

World, 23.9

World, 25.8

World, 25.3

Silk road,17.5

Silk road,32.6

Silk road,33.9

Silk road,35.6

Silk road,34.5

0 10 20 30 40

1990

2000

2010

2011

2012

World Silk road

DRC Research Department of Foreign Economic Relations

Dependence on net foreign capital inflow (%)

World, 1.75

World, 7.96

World, 4.71

World, 5.16

World, 4.23

World, 4.41

Silk road,1.48

Silk road,4.7

Silk road,6.96

Silk road,7.07

Silk road,6.04

Silk road,6.3

0 2 4 6 8 10

1990

2000

2010

2011

2012

2013

World Silk road

Page 9: Connotations, Economic Impacts and Key Measures of “One Belt and One Road” Strategy Head of Research Department of Foreign Economic Relations Zhao Jinping

Silk Road region is one of the regions enjoying the fastest growth in global trade and cross-border investment

DRC Research Department of Foreign Economic Relations

Annual average growth rate of foreign trade (%)

World, 6.4

World, 9

World, 9.3

World, 7.8

Silk road,11.3

Silk road,14.8

Silk road,13.9

Silk road,13.1

0 5 10 15 20 25

1990—2000

2000—2010

2010—2012

1990—2012

World Silk road

Annual average growth rate of net foreign capital inflow

(%)

World, 21

World, 1.5

World, 2.8

World, 9.7

Silk road,17.4

Silk road,18.9

Silk road,6.2

Silk road,16.5

0 5 10 15 20 25

1990—2000

2000—2010

2010—2013

1990—2013

World Silk road

Page 10: Connotations, Economic Impacts and Key Measures of “One Belt and One Road” Strategy Head of Research Department of Foreign Economic Relations Zhao Jinping

Regions along “One Belt and One Road” boast huge development space

DRC Research Department of Foreign Economic Relations

Groups by per capita GDP in 2013 (%)

7.7

20.2

90.8

69.4

10.4

1.5

0% 20% 40% 60% 80% 100%

Population

GDP

Above USD 20,000 USD10,000-20,000

Below USD10,000

Average per capita GDP of the groups (USD)

5050

10500

35470

13178

3862

0 5000 10000 15000 20000 25000 30000 35000 40000

AboveUSD20,000

USD10,000-20,000

BelowUSD10,000

Average of SilkRoad region

World average

Page 11: Connotations, Economic Impacts and Key Measures of “One Belt and One Road” Strategy Head of Research Department of Foreign Economic Relations Zhao Jinping

Countries along the Silk Road are important trade and investment partners of China

19

46

0

10

20

30

40

50

Trade Investment

Annual average growth rate ofChina’s trade with and investmentin Silk Road region in recent 10years(%)

25

16

50

0

10

20

30

40

50

Trade Investment Proj ectcontracti ng

Proportion in China’s total in 2013(%)

Page 12: Connotations, Economic Impacts and Key Measures of “One Belt and One Road” Strategy Head of Research Department of Foreign Economic Relations Zhao Jinping

经济持续增长的新动力

培育中国跨国企业的重要平台

对中国经济五大影响

1

2

3

4

5

结构调整的助推器结构调整的助推器

能源和资源的安全保障能源和资源的安全保障

互利共赢区域合作网络的桥梁和纽带互利共赢区域合作网络的桥梁和纽带

国务院发展研究中心对外经济研究部 赵晋平

Page 13: Connotations, Economic Impacts and Key Measures of “One Belt and One Road” Strategy Head of Research Department of Foreign Economic Relations Zhao Jinping

Industries benefiting most from “One Belt and One Road” Initiative

Industries obtaining benefit

Industries related to infrastructure construction

Industries related to resources and energy

Equipment manufacturing

Service industries such as financial and telecommunications industries

Transportation industry

Page 14: Connotations, Economic Impacts and Key Measures of “One Belt and One Road” Strategy Head of Research Department of Foreign Economic Relations Zhao Jinping

Factors restricting trade and investment cooperation of “One Belt and One Road”

Difficulties and obstacles

Slow progress in regional economic integration

Low proportion of trade investment in the region

Interruption and adverse impacts of non-economic factors

Lagging infrastructure construction

Many obstacles for trade and investment relations

Page 15: Connotations, Economic Impacts and Key Measures of “One Belt and One Road” Strategy Head of Research Department of Foreign Economic Relations Zhao Jinping

3

Contents

2

Framework and Measures for Promoting "One Belt and One Road" Strategy

3

1

3

Connotations of "One Belt and One Road" Strategy

DRC Research Department of Foreign Economic Relations 部

Overlook on Economic Impacts of "One Belt and One Road" Strategy

Page 16: Connotations, Economic Impacts and Key Measures of “One Belt and One Road” Strategy Head of Research Department of Foreign Economic Relations Zhao Jinping

Three opportunities for China in “One Belt and One Road” Initiative

Three opportunities

Expand foreign trade

Accelerate “going global” of enterprises

Promote interconnection with neighboring regions

Page 17: Connotations, Economic Impacts and Key Measures of “One Belt and One Road” Strategy Head of Research Department of Foreign Economic Relations Zhao Jinping

New impetus for sustainable economic growth

Important platform for culturing China’s multinationals

Five major impacts on Chinese economy

1

2

3

4

5

Booster for structural adjustment

Booster for structural adjustment

Security support for energy and resources

Security support for energy and resources

Bridge between mutually beneficial regional cooperation network

Bridge between mutually beneficial regional cooperation network

Research Department of Foreign Economic Relations, DRC of the State Council Zhao Jinping

Page 18: Connotations, Economic Impacts and Key Measures of “One Belt and One Road” Strategy Head of Research Department of Foreign Economic Relations Zhao Jinping

More convenient

Market-based

Liberalization

• Create a convenient environment for enterprises to conduct cross-border trade

Give play to adjustment role of market, reduce administrative intervention

• Deepen opening-up, raise trade liberalization

Reform in administration policy for “going global” is extremely urgent

DRC Research Department of Foreign Economic Relations

Page 19: Connotations, Economic Impacts and Key Measures of “One Belt and One Road” Strategy Head of Research Department of Foreign Economic Relations Zhao Jinping

Key measures to promote “One Belt and One Road” Initiative

Make an overall

plan and reasonab

le layout

Accelerate relevant free trade

arrangements

Prepare to establish regional policy financial

institutions

Select large

projects to

promote

infrastructure interconnectio

nKey measures

DRC Research Department of Foreign Economic Relations

Page 21: Connotations, Economic Impacts and Key Measures of “One Belt and One Road” Strategy Head of Research Department of Foreign Economic Relations Zhao Jinping

Construct an international corridor connecting East, South, West and North China

Establish a new platform for trade and investment cooperation and opening-up

Development focuses of domestic section of “One Belt and One Road”

Development focuses of domestic section of “One Belt and One Road”

DRC Research Department of Foreign Economic Relations

Focuses of domestic section

Build a new model for coordinated development of East, Middle and West China

Boost adjustment of domestic industrial layout

Page 22: Connotations, Economic Impacts and Key Measures of “One Belt and One Road” Strategy Head of Research Department of Foreign Economic Relations Zhao Jinping

Construct an international corridor connecting East, Middle and West China

22

Pilot Cross-border Development and Opening-up Zone (border opening-up platform)

China (Tianjin) Pilot Free Trade Zone

China (Xinjiang) Pilot Asia-Europe Cooperation Zone (recommended)

China (Fujian) Pilot Free Trade Zone

China (Guangdong) Pilot Free Trade Zone

Hainan International Tourism Island

China (Inland City) Pilot Free Trade Zone (estimated)

China (Shanghai) Pilot Free Trade Zone

Page 23: Connotations, Economic Impacts and Key Measures of “One Belt and One Road” Strategy Head of Research Department of Foreign Economic Relations Zhao Jinping
Page 24: Connotations, Economic Impacts and Key Measures of “One Belt and One Road” Strategy Head of Research Department of Foreign Economic Relations Zhao Jinping
Page 25: Connotations, Economic Impacts and Key Measures of “One Belt and One Road” Strategy Head of Research Department of Foreign Economic Relations Zhao Jinping
Page 26: Connotations, Economic Impacts and Key Measures of “One Belt and One Road” Strategy Head of Research Department of Foreign Economic Relations Zhao Jinping
Page 27: Connotations, Economic Impacts and Key Measures of “One Belt and One Road” Strategy Head of Research Department of Foreign Economic Relations Zhao Jinping
Page 28: Connotations, Economic Impacts and Key Measures of “One Belt and One Road” Strategy Head of Research Department of Foreign Economic Relations Zhao Jinping
Page 29: Connotations, Economic Impacts and Key Measures of “One Belt and One Road” Strategy Head of Research Department of Foreign Economic Relations Zhao Jinping
Page 30: Connotations, Economic Impacts and Key Measures of “One Belt and One Road” Strategy Head of Research Department of Foreign Economic Relations Zhao Jinping