The silk road economic belt: balance of interests

The article makes an analogy between the Great Silk Road and the modern Belt and Road Initiative (BRI, also known as ‘One Belt, One Road’ [OBOR]) of China in the context of their significance for the development of international trade, as well as the Central Asian region. The historical role of the Silk Road is considered from the viewpoint of mutual benefit of states along the trade route. The authors consider the concept as the co-development of states, suggested by China within the framework of the BRI, which involves international cooperation on the basis of mutual benefits for all participants, promotion of economic growth and welfare, development of modern infrastructure through joint investments. An attempt is made to assess the interests of Central Asian countries in the Silk Road Economic Belt (SREB) projects. Common interests include construction of modern road infrastructure, exploration and extraction of mineral deposits, transportation of energy resources, establishment of logistics and industrial zones. There is an increase in the transit role of the Central Asian countries within the framework of the BRI, as well an increase in investments from China. The countries along SREB are concerned about potential threats of the inflow of Chinese labour, the use of technologies that can cause environmental problems, the loss of control over strategic assets, and general growth of financial dependence on China. The article analyses Russia’s perception of the Chinese initiative. It is concluded that the main mutual interest of the two countries is opposing the US’s attempts to establish a dominating role in the region and thus ensuring the security of the transport system through the institutions of the Eurasian Economic Union (EAEU) and the Shanghai Cooperation Organisation (SCO). The authors reveal a trend of changing the role of Russia as the main transit corridor for Chinese goods exported to Europe and European ones imported to China. The key long-term economic interests of China implementing the BRI have been identified: expansion of foreign markets, access to critical resources in the countries of Central Asia, export of capital, transfer of production abroad, increased exports of high-tech products and services, expansion of the RMB currency area and initiation of structural changes in the global management system. The assessment of China’s initiative by the US and Europe is given as a claim to economic leadership and the struggle to balance the country’s geopolitical position with its economic strength. The authors identify the areas of mutual and opposing interests of some European countries and China. It is concluded that, despite high risks and existing threats, the projects of the BRI can be implemented successfully that achieve the balance of interests and long-term mutual benefits of the countries involved.