China’s President Xi Jinping has a dream -- or you could call it a pet project.
He wants to revive China’s ancient Silk Road.
That means spurring trade along the two thousand year old routes via a network of railways,
ports, pipelines and highways.
The Silk Road project is supposed to boost development and deepen economic ties across Central Asia.
But critics see it as a way for China to spread its influence further west.
Here’s the situation:
The original Silk Road began as a trade route that stretched from Central China as far as Europe.
In its heyday silk, spices and porcelain were transported to the west.
Today Xi wants to use steel and other materials from China's over-producing factories to
improve infrastructure along the route.
Typical plans include the development of ports in Malaysia and Tanzania or highways in Pakistan and Tajikistan.
To help bankroll Xi’s dream-- also known as the ‘one belt, one road’ initiative
the Chinese government created the $40 billion Silk Road fund.
Xi has said more than 30 countries signed formal agreements with China and 20 more were
cooperating on plans such as railways and nuclear power.
But partner nations are weighing economic benefits against an increasingly dominant
superpower's demands.
A deal for a rail project in Thailand fell through because, according to Thailand,
there were “strings attached” -- namely China demanding commercial property rights.
Here’s the argument:
China says the Silk Road initiative is a way to boost industrialization in the developing
nations sandwiched between East and West.
Economists agree that the initiative has the potential to stimulate Asian and global economic growth.
But there are also risks - like funds not going where they’re supposed to in a region
beset by corruption - and long-shot developments turning into white elephants
There is also concern about China's increasingly assertive military, particularly in Asia's waters.