China's New Silk Road Initiative: a possible scenario or a political utopia?

Maciej Maria Szumera

Master's thesis

Abstract:

The results of this scientific work are complex. China as an economy which has already stable position in global economic affairs is a country which is showing different views of own stand. On the one hand this country is focusing on own internal policy and is trying to stabilize the economic growth of provinces by sustain the close in case of foreign product. On the other hand, country is building very wide connection of international relations economic relations and is expanding foreign markets. Combination of those two factors is making policy of this country very specific. Some experts call it as a "Chinese pragmatism". This unique approach is making China very smart international player. The example of strategy consisting those two-elements mentioned above is creation of the New Silk Road. The researches included in this Master thesis are proving the hypothesis that "China through New Silk Road will create modern sphere of economic influence and this big project will support China in realizing this ambition". The One Belt One Road is an initiative, which is leaded by Chinese People's Republic. China as the biggest investor in the project is conducting many infrastructural and financial capital expenditures. Building the whole modern infrastructure on the way from China to Europe contains creating many new railways, airports, seaports. It is possible to state that from each investment China will have some capital inflows. It is very huge scale. Potential investments are including European, Asian and African countries, the size of the initiative is something completely extraordinary. In every country China will control some shares in companies, which are realizing the project. Some states are more open for Chinese capital and some countries are skeptical, but for sure in every country China will be able to influence the decisions connected with One Belt One Road.This process could be called as a creation of Chinese sphere of influence. This influence could be profitable for every party according to Chinese win-win strategy. China needs a consumer markets and it is very important for this country to create friendly economic environment for Chinese products. With possibility of influence some market China won't have a problem with creating favorable conditions.According to the research question: "Is it a real perspective to create a new economic connection between continental China and European democracies or it is impossible from a geopolitical point of view?” this perspective is very real. The success of the creating economic connections in work frames of New Silk Road is depended on the position of China. As it was explained in master thesis European Union became skeptical about the whole initiative. Chinese expansion and individual approach to potential economic partners in European Union is creating some struggles between the countries of common Europe. European commission is expressing it disapprobation according to those activities. China should be aware of that the European Union is a very strong political player. The most important for European Union is unity and ability to cooperate together. Creating economic connection between those two political being should be calibrated from the point of view of economic influence. China has almost full access to European market in contrast to Chinese access for Europe. For European Union creating economic connection and being almost only consumer market won't profitable in long term. Creation of New Silk Road is possible and in some cases is already under construction, but it should follow Chinese win-win strategy.As the results of this Master thesis are showing New Silk Road is something what will change the present economic order. Moreover, elaborations are showing that this cooperation can be profitable for all the participants of the project. It is not easy to predict some effect of cooperation, but with keeping the stable cooperation China can become the bigges

Abstract:

t winner of this project. Other countries are not doomed to failure. Every country should protect own interest with sustaining the common goal, which is connecting all the economies. The main aim of One Belt One Road is to realize Chinese foreign policy, but this country is underlying that there won't be losing countries in New Silk Road.

Abstract:

The results of this scientific work are complex. China as an economy which has already stable position in global economic affairs is a country which is showing different views of own stand. On the one hand this country is focusing on own internal policy and is trying to stabilize the economic growth of provinces by sustain the close in case of foreign product. On the other hand, country is building very wide connection of international relations economic relations and is expanding foreign markets. Combination of those two factors is making policy of this country very specific. Some experts call it as a "Chinese pragmatism". This unique approach is making China very smart international player. The example of strategy consisting those two-elements mentioned above is creation of the New Silk Road. The researches included in this Master thesis are proving the hypothesis that "China through New Silk Road will create modern sphere of economic influence and this big project will support China in realizing this ambition". The One Belt One Road is an initiative, which is leaded by Chinese People's Republic. China as the biggest investor in the project is conducting many infrastructural and financial capital expenditures. Building the whole modern infrastructure on the way from China to Europe contains creating many new railways, airports, seaports. It is possible to state that from each investment China will have some capital inflows. It is very huge scale. Potential investments are including European, Asian and African countries, the size of the initiative is something completely extraordinary. In every country China will control some shares in companies, which are realizing the project. Some states are more open for Chinese capital and some countries are skeptical, but for sure in every country China will be able to influence the decisions connected with One Belt One Road.This process could be called as a creation of Chinese sphere of influence. This influence could be profitable for every party according to Chinese win-win strategy. China needs a consumer markets and it is very important for this country to create friendly economic environment for Chinese products. With possibility of influence some market China won't have a problem with creating favorable conditions.According to the research question: "Is it a real perspective to create a new economic connection between continental China and European democracies or it is impossible from a geopolitical point of view?” this perspective is very real. The success of the creating economic connections in work frames of New Silk Road is depended on the position of China. As it was explained in master thesis European Union became skeptical about the whole initiative. Chinese expansion and individual approach to potential economic partners in European Union is creating some struggles between the countries of common Europe. European commission is expressing it disapprobation according to those activities. China should be aware of that the European Union is a very strong political player. The most important for European Union is unity and ability to cooperate together. Creating economic connection between those two political being should be calibrated from the point of view of economic influence. China has almost full access to European market in contrast to Chinese access for Europe. For European Union creating economic connection and being almost only consumer market won't profitable in long term. Creation of New Silk Road is possible and in some cases is already under construction, but it should follow Chinese win-win strategy.As the results of this Master thesis are showing New Silk Road is something what will change the present economic order. Moreover, elaborations are showing that this cooperation can be profitable for all the participants of the project. It is not easy to predict some effect of cooperation, but with keeping the stable cooperation China can become the bigges

Abstract:

t winner of this project. Other countries are not doomed to failure. Every country should protect own interest with sustaining the common goal, which is connecting all the economies. The main aim of One Belt One Road is to realize Chinese foreign policy, but this country is underlying that there won't be losing countries in New Silk Road.

Keywords

European European Union, Political Science, New Silk Road, International Relations, China, Global markets, One Belt One Road, Economy, Chinese influence, Transportation, Trade, Central Asia, Chinese Policy, Asia

Keywords

One Belt One Road, Chinese influence, Asia, Central Asia, China, European European Union, Transportation, Global markets, Economy, Chinese Policy, Political Science, Trade, New Silk Road, International Relations

Language used: English

Date on which the thesis was submitted / produced: 21. 6. 2017

Thesis defence

• Date of defence: 30. 5. 2018
• Supervisor: Jeremy Alan Garlick
• Reader: Radka Havlová

Vysoká škola ekonomická v Praze

Master programme / field:
Mezinárodní ekonomické vztahy / International and Diplomatic Studies