Italy moves to join China's Belt and Road Initiative; Xi Jinping ends his Italy visit

Chinese President Xi Jinping wants to rewrite world trade rules and cast himself as a champion of globalisation as he capitalises on a US retreat into &quot;America First&quot; policies, analysts say.

But not everyone is buying the rhetoric.

Xi&#39;s plan was on display this week at an international summit in Beijing to promote his signature foreign policy, the One Belt, One Road initiative that aims to revive ancient land and sea trade routes.

The meeting gave Xi a spotlight to raise his standing abroad and at home, where he faces a crucial Communist Party congress later this year.

World leaders, including Russian President Vladimir Putin, heaped praise on the idea which Xi boasted would be &quot;a project of the century&quot; and &quot;unleash new driving forces for global economic growth&quot;.&nbsp;

Xi emerged as an unlikely capitalist hero at the World Economic Forum in Davos in January when he extolled open trade and denounced protectionism.

He now stands in stark contrast to US President Donald Trump whose pursuit of &quot;America First&quot; policies on trade and foreign relations has given China the chance to reshape the global and political landscape in its favour.

&quot;He (Xi) is very anxious to move as early as possible to take advantage of the vacuum created by Donald Trump and show that China has the capacity to be a rule maker,&quot; China political analyst Willy Lam said.

But Xi&#39;s cherished Silk Road plan has raised concerns that he is seeking to expand China&#39;s economic and political ambitions abroad rather than open up his own country to further trade and investment.

&quot;Hopefully (One Belt, One Road) is not a one-way street but two-way,&quot; European Union Chamber of Commerce in China President Joerg Wuttke told reporters recently.&nbsp;

&quot;I hope China is not just reaching out to the world but actually embracing the world and opening up to foreign trade.&quot;

Despite claims that it welcomes foreign investment, China has long been criticised for erecting barriers in a wide range of sectors from automotives to finance, while also subsidising its own companies.&nbsp;

It ranked 84th globally, behind Saudi Arabia and Ukraine, in the World Bank&#39;s ease of doing business index for 2016, and second to last in an OECD report on the restrictiveness towards foreign investment.&nbsp;

Financial risks

Many doubt the motives behind its latest plan.

&quot;I don&#39;t think many people are buying the spin that this is all in the name of free trade and global prosperity,&quot; said Andrew Gilholm from global risk consultancy Control Risks.

&quot;I think a lot of countries are going along with it because that&#39;s how much significance political leaders attach to trying to benefit from aligning with China&#39;s economic priorities.&quot;

The China-bankrolled project involves a massive network of ports, railways, roads and industrial parks spanning some 65 countries across Asia, Africa and Europe.&nbsp;

Xi has pledged an extra $124 billion for the plan, on top of the $890 billion already earmarked by the China Development Bank for some 900 projects.&nbsp;

The huge spending plan comes as China looks for ways to spur economic growth, which has slowed in recent years as the country transitions away from a debt-fuelled investment-driven model to one more reliant on consumer spending.&nbsp;

But many of the countries involved in the initiative, representing 60 per cent of the world population and around a third of global gross domestic product, have poor records on corporate and political governance and there are fears China could run into trouble.&nbsp;

&quot;If projects are not commercially viable this becomes a very expensive commitment at a time when domestic financial strain is rising,&quot; said Gilholm.&nbsp;

PR coup

&nbsp;But Lam said problems would only start to emerge in the coming years, giving Xi time to use the Silk Road plan to burnish his credentials as a global statesman at home and abroad.&nbsp;

The summit comes ahead of a crucial Communist Party congress later this year.

Regarded as the most powerful Chinese leader in a generation, Xi will secure a second five-year term at the congress and will have the opportunity to promote his favoured allies to the country&#39;s ultimate decision-making body.

Enthusiastic state-media coverage of the two-day Silk Road summit, which was attended by leaders from nearly 30 countries, showered Xi with the sort of attention he craves.&nbsp;

&quot;I think the optics worked out well for him,&quot; said Gilholm.

&quot;But obviously there&#39;s a heck of a lot more to it than just holding an event and having people make nice speeches. It gets harder from now onwards.&quot;

(AFP)

Xi Jinping's cherished Silk Road plan has raised concerns that he is seeking to expand China's economic and political ambitions abroad rather than open up his own country to further trade and investment

Chinese President Xi Jinping wants to rewrite world trade rules and cast himself as a champion of globalisation as he capitalises on a US retreat into "America First" policies, analysts say. But not everyone is buying the rhetoric. Xi's plan was on display this week at an international summit in Beijing to promote his signature foreign policy, the One Belt, One Road initiative that aims to revive ancient land and sea trade routes. The meeting gave Xi a spotlight to raise his standing abroad and at home, where he faces a crucial Communist Party congress later this year. World leaders, including Russian President Vladimir Putin, heaped praise on the idea which Xi boasted would be "a project of the century" and "unleash new driving forces for global economic growth". Xi emerged as an unlikely capitalist hero at the World Economic Forum in Davos in January when he extolled open trade and denounced protectionism. He now stands in stark contrast to US President Donald Trump whose pursuit of "America First" policies on trade and foreign relations has given China the chance to reshape the global and political landscape in its favour. "He (Xi) is very anxious to move as early as possible to take advantage of the vacuum created by Donald Trump and show that China has the capacity to be a rule maker," China political analyst Willy Lam said. But Xi's cherished Silk Road plan has raised concerns that he is seeking to expand China's economic and political ambitions abroad rather than open up his own country to further trade and investment. "Hopefully (One Belt, One Road) is not a one-way street but two-way," European Union Chamber of Commerce in China President Joerg Wuttke told reporters recently. "I hope China is not just reaching out to the world but actually embracing the world and opening up to foreign trade." Despite claims that it welcomes foreign investment, China has long been criticised for erecting barriers in a wide range of sectors from automotives to finance, while also subsidising its own companies. It ranked 84th globally, behind Saudi Arabia and Ukraine, in the World Bank's ease of doing business index for 2016, and second to last in an OECD report on the restrictiveness towards foreign investment. Financial risks Many doubt the motives behind its latest plan. "I don't think many people are buying the spin that this is all in the name of free trade and global prosperity," said Andrew Gilholm from global risk consultancy Control Risks. "I think a lot of countries are going along with it because that's how much significance political leaders attach to trying to benefit from aligning with China's economic priorities." The China-bankrolled project involves a massive network of ports, railways, roads and industrial parks spanning some 65 countries across Asia, Africa and Europe. Xi has pledged an extra $124 billion for the plan, on top of the $890 billion already earmarked by the China Development Bank for some 900 projects. The huge spending plan comes as China looks for ways to spur economic growth, which has slowed in recent years as the country transitions away from a debt-fuelled investment-driven model to one more reliant on consumer spending. But many of the countries involved in the initiative, representing 60 per cent of the world population and around a third of global gross domestic product, have poor records on corporate and political governance and there are fears China could run into trouble. "If projects are not commercially viable this becomes a very expensive commitment at a time when domestic financial strain is rising," said Gilholm. PR coup But Lam said problems would only start to emerge in the coming years, giving Xi time to use the Silk Road plan to burnish his credentials as a global statesman at home and abroad. The summit comes ahead of a crucial Communist Party congress later this year. Regarded as the most powerful Chinese leader in a generation, Xi will secure a second five-year term at the congress and will have the opportunity to promote his favoured allies to the country's ultimate decision-making body. Enthusiastic state-media coverage of the two-day Silk Road summit, which was attended by leaders from nearly 30 countries, showered Xi with the sort of attention he craves. "I think the optics worked out well for him," said Gilholm. "But obviously there's a heck of a lot more to it than just holding an event and having people make nice speeches. It gets harder from now onwards." (AFP)

China's Xi seeks to rewrite global trade rules as US retreats

Chinese President Xi Jinping pledged $124 billion on Sunday for his new Silk Road plan to forge a path of peace, inclusiveness and free trade, and called for the abandonment of old models based on rivalry and diplomatic power games.

Xi used a summit on the initiative, attended by leaders and top officials from around the world, to bolster China&#39;s global leadership ambitions as US&nbsp;President Donald Trump promotes &quot;America First&quot; and questions existing global free trade deals.

&quot;We should build an open platform of cooperation and uphold and grow an open world economy,&quot; Xi told the opening of the two-day gathering in Beijing.

China has touted what it formally calls the Belt and Road initiative as a new way to boost global development since Xi unveiled the plan in 2013, aiming to expand links between Asia, Africa, Europe and beyond underpinned by billions of dollars in infrastructure investment.

Xi said the world must create conditions that promote open development and encourage the building of systems of &quot;fair, reasonable and transparent global trade and investment rules&quot;.

Hours before the summit opened, North Korea launched another ballistic missile, further testing the patience of China, its chief ally. The United States had complained to China on Friday over the inclusion of a North Korean delegation at the event.

Massive funding boost

Xi pledged a major funding boost to the new Silk Road, including an extra 100 billion yuan ($14.50 billion) into the existing Silk Road Fund, 380 billion yuan in loans from two policy banks and 60 billion yuan in aid to developing countries and international bodies in countries along the new trade routes.

In addition, Xi said China would encourage financial institutions to expand their overseas yuan fund businesses to the tune of 300 billion yuan.

Xi did not give a time frame for the new loans, aid and funding pledged on Sunday.

Leaders from 29 countries attended the forum, as well as the heads of the United Nations, International Monetary Fund and World Bank.

Britain&#39;s finance minister told the summit his country was a &quot;natural partner&quot; in the new Silk Road, while the prime minister of Pakistan, Nawaz Sharif, a close Chinese ally, praised China&#39;s &quot;vision and ingenuity&quot;.

&quot;Such a broad sweep and scale of interlocking economic partnerships and investments is unprecedented in history,&quot; Sharif said.

White House adviser Matt Pottinger said the United States welcomed efforts by China to promote infrastructure connectivity as part of its Belt and Road initiative, and US&nbsp;companies could offer top value services.

India refused to send an official delegation to Beijing, reflecting displeasure with China for developing a $57 billion trade corridor through Pakistan that also crosses the disputed territory of Kashmir.

&quot;No country can accept a project that ignores its core concerns on sovereignty and territorial integrity,&quot; said Indian foreign ministry spokesman Gopal Baglay, adding that there were concerns about host countries taking on &quot;unsustainable debt.&quot;

China plans to import $2 trillion of products from countries participating in its Belt and Road initiative over the next five years, Commerce Minister Zhong Shan said.

Unease over summit

But some Western diplomats have expressed unease about both the summit and the plan as a whole, seeing it as an attempt to promote Chinese influence globally. They are also concerned about transparency and access for foreign firms to the scheme.

Australian Trade Minister Steven Ciobo said Canberra was receptive to exploring commercial opportunities China&#39;s new Silk Road presented, but any decisions would remain incumbent on national interest.

&quot;China is willing to share its development experience with all countries,&quot; Xi said. &quot;We will not interfere in other countries&#39; internal affairs. We will not export our system of society and development model, and even more will not impose our views on others.&quot;

&quot;In advancing the Belt and Road, we will not re-tread the old path of games between foes. Instead we will create a new model of cooperation and mutual benefit,&quot; Xi said.

North Korea, which considers China its sole major diplomatic ally and economic benefactor, raised eyebrows when it decided to send a delegation to the summit.

The North Korean delegation largely kept a low profile at the summit, and there was no evidence that its presence had affected participation despite US&nbsp;misgivings.

Financial Inclusiveness

Xi said the new Silk Road would be open to all, including Africa and the Americas, which are not situated on the traditional Silk Road.

&quot;No matter if they are from Asia and Europe, or Africa or the Americas, they are all cooperative partners in building the Belt and Road.&quot;

The idea of cooperation and inclusiveness extends to funding projects and investments along the new trade routes, which are being developed both on land and at sea.

&quot;We need joint effort among Belt and Road countries to boost financing cooperation,&quot; Zhou Xiaochuan, governor of China&#39;s central bank, said.

To sustain the projects, Belt and Road nations should allow companies to play a key role, as government resources are limited, Zhou said.

The active use of local currencies will also help to mobilise local savings, lower remittance and exchange costs, and safeguard financial stability, he said.

At the forum, finance ministries from 27 countries, including China, approved a set of principles that will guide project financing along the new Silk Road.

Germany, which was not among the countries that approved the financing guidelines, said its firms were willing to support the Belt and Road initiative, but more transparency was needed.

Some of China&#39;s close allies and partners were at the forum, including Russian President Vladimir Putin, Cambodian Prime Minister Hun Sen and Kazakh President Nursultan Nazarbayev.

There were also several European leaders attending, including the prime ministers of Spain, Italy, Greece and Hungary.

Chinese state-run media has spared no effort in its coverage of the summit, including broadcasting an awkwardly-named English-language music video &quot;The Belt and Road is How&quot; sung by children from countries on the new Silk Road.

(Reuters)

India has declined to be a part of the 'One Belt, One Road' initiative

Chinese President Xi Jinping pledged $124 billion on Sunday for his new Silk Road plan to forge a path of peace, inclusiveness and free trade, and called for the abandonment of old models based on rivalry and diplomatic power games. Xi used a summit on the initiative, attended by leaders and top officials from around the world, to bolster China's global leadership ambitions as US President Donald Trump promotes "America First" and questions existing global free trade deals. "We should build an open platform of cooperation and uphold and grow an open world economy," Xi told the opening of the two-day gathering in Beijing. China has touted what it formally calls the Belt and Road initiative as a new way to boost global development since Xi unveiled the plan in 2013, aiming to expand links between Asia, Africa, Europe and beyond underpinned by billions of dollars in infrastructure investment. Xi said the world must create conditions that promote open development and encourage the building of systems of "fair, reasonable and transparent global trade and investment rules". Hours before the summit opened, North Korea launched another ballistic missile, further testing the patience of China, its chief ally. The United States had complained to China on Friday over the inclusion of a North Korean delegation at the event. Massive funding boost Xi pledged a major funding boost to the new Silk Road, including an extra 100 billion yuan ($14.50 billion) into the existing Silk Road Fund, 380 billion yuan in loans from two policy banks and 60 billion yuan in aid to developing countries and international bodies in countries along the new trade routes. In addition, Xi said China would encourage financial institutions to expand their overseas yuan fund businesses to the tune of 300 billion yuan. Xi did not give a time frame for the new loans, aid and funding pledged on Sunday. Leaders from 29 countries attended the forum, as well as the heads of the United Nations, International Monetary Fund and World Bank. Britain's finance minister told the summit his country was a "natural partner" in the new Silk Road, while the prime minister of Pakistan, Nawaz Sharif, a close Chinese ally, praised China's "vision and ingenuity". "Such a broad sweep and scale of interlocking economic partnerships and investments is unprecedented in history," Sharif said. White House adviser Matt Pottinger said the United States welcomed efforts by China to promote infrastructure connectivity as part of its Belt and Road initiative, and US companies could offer top value services. India refused to send an official delegation to Beijing, reflecting displeasure with China for developing a $57 billion trade corridor through Pakistan that also crosses the disputed territory of Kashmir. "No country can accept a project that ignores its core concerns on sovereignty and territorial integrity," said Indian foreign ministry spokesman Gopal Baglay, adding that there were concerns about host countries taking on "unsustainable debt." China plans to import $2 trillion of products from countries participating in its Belt and Road initiative over the next five years, Commerce Minister Zhong Shan said. Unease over summit But some Western diplomats have expressed unease about both the summit and the plan as a whole, seeing it as an attempt to promote Chinese influence globally. They are also concerned about transparency and access for foreign firms to the scheme. Australian Trade Minister Steven Ciobo said Canberra was receptive to exploring commercial opportunities China's new Silk Road presented, but any decisions would remain incumbent on national interest. "China is willing to share its development experience with all countries," Xi said. "We will not interfere in other countries' internal affairs. We will not export our system of society and development model, and even more will not impose our views on others." "In advancing the Belt and Road, we will not re-tread the old path of games between foes. Instead we will create a new model of cooperation and mutual benefit," Xi said. North Korea, which considers China its sole major diplomatic ally and economic benefactor, raised eyebrows when it decided to send a delegation to the summit. The North Korean delegation largely kept a low profile at the summit, and there was no evidence that its presence had affected participation despite US misgivings. Financial Inclusiveness Xi said the new Silk Road would be open to all, including Africa and the Americas, which are not situated on the traditional Silk Road. "No matter if they are from Asia and Europe, or Africa or the Americas, they are all cooperative partners in building the Belt and Road." The idea of cooperation and inclusiveness extends to funding projects and investments along the new trade routes, which are being developed both on land and at sea. "We need joint effort among Belt and Road countries to boost financing cooperation," Zhou Xiaochuan, governor of China's central bank, said. To sustain the projects, Belt and Road nations should allow companies to play a key role, as government resources are limited, Zhou said. The active use of local currencies will also help to mobilise local savings, lower remittance and exchange costs, and safeguard financial stability, he said. At the forum, finance ministries from 27 countries, including China, approved a set of principles that will guide project financing along the new Silk Road. Germany, which was not among the countries that approved the financing guidelines, said its firms were willing to support the Belt and Road initiative, but more transparency was needed. Some of China's close allies and partners were at the forum, including Russian President Vladimir Putin, Cambodian Prime Minister Hun Sen and Kazakh President Nursultan Nazarbayev. There were also several European leaders attending, including the prime ministers of Spain, Italy, Greece and Hungary. Chinese state-run media has spared no effort in its coverage of the summit, including broadcasting an awkwardly-named English-language music video "The Belt and Road is How" sung by children from countries on the new Silk Road. (Reuters)

China pledges $124 billion for new Silk Road as champion of globalisation

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Italy moves to join China's Belt and Road Initiative; Xi Jinping ends his Italy visit

China's Xi seeks to rewrite global trade rules as US retreats

China pledges $124 billion for new Silk Road as champion of globalisation