Chinese President calls for Multilateral Institutions to support Silk Road | Financial Buzz

Chinese President calls for Multilateral Institutions to support Silk Road

President Xi Jinping has reiterated the need to support the Silk Road project. The Chinese premier was speaking at a summit in Beijing. He called for a coordinated effort which will include input from the APEC, African Union, ASEAN and the European Union.

$124 billion earmarked for Silk Road project

Premier Xi also announced that $124 billion has been allocated towards the Silk Road project. China is keen to take this project further because it will significantly help the nation improve its trade relations with its Asian neighbors, as well as with Europe, Africa and other countries. This will place China in an excellent position to come into the limelight as a global leader. In a bid to give impetus to the efforts for Silk Road, Premier Xi said it was necessary to coordinate efforts and work towards bringing to life the project which will benefit all nations that fall on its route. He emphasized the need to work towards a mutually beneficial project like Silk Road instead of looking towards the improvement of individual nations alone. This comes as a sharp contrast to President Trump's America first policy, although it may be argued that China will benefit the most from the Silk Road project.

The Silk Road as the Chinese TTP deal

The Silk Road project is in effect, China's way of bringing to existence their version of the Trans Pacific Partnership deal. The TPP is a pact that includes Pacific Rim countries but China is not part of the deal. The project had received much support from the U.S. government when Obama was in the White House. However, lack of support from the current White House incumbent has put the brakes on this deal quite effectively.

The Chinese are keen to make the Silk Road project open to all, a contradiction to the previously proposed TTP deal. As the Chinese premier pointed out during the summit, the global economy can no longer grow if only one or two economies progress. Given the increasing levels of interdependency now visible among world countries, only when all economies grow together, can the global economy truly flourish. According to Xi Jinping, this is exactly what the Silk Road project will enable- growth across several global economies.