University of Piraeus Postgraduate Program in Energy: Strategy, Law and Economics

1. University of Piraeus Postgraduate Program in Energy: Strategy, Law and Economics Academic Year:2018-2019 Course : Geopolitics of Energy “One Belt One Road” Zaloumi Eleni TagkirisDimitris

3. The”One Belt One Road” initiativeis a global development strategy adopted by the Chinese government involving infrastructure development and investments in 152 countries and international organizations in Asia,Europe,Africa, the Middle East, and the America. Launched by the Chinese government as the development strategy in 2013. • "Belt" refers to the land routes(road, rail transportation etc). • “Road" refers to the sea routes.

4. The structure of acting plan based on two main pillars. • The Silk Road Economic Belt: aseries of land-based infrastructure projects including roads, railways and pipelines focuses on strengthening links between China, Central Asia, Russia, and Europe. • China will gain improved access to the Persian Gulf and the Mediterranean Sea through Central Asia and West Asia, and to the Indian Ocean through Southeast Asia and South Asia. • The 21st-Century Maritime Silk Road • Maritime Silk Road is designed as two paths: • one from China's coast to Europe through the South China Sea and the Indian Ocean and • the other from China's coast through the South China Sea to the South Pacific region.

6. Six international economic cooperation corridors: • The New Eurasian Land Bridge • the China-Mongolia-Russia Economic Corridor • the China-Central Asia-West Asia Economic Corridor • the China-Indochina Peninsula Economic Corridor • the China-Pakistan Economic Corridor and • the Bangladesh-China-India-Myanmar Economic Corridor. One maritime silk road. • Maritime Silk Road, running from the Chinese Coast through Singapore to the Mediterranean.

7. Economic Dimensions • 65 countries jointly account for: 38.5% of land area, 62.3% world’s population, 30.0% of global GDP and 24.0% of household consumption. • China aims to boost its domestic growth as it has announced investments over $1 trillion in the various infrastructure projects, and is funding them by offering low-cost loans to the participating countries. • Economic growth of Western part of China. • Both private and state own companies of China start to enhance their investments across OBOR zone.

8. Geopolitical implications It is important also to consider the long-term geopolitical implications. • Increasing risks of geopolitical competition with major powers and regional powers. Historically this kind of analysis has most common concentrated upon China's relations with the United States. ‘One belt, one road’ initiative is strategically important as it illustrates a Chinese concern to compete with the United States through strategic economic policies as through military ones. • Ensure energy security of China. i.e. 68% of China's crude oil imports originate in the Persian Gulf and Africa and bypass the Strait of Malacca. • Economic interdependence and regional stability.

9. Challenges and Risks • OBOR will meet gap in investment to some extent and enhance trade liberalization. • The political risks of instability in potential partner countries such as Afghanistan, Pakistan or various countries in the Middle East, possibly also in central Asia. • A more high-profile China interfere with existing conflicts between states, such as Israel and the Arab states. • China's lack of experience with the complexity of political issues in the Middle East and South Asia, as well as the lack of people with knowledge of the languages and cultures of the regions.

10. Predictions • There is no doubt that the plan is a great vision and potential too. But it is also one with large number of uncertainties and carries a high risk of failure. • The reason that Chinese foreign policy now is both so optimistic and also so vulnerableproceeds from the fact that its success does not rely on its own hands only. • The cooperation among all states is vital in order to illustrate the vision of One Belt On Road initiative.

11. References: • The greater Eurasian partnership and the Belt and Road Initiative: Can the two be linked? - Yongquan Li. • Understanding China's Belt & Road Initiative: Motivation, framework and assessment. • Author links open overlay panel YipingHuang • Does One Belt One Road initiative promote Chinese overseas direct investment. • Author links open overlay panel JulanDuYifeiZhang. • Three questions on China's “Belt and Road Initiative” Author links open overlay panelLeonardK.Cheng1. • Westward ho—the China dream and ‘one belt, one road’: Chinese foreign policy under Xi Jinping - PeterFerdinard. • “Silk Road” as foreign policy discourse: The construction of Chinese, Japanese and Korean engagement strategies in Central Asia - TimurDadaev