China’s One Belt One Road policy: can history repeat itself?
Since initiating market reforms in 1978, China has shifted from a centrally-planned to a market-based economy and has experienced rapid economic and social development. GDP growth has averaged nearly 10% a year, the fastest sustained expansion by a major economy in history. States as diverse as the United Kingdom, the United States of America, Pakistan, Kyrgyzstan and Australia have all benefited from this transformation. Now, as this growth consolidates and slows, the nation looks to create policies that will ensure growth and stability for the future. Chinese leaders have unveiled a ‘foreign policy priority’, the One Belt One Road, an international treaty that seeks to supersede all previous trade arrangements. If successful, this policy will further integrate economic ties and increase the cooperation of states across continents. It has the potential, however, to create international economic and political tensions. As many (including Australia) excitedly wait for the implementation of the policy, others remain sceptical and even fear the outcomes China’s initiative will bring. This paper will discuss just some to the issues that this audacious policy, with the potential to revolutionise global trade, raises.
