China aims to speed economic growth

China’s One Belt One Road initiative will see it play a bigger role in world affairs, reports Dineo Faku.

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Johannesburg - China is sparing no efforts in promoting its One Belt, One Road initiative that will see it play a bigger role in world affairs and transport connectivity in Asia.

One Belt, One Road is a strategy that was first unveiled by Chinese President Xi Jinping in September 2013. He made his first state visit to the US yesterday where he was expected to sign several deals and agreements, including on climate change, according to local media.

Win-win

During the three-day media workshop hosted by state mouth piece, People’s Daily, which ends today, the plan was marketed as a win-win for all countries involved. Kenya’s capital Nairobi is for now the only African country where China is planning to build a railroad linking Nairobi to the port city of Mombasa for $3.8 billion (R50.81bn).

African countries are optimistic that the plan will help fast track economic growth. China is also developing ports in Tanzania and Mozambique.

But Ahmed al-Sayed, the chairman of Egypt’s state owned newspaper group, Al-Ahram, said the use of the US dollar needed to be reviewed. The dollar is considered as a stable currency and enjoys the confidence of investors.

“We think the US financial system should not be dominating the world currency,” alSayed told the conference. “The media should promote a fair trade system. We need to have fair trade system. The Silk Road is an example of a fair and just trade system.”

Mineral endowed African countries, like South Africa, rely on China for consumption of minerals, including copper, platinum and iron ore.

Yan Dongsheng, the chairman of the Bohai Commodity Exchange, told the workshop that the One Belt initiative would be an opportunity to change the pricing of commodities. “Pricing power is in the hands of traders and speculators, surely this needs to change,” he said.

The One Belt, One Road is a two-fold ambitious plan aimed to accelerate growth through strengthening trade between Asia, Europe, and China. The Silk Road Economic Route focuses on connecting transport infrastructure in Asia and the 21st century Maritime Road is a resurrection of the ancient silk road and would link China’s coastal hubs to Europe, Asia and Africa.

* Dineo Faku travelled to China to attend the One Belt-One Road Economic Forum as a guest of the People's Daily

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