Name: Zheng Xinye, Assistant Dean, School of Economics, Renmin University of China

Title: Promoting Innovative Economic Organizations and Bringing Further Practical Benefits to Countries Along the Belt and Road

Abstract:

The Belt and Road Initiative proposed by President Xi Jinping is, in proceeding from the global pattern, without doubt a great political, economic event in the 21st century that will greatly influence the current and future international situation and play a significant role in the domestic advancement of China and in other developing countries along the Belt and Road.

China has become the world’s second largest economy, yet it must still resolve problems of widening regional developmental differences, imbalanced income distribution, aggravated pollution, and frequent economic fluctuations. China’s reform and opening-up policy has contributed significantly to the country’s development in coastal regions, but less so to that of its inland areas. The Belt and Road Initiative, however, could help the entire country, inland areas included, to enlarge product distribution and optimize import sources. It could moreover enable enterprises in the transit regions to European market to complete their global industry chain.

Development is still the core problem for many countries along the Belt and Road that are unlikely to get help from core entities in the world economic system, namely the World Bank, International Monetary Fund, and World Trade Organization. The Belt and Road Initiative will help these countries, as well as China, to achieve common development by sharing products, services, market and other major market factor sources, and by integrating the global value chain.

As it is difficult for economies along the Belt and Road to benefit from the current international economic system, we should help China and its partners in the Belt and Road Initiative to develop economically and overcome the problems inherent in the current international order. We can at the same time avoid dramatic economic fluctuations and frequent financial and exchange rate crises, narrow regional differences and income gaps, and, through resource exploitation, obviate the “resource curse”. Above all, we can enhance the development capability of enterprises and people in these countries.

We believe that the Belt and Road Initiative will appreciably promote the existing development pattern that is so important to China and other countries along the Belt and Road by helping to establish an economic order that is more durable, efficient, and equitable.

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