China's new road began in small village

Updated: 2015-05-22 08:05

By Fu Jing(China Daily Europe)

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Nation's emerging role under Xi Jinping can be likened to its metamorphosis under Deng Xiaoping's policies

With President Xi Jinping making two Silk Road trips in Asia and Europe in April and May, China has turned a new page in its adventurous opening-up process after sustaining its fast development miracle for decades.

Putting global politics into the context, the way ahead is evidently more challenging than opening up inwardly. In talking about the historic significance of the moment, it is the right time to reflect on this country's step-by-step process of integrating into the rest of the world since 1978.

Xi's last stop, in Belarus, to see how a small village is being turned into a high-tech city with Chinese help, has reminded us of the very beginning of China's opening-up drama, which started in a fishing village in South China.

That village near Hong Kong has grown up to become modern Shenzhen, a world-famous boomtown. Shenzhen, Zhuhai, Shantou and Xiamen were China's first four special economic zones, set up less than 40 years ago. Deng Xiaoping, the architect of reform, then decided to build 14 "opening-up" cities along China's coast.

In 1992, Deng urged the deepening of the opening-up strategy by setting up the Pudong New Area special economic zone in Shanghai.

China's new road began in small village

At the turn of the century, China worked on balancing regional development by launching strategies to develop the nation's western areas after opening the coastal regions to foreign investors.

In 2001, China became a World Trade Organization member, which is a milestone in the country's process of saying goodbye to a planned economy. Investment and trade policies were modified to treat foreign and domestic investors more fairly by ending preferential benefits for foreigners.

China, known as the world's factory, encouraged its businesses to invest globally, and the trend accelerated during the 2008-09 world financial crisis and subsequent European debt turmoil.

Amid fast growth but with the daunting challenges of economic bubbles, rampant corruption, severe pollution and rising geopolitical concerns in eastern and southern coastal regions, Xi Jinping assumed the roles of top leader of the Communist Party and the state in 2012 and 2013. He has shown his determination to remodel China by making major policy changes.

In terms of opening up, Xi proposed the Silk Road Economic Belt and the 21st Century Maritime Silk Road, also called the One Belt, One Road initiative, less than one year after he was elected as the CPC's top leader in 2012, focusing on exporting China's surplus capital, technologies and development experience gathered during previous decades.

Xi showed himself to be a practical man of action in setting these concepts in motion.

After raising these proposals, China decided to set up the Asian Infrastructure Investment Bank and the Silk Road Fund to help finance projects under the initiative's framework. Early this year the Chinese government took public action on its vision of One Belt, One Road for the first time by urging the provinces, municipalities and autonomous regions to link their development plans to the Silk Road proposals.

Xi visited Pakistan, Indonesia, Kazakhstan, Russia and Belarus in April and May. Though peace was high on the agenda, he mainly talked with his counterparts about implementing Silk Road programs.

After signing agreements for a multi-billion-dollar investment in Pakistan, Xi engaged Russia to discuss the feasibility of a free trade agreement with some countries along the Silk Road economic corridor. And in Belarus, Xi and his counterpart demonstrated their determination to turn that village in the Minsk area into a high-tech city in 20 years by copying Shenzhen's example.

The sincerity of China's plans to deliver results as part of the Silk Road initiative is profound. Being a journalist and witnessing most of the developments since 2012, I can easily see that China's outward opening up has entered a new phase.

Before 2012, China mainly focused on opening up inwardly by attracting elements of productivity to upgrade its capacities in industrialization. In that process, developed economies also have benefited by investing in China.

During years of accumulation of skill and financial wherewithal, China prepared to invest on a large scale in other economies, especially those countries short of capital and technologies. Helping them develop infrastructure, build factories and engage in trade are the essence of China's Silk Road proposals.

Of course, the Silk Road initiative will go beyond the ancient trade routes. It has no limit, and even the United States could become involved if it were interested, though in ancient times, China did not trade with that part of the world.

Meanwhile, this outward opening up comprises yet another learning curve for China. China is a fast learner, and decades of experience in attracting foreign investment and transforming itself into a global export giant have proved this.

Now, as China goes out, the context, surroundings and cultures have changed compared with the days of primarily being interested in attracting inward investment. So the Chinese should adopt a proactive attitude of learning and communicating efficiently.

Now, disseminating the Silk Road vision is key. In doing so, China can develop more mutually beneficial projects with other countries under the umbrella of One Belt, One Road.

Of course, embracing this new chapter is a two-way road. It is high time for countries that intend to work with China to catch up with China's new strategy and talk with Beijing.

The author is China Daily chief correspondent in Brussels. Contact the writer at fujing@chinadaily.com.cn

(China Daily European Weekly 05/22/2015 page13)