One Belt One Road Mr Roger Lee Vice Chairman, APLF

What is the Belt and Road? Before we talk about the silk road economic belt, I’d like to talk a little bit about the ancient silk road. The Ancient Silk Road is a series of trade and cultural transmission routes, connecting the West and East by linking traders, pilgrims, soldiers, and urban dwellers from China and India to the Mediterranean Sea.

The Ancient Maritime Silk Road connected China’s coastal area and Europe, passing through South China Sea and the Indian Ocean. It is the oldest maritime trade route in the world.

The Silk Road Spirit: Peace and cooperation Openness and inclusiveness Mutual learning Mutual benefit

OBOR Principles Adheres to the principles of the 5 Connectedness and 3 Commonalities (五通三同） Policy connectedness Infrastructure connectedness Trade connectedness Funding connectedess Public opinion connectedess Common interests Common destiny Common responsibility

The Silk Road Economic Belt and 21st-centuray Maritime Silk Road initiatives were put forward by the Chinese President Xi Jinping when he visited Kazakhstan and Indonesia in 2013.

The Belt and Road will be built in FIVE areas: Policy communication Road connectivity The Belt and Road will be built in FIVE areas: Unimpeded trade Money circulation Understanding between peoples

One Belt and One Road First, the Initiative answers the call of our time One Belt and One Road More free flow of economic factors More efficient allocation of resources More integrated markets More coordination

One Belt and One Road Second, the Initiative will help China to deepen reform and build a new pattern of all-round opening-up One Belt and One Road Boost economy All-round Opening up Deepen reform Economic integration

One Belt and One Road Third, the Initiative is in the interests of Eurasia countries One Belt and One Road create demands and job opportunities enhance people-to-people exchanges promote investment and consumption tap market potential in this region

Better infrastructure and connectivity All-dimensional and composite connectivity networks, significantly reducing logistic costs. Diversified, balanced and sustainable development. Coordinated development plans among relevant parties. Hinterland will become the heart in the world market, with significant rise of commodity transportation, leading to greater trans-regional integration.

More understanding between different cultures Encouraging tolerance among difference cultures, essential for building trust and dispelling hatred and extremism. promoting cultural exchanges and greater security. Building a community of common interests and destiny

To build the Belt and Road, all involved parties need to contribute their wisdom and join hands to implement specific projects.

Basic principles: Open and inclusive Equality and mutual respect Win-win cooperation Market operation Wide consultation Joint contribution Shared benefits

Chronology of the “Belt and Road" initiative Mar 2014 –Building the "Belt and Road" in the Chinese government work report. May 2014 -- The first phase of a logistics terminal jointly built by China and Kazakhstan went into operation. It is seen as a platform for goods from central Asian countries to go overseas and a boost to the construction of the Silk Road Economic Belt. Oct 2014 -- 21 Asian countries willing to join the Asian Infrastructure Investment Bank (AIIB) as founding members signed the MOU on Establishing AIIB.

Chronology of the “Belt and Road" initiative Nov. 2014 – Chinese President announced that China will contribute USD 40 billion to set up the Silk Road Fund, providing investment and financing support to projects related to the "Belt and Road". Feb. 2015 – Priorities were sketched out for the initiatives, highlighting transport infrastructure building, investment and trade facilitation, financial cooperation and cultural exchanges. Jan. 2016- Asian Infrastructure Investment Bank (AIIB) Founded.

Estonia

Rail Baltic

Volvo cars made in China cut down time by 60% using OBOR

With more than 20,000km of track laid, China has more high-speed railway than the rest of the world combined High-speed rail line running from southern China through Laos to Thailand’s industrial eastern coast. China US$6 billion railway project linking Laos’ capital Vientiane to China’s southern Yunnan (雲南) province by 2020. The railway will be Laos’ longest and fastest line, with an average speed of 160km/h and 60 per cent of the line being bridges and tunnels. 2018/1/12

Beijing has also won the contract to build Indonesia’s first national high-speed rail link – a US$5.1 billion, 150km rail project connecting the capital Jakarta to Bandung, Indonesia’s third-largest city 2018/1/12

China has also set up three new financial institutions to help fund the belt and road infrastructure goals: 1. Asian Infrastructure Investment Bank, 2. the New Development Bank and the 3. Silk Road Fund. Between them, these three institutions have a registered capital of US$240B and they are starting to become active investors along the belt and road routes. 2018/1/12

The US$13 billion East Coast Rail Line project – connecting ports on the east and west coasts of the Malay peninsula – was controversially awarded to state-owned China Communications Construction Company (CCCC) 2018/1/12

KRA CANAL 2018/1/12

Impact for Thailand and China KRA Canal Thailand's economy could do with a boost from such a project, and potential benefits include port fees, tolls, foreign investment and infrastructure developments around the region. Savings of 72 hours, safety for ships For China, the shorter route would mean time and cost savings when importing oil from Africa and the Middle East. It could give a boost to China's ports in Shanghai, Hong Kong and Shenzhen. 2018/1/12

The wide projects in OBOR 2018/1/12

OBOR transform ASEAN US$7.96 billion in 1991 to 2016 marked the 25th anniversary between China and Asean. By the end of May 2016, the two-way investment had exceeded US$160 billion Bilateral trade has also increased massively, from US$7.96 billion in 1991 to US$472.16 billion in 2015. Asean and China are seeking to double their trade value, setting a target of US$1 trillion by the end of 2020 2018/1/12

What is the difference? 2018/1/12

Thank you!