1. Understanding “The Belt & Road Initiative” Zhang Yunling Professor, Director of International Studies, CASS

2. B&R Initiative  Xi Jinping put forward the proposals to build the “Silk Economic Belt” in Kazakhstan in Sept. of 2013 and to construct the “21 st Century Maritime Silk Road” in Indonesia in Oct. of 2013, and an official document-the vision and proposed actions on “the Belt & Road” (B&R) was published in March 28 of 2015  B&R as a grand initiative made by China for its own development strategy (deepening reform and opening) and also for a new approach promoting the international cooperation (development focus)

3. B&R Framework  Silk Road Economic Belt:  --China-Central Asia-Russia-Europe (Baltic)  --China-Persian Gulf-Mediterranean Sea through Central & West Asia  --China-South East Asia & South Asia-Indian ocean  Maritime Silk Road:  --China coast-Europe and Africa through South China Sea and Indian Ocean  --China coast- South Pacific through South China Sea  Connecting: East Asia economic circle-Europe through Euro-Asia and Africa

4. Old B&R

5. New B&R

6. Principles  Win-win strategy: jointly built through consultations among B&R countries  Inclusiveness: open to all regional and international organizations, as well as partners that are interested  Market operation with government support  Integrated framework, with flexible arrangements, consolidating with local development strategies and agendas

7. Priorities  Policy coordination by coordinating the economic development strategies and policies  Connectivity as the priority area for constructing an infrastructure network and port network with facilitation arrangements and standard transport rules and advanced technologies  Trade and investment promotion through facilitation arrangements and possible FTAs  Financial cooperation by developing currency swaps, bond market, syndicated loans and bank credit etc.  Cultural, education, media and people exchanges

8. Approaches  Using the existing mechanisms, like 10+1, 10+3, EAS, SCO, APEC, ACD, ASEAM, GMS, CICA (Conference on interaction and confidence building measures in Asia), CASCF (China-Arab states cooperation forum), CGCC (China-Gulf cooperation council strategic dialogue), as well as other existing forums etc.  Signing agreements or statements for conducting the cooperation, including making road map, designing agendas and setting projects, establishing joint committees on bilateral level or sub-regional lelvel (note: first joint statement on B&R between China and Euro-Asia Economic Union signed)  Establishing new financial organizations, like AIIB, Brics Development Bank, Silk Road Fund and using the existing organizations, like ADB, WB etc.

9. China’s Strategy  B&R as a grand strategy for China to deepen the reform and opening  B&R provides a new framework for “new balancing” between China’s East and Western region  Gaining the “comparative advantage” in a new approach by focusing on development cooperation

10. Challenges  Trust building- overcoming the suspicion on China’s strategic intention  Financing the infrastructure-market rule and long term perspective  Political stability and security cooperation in B&R areas  Strategic competition-need new mind set  Disputes on South China Sea