The global economy is changing rapidly. A vivid example of this is the emergence of the concept of “Beijing Consensus”, which is often opposed to the so-called “Washington Consensus” established by the World Bank and the IMF when issuing government loans.
The difference lies in the fact that the international financial system, led by the United States, when investing in the economies of various countries, requires the latter to liberalize the existing regime, hold fair elections, open markets and other things. All this leads to the irreversible loss of part of the sovereignty of the "needy." The “Beijing consensus” in this sense is much simpler and does not require internal changes from states.
But Is China so good that it is ready to give money for development with minimal requirements?
In the second decade of the 21st century, the Celestial Empire faced difficulties of internal economic development. The main financial flows were directed to the eastern coastal areas of the PRC, which led to a glut in the market in this part of the country and the inability to continue the implementation of infrastructure projects – the basis of Chinese economic growth (reason: it’s simply already built). As a result, China could not find opportunities to change the logic of economic growth, but found new areas of its application – Western China.
Today, China began its turn to the West in order to use a familiar tool for a new round of its own economic growth. However, in the west of the Middle Kingdom met two significant problems.
The first is trade with the EU. The trade turnover of China and Europe is $ 2 billion a day, with more than 90% of trade taking place by sea. At the same time, transcontinental logistics is much more expensive, subsidized by China and does not exceed 1.2% today (it is projected to reach no more than 5% by 2020).
The second problem is the transport of goods and the poverty of markets between the EU and China. At the same time, with the formation of the EAEU, Russia lost its unique trans-Eurasian position, since today it is more profitable to start trains to Kazakhstan and cross the border with Russia in the Orenburg region in order to lead trains to Europe.
As a result, the question arises: “And where is the place for investment and the new world economic order led by China?” In fact, today we are dealing with grandiose self-deception. To start talking about Chinese investment, it is necessary to note a few “buts” that determine international economic relations today.
At first, for 3 years since the announcement of the Silk Road Economic Belt initiative by China, almost no projects have been implemented under this program, which indicates, on the one hand, China’s misunderstanding of its place in the system of international relations at this stage, on the other hand – on creating initiatives for the internal political agenda.
SecondlyDespite the creation by China of the Asian Infrastructure Investment Bank and the Silk Road Fund, which replicate the role of Western funds, China is nevertheless building its global strategy based on Western institutions into which it has successfully integrated since the 1970s.
Thirdly, China is investing in infrastructure projects in Central Asia with the goal of continuing projects in Western China, which does not mean the efficient operation of these stations, logistics centers and airports in the future.
Finally, China's investments involve the purchase of technology and goods directly in China and the inclusion of Chinese firms in the domestic market.
Thus, one cannot exaggerate China's investment opportunities, but one must not underestimate them.