Why should the world listen to President Xi Jinping?

May, 2, 2022

By Prof. Samitha Hettige

The Belt and Road Initiative (BRI) is the 21st century Silk Road launched in 2013. The ancient Silk Road and the Maritime Silk Road which took Chinese produce to the world and vice versa was the first ever global economic expansion drive which took place before Columbus reached the Red Indians (founding of USA). BRI is a transnational development drive initiated by the Peoples Republic of China (PRC) under the leadership of President Xi Jinping. It is the tool developing countries and multilateral organizations can use for global poverty alleviation especially at this hour of crisis. China’s economic dual circulation policy which means developing its internal trade and expanding external trade with the surplus with win-win cooperation has developed partnerships with more than 140 states and international organizations. The BRI connected organizations have so far invested more than 150 billion USD among partners as FDI s and traded to the value of more than 10 trillion USD with the BRI partners (China stats). The BRI was the life line for many countries even in the EU during the pandemic days. With global trading and investments taking place along the BRI in unprecedented scales it is very important for China to monitor and regulated capital expansions within China and along the BRI.

President Xi Jinping recently urged further guidance and regulatory measures against disorderly expansion of capital in China. It is a crucial lesson for struggling countries such as SL who did not guide or regulate its economy properly during the past few months (not to mention since 1948). President Xi who is often referred to as the 21st century emperor by western media with the rise of China as a global power, also stressed the need for better market supervision to create "fair competition" for all sorts of capitals accessing the country's market. While recognizing that capital is an important force to promote social productive forces, Chinese leader in his address to the Political Bureau of the Communist Party Central Committee also stated that capitals are by nature profit magnets and if not regulated and restrained, they will bring immeasurable harm to economic and social development. In essence he wanted healthy development of capital. The President urged capital development in China in accordance with the law aiming new economic models which features higher-level opening-up which will attract more advanced technology and capital to the PRC and BRI at large (Chinese media).

SL has been experiencing a socialist market economy since 1948 and the current state is very critical. It is therefore, good to learn fast from friends like China and act fast. President Xi’s views on regulating and guiding the development of capital should be taken seriously as it is not only a major economic issue, but also has become a major political issue which seems to be heading to anarchy and chaos. That in turn may seriously affect national security and social stability. If SL is to prevent conflicts SL will have to implement supervision mechanisms ensuring fair competition but all potential barriers for capitals inflows should be removed with irreversible gazettes. The GCEC act drafted by the late Lalith Athulathmudali is more than enough to take the first steps. In fact China studied same before opening its economy.

Parts of China were occupied by the western and eastern powers even as late as 1910. Hence, China should be worried about others colonizing China in the 21st century but, they have managed to develop fine market environments to attract foreign capital more than any other nation since 1949. At the same time Chinese companies are going global with FDIs. These are good case studies for SL. So far SL treated China as a last resort family elder who would console when in crisis. Those who criticize China helping SL when in trouble hardly speak anything bad about the money lending terms and conditions of the West, ADB and Japan etc. who have lend more money to SL than China. For some, China helping SL to repay loans taken from China is also a bad act. That attitude should change. SL should offer scientificity and accuracy to the outside world. Then it can attract more FDIs. Few notable Chinese investments along the BRI include; the Piraeus Port in Europe, Serbian Steel Industry, Belarus Industrial park, Water supply in Senegal, Rail road in Laos, Central Business District of Egypt, China EU freight trains, Metro in Pakistan (CPEC), Multipurpose dam in Argentina and the Colombo port city. All these are Chinese capital movements to eradicate global poverty and usher peace. It is the exact opposite of USA and west arming Ukraine to destroy itself and creating global economic crisis.

The scent of a Rose will always stay on the hand of the giver – Chinese proverb.

 

(The writer is an Academic and a Broadcaster. Views expressed are personal and may not necessarily be the views of his affiliations.)

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