As China enters the 'New Era', its Belt and Road (B&R) initiative champions a new wave of balanced globalisation that Shanghai can lead, argues Huang Renwei 黄仁伟 Fudan University Belt and Road and Global Governance Research Institute professor and executive vice president and Shanghai Academy of Social Sciences researcher.
'New Era' and the new wave of globalisation are two sides of the same coin, says Huang. Both emphasise regional development cooperation, the need to close the gap between rural and urban areas and people's living standards.
For China's domestic economic reforms and transformation to be successful, asserts Huang, they need to be matched by similar trends globally. B&R's significance therefore transcends the construction of roads to an initiative that covers domestic and global markets, shapes overall development arrangements of China and the world and promotes integration of resources at home and abroad.
At the same time, says Huang, B&R addresses the flaws of the current wave of globalisation and counteracts populism and protectionism by fighting
- imbalance between the virtual and real economies
- bloated status of hot money in the face of shrinking real investments
- polarisation of global wealth
Boasting a pilot free trade zone, combining the 'four essentials'—economy, finance, trade and shipping—and as a centre for scientific innovation, Shanghai is in an ideal position to lead the 'New Era' B&R initiative. Geographically, too, it is in a uniquely favourable situation, Huang points out. After all, it is merging point for
- three Yangtze river economic zones
- B&R's land route
- B&R's maritime route
In that context, Fudan University's new Belt and Road and Global Governance Institute will be a crucial source of B&R expertise for the state, enterprises and society, says Huang. By covering issues comprehensively rather than just concentrating on security, economy or science, the institute is in the spirit of Shanghai's services to B&R, says Huang.