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Improved Connectivity and Reshaping of Trade Relations Leading to New Growth Opportunities
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China envisions the revival of the ancient Silk Road, which previously facilitated trade with nations across Persia, Central Asia, and Europe for over 2,000 years, as a catalyst to unify both local and international markets through trade activities and trade routes. The introduction of the One Belt, One Road Initiative in 2013 seeks to develop a network of road and rail routes as well as pipelines that will connect China, Central Asia, West Asia, the Middle East, and Europe. OBOR includes the development of maritime routes, ports, and other infrastructure development projects connecting China with Southeast Asia and Europe to improve intercontinental maritime and land routes, logistics infrastructure, and facilitate trade. This study examines the development of OBOR, also known as the Belt and Road Initiative (BRI), provides insights on the strategic imperative of the initiative to China, shifts in the global economy due to enhanced connectivity and new trade relations, and their impact across various industries, trade, and economic scenarios. New trade routes are likely to be formed under the OBOR Initiative, which will provide opportunities for landlocked regions to gain better access to ports and alternative transportation modes, decreasing the dependency on a single mode of transport such as sea or road. OBOR will aid the trade growth of emerging nations and industries, both within and along the economic corridors. Major industrial segments that will benefit from OBOR include textiles, electronics components, and automotive. China is supporting Central Asian nations to develop their infrastructure, especially energy-related infrastructure and build strategic partnerships with Russia.
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