Sunday April 22, 2018

Is China trying to revive the Old Silk Route? Find out!

China’s primary focus on culture and history is a sign that this is a way back to a “normal” economy

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Illustrated map depicting the journey of the Venetian merchant Marco Polo (1254 - 1324) along the silk road to China. Image source: MPI/Getty Images
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  • The attempt to revive Silk Route is to dig back into its past glories and historical achievements
  • In the oasis city of Dunhuang, the ancient Mogao caves are being restored with special care
  • The first International Expo will take place in the Dunhuang city in September 2016 

The project of developing the Silk Route is neither spontaneous nor coincidental. It is a strategic scheme to keep the accusations that Beijing is enjoying the regional dominance owing to its financial stature, at bay. Analysts opined that it is China’s way of sending a message that the One Belt One Road project is an extension of the peace treaties China had made with Asia and Europe in the ancient times. The new project is to honour that Silk Route which remained the connecting route of theirs for centuries.  The Chinese are aiming at the revival of their agreements with Asia and Europe.

The economically boosted city of Beijing. Image Courtesy : Wikimedia Commons
The economically boosted city of Beijing. Image Courtesy : Wikimedia Commons

“The Silk Road has a shared legacy, for not only did it involve China, but many other countries including India, Russia, and Italy,” said E. Jun, the director of the Gansu Provincial Museum in Lanzhou, the capital of Gansu to The Hindu.

In fact, the museums have antics which remind us of India’s Buddhist connect with China. The museum is under construction but the work is progressing at an extremely triumphant rate. A mega theatre is being built, a few miles away, in the area that falls under the Gobi desert. The scale of cultural infrastructure that is being developed is amazing. China’s primary focus on culture and history is a sign that this is a way back to a “normal” economy. At least, that is what they seem to be aiming at.

The Old Silk Route of Indo-China. Image Courtesy : Wikimedia Commons

Mr Wu pointed told The Hindu that the overall contribution of the “culture industry to the total GDP of the city had already crossed the 55 per cent mark last year, and the figure is expected to rise, as plans to develop infrastructure take root.

The historic Mogao Caves. Image Courtesy : Wikimedia Commons
The historic Mogao Caves. Image Courtesy : Wikimedia Commons

However, the critics perceive the work going on to develop the Silk Route through these plans as “cultural overkill”. They are saying that the attempts made by China to revive their cultural heritage by constructing new cultural sites will result in drawing in a flood of tourists to that particular area and the novelty of the Mogao caves will wear off.

-This article is compiled by a staff-writer at NewsGram.

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  • Aparna Gupta

    Its really good if they are trying to revive their agreements with Asia and Europe. This will not only help the financial condition of China but also of Asia and Europe.

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China And Russia Accused of Manipulating Their Currencies By Trump

Donald Trump to accuse China and Russia as their currency manipulators

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Donald Trump is the President of U.S.
FILE IMAGE- Donald Trump

U.S. President Donald Trump said on Monday it is unacceptable that Russia and China are devaluating their currencies, days after the Treasury Department declined to label these countries as currency manipulators in its latest report.

Amid a possible new round of sanctions against Russia and a simmering trade war with China, Trump tweeted Monday morning, “Russia and China are playing the Currency Devaluation game as the U.S. keeps raising interest rates. Not acceptable!

In general, when a country artificially devaluates its currency, its exports become cheaper and more competitive in the global marketplace.

The currencies of U.S, China and Russia.
FILE – The U.S. dollar, Indonesian rupiah and Chinese renminbi currencies are displayed in the poster of a money exchange shop in Jakarta, June 12, 2013. VOA

During his presidential campaign, Trump has repeatedly accused China of lowering the value of its currency and vowed to formally label China as a currency manipulator, but so far has failed to do so.

White House Press Secretary Sarah Sanders says the administration is closely watching China’s currency practices. “That’s something that the Treasury Department is watching very closely and we’re continuing to monitor it,” she said Monday.

In a semiannual report titled “Macroeconomic and Foreign Exchange Policies of Major Trading Partners of the United States” released last Friday, the Treasury Department did not designate China as a currency manipulator, but put it as one of the six countries on a monitoring list. The other five countries on the list are Japan, Korea, India, Germany, and Switzerland. Russia is not on the monitoring list. The Chinese currency, the renminbi, has appreciated over 3 percent against the dollar since the beginning of this year, after strengthening by over 6 percent in 2017.

Also Read: Trump: US ‘Being Stolen’ by Illegal Migrants

Brad Setser,a senior fellow at the Council on Foreign Relations and a former Treasury Department official said in an interview with VOA he does not think it is an accurate complaint that Russia and China are playing the currency game.

“The Russian ruble was actually quite stable before the sanctions on Russia were intensified. It’s quite clear the volatility in the ruble is a function of the intensification of U.S. sanctions, a sign that the sanctions are biting,” he explained.

Setser said over the past several months, the Chinese yuan has actually appreciated, and China has not been intervening heavily.

“There are plenty of things to criticize China for on trade, but right now, there’s no real basis for criticizing China on currency,” he noted.

Russia's Central Bank Chief.
Russia’s Central bank chief Elvira Nabiullina presents the new 2,000 and 200 ruble banknotes in Moscow on Oct. 12, 2017. VOA

In the past three years, the Federal Reserve raised interest rate six times to a range between 1.5 percent and 1.75 percent, and said they expect to raise the rate two or three more times this year.

Usually, when a country raises its interest rates, the value of its currency rises, making its exports more expensive and less competitive. However, higher U.S. interest rates have not raised the value of the dollar.

“The interesting puzzle that the market has been pondering for the past several months is that the dollar has actually weakened even as the U.S. has raised rates, and even as U.S. passed legislation to expand the fiscal deficit,” Setser said.

Also Read: This Way China Can Help India In The Terms of Artificial Intelligence

Former Deputy Assistant Secretary for International Economic Analysis at the Treasury Department Setser stressed the United States should not label China as a currency manipulator at this moment.

“It would undermine the United States’ credibility to name China at a point in time when there is no plausible case that China is managing its exchange rate in a way that is adverse to the U.S. interest,” he said.  VOA