Wednesday February 20, 2019

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

1
//
Illustrated map depicting the journey of the Venetian merchant Marco Polo (1254 - 1324) along the silk road to China. Image source: MPI/Getty Images
  • 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.

ALSO READ:

  • 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.

Next Story

Chinese Police Catches Hold of $1.5 Billion Money in Online Lending Scandal

The internet has helped financial platforms attract money from financial novices with little knowledge of the risks involved.

0
China
Chinese policemen watch as depositors from Ezubao gather outside the State Bureau for Letters and Calls Reception Division office in Beijing, Jan. 1, 2016. China's policy ministry says it investigated 380 online lenders following an avalanche of scandals. VOA

Chinese police have investigated 380 online lenders and frozen $1.5 billion in assets following an avalanche of scandals in the huge but lightly regulated industry, the government announced Monday.

Beijing allowed a private finance industry to flourish in order to supply credit to entrepreneurs and households that aren’t served by the state-run banking system. But that threatens to become a liability for the ruling Communist Party after bankruptcies and fraud cases prompted protests and complaints of official indifference to small investors.

The police ministry said it launched the investigation because person-to-person, or P2P, lending was increasingly risky and rife with complaints about fraud, mismanagement and waste.

china
The police ministry said it launched the investigation because person-to-person, or P2P, lending was increasingly risky and rife with complaints about fraud, mismanagement and waste. Pixabay

The ministry gave no details of arrests but said more than 100 executives were being sought by investigators and some had fled abroad. It said authorities seized or froze 10 billion yuan ($1.5 billion) but gave no indication how much might be returned to depositors.

Police say some lenders and investment vehicles were brazenly fraudulent, while others collapsed after inexperienced founders failed to manage risk.

Monday’s statement said P2P lenders were investigated for complaints including wasting money, reporting phony investment plans and using illegal tactics to raise money.

Lending through online platforms grew by triple digits annually until 2017 when regulators tightened controls.

Depositors lent 1.9 trillion yuan ($280 billion) last year, but that was down by 50 percent from 2017, according to the Shenzhen Qiancheng Internet Finance Research Institute.

china
The internet has helped financial platforms attract money from financial novices with little knowledge of the risks involved. Pixabay

The outstanding loan balance stood at 1.2 trillion yuan ($177 billion) at the end of 2018, down 25 percent from a year earlier, according to Diyi Wangdai, a web site that reports on the industry.

P2P lenders are part of a privately run Chinese finance industry the national bank regulator estimated in 2015 had grown to $1.5 trillion.

The internet has helped financial platforms attract money from financial novices with little knowledge of the risks involved.

Many lend to factories and retailers or invest in restaurants, car washes and other businesses. But inexperience and poor risk control means a downturn in business conditions can bankrupt them.

Also Read: Sales of Smart Feature Phones Expected To Be About $28 Billion Over Next Three Years

Finance as a whole has come under tougher scrutiny after a 2015 plunge in stock prices led to accusations of insider trading and other offenses.

In one of China’s biggest financial scams, authorities say depositors lost 50 billion yuan ($7.7 billion) in online lender Ezubo before it was seized by regulators in 2015.

The founder and his brother were sentenced to life in prison in 2017. (VOA)