CHINAREPORT I June 2017 1
EDITORIAL
Published by China News Service
Publisher: Zhang Xinxin
Executive Director:
Zhang Xinxin
Editor-in-Chief: Peng Weixiang
Deputy Editor-in-Chief: Zheng Zhonghai
Editorial Office
Copy Editors: James Palmer, Frank Hersey
Lead Writers: Yu Xiaodong, Li Jia
Senior Editor: Wang Yan
Editors: Xie Ying, Du Guodong, Yi Ziyi, Han
Bingbin, Xu Mouquan, Zhang Qingchen
Consultant Editor: Chen Shirong
First Reader: Sean Silbert
Address: 5th Floor, 12 Baiwanzhuang South
Street, Xicheng District, Beijing, China
Post Code: 100037
Tel: 86-10-
Fax: 86-10-
Email: [email protected]
Website: http://www.ChinaReportmag.com
Art Department
Art Director: Wu Shangwen
Art Editor/Designer: Zhang Dawei
Marketing/Advertising/Subscription
Foremost 4 Media
Managing Director: Chen Shirong
Email: [email protected]
Tel: 44-79-4750-
44-79-2368-
Website: http://www.fm4media.com
Marketing Office in China
Director: Wang Chenbo
Account Manager: Ren Jie
Tel: 86-10-
Circulation Manager: Yu Lina
Tel: 86-10-
London Office: Zhou Zhaojun
Paris Office: Long Jianwu
Moscow Office: Wang Xiujun
New York Office: Tan Hongwei, Liao Pan,
Deng Min
Washington Office: Zhang Weiran, Diao Haiyang
Los Angeles Office: Zhang Shuo
San Francisco Office: Liu Dan
Houston Office: Wang Huan
Toronto Office: Xu Changan
Tokyo Office: Wang Jian
Bangkok Office: Yu Xianlun
Kuala Lumpur Office: Zhao Shengyu
Manila Office: Zhang Ming
Berlin Office: Peng Dawei
Sydney Office: Lai Hailong
Brussels Office: Shen Chen
Astana Office: Wen Longjie
Rio de Janeiro Office: Mo Chengxiong
Johannesburg Office: Song Fangcan
Jakarta Office: Gu Shihong
Kathmandu Office: Fu Yongkang
Legal Adviser: Allen Wu
ISSN 2053-未标题-1 1 16-9-21 下午10:
T
he Belt and Road Initiative (BRI) has
been deemed China’s most important
foreign policy project since it was first
proposed in 2013. With the conclusion of the high
profile Belt and Road Forum
for International Coopera-
tion, the initiative has gained
new momentum. While the
initiative is often perceived as
a diplomatic effort, it also has
domestic significance. The au-
thorities should take advantage
of the opportunity provided by
the initiative to push forward a
reform agenda, which, in turn,
could foster the success of the
BRI.
With its focus on Central
Asia, one objective of the BRI
is to address China’s own un-
balanced regional development, by linking China’s
less prosperous inland and western regions to the
external market. In a 2015 guideline, the govern-
ment outlined six domestic “economic corridors”
that would be connected to the BRI, which in-
clude 18 provinces and regions, 13 of them inland.
The far western region of Xinjiang, for example,
is identified as the “core” region of the Silk Road
economic belt.
To achieve this goal, China needs to make seri-
ous efforts to push forward local reforms in these
inland areas. Compared to the prosperous eastern
coast, where economic development has nurtured
a more efficient and transparent governance struc-
ture, the quality of governance in the inland and
western regions has lagged far behind.
As the BRI aims to improve regional integra-
tion and connectivity between China and other
countries along the Belt and Road, China must
first promote internal integration and connectivitybetween these regions by improving the quality, ef-
ficiency and transparency of governance. Given the
strong backing of top leadership for the BRI, the
government should take the opportunity to tackle
these issues in relevant regions.
Besides regional disparities,
the government should also
take greater efforts to address
the relationship between the
State-owned sector and the
private sector. It has long been
argued that a major problem
with China’s economy is the
predominant role enjoyed
by the State-owned enter-
prises, as the private sector is
excluded from many major
industries. The central leader-
ship has previously pledged to
push forward market-centered
reform, but progress appears to be slow to come.
So far, State-owned companies have also played
a dominant role in the BRI. But the government
must realise that the active participation of the pri-
vate sector is needed for the BRI to succeed.
Instead of relying on State-owned enterprises,
whose investment decisions are often influenced
by political factors, the government should create
a better business environment to encourage pri-
vate companies to participate based on their own
interests. Only in this way can the BRI be sustain-
able and genuinely beneficial to both China and
its partners.
The BRI provides China with a golden chance
to kill two birds with one stone by combining its
foreign policy, economic and reform agendas. Not
only can China create a source of new growth, it
could make breakthroughs in its much-desired re-
form and restructuring to secure a more sustainable
future for both China and the world.Belt and Road Initiative is a chance for China
to deepen reform
The government
should create a better
business environment
to encourage private
companies to participate
based on their own
interests