Economy

The Silk Road

The Silk RoadThe Silk Road connected Asia with Europe until the 15th century. Now, the leader of China, Xi Jinping, intends to recover this commercial connectivity through OBOR, a commercial strategy that promises unlimited business opportunities between China and the rest of Europe. Entrepreneurs and the Spanish State must prepare for this.

It was in 2013 when the Chinese President first referred to the strategy “a strip, a route”. We know very well that there are currently two maritime routes of importance to China: the Indian Ocean that reaches West Africa, and of course, the Red Sea that leads to the Mediterranean.

But the most important thing is not only the strengthening of the route that the OBOR proposes, but everything that this Chinese commercial strategy entails. Spain could win a lot, although there is still a lack of planning on the part of the Government and the businesspeople.

What benefits does OBOR bring?

The first thing mentioned in 2014 was the creation of the Silk Road Fund, which started with 40 billion dollars. This is a strategy used by China that only indicates that there is a willingness to invest. Later, it was given greater institutional character by the creation of a directive group of the OBOR in China.

The objectives of Xi Jinping and his Government would be two: to coordinate lasting economic alliances and to break down the obstacles that impede trade between China, Central Asia, Africa and Europe. This would result in an unstoppable cultural exchange.

The intention of China is to basically ensure its economic expansion at the global level, a strategy that has been brewing for several years. The same could be beneficial for European countries, but it is desirable that European products also achieve a position in the wider society of the Asian giant.

Spain must take advantage of it well

The chancelleries of the rest of Europe are already devising an endless number of bilateral cooperation projects. This is a public issue, but in the meantime in Spain it seems that the Government is simply preparing the bases to receive the investment.

At least this is the opinion of economic and political analysts. The correct thing to do is for the Spanish state to come up with a plan that goes beyond opening the floodgates. Even in this scenario, the gains are advantageous and can already be noticed. The projection for the next two years is that the commercial activity with China will be equivalent to 3 billion dollars.

Of course, this strategy of China has its challenges for the Asian country, but in Europe they agree on a fundamental principle: with everything and its current problems, the Chinese economy has much to offer in the present and future.

Nothing is lost

What all analysts agree on is that Spain still has time to build, through state and business planning. In this sense, Rajoy’s visit to China was much more important than it may seem.

With respect to the waterways, the ports of Valencia and Algeciras remain well positioned regarding containers placed by China. Of course, the idea is precisely to do what is necessary to position our products. In summary, it is a good time for all traders, investors and businesspeople to look towards Asia.

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