Page 19 - ELITE PLUS MAGAZINE VOL5

‘While domestic infrastructure has been almost completely developed, the New Silk Road initiative to link 63% of the world’s population will give China new opportunities to invest and to penetrate new markets’Thailand signed a bill to participate in the AIIB, and China has pledged almost $50 billion.”The New Silk Road initiative is also brought forward through domestic policies and was on the national agenda during an annual meeting of the National Congress of the Communist Party of China. Provincial governments are preparing for the plans.The AIIB and other funds proposed by the Chinese government differen- tiate China’s new strategy from past ones, Assoc Prof Aksornsri said, as they show China’s ability to support and propel global economic develop- ment. “I would say the Silk Road in the 21st century is a new model of Chinese economic policy. President XiJinping pushed the project forward, and the proposed regional integration conveys significant meaning for China’s political power. This project is multi-dimensional, not limited to a single subject such as the rail project or free trade agreements. This empha- sizes that China’s leadership role is becoming increasingly influential around the world.”Some might contend that the decel- eration of China’s economic growth will make such an expanded role more difficult. Li Zhipeng, a senior official at China’s Ministry of Commerce, explained the new policies by intro- ducing the expression “China’s new normal”.“China’s new normal model was introduced by President Xi Jinping atan international business conference in November 2014,” Mr Li said. “Originally the term was used by an economist, who described the ‘new normal’ as an undesirable and painful recovery state after a crisis in the economy. The president redefined the term as the shift in Chinese economic growth from high to medium speed.”According to data from China’s National Bureau of Statistics, China’s economic growth decreased from 11.6% in 2003-2007 to 9.6% in 2008-2011, while the rate from the first three quarters of 2014 hit 7.4%, the lowest point since 1990. The statistics indicate that Chinese economic growth has reached its saturation point due to changes in demographics, increases in labourElite+ 17