Challenges

Li Xiangyang (Director of the National Institute of International Strategy under the Chinese Academy of Social Sciences): There will be many challenges during the establishment of the 21st Century Maritime Silk Road. Domestically, many local governments take the initiative as a chance to obtain government investment and favorable policies. Repeated construction by Chinese cities will result in homogeneous competition among them.

Externally, many obstacles stand in the way both economically and politically. From the economic perspective, some countries along the proposed trade route lack the foundation for economic cooperation with China. Politically, security risks exist in countries along the trade route and political instability in some countries can render previous governments' promises to China void. In addition, intervention from countries outside the region, such as the United States and Japan, will make the proposal difficult to be implemented.

With that being said, difficulties shouldn't stop us from making progress, but a clear awareness of all the pros and cons is required to prevent China from potential risks.

Sameh El-Shahat (CEO of China-i Ltd., a risk management and public diplomacy advisory firm): Chinese companies are going to play the major role in the construction of the 21st Century Maritime Silk Road, but it's important that Chinese companies also understand the risks. A large portion of the risks come from the fact that they are big, generous and friendly, but they lack a way to minimize risks and lack the understanding that the political and cultural situations of the countries around them can change. In response, they need to develop a way of dealing with the people of the countries they live in. They should understand that dealing with the government is important but not the most important thing. Sometimes the government changes, so they need to have a good relationship with local people.

Chinese companies spend significant time obtaining business licenses, but I think a social license is much more important. A social license is not a contract; rather, it's people's approval of your project. Monetary contributions, constructing railways and building hospitals are not enough. The people have to approve of what you are doing.

Another important thing is communication and consultation. Chinese companies need to develop better communication skills. Chinese companies should have Chinese-made value and philosophy to deal with their problems overseas. Right now, they don't have it.

Kanishka Goonewardena (Associate Professor at University of Toronto): First, I think the key criterion for success of the initiative is equality to ensure that the benefits of the initiative are spread among ordinary people, even people that were previously margined. Sometimes, with social disparities, economic development does not suit everyone. So the problem lies in how to spread benefits of the initiative throughout the population. Equitable planning to ensure social justice will be essential. It will make the initiative more appealing to countries along the 21st Century Maritime Silk Road.

Second, when talking about the initiative, China always emphasizes mutual benefits and inclusiveness. However, in a world that's still highly divided between the rich and the poor, China should carefully elaborate on those ideas and make the initiative better understood by others.

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