By Anadolu Agency
September 12, 2023 7:08 amANKARA
The agreement between a group of countries at the G-20 summit on a new corridor that will connect the Indo-Pacific region to the Middle East and Europe raised the geopolitical competition that will be seen among several transportation corridors led by China and other powers.
The competition and struggle for influence between China and the US in many areas, especially in technology, trade and regional activity, has been growing recently.
While tensions between Beijing and Washington are rising with their statements on Taiwan, the reciprocal steps taken by the two countries in various fields are making tensions to come to the fore even more.
The US continues its efforts to develop alliance and partnership ties with countries in the region to create a balance against China’s growing influence in the Asia-Pacific.
Sovereignty disputes in the South China Sea, which often turn into tensions between the riparian countries, are bringing other countries in the region closer to the US due to China’s growing military presence and interventionist attitude in the region.
Besides regional influence, there are also a number of tensions between the two countries in the technological field. The competition between the US administration and China, especially in the field of chip production, has been heating up recently.
Washington has taken a number of steps to block China’s access to chips and the equipment used in their production, citing “national security.” In recent years, the US has imposed restrictions on the import and use of products from some Chinese technology companies, especially Huawei.
Meanwhile, although it has not yet been confirmed by the authorities, reports that China has banned the use of iPhones by public employees surfaced in the international press last week.
Deal on establishment of India-Middle East-Europe Economic Corridor
While the growing competition and struggle for influence between the US and China in many areas are on the agenda, another step, which will anger the Beijing administration, was taken at the G-20 summit hosted by India on Sept. 9-10.
At the summit, a memorandum of understanding was signed between India, the US, Saudi Arabia, the United Arab Emirates, France, Germany, Italy, and the EU on the establishment of the India-Middle East-Europe Economic Corridor (IMEC), which will help increase trade, provide energy resources, and develop digital connectivity.
While the countries signing the memorandum did not make a binding financial commitment, they agreed to prepare an “action plan” for the creation of the corridor within two months.
The project, which has been compared to the old Spice Road, will start from Mumbai, India, and reach the port in Dubai, the UAE by sea, and from there to Al Gheweifat district by iron.
It will then pass through the Haradh district of Saudi Arabia and the city of Riyadh, reaching Jordan, and then the Israeli port city of Haifa.
The products that will be taken from Haifa to Greece’s port of Piraeus by sea will be transported to Europe by land from here.
If the project is implemented, the existing route used for product trade between India and Europe will be shortened by about 40%.
China’s Belt and Road Initiative
The India-Middle East-Europe Economic Corridor brought to the agenda the future and effectiveness of the Belt and Road Initiative project, which aims to increase Beijing’s trade with Central Asia, Europe, the Middle East, and Africa.
The initiative, announced by Chinese President Xi Jinping during his visit to Kazakhstan in 2013, is called China’s “Marshall Plan.”
The project, in which more than 150 countries and international organizations have had a share in the last 10 years, aims to increase Beijing’s commercial power in the area covering two-third of the world’s population.
It covers the rail and land routes as well as the seaway, drawing attention as it is an initiative that connects China to the world.
This corridor, which is estimated to cover more than 2,600 projects in more than 100 countries, consists of six main routes.
One of these routes is the project called the Middle Corridor Initiative, which starts from Türkiye and reaches all the way to China.
It reaches Georgia, Azerbaijan and the Caspian Sea respectively by rail and land connections from Türkiye, and from here by following the route of Turkmenistan, Uzbekistan, Kyrgyzstan, and Kazakhstan using the Caspian crossing to China.
The Belt and Road Initiative is projected to increase the world trade volume by more than 6%.
Experts estimate that the money China will spend on this initiative could reach up to $1.3 trillion by 2027.
Some countries consider the project as a “great economic opportunity,” while others consider it “dangerous.”
Thanks to the initiative, it is stated that China has increased both political and commercial relations with countries in the Middle East and Africa, and its influence in the region has noticeably risen.
International North-South Transport Corridor
Another project that India is leading in the region is the International North-South Transport Corridor, which it is trying to mature into Russia.
On Sept. 12, 2000, the International North-South Transport Corridor was established with the agreement signed between Russia, Iran and India.
In the following years, 10 other countries, including Azerbaijan and Türkiye, joined this project.
With the North-South Transport Corridor, it is aimed to reduce the transportation duration of cargo going from India to Russia, as well as to Northern and Western Europe.
This corridor, which has not yet been fully constructed, has an important place for bilateral and trade relations between Russia and Iran, which are the targets of Western sanctions.
Rise of China, Indian alternative
After the announcement of the IMEC agreement, it has been speculated in the international media that with the project the West aims to develop an alternative to China’s Belt And Road Initiative by winning over India.
If implemented, the IMEC will also serve, from the US perspective, to strengthen the trade relations of its partners in the Middle East with India instead of China.
The development of trade and political relations between the Gulf countries and China in recent years has been carefully monitored by the Washington administration.
We use cookies on our website to give you a better experience, improve performance, and for analytics. For more information, please see our Cookie Policy By clicking “Accept” you agree to our use of cookies.
Read More