Talk on OBOR initiative

UTAR’s Tun Tan Cheng Lock Centre for Social and Policy Studies (TCLC), Belt and Road Strategic Research Centre and Centre for Chinese Studies jointly organised a talk on “One Belt, One Road (OBOR) Initiative” on 26 June 2018 at Kampar Campus.

Titled “From Government-led to Multiple-linkage: the Practical Logic and Deepening Strategy of Belt and Road Initiative (从政府主导走向多元联动：一带一路的实践逻辑与深化策略)”, the talk aimed to provide participants with a deeper understanding of the current and future overall trends of OBOR initiative.

The talk was presented by Shanghai Academy of Social Science Institute of World Economy National and Regional Economic Research Office Deputy Director Dr Sheng Lei. Dr Sheng is currently a researcher for the East China Normal University Institute for Global Innovation and Development. He is mainly engaged in research related to China and global economic transformation, and recently, he has begun to focus on the OBOR’s development strategy, China’s regional economic governance, China’s economic structural reform and the cyclical transformation of the global economy.

Present at the talk were UTAR Vice President for Student Development and Alumni Relations Prof Dr Choong Chee Keong, Institute of Management and Leadership Development (IMLD) Director Prof Dr Cheng Ming Yu, TCLC Chairperson Assoc Prof Dr Chin Yee Mun and Faculty of Business and Finance Dean Dr Au Yong Hui Nee.

Dr Sheng Lei sharing the development of OBOR initiative

“2018 marks the fifth anniversary of the OBOR initiative,” Dr Sheng Lei said and continued, “The OBOR initiative was led by the Chinese government in the previous years. The power of China’s local government and social capital as well as the enthusiasm of enterprises have not been mobilized and it is mainly concentrated on China’s provincial governments. Most of the enterprises involved are China’s state-owned enterprises and large-scale private enterprises. In fact, many of the enterprises, especially the small and medium sized private enterprises (SMEs) still have no clues about the OBOR initiatives and they have no clear direction on how to integrate, take part and promote the OBOR initiative. The lack of integration among local governments, insufficient participation of social capital and the unclear ‘going out’ direction of enterprises have constrained the in-depth development of the OBOR.”

He added, “The current OBOR initiative has completed its planning and distribution stage and it is moving towards a new stage of sustainable development. Hence, it is urgent to mobilise multiple subjects in the new stage of OBOR initiative, especially the local and social forces, to actively integrate and deeply participate in the OBOR initiative.”

He also shared about the importance of the fulcrum city in the multiple-linkage of the new stage of OBOR initiative, which include strategic location that plays a pivotal role for regional and even global urban networks, with significant guiding power, driving force and influence, and a high level of openness as it is a window or bridgehead in the country or region.

He believes that Shanghai and Hong Kong are the best cities to fit for the development of characteristics and conditions of the OBOR initiative. Meantime, the cities would also help to form the “strategic double support” and “development of dual engines” for the OBOR initiative. Strengthening the interaction and cooperation, financial services, shipping services and world city comprehensive service support role between Shanghai and Hong Kong could help in leading the node city along the Silk Road and also all the industrial parks and economic and trade cooperation zones along the entire OBOR.

Dr Sheng Lei (far right) analysing the new direction of Malaysia-China OBOR initiative

“Malaysia has an important strategic position in the OBOR initiative, which is a key country for the Maritime Silk Road and also a bridgehead to enter the ASEAN and Islamic world. Besides that, Malaysia is one of the most enthusiastic and active countries responding to this initiative. Economic ties between Malaysia and China are inseparable. China is the largest trading partner, second largest export market and important source of investment for Malaysia,” he revealed.

He added, “The uncertainty of OBOR cooperation between China and Malaysia is not from the economic level but mainly from the political level—the policy direction of the government. Under the leadership of Malaysia’s new government, there will be an adjustment between China-Malaysia economic cooperation, but China’s investment path in Malaysia will not end there.” He shared about his two major expectations on the adjustment of the China policy by Malaysia’s new government and said, “Firstly, it is the use of normal official interaction as the main channel for Malaysia-China relations, and no longer managing bilateral relations based on personal relationships between leaders. Secondly, reviewing the full open standards of the previous government and using selective criteria to attract Chinese enterprises to invest in Malaysia.”

He suggested, “In the new direction of OBOR cooperation, China should make timely adjustments such as paying close attention to the political stance of Malaysia’s new government, establishing an official communication channel as soon as possible and exchanging issues of concern with both sides. Chinese-funded enterprises should pay more attention to ‘equality and mutual benefit’, hire more local Malaysian employees and gradually export technology to Malaysia. At the same time, Chinese-funded enterprises should also take the initiative to learn and master the local system, culture and rules, form a positive interaction with the local community and pay attention to labour welfare, safety and environmental protection issues. In addition to working with the Malaysian government, it is also necessary to consider more cooperation with local private enterprises.”

As conclusion, Dr Sheng said, “The OBOR initiative is a gradual process from practice to real results and should focus on long-term goals.”

During the Q&A session, Dr Sheng and the audience discussed and exchanged views related to Asian economy, politics, the impact of OBOR initiative on Malaysia’s SMEs, the South China Sea issue, Vietnam’s anti-China protest and Asian values. 

Dr Sheng Lei (middle), Dr Chin (third from right) and Dr Au Yong (far left) with participants from Ipoh