Commentary
Evan A. Feigenbaum
{
"authors": [
"Evan A. Feigenbaum"
],
"type": "legacyinthemedia",
"centerAffiliationAll": "dc",
"centers": [
"Carnegie Endowment for International Peace",
"Carnegie China"
],
"collections": [
"Belt and Road Initiative"
],
"englishNewsletterAll": "asia",
"nonEnglishNewsletterAll": "",
"primaryCenter": "Carnegie Endowment for International Peace",
"programAffiliation": "AP",
"programs": [
"Asia"
],
"projects": [],
"regions": [
"East Asia",
"China",
"Central Asia",
"Turkmenistan"
],
"topics": [
"Economy",
"Foreign Policy"
]
}
Source: Getty
In The Media
China Didn’t Invent Asian Connectivity, May, 14, 2017
China hopes to use three strengths to make the Belt and Road Initiative a success: its large foreign exchange reserves, dominance in certain infrastructure fields, and unique forms of state backed project finance.
Published on May 14, 2017
Source: CNBC
Speaking on CNBC, Carnegie’s Evan Feigenbaum explained that China already had major projects underway in Central Asia even before announcing its “One Belt One Road” (OBOR) plan. He noted that China has “upped the game,” in terms of connectivity, but it did not invent the concept of Asian connectivity. This idea, he said, has a long history; it did not begin in 2013 nor, he added, did it spring from the mind of Xi Jinping like Athena emerging from Zeus’s head. Instead, he argued, it needs to be looked at organically as the product of the actions and choices of many players in Asia, including Japan, India, and the international financial institutions.
Feigenbaum argued that China hopes to leverage three main strengths to make its OBOR strategy a success. First, he said, the government has access to a “huge pile” of foreign exchange reserves that it hopes to leverage by ploughing it into direct investments and infrastructure projects; thus vehicles like the Chinese Silk Road Fund are capitalized in part or in whole by the state foreign exchange administrator. Second, Chinese companies dominate certain areas of infrastructure, for example hydropower. Finally, he said, China can employ unique forms of state backed project finance—a model that Beijing knows few other countries or banks can compete with. One area to watch, he noted, is the degree to which China uses OBOR projects to export its indigenous engineering standards and thus make them de facto global standards.
The United States, Feigenbaum continued, is missing in action on connectivity in Asia; it is reactive instead of proactive and on defense instead of offense. He contended that Washington needs to think about how to better deploy its strengths rather than an apples to apples approach to China’s initiatives. The United States has a different model, distinct strengths, more leverage than it thinks, he continued, and doesn’t do state-backed China-style project finance. But ultimately, he said, the inevitably more integrated Asia is making the United States less relevant in large swathes of the region except as a security provider. So Washington had better figure out how to get more skin in the game, and quick, he concluded.
About the Author
Evan A. Feigenbaum
Vice President for Studies
Evan A. Feigenbaum is vice president for studies at the Carnegie Endowment for International Peace, where he oversees work at its offices in Washington, New Delhi, and Singapore on a dynamic region encompassing both East Asia and South Asia. He served twice as Deputy Assistant Secretary of State and advised two Secretaries of State and a former Treasury Secretary on Asia.
- Is the Shanghai Cooperation Organisation Performance Art or Meaningful Collaboration?
- In Its Iran War Debate, Washington Has Lost the Plot in AsiaCommentary
Evan A. Feigenbaum
Recent Work
Carnegie does not take institutional positions on public policy issues; the views represented herein are those of the author(s) and do not necessarily reflect the views of Carnegie, its staff, or its trustees.
More Work from Carnegie Endowment for International Peace
- Turning Russian Assets into Financing for Ukraine NowCommentary
Funding Ukraine remains a priority for European leaders. As Russia’s war of aggression heads into another winter, two feasible options to mobilize support for Kyiv should be fast-tracked.
Vladyslav Rashkovan, Gregory P. Wilson
- Stalled at the Front, Russia Seeks to Undermine Ukraine’s Economic CapacityCommentary
Russian strikes are weakening the economy sustaining Ukraine’s war effort. Closing the growing funding gap will require more European support and politically contentious reforms in Kyiv.
Balázs Jarábik
- The EU’s Middle-Power PuzzleCommentary
While the EU and European governments are embracing the much-lauded middle-power moment, this entails three difficult conundrums.
Richard Youngs
- California’s Middle Power MomentPaper
The middle power moment will not be defined by sovereign states alone, and California stands out for its potential contributions to international cooperation.
Ian Klaus, Stewart Patrick
- Turkmenistan’s Ruling Duo Is Having a Family Feud. Will Their Regime Survive It?Commentary
Ex-president Gurbanguly Berdimuhamedov remains interested in politics, but his son Serdar, Turkmenistan’s current president, is becoming increasingly independent and willing to break with his father’s legacy. If their covert rivalry goes too far, both risk losing power.
Galiya Ibragimova
