China’s foreign expansion policy,[1] initiated with Den Xiaoping in 1978, began to give positive results in the 2000s. In the aftermath of the global economic crisis[2] that started in 2008, China surpassed[3] Japan in 2010 and became the second largest economy in the world after the USA[4]. It can be argued that the country’s economy started to grow rapidly due to China’s liberalization steps. With these developments, Beijing has risen to the top of the global supply chain in the following years.[5]
It can be said that since China is the second largest economy[6] in the world and is in a global struggle with the United States of America (USA), it follows more proactive economic policies. In this regard, it can be argued that the Belt and Road Initiative shapes the cornerstone of China’s policies. This initiative has a significant place in China’s goals for the global economy.
Beijing’s global struggle against Washington and the North Atlantic Treaty Organization (NATO) has geopolitical, geostrategic and geoeconomic aspects. Therefore, international developments significantly impact the project and China’s goals. The Russia-Ukraine War[7], which started on February 24, 2022, is the most significant example of this situation.
China’s goal is to strive for an end to the Russia-Ukrainian War and to reactivate the corridor between Russia and Europe. Beijing aims to reduce the burden placed on the Middle Corridor due to the war in question. Because after this war, more than 60% of the goods transported to the West via Russia started to go through the Middle Corridor.[8]
For this reason, it can be said that Beijing approached the Russia-Ukraine War not only regarding its political influence but also in line with its economic interests. Therefore, it can be said that China is putting pressure on Russia to end the war in question. It can be said that Beijing’s action is to reduce or even eliminate the economic cost of the war because it wants the risks and costs to be solved in the context of the Middle Corridor. The solution in question will be possible by making the corridor between Russia and Europe functional again. This situation can only be realized with the establishment of peace in the Russia-Ukraine War.
On the other hand, the West is concerned that Beijing will increase its military strength and accelerate its plans for unification with Taiwan after Chinese President Xi Jinping exceptionally receives his third term mandate.[9] Because the basis of China’s military power is also based on economic power. As Beijing’s economic power increases, it invests more in its military power. In this context, China has decided to increase its budget by more than 7% by 2023. This move will increase China’s total budget to 230 billion dollars.[10]
As a result, Xi’s third-term permit may enable China to achieve many of its economic goals. As the country grows economically, its military capacity is also developing rapidly. In this context, Beijing is trying to end the Russia-Ukraine War in the first place in order to ensure the aforementioned economic growth. In this way, the load on the Middle Corridor will be alleviated, and all corridors in the project will be actively used again.
[1] “China’s Rise Relied on Ties to the West, Which Xi Is Now Loosening”, The New York Times, https://www.nytimes.com/2023/03/23/business/china-xi-jinping-russia-putin.html, (Date of Accession: 06.06.2023).
[2] “As PacWest Shares Dive, Are We Seeing the 2008 Financial Crisis All over Again?”, Cable News Network, https://edition.cnn.com/2023/05/11/business/2008-banking-crisis-comparison/index.html, (Date of Accession: 06.06.2023).
[3] “China Overtakes Japan as World’s Second-Biggest Economy”, British Broadcasting Corporation News, https://www.bbc.com/news/business-12427321, (Date of Accession: 06.06.2023).
[4] “The World’s Largest Economies”, World Data Info, https://www.worlddata.info/largest-economies.php, (Date of Accession: 06.06.2023).
[5] “China’s Dominance in Global Supply Chains”, GMF US Org, https://www.gmfus.org/news/chinas-dominance-global-supply-chains, (Date of Accession: 01.06.2023).
[6] Ibid.
[7] “Ukraine War: How Russia Took The South – And Then Got Stuck”, British Broadcasting Corporation News, https://www.bbc.com/news/world-europe-64718740, (Date of Accession: 06.06.2023).
[8] “The Volume of Cargo On The Trans-Caspian Route Increased 2,5 Times in 2022”, Quotidiano online di Agenzia Nova, https://www.agenzianova.com/en/news/il-volume-delle-merci-sulla-rotta-transcaspica-e-aumentato-di-25-volte-nel-2022/, (Date of Accession: 06.06.2023).
[9] “Xi Jinping Secures Unprecedented Third Term As China’s President In Ceremonial Vote”, Cable News Network World, https://edition.cnn.com/2023/03/09/china/china-xi-jinping-president-third-term-intl-hnk/index.html, (Date of Accession: 06.06.2023).
[10] “China Expands Defense Budget 7.2%, Marking Slight Increase”, Associated Press News, https://apnews.com/article/china-defense-budget-aircraft-carriers-cdac45c8d36a47cffda68be99b7c9ee7, (Date of Accession: 06.06.2023).
