Abstract
Erja Kettunen looks into the One Belt One Road (OBOR) initiative by focusing on policies and regulations for China’s institutional environment for trade. Through understanding the rationalities and motivations behind China’s OBOR initiative, the author analyzes how the OBOR initiative might be changing the multi-scalar governance of trade in the future. Based on the findings through multiple empirical data, the author sketches prospective changes in the regional emphases of China’s trade policy. And by addressing OBOR in the context of multi-scalar trade policies, the chapter provides a framework for understanding the changing institutions affecting cross-border trade in China and beyond.
The author wishes to thank Claes G. Alvstam and Lucía Gómez for valuable comments on an earlier version. Research funding from the Foundation for Economic Education, Finland, and funding for fieldwork in China from the Centre for International Business Studies, School of Business, Economics and Law, University of Gothenburg, Sweden, are gratefully acknowledged.
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Notes
- 1.
The growth rate of China’s real gross domestic product (GDP) was 7.8% in 2013, 7.3% in 2014, 6.9% in 2015, and 6.7% in 2016 (World Bank 2017). China’s merchandise exports declined by 3% in 2015 and further by 8% in 2016, and, at the same time, merchandise imports declined by 14% and 5%, respectively (WTO 2017a).
- 2.
For the list of countries, see FBIC (2016).
- 3.
The AIIB was established by China and 20 countries from Asia and the Middle East in late 2014, and later extended to over 50 member-countries including those from Europe (AIIB 2017).
- 4.
Interview at a support organization, Beijing, October 19, 2016.
- 5.
MFN is a tariffwith Most Favored Nation status, that is, the lowest tariff a country can apply to imports from another country. WTO members are required to grant MFN status to other members.
- 6.
Interview at a vehicle manufacturing company, Chengdu, April 9, 2015.
- 7.
Interview at an IT services company, Chengdu, April 7, 2015.
- 8.
Interview at a software company, Beijing, April 27, 2015.
- 9.
Interview at a support organization, Shanghai, October 26, 2016.
- 10.
Interview at a support organization, Shanghai, November 8, 2016.
- 11.
Interview at an engineering and service company, Shanghai, 19 June 2017.
- 12.
Interview at a support organization, Shanghai, 8 November 2016.
- 13.
Interview at an IT services company, Chengdu, 7 April 2015.
- 14.
It remains unclear, however, whether the company representatives were asked about the concrete procedures at provincial borders, such as any possible payments collected, burdensome paperwork, or any other practices that the cross-provincial checkpoints may have when goods are transported from one province to another. In addition, it may be that the respondents have no direct experience of the matter if their distributors take care of cross-provincial transport.
- 15.
Interview at a support organization, Shanghai, 26 October 2016.
- 16.
Interview at a support organization, Beijing, 19 October 2016.
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Kettunen, E. (2019). The One Belt One Road Initiative and the Changing Multi-scalar Governance of Trade in China. In: Xing, L. (eds) Mapping China’s ‘One Belt One Road’ Initiative. International Political Economy Series. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-92201-0_5
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