MESSENGER - REIMAGINING THE SILK ROAD

CONTENTS An Outdated Idea -

Rejuvenated in Modern Times

Roman Blood on the Silk Road

P5

P4 P16

Exploring the Hexi Corridor

The Silk Road Economy

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One Belt, One Road

P8

Rebuilding the Ancient Silk Road

P11

Editor’s Message Silk Road Is sue

Reassuring Russia

P12

The Economic Belt’s Transmission Switch

P29 P26 P24 The Nickel City on the Silk Road Wuwei, China’s Wine City Ancient Industry, New Direction

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P14

P17

Traversing the Silk Road

As China’s president Xi Jinping attempts to reignite the vision of a Silk Road economic belt throughout Central Asia and the wider Eurasia region, MESSENGER takes a look at the thinking behind such a project as well as the impact it is likely to have on the region.

As well as taking a closer look at the Hexi Corridor, a key component of the ancient and modern Silk Road route located in China’s western province of Gansu, this issue of MESSENGER aims to shed light upon a concept which is fast becoming President Xi’s defining foreign policy.

Editor-in-chief: Stuart Wiggin

REJUVENATED IN MODERN TIMES

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communication, adding that, “Countries should have full discussions on development strategies and policy responses; (and) work out plans and measures for advancing regional cooperation through consultation in the spirit of seeking common ground while reserving differences.”

As Wang explained, from China’s perspective, “Connectivity of trade is the precondition; connectivity of transport is the foundation; connectivity of policy is the guarantee; connectivity of currency is an important pillar; and connectivity of hearts of people is the source of (the initiative’s) driving force.”

In essence, the idea of the Silk Road Economic Belt is not much more than a massive development project that would span nations in an effort to boost trade, first and foremost, and stability within the region.

The stepping up of policy communication is an ongoing process, bolstered by meetings such as the recent 4th ChinaEurasia Expo, which took place at the start of September. During this year’s Expo, Chinese vice premier Wang Yang outlined the various focuses of the Silk Road Economic Belt; namely, connectivity of policy, transport, trade, currency and the hearts of people.

In reference to the increasing importance that China is attaching to its relationship with Central Asian countries, Dr. Tang Jianqun of the China Institute of International Studies noted that “Whoever controls the Central Asia countries; whoever controls the whole continent can control the whole world.”

he Silk Road, an ancient trading route spanning the Eurasia region which was eventually superseded by a more favorable maritime route, due to inflationary effects, is beginning to gain ground again as an altogether new concept which would see the rejuvenation of the Eurasia region, with Central Asia at its core.

But even the name of the initiative, the new Silk Road, harking back to when silk was China’s main export along ancient route, shows the importance of China’s role in the idea coming to fruition and its leading position within the grand scheme.

Speaking last year in Kazakhstan, as part of a Central Asian tour, Chinese President Xi Jinping said of China and the Central Asian countries that “our strategic goals are the same, which is to ensure sustained and stable economic development, build a prosperous and strong nation and achieve national revitalization.”

According to President Xi, the first step towards achieving such a grand project required stepping up policy 4

Whilst certainly not suggesting that China is seeking to control the Central Asia region, Tang outlined the important fact that the Central Asian nations lie at the center of the Eurasian region and are the key to boosting trade and providing a new “transmission belt” for the revival of the world economy; a fact that is not lost on China’s leadership.

So while the notion of a new Silk Road might appear to be nostalgic rhetoric being employed in the hope of building a sphere of influence within the region (a claim that China would strongly refute), it could actually be the catalyst to a wholesale revival of European economies, a further boon for Chinese growth and a rich opportunity for Central Asian nations to take full advantage of their geographic position within the world economy.

The Silk Road Economy Professor Shen Dingli, Associate Dean of International Studies at Fudan University presents his views on the Silk Road Economy

The reasoning behind the Silk Road Economic belt initiative.

China needs to have a balanced economic development. So far China’s southeast and east have caught up with the Asia Pacific economic development winds, so (those areas) participate more fully in that (field of) international cooperation and globalization and has boosted the Chinese economy.

But that has also generated a problem: imbalanced Chinese domestic economic development.

China needs to address this domestic imbalance. For this we need to tap China’s hinterland and also China’s remote bordering area around Central Asian countries (so as) to fully develop their economic potential. This is for our own domestic interest.

Secondly, globally we see that the European economic zone, the EU, has been integrating more members, now numbering 28, to lift (the zone) to a higher plateau. Central Asia and China’s Xinjiang area have been situated between Asia Pacific economic ring and also European EU integration.

So this middle belt, a vast territorial extension, has not fully achieved its own economic potential which makes the region imbalanced.

Therefore, for our neighboring countries’ development, China needs to take a leadership (role) to initiate regional cooperation which would go beyond the Shanghai Cooperation Organization (SCO), which more attaches importance to political and security dimensions. We need to make the SCO expand its economic scope.

Potential cooperation between China and Central Asian Countries.

This is an area with vast territory; not enough people; vast energy; and a

great potential for agriculture, but no great industries except for those energy industries. People are not sufficiently linked due to the scarce population density and Central Asia’s lack of funds (required) to build up their modern industries. So this is a feature (of the region) and a reality. So what is the potential?

Modern agriculture; modern connectivity through transport; modern telecommunications, and modern finance. But how can we build these up?

If these can be built up, each square kilometer can generate more wealth for Central Asian countries and for Xinjiang. That needs vision first, then financial resources to build the road.

Whether Central Asian countries have enough resources, and (whether) they have the vision, and (whether) they would think this to be cost effective… they may be unconvinced. We need to research this and show them the feasibility (of the initiative) and also shoulder the major financial responsibility because China will probably benefit greatly from building up such a modern Silk Road.

Therefore, we need to initiate the notion to present this to Kazakhstan and spread it to the entire region. At this time, while we do have certain robust energy framework infrastructure already in the region, we also see great potential. Even for agriculture; the vast territory in the region could build a “global food warehouse” but this has not been the reality. The food house is now generated by America and Canada, but why not in Central Asia?

Boosting development in China’s western regions.

Our own western region has been rich in territory, energy and lots of other minerals, but not rich in water; not

rich in populations living in the area.

Therefore, we need to link our own domestic development to this Central Asian neighborhood development.

Now we are doing a lot through China’s “Go West” movement. We are developing China’s own hinterland; our own southwest, Chengdu, Chongqing.

Globally these places are being viewed as China’s next (economic) hub. And we are prepping Xi’an as China’s aviation center and China’s education center and China’s departing point of the new Eurasian railway.

The likelihood of a Free Trade Agreement between China and Central Asia regions.

It’s not an issue of whether we need it or not, it is a global trend; nobody can stop it. Sooner or later it will be there.

Free trade means they would charge fewer tariffs on Chinese exports to their countries. Their people would pay less for more and better products.

A Russian role in the new Silk Road Economic Belt.

We all do things for national interest.

But without a win-win perception, a win-win design, Central Asian countries will not join a new Silk Road. So, we must design the system to benefit these countries, (if not make it) most beneficial to them. And Russia would view this with a similar view; whether this is something that Russia could take advantage of; whether this is something that could derail Russia’s importance from Central Asian countries to make China more attractive.

Therefore, Russia will develop a strategy either to be cooperative or to conquer China’s suggestion. So, for this to be successful, while being aware that Russia’s traditional view is that Central Asia is its backyard, China has to design a system whereby Russia would find a stake from such an economic belt; so it’s not just China benefitting solely. Russia has to be engaged in a collaborative way; therefore, Russia could contribute to the entire business.

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One Belt, One Road

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uring a visit to four separate Central Asia nations in 2013, President Xi Jinping outlined his vision for a revitalized Silk Road economic belt and a 21st Century maritime Silk Road during a speech delivered at Nazarbayev University in Astana, Kazakhstan.

The concept is not a new one, and was first discussed at the start of the 1990s. But there is greater impetus being placed upon the creation of such a route thanks to the modern context that Central Asian nations and China are currently operating within.

Furthermore, President Xi has become inextricably linked to the notion of a new Silk Road, due in no small part to the fact that his home province of Shaanxi was the starting point for the Ancient route.

The ancient Silk Road originally stretched some 6,500 km, and came to being during the Han Dynasty, around 2000 years ago. The northern route connected parts of Russia as well as Kazakhstan, Uzbekistan and Turkmenistan. Trade carried out along the Silk Road was a significant factor in the development of the civilizations of China, India, Persia, Europe and Arabia.

Furthermore, technology, religion and philosophies were exchanged through the routes. President Xi’s vision plays up on this historical trade route, and would involve building and renovating a series of modern roads, railways and harbors in order to ease transport with the ultimate aim of facilitating trade and developing tourism. The nations expected to profit first and foremost from such a concept are understandably China and the Central Asian countries.

During his speech last year, President Xi stated that, “Both China and Central Asian countries are at a crucial stage of development with unprecedented opportunities and challenges. We have all

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set medium to long term development goals based on our national conditions. Our strategic goals are the same, which is to ensure sustained and stable economic development, build a prosperous and strong nation and achieve national revitalization.”

As is rightly inferred from President Xi’s remarks, it is true that Central Asian nations have not yet tapped into their full potential in terms of taking advantage of the resources on offer and the vast territory at hand. Transportation routes and tourism resources are generally under-developed and while a number of Central Asian nations have built up relations and networks for exporting energy, industries outside of the energy sector generally lag far behind. The benefits of undertaking such a project seem obvious to the outside observer.

Meanwhile, the creation of an economic belt throughout the region would also be of great benefit to China over the course of the next several decades and beyond. Dr. Bill Jones, Washington Bureau Chief of the Executive Intelligence Review, points out that the realization of such a concept “is extremely important for China because it’s a natural extension of what has been done with the country’s go west policy.”

Jones points out that China is in “an era of development in which they now must play a more important role in terms of the international economy.

But it’s also important for the world because the world economy is in probably the worst crisis of the last couple of centuries; there is a bright light coming from the Asia Pacific region focused around China and Chinese development and perhaps that will help to pull the world out of what has been a very long period of economic crisis and downturn.”

As China’s GDP growth has slowed, some observers believe that the creation of a Silk Road economic belt could stimulate domestic demand and prop up the country’s exports. As alluded to above, a new Silk Road would benefit many countries other than China,

suggesting that demand for the creation of such a project would be high in Europe and elsewhere. But Jones warns against expecting too much at such a relatively early stage. “(A Silk Road economic belt) represents a trajectory that the world can start to go on but it’s not going to happen by itself. And China can’t do everything itself; it is a part of the world economy,” Jones remarks. “The Europeans and the Americans must also begin to reorient their own activity towards policies of economic growth and get rid of some of the pent-up debt that has accumulated in the system, which is really wearing it down.

I think in terms of looking at the world as a whole, the idea of the two Silk Roads is a trajectory that breeds optimism for most of the world that they must do things to try and bring their own economies on the track of development. If that occurs of course, then Europe becomes not only a very important market for China but also an important source of new capital for building and improving infrastructure in the area. And for the countries of Central Asia, this represents the possibility for building the type of infrastructure (and) new projects that are needed to bring up the standard of living in those countries to the level of the modern era.”

Though Jones rightly points out that China cannot do everything itself to bring about such a concept, some have called for China to shoulder the main burden of responsibility in establishing such a route (see page 5). But doing so would almost certainly throw up c h a l lenges to t he cre at ion of such an economic belt.

Dr. Tang Jianqun of the China Institute of International Studies suggests there are two challenges facing the establishment of a new Silk Road. As Dr. Tang explains, the level of trust among the countries concerned, especially those members of the Shanghai Cooperation Organization, needs to be high in order for any scheme to come to fruition.

PROPOSED NEW SILK ROAD

Moscow

Rotterdam

SILK ROAD NORTHERN ROUTE

Duisburg Venice Athens

Istanbul

Alma-Ata Urumqi Bishkek Samarkand Khorgas Dushanbe

Lanzhou

Teheran

Xian Calcutta

Hanoi

Fujian Guangzhou Haikou

Colombo

Kuala Lumpur

Nairobi

SILK ROAD MARITIME ROUTE

“Some countries sometimes show their worries about (increased) participation of China in activities in this region.

The security cooperation so far has been good, but some countries worry about the in-depth involvement of China in this area.”

Secondly, Dr. Tang believes that political cooperation, or a lack thereof, could prove troublesome going forward, as “Not only Russia but the US and Japan are very cautious nowadays about cooperation between China and the Central Asian countries. They have also realized the importance of the geographical position of Central Asian countries. There (is likely to) be competition among the parties concerned.”

While we are unlikely to see a modernday Scramble for Central Asia, it is more than likely that once the Silk Road project is underway, developed countries will start to take a greater interest in a region which could provide them with real advantages, economic or other wise, and thus start competing for markets.

With regards to Dr. Tang’s first point, China has already sought to assuage

any concerns on the part of Central Asian nations, made most clear by President Xi who noted publicly that “We do not seek to dominate regional affairs or establish any sphere of influence. We stand ready to enhance communication with Russia and all Central Asian countries to strive to build a region of harmony.”

Nonetheless, as is often the case in economics and politics, concerns will remain but at present Central Asian nations have been cooperative with the notion of a new Silk Road because they can see what they stand to gain.

On Dr. Tang’s second point regarding the need for trust, one of the biggest problems for the creation of a Silk Road economic belt is that it is, and will be for an increasingly long period of time, a work in progress throughout a region that has instability at its doorstep (See page 8).

The lack of a comprehensive security framework throughout the region of the planned northern route does not help the project’s cause. Dong Manyuan, vice-president and senior research fellow of the China Institute of

Jakarta

International Studies admits that while frameworks like the Shanghai Cooperation Organization and the China Arab Cooperation Forum are a good start, “they still need to upgrade the function of these frameworks.”

At present, China is the largest trading partner for Kazakhstan and Turkmenistan, and the second largest for Uzbekistan and Kirgizstan. The trading volume between China and the four Central Asian countries increased 13 percent year on year to over 40 billion USD, nearly 100 times that of 1992.

The creation of a new Silk Road and the advantages it would bring would no doubt expand the trade volume and mutual investment scale, suggesting that the concept is one of the much talked about win-win situations that China is so keen to promote.

But the creation of an economic belt will largely depend upon influences beyond the control of China and Central Asia and the benefits extend from infrastructural development, to the possibility of scientific research with regards to energy and fuel.

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The ancient Silk Road was a series of trade routes, covering both land and sea, connecting the East with the West, stretching some 4,000 kilometers, dating back to the Han Dynasty and expanded upon until its disintegration during the 15th Century. The Silk Road traversed China, much of Central Asia and parts of what are now Eastern Europe.

Political and economic interaction took place along the routes, and the extensive trading of Silk gave rise to its name. Today, the Silk Road holds a place on the UNESCO World Heritage list after the Chang’an-Tianshan corridor was designated a World Heritage site in 2014.

Today, the historical significance of the ancient route is extremely important, so much so that Chinese President Xi Jinping has outlined a vision to revive the Silk Road Economic Belt and the Maritime Silk Road in order to serve as a catalyst for development and prosperity and massively boost trade across Eurasia.

The scale of President Xi’s vision is impressive. The “New Silk Road” which he speaks of will apparently start in Xi’an, extending to Lanzhou in Gansu province and Xinjiang in the west of China, which borders Kazakhstan, Pakistan and Afghanistan. The route then runs through much of Central Asia passing through Iran, Iraq, Syria and Turkey. From Istanbul, the route finally extends into Eastern Europe running as far west as the Netherlands.

The route also runs into Italy where it connects with what will hopefully 8

be the reestablished maritime route which is meant to begin in Quanzhou, Fujian province passing through Southeast Asian waters, the Indian Ocean and up past the Horn of Africa into the Mediterranean. Clearly, the project is an ambitious one and almost certainly not easy to achieve, not least because it would require a huge amount of infrastructure which currently is not in place.

regional conflicts playing out within Iraq and Syria.

Details about how the vision will ultimately be achieved are scant at present, but the grand sche already faces a number of issues which are likely to throw a wrench into the plan’s implementation.

Elsewhere within the region, Afghanistan, a country not included on Xi Jinping’s proposed Silk Road route, but one that is within close proximity to a number of countries that do feature, poses another significant challenge to the stability of the region as a whole and thus the success of any kind of Silk Road initiative. Zhao Changhui, chief analyst of the Export-Import Bank of China, has stated that China’s western regions, particularly Xinjiang, will eventually become one of the most prosperous and most important centers along this new belt or Silk Road.

The rebalancing of China’s economy has and is likely to send rippling effects throughout the Asia Pacific region and beyond. Slower growth of the Chinese economy has lowered China’s appetite for raw materials, prompting a drop in commodity prices. Furthermore geopolitical turmoil within countries that are situated on or alongside the designated Silk Road economic belt could prevent the vision from coming to fruition entirely.

Furthermore, Zhao believes that “countries like Afghanistan and Pakistan would be more than happy to join in and that would make for a very inclusive, large but also balanced economic, integrated region.” Xinjiang’s shared border with Afghanistan, and the fact that Afghan instability could indirectly provoke insurgents within Pakistan are ominous reminders that the fate of a Silk Road initiative doesn’t solely rely upon political will.

Geopolitical Turmoil

While events playing out in Syria and Iraq are damaging to the stability of the region, it is unlikely that China will be getting involved any time soon. The situation in Afghanistan is altogether different due to the fact that it shares a border with the restive Xinjiang Uyghur Autonomous Region.

As mentioned above, the proposed Silk Road Economic Belt includes Iran, Iraq, Syria and Turkey. As is obvious to most, the conditions for promoting such a scheme within Iraq and Syria are far from ideal, thanks to the rise of the Islamic militant group known as the Islamic State (IS) and the civil war which is ongoing in Syria. Meanwhile, Iran and Turkey are finding themselves increasingly drawn into the

Chinese efforts to help promote stability, therefore, are not born out of the need to ensure the success of any kind of proposed Silk Road initiative, but

rather to ensure stability within western China. Nonetheless, any stability that can be nurtured within Afghanistan would be beneficial to the implementation of the Silk Road Economic Belt in the future.

Li Qingyan, assistant research fellow at the Chinese Institute of International Studies notes that turbulence in Afghanistan and Pakistan in particular threatens the stability of China’s Xinjiang region, but many are questioning what role China will play in helping to implement and maintain stability within the country.

Li points out that the Chinese government has not and will not send troops into Afghanistan, adding that the so-called war on terror proved “that a military (solution) cannot solve Afghanistan’s problem, and even makes the situation worse and more complicated. China prefers to help the Afghan people realize national reconciliation and economic development. Afghanistan was heavily dependent on external assistance.

Most of its GDP came from the expenses of the coalition forces. (This) cannot be sustainable. Afghanistan badly needed self-development. China has provided much help in construction and infrastructure projects (and) also provides intellectual support for the economic development of the country with FDI (reaching) nearly 500 million yuan.”

In an effort to find a solution to the problems that trouble Afghanistan, and in order to prevent the country from turning into a failed state, The Istanbul Ministerial Process was established, creating a platform for discussion on pressing issues, including security and economic cooperation, among Afghan-

istan, its neighbors and “supporting partners” such as the United Kingdom, the United States of America and the United Nations. This year, at the end of August, the Chinese city of Tianjin hosted the Istanbul Process, underlining the importance that China places on the issue of Afghanistan and regional security.

Alongside China, a number of Central Asian countries are also concerned by the situation. Marvin Weinbaum, Professor Emeritus of political science at the university of Illinois and scholar in residence at the Middle East Institute in Washington DC states, “Every one of (Afghanistan’s neighbors) has a stake in there emerging a stable, unified and prospering Afghanistan. None of the neighbors would profit from an Afghanistan which was in chaos; an Afghanistan in which a radical Islamist element took over.” There is a tangible fear that increased Islamist militant activity within Afghanistan could spill over into neighboring Xinjiang, the lynchpin of any kind of new Silk Road route.

But as Weibaum notes, it isn’t only the shared border which is causing China to take an increasing interest within Afghanistan’s situation. “It’s not because China has a border that this (issue) is important; that border is rather a minimal border. But if Afghanistan should become the site here for a civil war, it will inevitably become a proxy civil war in which several of the neighbors will come to the side of one or the other combatants here in this war.

This is likely to create instability in the area. If the Taliban for example should come out as the victors here, I think China as well as the US and Iran and ultimately Pakistan too, as well as Tajikistan and Uzbekistan, would have to be concerned about that ungoverned territory becoming a launching pad for radical groups that would try to undermine regimes throughout the region.”

A more worrying prospect though is how the situation in Afghanistan could affect Pakistan. According to Weibaum, “Any success on the part of these kinds of (radical Islamist) ele-

ments in Afghanistan would inevitably strengthen the insurgency in Pakistan.

Pakistan is after all of great importance to China and everybody else (with regards) to its stability being assured.”

On the Istanbul Process as a platform, Weibaum believes that it is “valuable going forward” but adds, “I don’t think that this by itself is going to stabilize Afghanistan. But it is in the long run the greatest hope for Afghanistan; that Afghanistan working cooperatively with its neighbors is going to be able to become a viable country economically.” “(Afghanistan) cannot prosper by itself as a landlocked country. But to the extent that other countries can see this as contributing to regional expansion, economic growth, this will be what Afghanistan has to offer – being as it is at a so-called crossroads here. I think (the Istanbul Process) is a valuable exercise, but it’s only to be projected on the future.

Right now there isn’t the kind of security and stability (in place) for the countries to be able to perform in a way which will be very helpful for Afghanistan. Right now, to the extent that Afghanistan is going to have any agreements, they’re going to be more bilateral. That will be important, whether it’s economic or security, this is going to be important. But the general idea of regional cooperation remains a great hope for Afghanistan and its neighbors.”

Whilst Afghanistan is being looked at through a security focused lens, the ramifications on the implementation of any kind of economic initiative within the nearby region are clear, as is the case with IS activity elsewhere in the Middle East. And while China is having an influence on the situation in Afghanistan, according to the tenets of its own foreign policy normative values, ultimately it is depending on the Afghan authorities themselves to deal with the problem, forcing China to sit back and hope that the situation won’t jeopardize stability within China’s western regions and as a result derail any kind of new Silk Road.

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Reassuring Russia

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n September, Chinese President Xi Jinping met with his Russian counterpart Vladimir Putin in Tajikistan as part of the Shanghai Cooperation Organization summit.

During his visit, the Chinese leader proposed building an economic corridor linking China, Mongolia and Russia whilst taking part in a meeting between the three heads of state. The meeting marked the fourth occasion that Xi Jinping and Vladimir Putin have met this year.

During their fourth meeting of 2014, both leaders expressed satisfaction with current bilateral ties and cooperation in various fields, and agreed to push forward major cooperation projects, including the China-Russia West Route natural gas pipeline.

President Xi also tentatively touched upon the situation in Ukraine, though he remained diplomatically cautious of saying too much, stressing a political solution and maintaining China’s own stance on non-interference in the sovereignty of other nations.

Meanwhile, Putin pointed towards new perspectives and possibilities in bilateral cooperation, noting, “The relations between our states are developing very well. We are moving forward with almost all of our big projects. We’re working as per normal, but are also opening new perspectives and new possibilities.”

In agreement of Putin’s comments, President Xi hailed the new progress made in the fields of high-speed rail, satellite navigation, long-range wide-body passenger jets and heavylift helicopters.

“I am willing to maintain close communication with you and help the two sides enhance mutual support, expand two-way openness and offer each other a helping hand, so as to jointly deal with external risks and challenges and realize our respective development and revitalization,” President Xi stated.

Chinese officials are mindful of reas-

suring Russia that the reimagining of the Silk Road throughout the Central Asia region, a notion being pushed forward by President Xi, should not be cause for concern.

On the topic of the SCO summit in Dushanbe, the two leaders pledged joint efforts to steer the development of the organization forward in line with the common interests of the countries in the region. On the same day as their meeting, Xi Jinping and Putin held a trilateral summit with Mongolian President Tsakhiagiin Elbegdorj. Noting that the development strategies of the three neighboring countries are highly compatible, President Xi Jinping proposed constructing an economic corridor linking the three nations.

Xi said both Russia and Mongolia have positively responded to China’s vision on building an economic belt along the Silk Road, while President Putin called on the three countries to strengthen cooperation to make the most of their “geographic proximity.” Putin stated, “Of course the geographical proximity of Mongolia, Russia and the People’s Republic of China allows us to carry out good long-term projects in the spheres of infrastructure, energy and mineral resources. We definitely have things to discuss and we consider the establishment of a permanent dialogue to be important, relevant and useful.”

The three leaders decided to establish a consultation mechanism at the vice foreign ministerial level to coordinate and promote trilateral cooperation. The response from Russia towards the prospect of the Silk Road Economic Belt will no doubt delight the Chinese government but that does not mean it will necessarily be smooth sailing once the concept starts to become a concrete reality.

Professor Zhao Huasheng, Director of the Center for Russian and Central Asian Studies at Fudan University in Shanghai explains, “If you take the notion of the Silk Road Economic Belt as a whole, I cannot see any significant obstacles form the side of Central Asian states, because all of them welcome both political and economic cooperation with China.

But from an economic point of view, when you promote a concrete economic project, maybe there could be different points of view because every state has their (own) priorities, economic advantages and disadvantages. But I do not think these are obstacles but (rather) the natural process in the promotion of any kind of economic project.”

Nonetheless, that natural process will also likely include Russia which will of course have its own point of view on any kind of economic plan that could directly or indirectly affect it.

But as Professor Zhao adds, “China’s cooperation with Central Asian states has nothing to do with Russia. Action and cooperation and the behavior of China in the region (are) not aimed (at) Russia.”

During his visit to Dushanbe, President Xi and his Tajik counterpart Emomali Rahmon attended the construction commencement ceremony of the Tajikistan section of Line-D of the China-Central Asia Gas Pipelines. The 1000-km-long Line-D, one of China’s major energy cooperation projects in Central Asia, will run from Turkmenistan across Uzbekistan, Tajikistan and Kyrgyzstan to China, with an expected delivery capacity of 30 billion cubic meters of natural gas every year once construction is completed in 2016.

The pipeline symbolizes what President Xi hopes to achieve across much of the Central Asia region; a strategic project that will create jobs in Tajikistan, enhance cooperation between the nations and benefit China in the long term.

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The Economic Belt’s Transmission Switch; Gansu Province Contributions by Chen Mo A year has passed since President Xi Jinping revived the notion of the Silk Road Economic Belt and the concept has been researched by officials and administrators located in the towns and cities along the belt, many of which are located in the northwestern part of China. Gansu Province is one of them.

The province is not big in size, but it has been a very important part of the Silk Road since ancient times and is now looking ahead to a better economy.

Lian Ji, head of the Publicity Department for Gansu, says the province can play various roles in the creation and operation of the new economic belt. “In the Silk Road Economic Belt, Gansu is the jewel in the crown. Its geographic position determines its importance in terms of transport, trade and communication. It can help to connect neighboring regions closely.”

Furthermore, Gansu’s local economy is full of potential. “From an economic perspective, Gansu is the energy base

of China. Major industries (operating within the province) include the chemical industry, new energy, manufacturing and agriculture.” In cities like Jiuquan and Dunhuang, solar and wind power is widely used for electricity. The city of Zhangye produces 40 percent of China’s corn seeds and Dingxi sells 800,000 tons of Chinese herbs and medicines every year.

Lian Ji says that in the future Gansu will be more open to other countries based along the Silk Road Economic Belt. Flights connecting its provincial capital city Lanzhou and Central Asia, as well as Western Asia are being planned. Dunhuang airport is also expected to become an international transport conduit. Furthermore, as Lian explains, “According to the macro design of the Silk Road Economic Belt, (Gansu) will pursue further steps to go abroad in order to seek out cooperation and investment through a number of projects.”

However, one of major challenges facing Gansu is the job of maintaining its natural environment. Gansu’s climate is dry and its natural ecosystem is vulnerable to change. In order to develop the economy, taking steps to maintain the environment whilst pursuing sustainable growth is vital.

Li Gang, director of the Heihe Wetland Reserve in Zhangye stresses the importance of environmental protection, warning against becoming obsessed with pure economics. “No matter whether we’re referring to the national economy or our local economy, the ecosystem is the basis. If there is no green environment, there is no reliable economy. Protecting the environment is the greatest development.”

Jinchang city is a typical example of a city which has been successful in the field of environmental protection. The city is one of the world’s leading nickel producers but has also experienced success in terms of developing the economy while protecting the local ecosystem. (See page 24) Gansu was once one of the most prosperous regions in ancient China, especially during the Han Dynasty, around 2000 years ago. Now it works towards the goal of economic revival under the framework of the Silk Road Economic Belt. Based on its natural resources, local industries, its efforts to maintain the environment as well as a developing tourism culture, Gansu will further open its gates to central Asia and other parts of the world in order to welcome a new wave of growth.

The arid landscape of Gansu’s Jiuquan city [Photography: Wang Chuanjun]

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Danxia landform in Zhangye city, Gansu Province [Photo: CFP]

Exploring the Hexi Corridor

China Cultural Media Group have agreed to establish a theme town where tourists can learn about the culture of the Silk Road and partake in artistic communication and cultural exchanges.

Gansu province was once considered one of the most important sections of the ancient Silk Road and today it is fast becoming one of the most important sections on the modern Silk Road Economic Belt thanks to its historical association with the historical trading route. The Hexi Corridor, running northwest from the bank of the Yellow River, marked the trail f o r t h e nor thern route of the Silk Road through the province.

Lian Ji, head of the publicity department in Gansu, noted that the province actively sought to combine cultural industries and tourism in order to build largescale zones or projects which could boast a strong reputation and a visible brand.

Thanks to the attention being placed on the Silk Road Economic Belt within China, the job of developing such reputations and brands and thereby maximizing the area’s commercial potential has been made somewhat easier for the Gansu business community.

The Hexi Corridor was the most important route for traders as they sought to travel to Xinjiang and Central Asia.

The appearance of silk goods in Siberia as early as the first millennium BC was the direct result of traders travelling via the Hexi Corridor.

Today, Gansu’s link to the past as well as its cultural resources and natural geography are helping to drive tourism within this northwesterly province.

The Zhangye Danxia landform, a unique patchwork of multicolored rocks, the result of red sandstone and mineral deposits being laid down over 24 million years, attracts tourists from all around the country. Meanwhile, the Mogao Grottoes in Dunhuang and the Jiayuguan Great Wall pass are also mainstays on the tourist trail.

But according to He Yanhong, the deputy director of investment at the Dunhuang cultural industrial zone, the initiation of the Silk Road Economic Belt concept has propelled development in the area thanks to an emphasis on cultural tourism. The industrial zone has already seen a total investment of 35 billion yuan with 30 projects currently operating within the area.

Elsewhere, the reimagining of the Silk Road is leading to other viable business opportunities thanks to the attention being placed upon the idea of the Silk Road following President Xi Jinping’s revival of the Economic Belt idea. For instance, the city of Jiayuguan and the

Of course, in the process of developing cultural tourism, cultural protection remains a necessary step, especially when dealing with ancient heritage sites.

Officials in Gansu are certainly mindful of this, and over a million yuan has been spent in order to maintain and protect historical and cultural heritages across the province, leading to a new system of assessment and management.

Lian Ji says policies such as carrying out wooden architectural repair, using specialized polishing technique to restore ancient paint, and installing security at the Jiayuguan site and requiring tourists to make reservations before visiting the Mogao Grottoes are just a few examples of the policies that are essential in order to strike a balance between protection and economic interest.

Gansu’s popular tourist sites command a lot of attention whilst also helping to drive development within Gansu alongside the impetus that the Silk Road Economic Belt concept has brought. But there remain a number of cities located within the Hexi Corridor which are worth exploring due to their modern-day situation as well as their links to the ancient Silk Road route.

The following section presents a number of reports on cities situated within the Hexi Corridor which served as important destinations along the Ancient Silk Road. The cities of Wuwei, Jinchang, and the ancient village of Zhelaizhai provide a modern snapshot of an area keen to exploit its rich historical past; posied to take advantage of the opportunities that the modern Silk Road Economic Belt is likely to bring.

The Great Wall of China stretches to Zhangye in China’s western Gansu province [Photography: Lin Hanyu]

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hilst the ancient Silk Road is often credited with the spreading of civilizations and philosophies, there is one location along the ancient route which claims European heritage prior to the route coming into being.

During his most recent visit to China, former heavyweight boxing champion of the world Mike Tyson mentioned when interviewed that he would like to visit a specific Chinese city in the desert where seven-foot-tall Caucasians lived.

Unfortunately for Mike Tyson he is unlikely to ever find that town, but despite being grossly misinformed about the people living there, he was no doubt referring to the ancient city of Liqian, which was once located in what is now the village of Zhelaizhai in Gansu province.

The physical characteristics of Zhelaizhai’s local residents differ when compared to those of China’s vast Han majority.

In the 1950s, Homer Dubs, a professor of Chinese history

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at Oxford University postulated that one of the reasons for this phenomenon could be that Liqian residents are the ancestors of a long lost Roman legion. Whilst translating a historical text outlining China’s Han Dynasty, Dubs found that a township named Liqian was established in Han China in 36BC for the purpose of settling captives. Liqian was the term used in ancient Chinese to denote the Roman Empire.

The story is certainly compelling and has led to much speculation, but DNA tests conducted in the hope of proving such a link have so far been inconclusive.

Nonetheless, the local government is intent on running with the theory in an effort to promote the concept of what was once the ancient city of Liqian to domestic and foreign tourists.

Standing proudly on the site believed to be where the ancient city of Liqian was once situated is a Buddhist temple that is frequented by locals on a daily basis. But the building itself shares more in common with the aesthetics of St. Peter’s Basilica than it does with the Jokhang Temple of Lhasa.

Roman statues adorn a park celebrating Liqian culture [Photography: Lin Hanyu]

Bronze statues of Adonis-like soldiers greet visitors upon their arrival to this place of worship. Roman pillars lining the roadside in a haphazard fashion are a constant reminder to tourists and locals alike of the Roman narrative.

At Yongchang Museum, visitors watch an introductory video to the city of Liqiang featuring scenes from the popular US movie ‘300’ as it attempts to lay out the story of the area’s unique, if not sketchy heritage. As the story goes, in 53 BC the Parthians defeated the Romans in the battle of Carrhae, taking prisoners who later settled on the eastern border before ultimately settling in Liqian.

A guide at the museum is keen to explain that a set of skeleton bones on display, thought to be around 2000 years old, are taller than the average Chinese person, but openly admits that there is little evidence to justify the Roman lineage hypothesis.

For all the talk of Roman ancestry, an article published in the Journal of Human Genetics concluded that Liqiang’s connection with Roman blood could not be proved. But this hasn’t

dampened the spirits of Zhelaizhai’s residents when it comes to bringing in tourists based on the Roman link.

Luo Ying’s family has been living in Zhelaizhai for generations and one third of his fellow villagers have Caucasian physical features, ranging from aquiline noses, blond hair, blue eyes and heights of over 1.82 meters.

“Tourism disturbs our quiet country life. But we can accept that. It has made our life better and better,” explains Luo in reference t o t h e city’s

drive to brand itself as a ChineseRoman tourist destination. “We certainly hope that (more DNA testing can prove t hat we’re of Roman des c e n t b e c aus e i t h e l p s t o p r o m o t e Liqian culture. It has a big impact (on the community).”

But Luo is keen to add that he and his fellow villagers are under no illusion about their ethnicity. “In terms of race, we’re Chinese for sure.”

Whether the claims are true or not, it doesn’t really matter now as the local

government is already too busy promoting the connection to worry about the hypothesis being false. To date, the money invested towards developing Liqian for tourism totals 160 million US dollars and there are even plans for a replica of the Roman Coliseum.

With tourism being one of the key features of a revival of a Silk Road economic belt, it is unlikely that this ancient Silk Road town is going to waver from its Roman road of development.

Luo Ying (left) and Sun Jianjun (right) claim that they are the descendants of Romans [Photography: Lin Hanyu]

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traversing the silk road

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The highway leading to Jiayuguaan, Gansu province [Photography: Cui Chaoqun]

The Yueyaquan Spring sits serenly in Dunhuang, Gansu province [Photography: Lin Hanyu]

Tourists get ready to ride camels on the Mingshashan plains in Dunhuang, Gansu province [Photography: Lin Hanyu]

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Buddhist statues stand peacefully in Maijishan Grottoes, Tianshui, Gansu province [Photography: Lin Hanyu]

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Yugu, Gansu province [Photography: Lin Hanyu]

The Yellow River is illuminated at night by the capital city of Gansu province, Lanzhou [Photography: Cui Chaoqun]

Farmers lay a path in a forest designed to prevent desertification in Jinchang, Gansu province [Photography: Lin Hanyu]

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1. The remains of the ancient pass of Yumenguan in Dunhuang, Gansu province [Photography: Cui Chaoqun] 2. Solar panels sit beneath the Qilian moutains in Jiuquan, Gansu province [Photography: Wang Chuanjun] 3. The ancient pass of Jiayuguan in Gansu province [Photography: Lin Hanyu]

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Modern industrial cities situated along the ancient Silk Road route came into being throughout the second half of the 20th century as China looked to transform its economy by adopting and exploiting heavy industry.

But in many cases, the industrial practices that the so-called new industrial cities employed throughout the 1960s, 70s and 80s negatively impacted the environment, creating major problems for local governments and local populations as the century wore on. This was exactly the case for Jinchang, a city situated in Gansu province, created thanks to the discovery of Jinchuan, the world’s third largest nickel mine.

Nickel plays an important role in industrial production, but its presence as a raw material within China was scarce during the 1950s. As a result of a nickel shortage, China came out on the wrong side of unfair exchange deals, whereby China would outlay a huge amount of high quality agricultural produce in exchange for small amounts of inferior nickel. But the situation changed in 1958 after the discovery of the Jinchuan Nickel Mine, in the Hexi corridor of China.

Pioneers from around the country flocked to the site to develop Jinchuan but the primitive equipment being used hampered exploration efforts. In 1959, the Jinchuan Group was established by the central government in order to bring order to the local marketplace and streamline production methods, though poor equipment and production methods continued to be employed for the next several decades.

But it wasn’t until 1981 that the city of Jinchang was formally established thanks to the activity of the Jinchuan Group, which had since become the nation’s biggest nickel producer. However, as mentioned above, the company utilized methods of extraction and production which damaged the environment at a time when there was very little attention being placed upon environmental protection and even less awareness. Primitive production methods produced a large amount of harmful sulfur dioxide on a daily basis throughout the 80s and 90s.

As the city was a direct result of the Jinchuan factory’s activity, the living areas were in close proximity to the mine in Jinchang. Local people recall that they vividly remember the large amounts of heavy smoke given off by the factory and the pungent smell of sulfur dioxide. One word crops up again and again when people are asked about their impression of the city over the past several decades: lifeless.

As the problem reached a tipping point, the municipal government of Jinchang came to realize that the environment was the only true priceless resource. Without safeguarding the local environment, economic and social development would be restricted.

But for the past three to four decades, officials within the city had put all their focus on the key pillar of Jinchang’s increasing economy, nickel production and the development of the Jinchuan Group.

Wu Mingming, leader of Jinchang Party Commission admitted that, “The exploitation of the resources has contributed to a great deal of industrial waste, causing serious pollution to the environment. If we don’t solve the pollution issue, there will be no conditions under which we can live let alone develop the economy. After more than 50 years of exploitation, the mine can only last another 23 years. Lopsided development has only led to high resource consumption and low output.”

One citizen noted that, “During that time, any trees planted in spring would die in the autumn; and new bicycles would rust over in just several days because of the acidic air; nobody could go outside without a mask and the farmers reaped nothing during harvest season.” These negative factors and the poor quality of life led to many people opting to leave Jinchang, which was also later listed as one of the top ten most heavily polluted cities in China in 2003 and 2004.

The polluted skyline of Jinchang city, China’s biggest nickel producing city [Photography: Cui Chaoqun]

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It was clear to all that the cause of the pollution was the Jinchuan Group; for years the group had utilized an un s cient if ic mo de of pro duc t ion, w it h sulfur dioxide emissions produced by the Jinchuan Group making up 80 percent of the city’s total emissions. Wu said that only by adopting a circular economy; whereby material flows from an industrial economy re-enter the biosphere safely, could the city’s economy achieve sustainable development.

One of the difficulties facing the Jinchuan Group was that the low-density sulfur dioxide gas emitted from the factories was not suitable for producing sulfuric acid, which requires a high standard concentration of sulfur dioxide gas. In an effort to find a solution, the Jinchuan Group and the Jinchang government cooperated with one another, forming a specialist team tasked with solving the environmental problem of low-density sulfuric acid.

As a result, new equipment was designed and produced in 2005 which allowed for the collection of all sulfuric gas with different densities. The gas was then made into sulfuric acid thus highly reducing the harmful effects brought about by sulfur dioxide.

From 2005 to 2009, the Jinchuan Group’s non-ferrous metal production increased from 250,000 tons to 500,000 tons while emissions of sulfur dioxide decreased by 51.5 percent.

The company also plans to bring other waste emission gases under permanent control within 3 years.

According to the plan that these individuals drew up, a 23-km sulfate transport pipeline was built; becoming the longest sulfate transport pipeline in the world. Thanks to the pipeline’s creation, problems in sulfate transport were solved and costs were greatly reduced. In addition, Jinchang city has set about building a new material industrial park in the suburb, connecting the Jinchuan Group and the park plant, forming an industrial chain. When the project is complete, new sales revenues are expected to exceed 30 billion yuan.

Jinchuan Group pledged to increase investment in environmental protection despite the fact that it would reduce the pace of development. In order to control pollution, old generators were dismantled and replaced with energy saving and environment-friendly generators. As a result, the power plant was able to save 10,000,000 cubic meters of water annually and cut 6,450 tons of soot and 11,000 tons of sulfur dioxide emissions from the yearly production process.

Thanks to this comprehensive improvement, Jinchang’s urban environment is improving on a yearly basis.

In 2009, sulfur dioxide emissions decreased by 25.8 percent. But despite this progress, party leader Wu Minming points out that the development of Jinchang’s environmental protection and circular economy still has a long way to go. Wu explained that the location of the city in the Gobi desert region means that the eco-environment is fragile and yet the PM 2.5 and PM 10 levels are still relatively high.

Aside from the technical issues, Jinchang faced logistical problems when it came to selling the sulfuric acid that it had created as part of its burgeoning circular economy. Sulfuric acid is hard to store and transport, so selling it became a thorny issue for city officials.

City authorities brought in experts who were given the task of implementing circular economy.

Compounding this fragile system, industrial enterprises within the city are focused on the chemical industry meaning that the structure of production is monotonous and the proportion of heavy resource-consuming enterprises is large. As Wu emphasizes, these are all issues that need to be addressed in order to improve on the progress that has already been made.

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By Liu Jinshuihu Park is an excellent example of the local government’s efforts to create a green environment within Jinchang city [Photography: Lin Hanyu]

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Wine barrels line the floor of the Zixuan wine cellar [Photography: Lin Hanyu]

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Wuwei, China’s Wine City Liu Yuanhui & Stuart Wiggin Situated in the east of the Hexi Corridor of northwest China’s Gansu province, Wuwei, also known as Liangzhou, was one of the many beneficiaries of the ancient Silk Road and the travels of one very notable Chinese envoy. Zhang Qian, imperial envoy during the Han Dynasty, traversed the Silk Road in an effort to bring back reliable information on Central Asia. Zhang’s mission also served to open up China to many regions beyond its borders and introduced products from a previously unknown part of the world.

Zhang’s travels along the Silk Road transcontinental trade route helped transform Wuwei into an important location on the ancient route and also led to the introduction of grapes to the region. Today, Wuwei proclaims to be the birthplace of wine within China; a feat it apparently achieved thanks to the existence of the Silk Road. Today, the region’s rich winemaking history provides the basis for the city’s future development on the revitalized Silk Road route.

In 2010, the local government in Wuwei earmarked the wine industry as the city’s leading pillar industry. According to Zhang Aijiang, deputy mayor of the city, last year Wuwei built around 17 thousand hectares of vineyards, accounting for 10 percent of all vineyards in China and 80 percent of the grape growing area of Gansu. Several wellknown wine production enterprises operate within the city, including

Mogao, Weilong and Zixuan. In October 2012, the city was christened as a “China Wine City” by the China Food Industry Association; a title much respected within the food and beverage industry in China.

Wuwei was almost destined to produce wine, thanks to its geographic and climatic advantages. The city enjoys more than 3,000 hours of sunlight a year, a longer period than that experienced by Bordeaux in France, providing almost optimal conditions for growing grapes which are rich in flavor. A moderate temperature and good quality soil, in an area which is vast, means that the industry has sprawled over the past three decades.

As a result of its lengthy winemaking history, the city is well placed to take advantage of the growing demand for the drink amongst the country’s “elite.” Market demand for wine within the city alone is growing 15 percent year-on-year. Furthermore, the development of its wine industry promotes not only other relative industries including vineyards, brewing, transportation and trade, but also other complementary ones such as the bottling, packaging, and equipment industries.

Of late, the city has also been keen to highlight the sustainability of its wine industry, especially as local governments across the country seek to address environmental problems brought about by heavy industry and rapid development. Compared to other traditional crops grown in China, grape vines require far less water and reduce the use of fertilizers, which lowers the level of chemical pollution within farmland. Meanwhile, grape vine roots can continue growing for up to 80 years, helping to increase forested areas, protect against the wind and stabilize sand dunes.

But there has also been another positive that has come out of the city’s wine making past; namely, wine tourism. In an attempt to cash in on its appeal as the so-called birthplace of wine, Wuwei is positioning itself as the premiere destination for those in China who seek out the finer things in life; or at the very least seek out what they believe to be the finer things.

European-style chateau buildings are constantly popping up across the city. Despite calling itself the birthplace of wine, the wineries very much still rely on the European element to attract attention. One company erecting such buildings is the Gansu Mogao Winery. Wang Runping, vice president of the winery explains that these kinds of buildings will be used as wine museums for exhibitions and wine tasting; all part of a project initiated by the winery to create a modern “wine city.”

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With chateaus, vineyards, a manufacturing plant and a tourist center, Mogao’s wine city will be an industrial complex. Wang explains that a socalled ‘wine city’ should cover many domains, including entertainment, production and trade, and vineyard management. But Gansu Mogao Winery is not the only company to build wine-related estates or bases within the city. Green vineyards blanket the land while western-style chateaus are scattered along the city’s outskirts, giving the impression that you are anywhere but China.

But for all its work and success domestically, Wuwei’s wine remains something of a local brand known only within China. Wang admits that the Mogao winery has cooperated with a number of foreign companies; they failed to sign any meaningful contracts that would see the wine exported to Europe or elsewhere. Wang’s reasoning is that the cost of distribution is too high and the possible gains too low. At present, the wine market in China is the fastest growing market in the world. Many foreign brands are attempting to enter the Chinese market, and going outside of China, from an economic perspective, is simply not worth it for Gansu Mogao and for many others.

Wang believes that Gansu Mogao, and the city’s other wine producers, should focus on the key domestic market first and foremost in order to establish a sizable market share prior to even thinking about international expansion. From domestic companies such as Mogao and Grand Dragon to California-based Yosemite, wineries worldwide have put down their roots in this city and in an effort to satisfy the growing demand for more experienced staff; the city has even established a school specifically for the instruction of wine related knowledge.

Zhao Xiangzhong, deputy dean of Wuwei’s wine school, said that the establishment of the school was a joint project on behalf of the local government and the wineries to train diverse professionals for the industry. At pre28

Horses run in the fields of Shandan Ranch, Gansu province [Photo: CFP]

sent, the school teaches five majors, including grape and wine engineering, wine manufacturing and marketing, oenology and testing, viticulture and fermentation studies; producing graduates who have since gone on to work within the industry across the country.

Clearly, Wuwei is serious about entrenching the wine industry’s dominance within the region and despite looking to Europe for inspiration when it comes to promoting wine tourism, the drink that local wineries produce is steeped in local history.

Ancient Industry, New Direction Contributions by Chen Mo

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handan Horse Ranch, located across the mountainous demarcation between Gansu and Qinghai provinces, along the Hexi Corridor, is the largest ranch of its kind in Asia with a history dating back some 2,100 years.

The history of the ranch can be traced back to 121 BC when the famous Chinese general Huo Qubing established Shandan Horse Ranch during the Han Dynasty (202 BC- AD 220) with the aim of herding horses for the Chinese army. From that point onwards, the ranch, which was well-known for

breeding studs, served as a base for military and royal horses throughout several dynasties.

As the demand for horses within the army weakened and following the PLA’s decision to cut spending on warhorses, the ranch was transferred to 29

the China Animal Husbandry Group in 2001 at which point the decision was made to move away from breeding and towards supplying the domestic market with horses intended for use in equestrian sports.

Jia Youling, president of the China Horse Industry Association, explains that as the Chinese people are becoming better off as a nation, certain individuals are starting to invest a lot in breeding horses for sport and/or entertainment.

So far, there are over six million horses being reared in China. Gansu finds itself firmly in the center of this equestrian boom and is perfectly placed to supply the animals to nearby countries as well as the domestic market.

Jia notes that the industry within the country can be divided into two parts at present; with one part being the horse industry of ethnic minority groups in places like Xinjiang and Inner Mongolia; and the other part being the horse industry in urban areas.

and offer them the kind of horses that they desire rather than hardy military horses which are short in stature.

Horses hold a special place in the history of the Hexi Corrdior [Photography: Wang Chuanjun]

In recent years, the global horse industry has witnessed a huge transition thanks in part to China’s growing wealth. The military need for horses has almost disappeared and the entertainment and sports industries have become the main theaters in which horses are now employed.

Shandan has crossbred its traditional Shandan studs with some of the finest studs from Britain, Kazakhstan and Saudi Arabia in order to develop a clientele

As Jia Youling points out, the value chain of the industry is very lengthy as the economic value of horses is considerable compared to other animals, as horse products can be used to make food, drink and medicine. But ultimately, China’s modern equestrian industry is not as developed as that of western countries.

Jin Zhong, a representative of the French Equestrian Association to China and a professional rider, outlines the areas that the Chinese horse industry needs to develop, noting that facility construction needs to be improved.

However, Jin explains that the people leading the equestrian industry within China lack the skills needed to increase the health and welfare of horses and make the industry more accessible for both elite riders and ordinary people. With foreign input, Jin believes that China can make its own equestrian industry stronger.

In order to achieve this goal, however, the role of enterprises cannot and must not be neglected. Li Zhengbin with the Shandan Horse Ranch echoes this sentiment and explains that they are seeking to upgrade their own facilities through the use of four other industries, which are closely connected to the traditional equestrian industry.

Horses graze at Shandan Ranch, Gansu province. [Photo: CFP]

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Li stated that the pillar industries include agriculture, animal husbandry, tourism and food industries.

At present, the products on offer within these industries are of good quality, but the service side and publ ic relations aspect need to b e improved. Nonetheless, a boost in tourism and trade along the r e incarnated Hexi Corridor could l e ad to a far more aff l u e n t p o p u l a tion who might be willing to splash out on the 70,000 to 80,000 yuan needed to purchase one of Shandan’s finest purebreds.

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