Strategic and Economic Significances of the Construction of South Silk Road

Abstract

Ever since ancient times, South Silk Road has been an important business channel that connects China and Southeast Asian countries. In ancient times, it had great significances for international trades and cultural exchanges; today, South Silk Road constitutes the historical foundation for modern national defense, international trade and peaceful diplomacy with countries along the Road. As the sub-regional cooperation of the "One Belt and One Road" strategy, South Silk Road plays an important role in consolidating peripheral diplomacy and promoting opening and development of China's southwest region, which is of great strategic and economic significance. This paper proposes to initiate a cooperative construction plan, together with countries along South Silk Road, grounded upon integrative top design for promoting the development of South Silk Road. Branches of Silk Road Fund and Asian Infrastructure Investment Bank (AIIB) would be encouraged to establish in Kunming. The plan would also support implementation of cooperative projects. It is expected to coordinate Sichuan and Yunnan Provinces to build Southeast Asian Economic Circle and to construct logistic and transport platforms of Yangtze Economic Belt; through integrating shipping and railway transportation, it would establish traffic system with high speed and low costs, and a South Silk Road Tourist Belt would be constructed for the emergence and proliferation of cultural exchanges and cross-border tourism products with international influences.