China's Economic Model - The Silk Road

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[...] It would be wrong to attribute growth in China solely to labour-intensive, export-oriented production. Indeed, recent studies have suggested that the so-called Solow Residual - or Total Factor Productivty, TFP- accounted for about 40% of GDP growth since market-oriented reforms were implemented in the later 1970. That contribution is roughly equal to that of capital installments, thus suggesting that China grew thanks to improved productivity as well as cheap labor and capital investment. Now however, growth has plateaued in China since the 2009 financial crunch, and the country is looking for alternative ways to trade and keep its economy growing. [...]

[...] In 2013, Premier Xi Jinping advocated for a twin-track trade corridor with China's Western economic partners. China is shifting its attention from its South-Eastern coastline to its Western reaches, notably with Central Asia, the Middle East and from then on, Europe. The Silk Road/Belt initiative aims at establishing the necessary infrastructure in order to sustain trade to the East, and China is expected to spend as much as $ 900 Bn, $ 500 Bn of which is expected to be invested on a 5-year timeframe. [...]

[...] China's Economic Model - The Silk Road The Silk Road is as ancient as the Roman Empire and was the link between imperial China and the Western world. Chinese products transited overland, through central Asia and Asia minor, as well as on the seas, through the Gulf of Persia and then the Mediterranean Sea, before reaching Europe. Western demand was for rare spices, but particularly for Asian silk, which was prized by affluent Romans. Centuries later, China has established itself as a regional, if not global economic powerhouse. [...]