Tag Archives: China

It costs twice as much to export olive oil from Spain using China’s “One Belt, One Road” railway

Posted on July 6, 2016 by | Comments Off on It costs twice as much to export olive oil from Spain using China’s “One Belt, One Road” railway

Another report on the One Belt One Road initiative. I think the main point is not the facts so much as the background on how these routes get chosen. It points out clearly on the ground how economic ‘warfare’ is being conducted by China. The geopolitical aspects of their development initiative are paramount. China has a large market to sell, a lot of folks to keep working, and a lot of products that need to be sold abroad. The story gives examples of how leverage and negotiating power is used in transport discussions to advance the use of OBOR.

How is this different from an 18th or 19th century colonial power?  At least we are not having shooting wars over it … yet.

screenshot-qz.com 2016-07-06 08-03-36

Source: It costs twice as much to export olive oil from Spain using China’s “One Belt, One Road” railway — Quartz

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Posted in Logistics, Strategy, Supply Chains

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China’s strategy links global supply chain investments by ‘one belt, one road’

Posted on June 14, 2016 by | Comments Off on China’s strategy links global supply chain investments by ‘one belt, one road’

Hercules Haralambides weighs in on the ‘one belt, one road’ (OBOR) initiative China is mounting.  It’s been unclear what it really is. But it would be natural for it to be strategic rather than specific to particular investments.  That’s his point.  Early in the game, we can expect it to be unclear to others what’s going on.   His message is to think geopolitically to understand how Chinese investment in transport and supply chain resources might evolve.

  Source: China’s strategy is to link its global supply chain investments by ‘one belt, one road’ – The Loadstar

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Posted in Logistics, Shipping, Strategy, Supply Chains

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On southwestern fringe, China’s Silk Road ambitions face obstacles

Posted on June 7, 2016 by | Comments Off on On southwestern fringe, China’s Silk Road ambitions face obstacles

Here is an example of the difficulty of building a major infrastructure improvement, in this case, a rail line from China to Thailand and thence to Singapore.  Who’s got the money?

The answer is no one; and so they can’t agree on terms that advantage all of them fairly.  One interesting factor is land use rights.  Thailand and Laos will not give the Chinese land development rights on each side of the rail line.  Those were expected to help the Chinese pay for the route.  I think those countries are right to retain their sovereignty over the land.

screenshot-www.reuters.com 2016-06-07 08-17-27    Source: On southwestern fringe, China’s Silk Road ambitions face obstacles | Reuters

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Posted in Rail, Strategy, Supply Chains

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