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10 years of the economic miracle Silk Road: 10 years of Germany’s downfall

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The New Silk Road project is ushering in a new era of human civilization. Over 200 states and organizations are participating in it voluntarily. German politics, however, has so far shown no interest in letting Germany participate and in guiding German companies to the forefront of the new world order. Emotions instead of facts guide their actions. The consequences for the economy are fatal.

For more than ten years, the German economy, but also the German population, has increasingly been struggling with domestic problems. These include high real estate prices, major deficits in healthcare and education, and its own rail and highway infrastructure. Digitization, a nationwide network or autonomous driving, increasingly seems a long way off. Now the war in Ukraine is adding to the burden. The energy crisis, masses of additional refugees and a lack of orders are putting additional strain on the beleaguered system. Politicians, however, have a new goal: decoupling from economic cooperation with the People’s Republic of China, and with it the coup de grace for Germany.

While Germany’s political goal is to stay afloat, the rest of the world thinks differently. This is about development, about the future. About the step into a new era. Gigantic megaprojects with enormous population masses from China, India, Bangladesh, Africa or South America play a decisive role. To participate in a new Silk Road with gigantic orders, companies have almost unlimited new opportunities to expand their business. German companies, however, are excluded. Not because China wants it. But because German politicians feel emotionally, factlessly uncomfortable and do not understand the opportunities the project offers. President Xi Jinping even wanted the West to participate in a meeting with Donald Trump. The New Silk Road is now celebrating its 10th anniversary and is the prime example of Germany’s lack of development in the last 10 years. It is about development. It is about a shared future for humanity.

Silk Road as a new economic wonder of the 21st century

China has initiated the Belt & Road Initiative (BRI) to promote a new global connectivity and application of 21st century knowledge. The goal is to develop a forward-looking globalization that finally breaks away from the old structures of hegemony and tribute from the Cold War and colonialism era. The BRI is not an exclusively East Asian concept, nor does it follow any particular principle. China wants to help other countries follow their own development path and stay away from war, ideology models and tribute systems. Instead, it is strengthening international cooperation with other countries. In the age of the Internet, it is about freedom, openness, shared interests, and inclusion of other countries. Energy facilities, gas and refinery facilities are being shared, as well as information provided via cable, satellite, data centers, etc.

The world is going through a new phase of global order, with challenges in climate and nature, as well as geopolitical disputes. In the era of digital economy, data and data infrastructures are invaluable, in line with Artificial Intelligence and advanced technologies. This is not only a physical megaproject, but also a digital interconnection to open up new opportunities in the interest of consumers, businesses and digital administrations.

Unhindered trade for a free global market

Cooperation along the Silk Road means the development of economic levels, not only to promote the overall economy of China, but especially to strengthen the health of the world economy and international trade and business. It is also about linking the facilities of individual countries for an overall goal in trade and investment to enable a freer market. It is about a peaceful development towards a common future of mankind. Stability and trade developments are to be promoted in the sense of win-win cooperation. Legal hurdles are to be adjusted and further developed in order to create prosperity in the interest of all people.

The BRI supports the redesign of existing, outdated structures towards new growth processes that adapt to the developing world. According to the WTO, trade between China and the EU is the largest and third largest import and export region in the world in 2021, accounting for 13% to 10% of total global trade in goods. The import and export volume totals USD 828.11 billion, growing by 27.5% year by year. China remains the largest trading partner of the EU. The European Union is China’s second largest trading partner, with 52% of exports to China consisting of machinery and vehicles, 20% of other manufactured goods, and 15% of chemical products. The EU imports 56% machinery from China, 35% other manufactured goods and 7% from chemicals.

In 2000, the volume of trade between Africa and China was USD 10 billion. By 2014, it had risen to USD 220 billion, reaching a total of USD 250 billion in 2021. China is thus Africa’s largest trading partner. The Mombasa-Nairobi Standard Gauge Railway, for example, has been able to boost Kenya’s growth by 1.5 percentage points and directly create 50,000 jobs.

Connectivity of the facilities

One of the main projects is the connectivity of facilities, especially the connection of roads and bridges to promote the local economic situation and unleash the potential. However, over the past decade, there have been challenges in the areas of technology, publicity, and funding. The BRI has funded more than 3,000 megaprojects through 2022 with an investment of $1 billion alone. At the same time, the West failed in projects. Roads longer than 3 km and buildings with more than three stories were built by China. Funding of smaller projects by Western taxpayers, on the other hand, is often unsuccessful and illustrates the ineffectiveness of the latest Western-funded projects. 

The BRI’s first tunnel in Uzbekistan now allows for a transfer of only 900 seconds instead of a 1-2 day bypass. 13 of China’s projects became so well known that they were even printed on banknotes of 11 countries. From 2013 to 2021, the contract volume has increased from $71.94 billion to $134.04 billion. According to statistics from the Engineering News-Record (ENR), the number of Chinese companies also investing in the private sector has increased from 55 in 2012 to 79 in 2021. The share of total sales increased from 13.1% to 28.4%.

Highways, expressways, train links and fast trains are being built. In the Maldives, the first overseas bridge was built in 2018, named after the China-Maldives Friendship Bridge. Western politicians considered the project unrealistic and did not want to support it In Jamaica, Montenegro and Uganda, the first highways were built. 

Most developing countries are heavily dependent on the agricultural industry. Without adequate transportation links, it is difficult to ship these products and thus generate revenue. The 480 km train link between Mombasa’s port and Kenya’s capital, Nairobi, creates an important connection and enables 40,000 jobs. According to the World Bank’s Global Container Port Performance Index 2020, the Port of Djibouti even ranked first in Africa as a BRI project. Both the Karakoram Highway in Pakistan and the 142 km train line between Jakarta and Bandung, as well as the China-Laos Highway with a length of 1035 km, were built.

All companies are committed to environmental protection as well as international social responsibility to respect local habitats, and a global co-corporate governance structure. Since 2019, the focus has been on high quality BRI cooperation. This means greener technologies and investments, as well as the implementation of the Digital Silk Road, the Health Silk Road, and the Smart Silk Road. It also aims to avoid the construction of new coal-fired power plants. One example is the Addis Ababa Riverside Green Development Project in China.

Financial structure

Many developing countries have neither the prerequisites nor the conditions to attract economic investors. Nor do they have their own facilities and financial resources to finance their own development. Without external support, adequate development is difficult. However, since the emergence of the BRI, the BRI’s own large financial institutions have played an important role.  Thus, local institutions work together with international and private partners. Chinese banks such as China Development Bank and China Export Import Bank are the main suppliers to the Belt and Road Initiative. Organizations such as the Asian Infrastructure Investment Bank (AIIB) and the Silk Road Fund, traditional international financial institutions such as the International Bank for Reconstruction and Development, and private companies also support the initiative.

In 2021, China’s direct investment amounted to $213.48 billion. In 2016, the People’s Bank of China concluded multilateral cooperation agreements with the African Development Bank, the International Financial Cooperation within the World Bank Group and the Inter-American Development Bank. This involved a volume of US$7 billion. In the private sector, by the end of 2021, around 500 Chinese private companies had made investments worth US$43.08 billion.

Capacity structures

By 2021, China has signed cooperation agreements with 40 countries to create institutional production capacity.  This involves the export of products along the Silk Road as well as the construction of factories in target countries and the transfer of supporting industries and equipment. This also means the transfer of capacities, capital and technologies. The cooperation has been expanded to 13 states and now includes steel, chemical, lighting, automotive, communications, engineering, space, shipbuilding and submarine industries.

These are industrial parks. Currently, there are 70 such parks along the Belt and Road and 3000 projects in total. Countries along the Belt and Road have massive oil and steel reserves, estimated at about 67.6 tons. Most countries along the BRI are in the early or middle stages of industrialization. Therefore, there is a high demand for technical industries, but the share of foreign investment (foreign direct investment) is low. China invests in infrastructure, while the West erects political hurdles and divides the world into good and evil.

It is claimed that China steals raw materials like the West and shifts its production abroad.  In fact, China shifts its production in countries of BRI to optimize according to demand in each place and promote bilateral steel production. Through the shared future principles of the member countries, the steel is used with each other to promote the parties according to demand.

In Serbia, the Hesteel Smederevo steel plant was invested by China. President Xi Jinping has personally ensured that this was done to preserve jobs. As a result, more than 5,000 jobs have been secured and another 50,000 created. In Ethiopia, the Adama Wind Power Project is considered the green roof of Africa. Together with China’s Hydropower Engineering Consulting Group and CGCOC, a project has been launched to produce up to 51 MW in the first phase and up to 153 MW in the second phase. This amount is equivalent to 20% of the capital’s electricity needs. Annually, 630 million kilowatt-hours of clean energy will be generated, resulting in a saving of 185,000 tons of coal and carbon dioxide emissions, saving 61,000 tons of emissions per year.

China’s investments are supposedly causing the countries in question to fall into a debt trap. However, based on numerous analyses and articles, it appears that the real cause of over-indebtedness is to be found in the West, as the Western private sector refuses to write off debt. Since 2004, private investors have been contributing to debt generation. The “debt trap” theory is put forward by the West to hurt China. In fact, the reality is that China forgoes debt when it is necessary. In May 2021, China forgave $1.3 billion in debt in Africa.

Damage for Europe and Germany 

The funding is available. The cooperation and infrastructure projects are underway. Germany can join them and enable its own companies to gain a foothold in the new market. The BRI project can also boost the domestic economy, create jobs and secure long-term investment projects. The finances generated can be used to stabilize national problems and compensate for them. Massive amount of new jobs and orders will be created and new markets. Unfortunately, CDU, SPD, FDP and especially the Greens are currently ensuring that the project is confronted. With US Think Thanks as advisory bodies any cooperation is to be prevented. At the same time, however, US companies themselves are participating in the new market. This is driving Germany into an economic suicide.

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Chaos and reckoning on the streets of France

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The streets of France have turned into a stage not merely for anger against the government, but for a deep-seated mistrust of the state’s approach to security. The blurring of the line between peaceful demonstrators and looters, lingering questions over police conduct, and the media’s refocusing on the immigration debate are bringing the country to the brink of a political reckoning far deeper than a routine public-order crisis.

In France, a government does not have to wait for an electoral defeat to lose its legitimacy. Sometimes, slogans chanted in a public square, tear gas fired down a boulevard, crowds penned in at the exit of a cordoned-off street, and testimonies of unhindered looting in shops only hundreds of metres away suffice to expose just how fragile the bond of trust between state and society has become.

Events in Paris on Saturday, 17 October point to precisely such a political fracture. Planned demonstrations with the participation of student unions, trade unions, and the Yellow Vests were marked throughout the day by police crackdowns, disputes over march routes, looting in the city centre, and widespread criticism of the government’s perceived inadequacy. The scene that emerged by evening suggested that France was grappling not merely with an issue of public order, but with a burgeoning crisis of confidence regarding the state’s impartiality and political motives.

Whom does the state permit to take to the streets, whom does it obstruct, and which forms of violence does it intervene against, and to what degree? The answer to this question may prove decisive in understanding France’s current political impasse.

The shadow of 17 October 1961

It is impossible to view the date of these demonstrations as a mere coincidence on the calendar. On 17 October 1961, a peaceful demonstration in Paris supporting Algerian independence was brutally crushed by the French police. Scores of people were killed, with some demonstrators drowned after being thrown into the River Seine. The event remains etched in memory as one of the darkest chapters in France’s colonial history and state-sponsored violence.

Sixty-five years later, as police interventions, youth rage, and the state’s stance on the right to protest are debated once again on the streets of Paris on 17 October, the resurgence of this historical memory was inevitable.

This memory may hold a distinct meaning, especially for French citizens of North African descent. Yet it would also be a mistake to reduce all the young people taking part in the demonstrations to a single identity, immigrant origin, or political motivation.

To what extent has the French Republic truly reckoned with the legacy of its colonial past and the relationship its security apparatus maintains with diverse segments of society?

Looters on the streets, where are the police?

Individuals dressed in black and associated in the public eye with the Black Bloc broke into shops at various locations, damaged businesses, and engaged in looting.

While peaceful demonstrators marched under a heavy police presence, fierce criticism arose that looting in certain areas had been allowed to unfold unchecked.

It is striking that while 14,000 police officers were deployed across the capital during the Pope’s visit to Paris, only 10,000 officers in total were assigned across the whole of France for the demonstrations of 17 October.

To which areas were police resources allocated? Had intelligence services assessed the risk of looting beforehand? While a robust security presence flanked the routes of peaceful marches, why was the same effectiveness not demonstrated in safeguarding commercial districts?

The deployment of elite units trained to quell urban unrest, such as CRS 8, does not resolve these questions. On the contrary, the failure to contain the incidents despite the presence of specialized units calls the quality of planning and coordination into question.

A political reckoning extending from Marseille to Limoges

The debate in Paris soon reverberated across the country’s other cities. In a televised address, the socialist mayor of Marseille stated that he had requested police reinforcements from the government, yet the units dispatched fell short given the scale and requirements of the city.

The mayor’s most striking allegation was that while looters stormed Marseille City Hall, the Hôtel de Ville, police officers stood roughly 200 metres away and failed to intervene. Stating that he possessed security camera footage, the mayor affirmed that he would await the scrutiny of a Parliamentary Commission of Inquiry and demand an explanation from the government.

The mayor of Limoges likewise issued what amounted to an ultimatum to the government, demanding the reconstruction of the torched town hall and the full reimbursement of costs. According to the mayor, the government had failed to protect a public building and neglected to provide the police with the necessary resources and backing.

These statements emerging from two distinct cities demonstrate that a new confrontation over security policy has arisen between local authorities and the central government. How security resources are allocated, which risks are prioritized, and whether the warnings of local administrations are heeded must all be brought to light.

The deepening scrutiny over the administration’s stance was compounded by President Emmanuel Macron’s refusal to accept the resignation tendered by Interior Minister Laurent Nuñez. The rejection of the resignation raises the question of whether the executive aims to preserve the chain of accountability, or fears that a political reshuffle would only exacerbate the crisis.

In either case, the government faces a crisis of trust.

An eight-minute speech and unanswered demands

Macron’s roughly eight-minute televised address failed to meet expectations regarding the political dimensions of the crisis. The president announced that he would meet with student unions and that the prime minister would engage with political parties, yet he presented neither tangible decisions nor a comprehensive political roadmap.

Education spending, police violence, the Palestinian cause, anti-fascism, and backlash against the Macron administration appear to have ceased being disparate issues in the eyes of the youth.

To be sure, the true strength of a state lies not in silencing its people and streets, but in addressing legitimate demands. It must not be forgotten that institutions unable to adapt and change are destined to break.

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What is scale in foreign policy? How is success measured in foreign policy?

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By its very nature, foreign policy feeds into and draws nourishment from numerous, disparate, and varied fields. It is a domain with manifold and diverse inputs. For foreign policy is examined alongside a broad array of subjects, ranging from geography to history, economics to intelligence, and military might to public diplomacy, commonly termed soft power elements.

The capacity of the state, that is, the scale of the state, or in other words the aggregate of its elements of power (namely political, economic, military, and soft power components), is decisive in foreign policy. Geography is decisive in foreign policy. Commercial relations are decisive in foreign policy. Energy dependence on another country or countries, if present, is decisive in foreign policy. Foreign policy cannot be conducted in spite of these four factors.

There is more. A country’s capacity, its scale, does not increase overnight, from one day to the next. It requires planning. It requires national consensus. It requires time. It requires preparation. Nor are these enough. The regional and global environment, the conjuncture, and the international plane must also allow for it. The stance of allies and adversaries is, of course, also important.

For the international environment is, by its nature, complex. It is an environment rife with contradiction, turmoil, conflict, and tension. To draw an analogy, the person in the driver’s seat of foreign policy is not a motorist speeding along the road as they please. There are things they must not forget, rules they must obey, red lights, vehicles speeding up from behind, a truck moving ahead, and a heavy vehicle hurtling toward them from the opposite direction.

Success in foreign policy does not arrive simply because a politician we like has become foreign minister. For a foreign minister is only as effective as the power, capacity, and weight of their country. One must accept this plain truth.

Moreover, there are simple, straightforward questions that reveal whether foreign policy, which some find deeply complex and inscrutable, is successful or not.

There are undoubtedly ways to measure the effectiveness, prestige, influence, and success of foreign policy.

For instance, the number of countries that respect a passport, how many countries can be visited visa-free, and how many countries impose visa requirements and grant those visas only with great difficulty are important indicators of a country’s standing.

Let us take ourselves as an example. Which countries require a visa for the Turkish passport? Which ones do not? Is it easy for our citizens to obtain visas for the countries they primarily wish to visit?

Let us give another example from the Turkic world.

On the Cyprus issue, which we regard as a national cause across government and opposition, right and left, Kemalist and Milli Görüş adherents alike, how many countries have we succeeded in having recognize the TRNC? Why do the Turkic states (Azerbaijan, Kazakhstan, Kyrgyzstan, Turkmenistan, Uzbekistan) not recognize the TRNC? Far from recognizing the TRNC, how do the Turkic states in Central Asia (Turkistan) explain to Ankara their developing relations with the Greek Cypriot Administration of Southern Cyprus, which Türkiye does not recognize, their appointment of ambassadors, and their recognition of Southern Cyprus as the island’s sole legitimate government?

We must also ask this question, of course: What is the state of Türkiye’s bilateral trade with the Turkic states?

Let us give an example of the relationship between foreign policy and big capital.

In which countries are big capital circles, among the greatest supporters of the ruling bloc, winning major tenders?

In our country, across both ruling and opposition ranks, there is a political party order that supports Türkiye’s EU membership. Yet how much progress has been made on EU membership?

Why is US President Trump not keeping the promises he made to Türkiye at the NATO summit held in Ankara a few months ago?

How many contracts has the new regime in Syria, the al-Sharaa administration, awarded to Turkish companies for the reconstruction of its country?

Has the government in Libya that Türkiye supports paid the money owed to Turkish construction firms, outstanding for years?

How does Qatar, with whom our relations are very good, explain its developing ties, energy agreements, and joint military drills with Greece and the Greek Cypriot Administration, disregarding our sensitivities?

Who is the addressee of the harsh statements used in recent weeks by Azerbaijan, which we view as “two states, one nation”? To what extent does Azerbaijan share Türkiye’s policy on Israel? What does Türkiye think about the scale, depth, and intimacy of Azerbaijan-Israel relations?

These questions can certainly be multiplied.

Yet without taking into account the scale of the state and observing the criteria for measuring foreign policy, no sound assessment can be made.

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The era of corridor alliances in the Middle East

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In the Middle East, war is no longer waged merely to seize territory. The true contest turns on who will control the energy pipelines, trade routes, ports, and railways of tomorrow. Missiles may strike cities today, but the maps of the future are being drawn through transport and energy corridors.

In this context, interpreting Türkiye’s presence in the Mecca Alliance solely as military support for Saudi Arabian security remains incomplete; it fails to explain why two states that viewed each other with mutual suspicion until recently would take steps toward a cooperation close enough to constitute a shared destiny.

Alongside Saudi Arabia’s existential motives, Ankara’s participation in this alliance is anchored in a profound geopolitical foundation: to position itself within, and if possible at the very centre of, the Middle East’s reconfigured energy and transport corridors.

Today, it cannot be said that Riyadh and Ankara see eye to eye on every regional issue. The threat perceptions and priorities of the two countries do not, quite naturally, entirely coincide. On the geopolitical chessboard, partnerships do not always arise from identical agendas. When reasons are sufficiently compelling, particularly existential ones, they can override political differences and enable common ground along the same strategic path.

A new war of corridors unfolds in the Middle East

On one side lies IMEC (India-Middle East-Europe Economic Corridor), planned to extend from India through the United Arab Emirates, Saudi Arabia, Jordan, and Israel to Europe. On the other stands the Development Road, which aims to link the Persian Gulf across Iraq to Türkiye, and onward to Europe.

These two undertakings are, of course, far more than mere transport projects. They represent two divergent geopolitical answers to where the future flow of trade and energy between Asia and Europe will traverse; for Türkiye, this issue is of vital importance.

If a corridor system taking shape to Türkiye’s south, beyond Ankara’s orbit, becomes permanent, Türkiye could forfeit not only an economic opportunity but also a substantial portion of its strategic centrality in the Middle East. It is through this prism that the Mecca Alliance must be evaluated.

Türkiye’s seat at the same table with Saudi Arabia signifies more than military solidarity. Riyadh and Ankara must sit together to avoid exclusion from the region’s emergent security and economic architecture, for the security of a corridor and the corridor itself are no longer separate matters.

The Strait of Hormuz, the Red Sea, the Bab al-Mandab, and the Suez Canal are links in the very same chain. A security crisis in one directly impacts the others. While the vulnerability of Hormuz makes alternative export routes for Gulf oil indispensable, instability across the Red Sea heightens the strategic cost of Suez.

Saudi Arabia’s alternative pipelines connecting its eastern oil fields to Red Sea terminals are therefore not merely energy infrastructure; they are strategic bypasses mitigating dependence on Hormuz.

For Türkiye, the Development Road fulfills the same function across a broader geography. Stretching from the Persian Gulf through Iraq to Türkiye, and from Türkiye into Europe, this artery possesses the potential to forge a new overland backbone connecting the Gulf to the Mediterranean and Europe. As security concerns in the Red Sea mount and the vulnerability of Suez deepens, the value of this route rises accordingly.

The Hejaz Railway: Revived once again

The return of the Hejaz Railway to the regional agenda signifies far more than mere nostalgia. Once linking Istanbul to Damascus, Amman, and the Hejaz, the railway served as one of the primary transport and logistical arteries of the Ottoman geography.

Reviving the idea of the Hejaz Railway could become the emblem of Türkiye’s drive to reimagine its historical transport connections between the Gulf, the Hejaz, and the Levant through modern rail, energy, and logistics networks.

The objective here is not to restore the past, but to transpose the strategic logic of that historical geographical linkage into the twenty-first century. For this reason, Türkiye’s role in the Mecca Alliance and the resurgence of the Hejaz Railway project must be viewed as components of the same overarching picture.

Corridors do not consist solely of energy pipelines. Railways, ports, highways, electrical interconnectors, logistical hubs, and security architectures are all facets of the same geopolitical grid, and safeguarding these networks requires political alliances.

Herein lies the strategic significance of Saudi Arabia and Türkiye sitting at the same table in Mecca, even at a juncture when their views on Syria diverge.

Ankara and Riyadh do not need to agree on every subject. Yet neither wishes to see the new map of the Middle East drawn to its detriment. Türkiye’s aim is not to build an anti-bloc against any specific country alongside Saudi Arabia; rather, the goal is to avoid exclusion from the future energy and trade systems of the Middle East, while securing a decisive voice in establishing their security architecture.

Hence, for Türkiye, the Mecca Alliance is far more than a simple defence pact. Securing the Development Road, shielding Gulf energy corridors, stabilising the Red Sea, rethinking connections across the Hejaz and the Levant, and bolstering trade corridors reaching Europe all intersect within this single strategic equation.

In this equation, Türkiye’s foremost advantage remains its geography. Ankara sits at the northern terminus of the overland routes linking the Gulf to Europe; within NATO; and at the crossroads connecting the Black Sea, the Caucasus, the Eastern Mediterranean, and the Middle East.

Will Türkiye become one of the powers shaping the Middle East’s energy and trade architecture over the coming decades, or will it be reduced to a mere transit state traversed by routes designed by others? That question defines the true strategic significance of the Mecca Alliance for Ankara.

In the Middle East of tomorrow, it will be impossible to separate the corridor carrying energy, the security framework protecting that corridor, and the alliance constructing that security framework.

Whoever controls the corridor shapes commerce. Whoever guarantees the routes through which trade flows holds sway over the regional balance of power. This is the true dimension of the contest currently underway in the Middle East.

A succession of distinct and largely mutually exclusive ambitions are competing for dominance in the current climate: India’s linkage to Europe, the Gulf’s new economic horizons, Saudi Arabia’s alternative energy routes, the security crisis in the Red Sea, the strategic weight of Hormuz, and Türkiye’s aspiration to open outward to Europe via the Development Road. Ironically, perhaps, the conflict that will decide which corridor underpins global stability has already begun, and it will likely continue spreading to new fronts. Regrettably, the fires in our region appear poised to intensify long before they abate.

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