Though it is not widely mentioned, Anbound Think Tank was actually the proponent and pioneering advocate of the New Silk Road Common Market. Admittedly, this proposal was not given much value in the beginning. However, in recent years, as China has increased its efforts in promoting the Belt and Road Initiative (BRI), there has been a corresponding increase in popular support and attention on the New Silk Road Common Market.

Early this August, Anbound Think Tank, in collaboration with Peking University, conducted a field trip to Pakistan, wherein we scrutinized development of the China-Pakistan Economic Corridor (CPEC) and further confirmed the importance of building the New Silk Road Common Market. Countries like Pakistan and Bangladesh, which have large populations and corresponding large market spaces, are still grappling with poverty, but they also have a low baseline and great prospects for economic growth. For one, both of them are not only Commonwealth countries with large populations, but they also demand a certain standard of quality, and that's why there's a scarcity of both low-end and high-end consumer goods in their markets. Coincidentally, these circumstances complement China's market, which is facing serious problems such as an aging population, a shortage in the labor force, capital surplus, and pressure to reduce overcapacity. Both the private economy and the manufacturing industry are facing significant challenges as a result. The complementary relationship that can be forged between the Chinese market and the Bangladeshi and Pakistani market thus makes the development of a common market in the region very promising for both parties.

So the question then is: how should China go about building a common market? Anbound Think Tank's Chief Researcher Chan Kung emphasizes that it is key for the government to do what it needs to do, i.e., to pave the way for the market economy to move forward and not to directly interfere in or manipulate the project, nor to behave like an entrepreneur when engaging in diplomacy. In other words, the Chinese government needs to start with building some "infrastructure," in the sense that it needs to build bridges and establish a strong foundation for the system, not in the literal sense of repairing roads all day long. A government as powerful as China's can't busy itself all day with roadworks and building (literal) bridges like a project manager would; doing so will be ill-suited to its stature.

Chan Kung further emphasizes that should a powerful government like China wish to establish itself in the global arena, it needs a bit of "heart" and a bit of "mind." To have a bit of heart means that China must have its worldview; not only must it make sure that its view of the world is different from others', it must also be able to help other countries understand its way of seeing the world. To have a bit of "mind" means that China must be able to have a solid grasp of the regional development plan—the bigger picture. These aspects of "heart and mind" will form the basis of the new Silk Road Common Market. Nonetheless, it is also important to always keep in mind that Rome was not built in a day. A possible place to start with this enterprise of building a common market would be in places where China also has good relations that also have good market potential. For example, Pakistan, Bangladesh, and China are three countries that could work well together. This could be a good starting point that can be expanded through the collaboration of the five countries of Central Asia and Afghanistan, and even more countries can become a part of the common market following this. Such a common market would be an expression of China's "mind" as discussed above because it is a large-scale regional development plan that aims to lift the world's poorest regions out of poverty and help to realize the UN's goal of eradicating poverty. Likewise, China's earnestness to walk the path of pacifism, unite a group of countries with common aspirations under the banner of peaceful development, and take the new road towards globalization would be an expression of its "heart" to the rest of the world.

But we also need to pause and ask: what can we do with this common market?

Firstly, it is important to note that while the prosperity of the market is linked to the robustness of its infrastructure, the opposite is also true. In other words, we can think of infrastructure more as a precondition that needs to be developed and built upon before we can yield any meaningful results. This means that the prosperity of the market is contingent upon all trades and professions, especially the large-scale participation of private enterprises. This is the case not only for the Chinese market but also for the Bangladeshi and Pakistani markets. It is thus easy to see how the establishment of a common market amongst these countries will lead to the emergence of a sizable new market that will, in turn provide new spaces and opportunities for Chinese private enterprises to grow. As for state-owned enterprises, they will still be able to continue dealing in infrastructure construction—which happens to be their expertise—but with more stability and confidence. This is because the economic take-off that these countries' experience will serve as a sort of risk insurance for the Chinese state-owned enterprises.

Secondly, a common market will help to address the financial problems that Bangladesh and Pakistan are facing. Development always requires investment, and for such purposes, it would not suffice for countries in need of investment to rely solely on the concessional loans handed out by the Chinese government. Of course, it is undeniable that the projects of state-owned enterprises will ultimately have to depend on concessional loans from the government, but the point is that such loans may lead to an increase in debt, inflation, and a depreciation of the currency in the recipient country—not a pleasant situation. Therefore, it would be best to ensure that there is a virtuous rather than vicious cycle between all countries party to the arrangement.

An ideal scenario would then be as follows: these countries will get money from China to purchase Chinese goods for domestic development. This will, in turn, allow for the accumulation of wealth. The best part of this scenario is that the business communities of both parties will be able to benefit from such an exchange and there will be a trickle-down effect to the other layers of society. Some fundamental changes to the fabric of these societies might include a reduction in corruption and political interference. Furthermore, the issue of debt issuance will inevitably be a part of bond issuance, and this is why these countries will need China's support and in turn need to adhere to China's terms.

Thirdly, the Chinese government will be able to get out of doing so-called "project diplomacy."Admittedly, this will be a problem for the market to solve, especially under the common market framework created by the government. This is because both state-owned enterprises and private enterprises alike can operate according to the principle of the market and the government will thus not need to involve itself with such projects. However, do not be mistaken in thinking that this line of consideration is simplistic or naive. One might say that the governments of western countries are involved in development projects, but an important distinction to make here is that in western countries, there already exists an overarching framework within which to operate and build upon, whereas here we are taking things on without such structures to guide us. To put it in slightly different terms, separating the government from these projects would mean that such projects will be purely business matters—if things get messed up, it would have nothing to do with neither the Chinese government nor the Chinese people.

Fourthly, China should have a region within which it is dominant. China is currently part of international organizations that are all dominated by outsiders and as a result, the odds are often tipped against China during negotiations. A case in point here is the WTO. China faces countless obstacles within this organizations and the frustration adds up because China does not have enough leverage as a member. This would certainly not be the case that China should be the leader of the organization. Frankly, however, it's as if even China itself has never imagined that it could be the leader of its own organisation like the WTO. In reality, we do indeed have the capacity to play such a role, considering that we are already used to the traditional model of diplomacy and commerce. There is no question that China needs to be the leader of this common market for such an enterprise to reap meaningful returns.

Fifthly, it will allow China to gain more geostrategic leverage. This is because the New Silk Road Common Market is an open market: it welcomes the U.S., Japan and Russia if they are willing to participate. The same goes for the five Central Asian countries; they are all welcomed, everyone is welcome. The only requirement is that no matter who is part of this common market, they will need to adhere to the framework of the common market and play by China's rules. Only then China will have its own say just like other big countries. We will have our own core interest groups wherein everyone's interests are linked and there will be internal checks and balances that supersede differences in nationality and politics.

Additionally, the development of the common market will address many issues such as the internationalization of the Renminbi, China's aging population, labour costs and efficiency—it will reap many practical benefits for China. However, it's interesting to note that although the conditions are ripe for the development of this common market to take off, the relevant departments have yet to take any initiative in that direction. Rather, they have still been going about things in the same old way. Under earlier models, both the China-Pakistan Economic Corridor and the BRI came up against countless problems. There needs to be a change in the models and methods that are currently in place in order for China to overcome all of these challenges. Chen Gong, who is an expert in geostrategy, has repeatedly pointed out that the countries to the east and southeast of China are constantly trying to get the best of both worlds between the U.S. and China. This is why he is convinced, after trying all kinds of methods and alternatives, that there is no other way to move forward other than setting up a New Silk Road Common Market.

The question we then have to ask is: are Pakistan and Bangladesh willing to be part of the New Silk Road Common Market? Based on his experience during the field trip, Chan Kung is convinced that there is a great opportunity for collaboration with these two countries, but the process of negotiating this partnership will be just as challenging. In any case, there are a few key issues to keep in mind here. First of all, both Bangladesh and Pakistan are democratic countries and have democratically elected governments. This means that the voices and interests of the people carry a lot of weight in these countries, and it will not be feasible only to allow officials to speak for or affirm the demands of the people. Second is the problem of sustainable economic development. This is an issue that cannot simply be solved by aid alone but requires the development of a robust market, and so Pakistan and Bangladesh need to figure out how to go about promoting the development of a sound market economy. But of course, China can lend them a helping hand in this through the framework of the common market. The third issue to consider is financial stability, which is directly related to the social stability of a country. Price hikes are definitely something to be avoided in this case, and once again the common market will be of great help in this regard. Moreover, the current circle of international capital is also concerned about investment security which the common market, a supranational agreement, can provide. This is because no matter what happens in the future, regardless of what risks emerge in whichever countries and regimes, meals will still need to be had and business will still need to be done. Therefore, the common market will continue to persist and develop. In this sense then, the common market can provide a certain degree of security to investors.

Final analysis and conclusion:

The insights that Anbound gained from its recent field trip have further affirmed the feasibility of developing the New Silk Road Common Market. The line of strategydiscussed above has also received the unanimous approval and agreement from Pakistani officials and research institutions. When the need is no longer an issue and the conditions to move this proposal forward exists, the next step will have to be taken by the Chinese government. It will have to decide how to come up with a strategic framework for the New Silk Road Common Market against the backdrop of regional development.