China's big challenge at the G20

The world press has made headlines about the India-Middle East and Europe Economic Corridor, the "New Edition of the Spice Route" announced at the G20 summit.

The "Economic Corridor between India, the Middle East, and Europe" is a multinational project involving railways and maritime routes that will connect India with the Middle East and Europe. This project was unveiled during the G20 Leaders' Summit, which focused on the theme "One World, One Family, One Future" and was held in New Delhi, India, for the 18th time this year.

Experts consider this announcement at the summit to be a "historic milestone" and a "challenge" to China's modern "Belt and Road Initiative."

During this summit, the United States, India, Saudi Arabia, the United Arab Emirates, France, Germany, Italy, and the European Union jointly announced the establishment of the Economic Corridor between India, the Middle East, and Europe. This economic corridor consists of both maritime and railway routes and is expected to boost trade, provide energy resources, and promote digital connectivity (it is also seen as the 21st-century version of the historic "Silk Road"). A memorandum of understanding was signed.

The proposed corridor will extend from India to the United Arab Emirates, passing through Saudi Arabia, Jordan, and Israel, connecting to Europe. The project envisions faster transportation of goods from India to Europe through the ports of Israel and Greece. While the participating countries did not commit to specific financial obligations, they also agreed to develop an action plan for the corridor's creation within two months. The project received praise from U.S. President Joe Biden, who called it a "big deal."

The historic "Silk Road" connected continents to each other. Accordingly, the Economic Corridor between India, the Middle East, and Europe will consist of two separate corridors: the Eastern corridor, linking India to West Asia/the Middle East, and the Northern corridor, connecting West Asia/the Middle East to Europe. The proposed corridor will reach Europe from India through the United Arab Emirates, passing through Saudi Arabia, Jordan, and Israel. The goal here is to expedite the shipping of goods from India to Europe through the ports of Israel and Greece.

While the corridor is expected to strengthen India's position as a trade route from Southeast Asia to the Gulf, West Asia, and Europe, it is also seen as a challenge to China's economic objectives in the region. China's plans for non-interference in countries with a debt trap policy, known as the "Belt and Road Initiative," have been well-known in these regions for years.

The Chinese "Belt and Road Initiative" is, in fact, an economic corridor that serves as a 21st-century version of the historic Silk Road, covering over 70 countries. It was first announced in 2013, and its tasks were outlined in 2014.

Similarly, the Economic Corridor between India, the Middle East, and Europe is also a 2023 version of the ancient Spice Route. The Silk Road was the path followed by Chinese merchants selling silk to Egypt for centuries before Christ, while the Spice Route was the name given to the route through which Indians sent cinnamon, ginger, and turmeric to European nobles in the Middle Ages.

The main features of the IMEC (Economic Corridor between India, the Middle East, and Europe) are as follows:

Dual Corridors: The center consists of two separate corridors - the Eastern corridor connecting India to the Persian Gulf and the Northern corridor connecting the Persian Gulf to Europe. This includes a railway network designed to provide reliable and cost-effective cross-border transportation from ships to railways, complementing existing maritime and land routes.

Advanced Connectivity: In addition to establishing the infrastructure for electricity and digital communication, there will also be pipelines for exporting clean hydrogen. This not only secures regional supply chains but also enhances trade accessibility and facilitates business operations.

Economic Integration and Job Creation: The center aims to increase economic efficiency, reduce costs, and promote economic integration among the participating countries. This will lead to job creation and contribute to the global goal of reducing greenhouse gas emissions.

Environmental and Social Impact: By aligning the project with sustainable development goals, there will be a strong focus on environmental, social, and governance impacts.

Transformative Integration: IMEC is poised to transform the economic landscape by creating a corridor for trade and investment, seamlessly integrating Asia, Europe, and the Middle East.