Page 33 - Azerbaijan State University of Economics

Fabio Massimo Parenti: Understanding the Global Shift China’s Development and The Belt
and Road Initiative

56% (Fardella and Prodi 2017). A clear and structural rebalancing in the global
economic geography has already materialized. Equally, we can find interesting
figures also in the field of the energy and financial sectors (see, for example, Parenti
2010, 2018).

All these changes are embedded in the development process of China, not
accidentally displayed in the last 40 years. In this period, the Chinese GDP increased
on average by 10% annually and the urban and rural per capita income increased by
100% (Geraci 2018). The level of consumptions is also increasing and is going to
surpass the US, in spite of China still record high level of savings (IMF 2017).
Understanding these outcomes, and their international impact, require shedding light
over the fundamentals traits of China’s developmental path. The planning process, in
particular, brought about the recent socioeconomic and technological
transformations of the country, and contextually the strategies of gradual, but
constant, internationalization of entire regions and extensive urban networks.

Few key words are at the stake to understand the peculiarities of Chinese
contemporary experience: hybridization, experimentation, adaptation, gradualism,
medium and long-term territorial planning. These policies’ approach translated in
numerous controls on capital flows, conservation of heavy industries, maintenance
of a significant part of the productive sector in the hands of the State, reforms to
stimulate more competition, downsize of State monopolies, drastically decreasing
commercial barriers and favoring private and collective initiatives. All of this, for
reducing poverty and improving life conditions (Arrighi 2007, Jacques 2012, and
Bell 2005). China continues to combine policies and economic traditions drawing
inspiration from the fundamental principles of its Confucian and socialist traditions
(Parenti 2018).

Recent Opening Up to Complete Modernization

Coming to recent days, it is clear that China is focusing more on quality than
quantity, it is increasing the size of its domestic market and is going to reduce
financial restrictions on foreigners. These trends, defined by the 13th Five-Year
program (2016-2020), represent another manifestation of the continuous reforms
that have characterized China’s development (National People’s Congress of China,
2016).

On the efforts to upgrade the supply side structure, China’s society can become an
important ally of many countries, willing to move in a similar direction. Italy, for
example, has a huge need to innovate beyond its traditional points of strength.
Improving cooperation with China in sectors such as environmentally advanced

33