Tuesday, July 10, 2018

China appears to be setting up Dubai to be the gateway to both Europe and Africa along their new Silk Road

While there are countless theories as to why President Trump has helped plunge the world into a global trade war at this time, it has not stopped China from continuing their quest to rebuild the old Silk Road here in modern times.

And not unlike the Silk Road of the past, where trade was conducted freely at ports, cities, and even outposts all along a route that encompassed thousands of miles, China's new version is very similar in that they are working towards bypassing bureaucratic authorities over trade (WTO, reserve currency use, sovereign regulation) and bringing a return to a time when nations set trade agreements based on each other's respective needs, and in their own currencies.

One of the more fascinating results or consequences of the ancient Silk Road was the fact that it helped spawn the religion of Islam since its foundations arose at one of the major outposts (Jeddah/Mecca) along the trade route.

And perhaps the significance of the Middle East in the Silk Road of the past is why it appears now that China is selecting one of the region's capitals to become the gateway from the East into Europe and Africa.

Dubai's Multi Commodities Center (DMCC), the largest free trade zone in the United Arab Emirates (UAE), expects a stronger Chinese presence in its trade community, due to China's increasing influence in the world trade scene. 
"The Chinese presence and contribution to the global economy and commodities trade always surprises me," said the DMCC's Executive Chairman Ahmed Bin Sulayem during a news conference presenting DMCC in Beijing on July 9. 
DMCC is expected on July 11 to sign a memorandum with the provincial branch of China Council for the Promotion of International Trade in Hubei province, to seek deeper understanding and cooperation. 
Bin Sulayem also foresees extensive opportunities for DMCC to attract Chinese companies. 
Nearly 70 countries (and regions) are connected in some way to the Belt and Road Initiative, and he believes Dubai and DMCC could be a gateway to both Europe and Africa for Chinese companies driven by the Belt and Road Initiative to go abroad. - ECNS
Dubai is also a significant spot because they are quickly becoming one of the world's most important gold trading hubs, which is expected to become the primary currency for trade as China gears up for a future gold trade note. 

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