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Nick Gvinadze appointed as Belt & Road Ambassador of the ICC International Court of Arbitration
Belt&Road initiative.
Nick Gvinadze appointed as Belt & Road Ambassador of the ICC International Court of Arbitration
Our member Gvinadze & Partners is pleased to announce the appointment of the Managing Partner Nick Gvinadze as an Ambassador of the ICC International Court of Arbitration Commission on the Belt & Road Initiative.
Strategically situated on the crossroads between Europe and Asia, Georgia has historically been an important constituent of the ancient Silk Road, and it is very well-positioned today to play even a greater role in the newly revived Belt & Road Initiative. Having recently signed a Memorandum with the Government of Georgia, the ICC International Court of Arbitration has ambitious plans for the expansion of its world’s leading dispute resolution services to Georgia and the broader post-Soviet region, and Georgia has all the right ingredients to become a regional hub for the resolution of Belt & Road disputes”, commented Nick Gvinadze.
The Belt and Road Initiative
Presentation
The Belt and Road Initiative was launched by the Chinese president Xi Jinping in 2013. It was at first a domestic policy but has became a global initiative.
It covers 3 continents and 65 countries. China is also trying to involve Latin America, Caribbean States, Australia and New Zealand.
This road consists of 2 parts: The Silk Economic Belt and the 21rst Century Maritim Silk Road.
This is one of the major projects implemented by the Chinese government as at the 19th National Congress of the Communist Party of China, held in October 2017, the Belt and Road Initiative was entered in the constitution.*
Directions
Researchers and economists give three main directions to this initiative:
-Political: China wants to shift its power in the world to become an even more major worldwide player.
-Economic: China wants to answer its economic challenges. The government is aiming at reducing the disparities between urban/rural environment and between the West/East part of the country. Also it would allow them to move up in the value chain by shifting the industrual sector to other countries, thus maintaining their gross trajectory.
-Cultural : China desires to spread its ideas about the world order.
Expectations
China expects that this initiative will contribute to the narrowing of the infrastructure financing gap in Asia, that the projects planned in this framework will be worth 350 billion USD over the next 5 years and that the trade between China and the Belt and Road Initiative countries will exceed 3 trillion USD.
The Belt and Road Initiative from the Georgian perspective
Georgia economic relation with China
Georgia is part of the ancient silk road and in the recent years the trade between the two countries has been growing. Indeed China has become the 3rd trade partner of Georgia with a turnover of 823 million USD in 2014 and 10 million USD in 2002.
Georgia sees this initiative as an opportunity and decided to deepen its relations with China. In 2015 the country became a member of the Asian Infrastructure Investment Bank and in 2017 concluded a FTA. In addition Georgia testified of its interest and determination by organising the First Tbilisi Road Forum in 2015 followed by a second one in 2017. Also by conducting major infrastructure projects, like the Baku-Tbilisi-Kars (178 km long railway that connects Azerbaijan, Georgian and Turkish railways) and the Anaklia Deep Sea Port.
As for today 99 % of the imported goods (mostly IT products) in China are traveling by sea so it lets 1 % market share to rails. The main advantage of this last transport mode is that it is fastest than the maritime one (aerian transport remaining the fastest but being the more expensive).
