Externalisation of domestic economic constraints: China’s spatial fix in Kazakhstan and Turkmenistan
Growing capital over-accumulation and excessive industrial production have forced policymakers in Beijing to search for profitable outlets overseas. The Belt and Road Initiative (BRI), which focuses on infrastructure connectivity projects across Eurasia, reflects these efforts. This paper th...
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| Format: | Article |
| Language: | English |
| Published: |
Penerbit Universiti Kebangsaan Malaysia
2023
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| Online Access: | http://journalarticle.ukm.my/25595/ http://journalarticle.ukm.my/25595/1/Sinergi_3_2_2.pdf |
| Summary: | Growing capital over-accumulation and excessive industrial production
have forced policymakers in Beijing to search for profitable outlets
overseas. The Belt and Road Initiative (BRI), which focuses on
infrastructure connectivity projects across Eurasia, reflects these efforts.
This paper theorises BRI as a spatial fix aimed at overcoming the
recurring problem of over-accumulation of capital. This paper focuses
on BRI-led projects in Kazakhstan and Turkmenistan. By conducting
unstructured interviews with experts and examining projects, this paper
found that BRI-led projects in Kazakhstan and Turkmenistan not only
provided a new geographical space and under-saturated market for
Chinese surpluses but also created the demand for Chinese State-Owned
Enterprises (SOEs) which were facing a decline in returns. This paper
also found that through elements such as non-competitive bidding,
embedded conditionality, and double preferential loans, China has
successfully stimulated overseas demand for its surpluses. The study,
therefore, concludes that BRI-led projects in Kazakhstan and
Turkmenistan serve as a spatial fix for China |
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