Related: Alan Bollard on China, FTAAP, New Silk Road (Full interview) 

Promoting regional connectivity across the Asia-Pacific is a major initiative for the Asia-Pacific Economic Cooperation (APEC). As one of the most important economies in the Asia-Pacific, China plays a key role in this process.

China’s “One Belt and One Road” initiative — namely building the “Silk Road Economic Belt” and “21st Century Maritime Silk Road”, a move to enhance connectivity and economic ties between China and its neighboring countries, has now become a favored topic during the APEC events.

Joining our Elite Talk program to talk about this hotly-discussed topic is Dr. Alan Bollard. He is the Executive Director of the APEC Secretariat and former Governor of the Reserve Bank of New Zealand. He thinks the notion of the “One Belt and One Road” is very much in line with APEC’s initiatives for connectivity, and building the “Silk Road Economic Belt” will possibly create much demand for services in the region. Here's our talk.

Host: As you know, Chinese President Xi Jinping has proposed a so-called "One Belt and One Road" initiative, which is meant to strengthen cooperation and economic ties between China and its neighboring countries. So, what're your thoughts on this initiative?

Bollard: I think that’s very much in line with APEC’s initiatives for connectivity, which means physically connecting our trade routes, and addressing more complex structural barriers to make it easier for goods, services and people to get across borders. I expect it will make use of some APEC trade facilitation measures like the introduction of electronic forms and customs single windows that reduce red tape at borders so that those sorts of initiatives can happen. It isn’t an APEC initiative; it’s a Chinese government’s initiative. But it’s very much in line with what we are trying to do.

Host: So, what opportunities do you think the Silk Road Economic Belt will bring to China and the other APEC economies?

Bollard: At the moment, most trade opportunities are around the Pacific Rim, but when you start recovering and growing again, there will be a strong demand for the export of merchandise and other goods from East Asia. At the moment, most of that goes via the Malacca Straits, between Indonesia, Malaysia and Singapore. But people are looking for new possible trade routes and if those across China can be competitive, then there will be a lot of demand for services for them.

>>中文版：北京APEC与中国“新丝路”