The New Silk Road: Challenges and Opportunities

Living in China was a life changing experience, there I learnt very interesting things, for example, the importance of commercial routes for China. The Silk Road was and is a network of trade routes connecting the East and the West, (Here is more info if you want to know more, The Silk Road Book by Valerie Hansen).

The Silk Road trade played a significant role in the development of the civilizations of China, Japan, Korea, India, some African countries, some middle east countries and Europe. And now, it is said that the new Silk Road will have an impact in the economy and political structures across borders in these commercial routes.

Challenges

New Strategic alliances must be established, this is why having key partners in different countries will help companies maximize its opportunities.

The role of politicians will be extremely important, since clear policies will ensure a fair and transparent international trade.

Climate change is a major challenge that logistics companies have to face in the upcoming decades. New sustainable ways of transportation are being studied, however there is still a lot of work to be done in this field.

Opportunities

Thomas Kowitzki (head of China Rail DHL) claims that with the new railway connections they are able to reach new markets, reduce the delivery time and also it will be easier for them to reach their climate protection aims since transport by train is much more climate friendly than other means of transportation like airplanes.

IoT (internet of things), 5G, Big data and many of these new technologies will play a key role in the development of this trade routes. Since this new inventions help to better manage the supply chain, reduce costs and facilitate transparency for both the companies and their clients.

The video below will give you a glimpse of the importance of the new Silk Road.

This is a very broad topic and here in this post, I just mentioned important but very general things to try to comprehend the opportunities and challenges of the new Silk Road.

If you want to know more I invite you to take a look a these videos and links:

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