Externalisation of Domestic Economic Constraints: China’s Spatial Fix in Kazakhstan and Turkmenistan
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Abstract: 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.
Keywords: Kazakhstan; Turkmenistan; spatial fix; BRI China.
DOI: 10.17576/sinergi.0302.2023.02
Article information: Submission date: 21 July 2023; Acceptance date: 14 August 2023; Publication date: 31 December 2023.
Declaration and acknowledgement: The Author would like to show their gratitude to SINERGI’s anonymous reviewers and their constructive feedback in improving the quality of the manuscript. Author is also immensely grateful for their comments on earlier versions of the draft. No potential conflict of interest was reported.
Abstrak: Pengumpulan modal yang semakin meningkat dan pengeluaran perindustrian yang berlebihan telah memaksa pembuat dasar di Beijing untuk mencari cawangan yang menguntungkan di luar negara. Inisiatif Jalur dan Laluan (BRI), yang memfokuskan pada projek ketersambungan infrastruktur di seluruh Eurasia, mencerminkan usaha ini. Makalah ini berteori BRI sebagai penetapan ruangan yang bertujuan untuk mengatasi masalah berulang pengumpulan modal yang berlebihan. Makalah ini memberi tumpuan kepada projek yang diterajui BRI di Kazakhstan dan Turkmenistan. Dengan menjalankan temu bual tidak berstruktur dengan pakar dan meneliti projek, makalah ini mendapati bahawa projek yang diterajui BRI di Kazakhstan dan Turkmenistan bukan sahaja menyediakan ruang geografi baharu dan pasaran kurang tepu untuk lebihan China tetapi juga mewujudkan permintaan untuk Perusahaan Milik Negara China (SOE). yang menghadapi kemerosotan dalam pulangan. Kertas kerja ini juga mendapati bahawa melalui elemen seperti pembidaan tidak kompetitif, syarat tertanam dan pinjaman keutamaan berganda, China telah berjaya merangsang permintaan luar negara untuk lebihannya. Oleh itu, kajian itu menyimpulkan bahawa projek yang diterajui BRI di Kazakhstan dan Turkmenistan berfungsi sebagai penetapan ruangan untuk China.
Kata kunci: Kazakhstan; Turkmenistan; penyelesaian ruangan; BRI China.
DOI: 10.17576/sinergi.0302.2023.02
Maklumat artikel: Tarikh Penghantaran: 21 Julai 2023; Tarikh penerimaan: 14 Ogos 2023; Tarikh penerbitan: 31 Disember 2023.
Penghargaan dan pengisytiharan: Para penulis ingin merakamnkan rasa terima kasih mereka kepada pengulas tanpa nama SINERGI dan maklum balas membina mereka dalam meningkatkan kualiti manuskrip. Pengarang juga amat berterima kasih atas komen mereka pada versi awal draf. Tiada potensi konflik kepentingan dilaporkan.
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