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Business / Economy

Revival of Eurasian passage to boost regional trade, stability

(Xinhua) Updated: 2012-09-04 14:24

Not only will the increase in trade bring prosperity, it will also bring stability to the region that is vulnerable to violence and unrest caused by terrorist activity.

"Stability will definitely ensue as the grand Eurasian passage boosts regional trade," said Shi Lan, deputy head of Institute of Central Asia Studies at Xinjiang Academy of Social Sciences.

"The region's stability hinges on its economic development level," she said.

Pakistan's Ambassador to China Masood Khan said at the expo that his country, ravaged by terrorism, will be glad to see more "Silk Roads" being built in the region, because poverty and disparity lead to terrorism and cross-border crimes.

Challenges remain

Insufficient infrastructure and trade and investment inconveniences still present challenges for the Eurasian passage.

"Infrastructure remains unable to meet transportation demands in some countries along the east-west grand route, especially in some central Asian countries," said researcher Che Tanlai.

Premier Wen has urged advanced cooperation in cross-border infrastructure, including the China-Central Asia natural gas pipelines and major railway and highway projects, to accelerate the connectivity process.

"China will continue to provide financing support for cross-border infrastructure construction," he pledged at the expo.

Trade and investment barriers also loom.

"Inconvenience costs" of trade are three to four times higher than the cost of tariffs for international trade, China's Vice Commerce Minister Li Jinzao said at the opening ceremony for Shanghai Cooperation Organization Business Day on the sidelines of the expo, quoting a recent survey conducted by the United Nations Industrial Development Organization.

He urged SCO member states, all of which are linked by the Eurasian passage, to further facilitate trade and investment in the region by strengthening coordination in regards to customs and e-commerce.

"When we are talking about the resistance of tariff barriers and protectionism in trade, we should also talk about how to make our trade and investment easier," he added.

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