Chinese President Xi Jinping proposed the One Belt One Road (B&R) Initiative in 2013, namely the Silk Road Economic Belt and 21st-century Maritime Silk Road. The National Development and Reform Commission, Ministry of Foreign Affairs and Ministry of Commerce has jointly issued a document, titled ―Vision and Actions on Jointly Building Silk Road Economic Belt and 21st"Century Maritime Silk Road", to implement the initiative in terms of policy coordination, facilities connectivity, unimpeded trade, financial integration and people-to-people bonds. The document promotes collaboration of countries involved to create an open, inclusive and balanced regional economic cooperation architecture. Xigaze, a prefecture-level city located in southern part of the Tibet Autonomous Region, used to serve as a significant freight station for the ancient Silk Road stretching to South Asia. Bordering on Nepal, the Kingdom of Bhutan and India, it has begun to connect inland regions to foreign countries since Tang Dynasty. The area has 1,753 km of borderline and 9 border counties, accounting for half of Tibet‘s total. Along the border, there are 227 crossing points, 4 inland ports (Zham, Gyirong, Yadong and Riwo), and 28 cross-border fairs. As a gate way to South Asia and major regional distribution center, Xigaze, with a long history of friendly exchanges, boasts unique location advantages to participate into the B&R construction and promote international cooperation.

1. Favorable Conditions for Xigaze to Integrate into B&R

The CPC Tibet committee and local government initiated a program to step up developing land ports in Gyirong, Zham, Yadong and Riwo in recent years. Central authorities proposed to revive the trade routes to South Asia and build a cross-border economic cooperation zone in Gyirong at a high-level conference on Tibet‘s development in 2010. Five years later, authorities reiterated that Tibet should become a major passage to South Asia at another meeting. Thanks to those favorable policies, Xigaze has made good use of its advantages in position, trade and resources, and has developed its own approach to boost opening up and push forward economic advance, which reinforced the foundation of international cooperation and exchanges and provided sound conditions to implement the B&R Initiative.

Improvement in traffic system. Xigaze Peace Airport and Lhasa-Xigaze Railway have started operation. The area‘s total highway length has reached 15,000 km after all 18 counties (districts) in Xigaze were connected by asphalt roads. The construction of G318-Gyirong-Risur Bridge Road and two highways in Nepal built a solid foundation for expanding opening up and deepening international exchanges.

Land port infrastructure construction. A management committee and a border fair were established in Zham; a checkpoint and a border crossing gate were erected in Gyirong; another crossing gate was constructed in Yadong. Land port facilities and functions have improved.

Deepening international exchanges. Chinese President Xi Jinping and Nepali Prime Minister KP Sharma Oli reached a consensus to strengthen cooperation in multiple fields in 2016. The border station in Gyirong was put into operation in December 2014 and opened to visitors from countries besides China and Nepal since June. The local government also comprehensively implement agreements inked during President Xi‘s visit to India. A new border station in Natu La has received 5 batches of 240 Indian pilgrims in total as far.

Robust border trade. Xigaze has carried out preferential policies to encourage local people to engage in border trade. Regional exports and imports increased 7 percent year on year to 2.165 billion U.S. Dollars in 2014. However, the figure fell to 405 million U.S. dollars last year affected by an earthquake striking Tibet and Nepal on April 25.

2. Impediment to Xigaze?s Integration into B&R

Xigaze is set to play a pivotal role for trade routes to South Asia and the implementation of B&R Initiative, but there are still some protruding problems that need careful study and early solution.

Infrastructure needs further improvement. Xigaze is plagued by poor transport infrastructure, with inadequate high-quality highways and imperfect railway and aviation systems. National and provincial roads only account for 14 percent of the area‘s total road length, standard highways 54.6 percent and asphalt roads 21 percent. Only 66 percent of townships and 35 percent of villages are connected to highways, ranking the last but one in Tibet. The Xigaze Peace Airport has merely 1 air route, linking the city and southwest China‘s Chongqing Municipality and with three flights a week in slack season and 1 flight per day in peak period. There is only a daily train service between Xigaze and Lhasa, except for tourist seasons and holidays. The limited transport infrastructure can hardly meet people‘s rising travel demand. In addition, energy infrastructure lags behind as the area has yet to be fully covered by national power grids. Gyirong and Nyalam counties still rely on unstable small hydro stations and local grids for power supply.

Industrial transformation remains sluggish. The industrialization of agriculture and husbandry remains on the primary stage with little driving force for the local economy, while the secondary industry is also in its infancy with a weak processing sector. Tourism faces poor infrastructure. Tourist destinations are poorly-operated and lack cultural features. Modern tertiary sector, including logistics and headquarter economy, also lags behind. Confronted with uncoordinated Industries and short industrial chains, the region has a bumpy ride to restructure industries and increase employment.

Policy support should be strengthened. Tax-free policies on border trade needs further improvement as only articles for daily use are exempted from tariff, which can‘ t satisfy local demand. Companies faces financing difficulties and are eager for government support. Border trade still has untapped potential.

More efforts are needed to enhance disaster management. The area is vulnerable to snowstorms, earthquakes, landslides and debris flow due to its complex geologic structure and extreme climate. In 2011, an earthquake shocked Sikkim of India and also affected counties of Xigaze. An 8.1-magnitude earthquake striking Nepal on April 25, 2015 influenced 18 counties and districts of Xigaze, with Gyirong, Nyalam, Dingri and Dingkye suffering the most. The disasters destroyed public facilities, caused casualties and property losses, hindered economic and social development, and frustrated international exchanges and cooperation.

Forces for regional stability should be strengthened. A frontier of anti-separation battle, Xigaze has 9 counties on the border with many mountain passes along the 1,753 km of border line. The region is essential to the long-term peace and stability of Tibet and even the whole country. The implementation of the B&R Initiative requires more forces to maintain reginal stability.

3. Proposals for Xigaze to Integrate into B&R

The next five-year period (2016-2020) is crucial for China to eliminate poverty and comprehensively build a moderately prosperous society. Xigaze will briskly follow the all-round opening up and B&R Initiative, and strive to realize the rule of law, regional prosperity and cohesion. The region will make good use of its position advantage and seize the opportunity to integrate into the B&R Initiative, focusing on the development of transport, logistics, energy security and cultural tourism.

To accelerate improving connectivity of transportation network. The region will give top priority to the establishment of a general transportation system to better serve the B&R. The construction of border roads will be a major task, while national and provincial highways will also be improved, especially the Xigaze-Gyirong Highway. Projects of railways linking Xigaze and land ports of Gyirong and Yadong will also be accelerated. In terms of aviation, the region will seek to build a feeder airport in Yadong and general airports in Mount Everest area and Gyirong. The Xigaze Peace Airport will operate more air routes, with larger coverage and higher throughput.

To step up building efficient, convenient border logistics routes. Xigaze will actively participate into the construction of Bangladesh-China-India-Myanmar economic corridor, South Asia trade routes and China-Nepal cross-border economic cooperation zone. Gyirong aims to become one of China‘s second batch of opening up pilot areas. The infrastructure of border land ports in Gyirong, Zham, Yadong, Riwo, Zhentang and Lektse will be improved. The region will strive to explore international markets, developing its own characteristic industries, raising farm produce quality to meet international standards and building Gyirong into a national designated port for meat imports. Storage centers and cold-chain logistics will be built, and a logistics information platform will be established. Economic cooperation with inland provinces and municipalities will be strengthened, and local logistics companies will take advantage of the operation of "Lanzhou" freight train in South Asia routes to expand business. What‘s more, the region will boost logistics and e-commerce and deepen opening up and domestic cooperation, as well as study the establishment of Xigaze Bonded Area and a border economic cooperation zone in Gyirong.

To speed up energy infrastructure construction. To ensure energy and power supply, Xigaze will vigorously develop clean energy and integrate into the national and central Tibet power grids. More efforts will be made to push forward irrigation and water conservancy projects in Sangde, Pazi and Shang River, study the construction of hydro stations in the Yarlung Zangbo River and Gyirong‘s Donglin Zangbu area, and upgrade small hydro stations and connect them to power grids, which will improve power generation and even allow the region to transmit electricity to other countries. The region plans to build an oil and gas pipeline that passes through Golmud, Lhasa, Xigaze (Sangzhuzi District), the land port in Gyirong and Nepal. The project will reduce the cost of oil and gas supply in Tibet and help Nepal to wean off reliance on imports from India, as well as help Xigaze develop into a strategic base for cooperation with South Asia.

To boost cultural tourism for regional prosperity. The region will promote "Miraculous Mount Everest, Mysterious Tsang Region, Lucky Xigaze" to tap the potential of tourism resources, such as profound traditional cultural deposits of Tsang region including Mount Everest, Honghegu and Yarlung Zangbo River. The region seeks to achieve all-round development of tourism and build the area into a world-class tourist destination. Tourism collaboration will be enhanced through bilateral coordination, exchange and promotion platforms, service improvement, cross-border tours, and special tourist attractions. The region will strive to attract tourists from home and abroad. Local authorities will strengthen supervision to improve service and maintain order. Pilgrims from South Asia are welcome and pilgrimage will be an opportunity to push forward cooperation with India.

To perfect social governance. The local government will step up transforming functions to become service-oriented, efficient, clean and transparent under the rule of law. A power list, a responsibility list and a negative list for market entry will be established to guide government actions and ensure the execution of duty. The region will strive to safeguard the integrity of the nation and promote ethnic harmony, adhering to central policies on the 14th Dalai Lama and furthering the battle against separatists. The region will comprehensively implement national policies on ethnics and religion, improving management and cracking down on terrorism and crimes. Supervision over production safety will also be strengthened to prevent serious accidents. Besides, the government will better address social disputes and contradictions to ensure stability and harmony.

(Yao Changyu, Deputy Mayor of The Municipal Government of Xigaze)