Customer Reviews

The New Silk Road: How a Rising Arab World is Turning Away from the West and Rediscovering China

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My husband passed me this book after he read it in one sitting, and told me, "you must read this".

Since we're from Southeast Asia and based in the Middle East, it made sense, as the theme is about the Arab world's rediscovery of China. But I also came with low expectations because I expected another big picture book about China buying oil from the Gulf, the post 9/11 situation pushing the Arabs to Asia, or rising Sovereign Wealth Funds from the two regions managing the West's suspicions. I was pleasantly surprised to find that "The New Silk Road" took a radically different approach. There are some real-life stories here written by someone who gives us the 'worm's eye view' but can also give us the 'eagle-eye' assessment. The author, a westerner who speaks Mandarin and Arabic, is like a gum-shoe detective who explores linkages that Tom Friedman seems to have overlooked. He starts by focussing on the dots and then connecting them between China and the Arab world. These dots are the small and medium size traders in Yiwu in China's Eastern seaboard joined to the other smaller traders in old souks in Damascus, Syria like Souk Al Hamideyyeh. He has some wonderful anecdotes of how intrepid women traders from China even brave the forbidding Saudi market, which would put off many Western women. Being a woman, I found these stories heart-warming and encouraging, but was also fascinated by the history of it. These traders are re-establishing the old Silk Road that existed hundreds of years ago. Instead of the Land route they are flying, but the linkages are being re-made.

After this general introduction, he goes on to talk about Chinese petro-dollars and SWFs, which are pretty much well-covered. But its done with some real local insight. For example, I never knew about a Chinese language novel,"The Battle in Protecting Key Oil Routes" published soon after the Iraq war which talks about a naval battle between China and US over energy, which is located a 100 miles from Singapore.

The book then tackles the fascinating question of how the China growth model applies to the Arab world, specifically Syria. Here I wish there was some deeper discussion with the Arab policy people or elite on how they see this model, although the writer does quote a Syrian leader standing amazed at Shenzhen's development.

My favourite chapter is "Young Women and the Future of the Arab World" a trend that is often ignored, but which this book explors through the story of a women from Shenzhen, the "Female Heroes" of China. He then talks to a Syrian preacher cum dentist about the possibility of young Syrian women working in factories in Syria. These are areas or issues that I haven't seen discussed before and which breaks new grounds.

The rest of the book focusses on the media and PR war (which is interesting for me as well as a former PR pro and journalist) and because it looks at how Al Jazeera (which is based in Qatar, where I live) has been an influence on Chinese media.

A fascinating chapter for students of Arabic follows, and I was surprised to learn that you can get a Chinese translator for Arabic for just $30 a day! Imagine the potential for out-sourcing! There is an interesting discussion on the difficulties and values of studying Arabic, and I was intrigued to learn how the Chinese government encourages the minority Hui and even majority Han (but not the separatist Uighurs?) to study Arabic fusha for commercial reasons. There's an interesting contrast between Fusha and putonghua, which I don't think I've seen discussed elsewhere (and which prompted a long discussion with my husband, who's studied putonghua and fusha).

The last chapter I found a little disjointed after a great excursion in corners I'd never imagine, making linkages and connections which are often overlooked. But it makes an important point that the west should pay attention to how China and the Middle East are coming together as part of what Simpfendorfer calls " a new global re-balancing. "

The author who is fluent in both Arabic and Chinese, offers a unique perspective of the intersection of both cultures - How the mom and pop vendors in the Middle East are able to purchase items in China due to the translators who belong to an "acceptable" Muslim Chinese minority. His comments on the facility of Chinese leaders to be interviewed by Al Jezera in Arabic while those in the West cannot, are important warnings of the future. A must read for those interested in the growth of China and its wider influence in the Middle East.

Trade caravans packed with spices and silk crossed Eurasia a thousand years ago along routes known as the Silk road. Today, pipelines, ports, and railroads are replacing those routes, with China providing the funding where needed. (Camels are reserved mostly for tourists now.) Sino-Arab commerce has evolved into the world's fastest-growing commercial relationship. Originally, the Arabs provided the capital and China the opportunities for investment and diversification away from the U.S.; now deals are moving in both directions. The items traded are changing as well - less blue porcelain, popular among European buyers, and more red porcelain, popular among Arab buyers.

Commonalities include both China and the Gulf States having amassed a vast share of global currency reserves, experienced colonial occupation, and had their prior golden years around the 1500s. Religion is a major difference, with Chinese overwhelmingly atheist compared to deeply religious Arabs. (The U.S. and China have a common interest in keeping oil prices low, and may end up helping Mid-East peace. Another U.S.-China commonality - both are condemned by al-Qaeda.)

Author Simpfendorfer, from Australia, is now posted at the Bank of Scotland as its Chief China Economist based in Hong Kong. He says he first became aware of these new links when visiting Yiwu, south of Shanghai, with its own mosque and imam paid for by the Chinese state. Outside the small city were 18,000 stalls serving Muslim traders; Simpfendorfer adds that it takes a day for an Egyptian to obtain a Chinese visa, vs. 18 days for an American visa post 9/11. An estimated 200,000 Arab nationals visit Yiwu each year. China is now the world's biggest exporter to the Middle East

Saudi Arabia sees China, not the U.S., as representing the future growth for Saudi oil, and is sponsoring students to study in China, as well as several other Asian nations. (Forecasts show China importing 3X oil from the Persian Gulf vs. U.S. in 2025. China already has accounted for 40% of the increase in global crude demand between 2004 - 2007.) Poorer nations like Syria and Egypt are starting to look at China as a model for economic development - partly because of its successes, and partly because it is less antagonizing.

One side effect of all this is an erosion in Russia's power in its Central Asian backyard, as well as diminishing Chinese reliance on energy traveling from Iran and elsewhere through the Strait of Hormuz (home of the U.S. Fifth Fleet) and the Strait of Malacca (U.S. Seventh Fleet. (China building pipeline from Sudan to Red Sea, pipeline from Turkmenistan for gas to Xinjiang, was considering pipeline from Iran-Pakistan-China, but declined because of costs, will be using oil pipeline from Russia later this year.) Another is promoting green trade - emissions about one-fourth those created by flying or driving. A third is creating a massive jobs program - the Beijing-Shanghai high-speed project employs 110,000 railroad builders. Beijing is already building high-speed rail in Turkey, Venezuela, and Saudi Arabia, and signed preliminary agreements with California and G.E. for high-speed rail on the West Coast. A fourth is China reducing its reliance on developed economies, and especially the U.S.

The author's credibility is immeasurably enhanced by his being an economist who also speaks Mandarin and Arab. The book is based on meetings in Yiwu, Cairo, Beijing, and other cities.

The old Silk Road stretched across the great landmasses of Asia and linked China with the West. It was along this network that caravans loaded with silk, spices and more rumbled over deserts and through mountain passes. It was the most important trade route in history.

Today's traders are following in the footsteps of their ancestors. The bookends of the new Silk Road are China and the Middle East, especially the Arab world. The Eastern bookend gets all the press, but what many people fail to appreciate about the rise of China is how it also sired the rise of the Arab world.

What does this new Silk Road mean for investors? I believe the New Silk Road gives us a framework for looking at markets and sniffing out opportunities in energy, water, food and more.

Ben Simpfendorfer speaks both Arabic and Mandarin. And he has spent 15 years along the New Silk Road, from Beirut to Beijing. His focus is on individual traders and stories of the actual people involved.

In the process of writing the book, The New Silk Road: How a Rising Arab World is Turning Away from the West and Rediscovering China, he talks with many people. One memorable meeting is with a wealthy Syrian trader in Damascus. They meet in a ramshackle 500-year-old office. "Wooden barrels filled with spices and sweets spill out into the streets," he writes. "The air is rich with the scent of olive soap and musky perfume." The stalls here have been hawking their wares for centuries - and today more and more of these wares come from China.

He also meets with other businesspeople in Yiwu, Cairo, Beijing and many other cities. The anecdotes he collects are interesting human-level portraits of this New Silk Road. As he likes to emphasize, change is happening at the grassroots level. "Who notices the activities of an Arab trader in Yiwu or a Chinese trader in Damascus?" he writes. "It isn't obvious how their activities have a meaningful impact on life in America and Europe." But this is how major changes begin, with smaller changes at the margin.

Put it all together and the New Silk Road is an example of a working non-U.S.-centric trade relationship that is growing in leaps and bounds, covered well by this book.

Review by a writer for Agora Financial, publisher of economic and financial analysis including Financial Reckoning Day Fallout: Surviving Today's Global Depression, The New Empire of Debt: The Rise and Fall of an Epic Financial Bubble, and I.O.U.S.A.: One Nation. Under Stress. In Debt.

This is a seminal essay for the beginning of a new era in 2010. The economic world is shifting its axis and the author makes a clear historical long ago event as the catalyst for the future, namely, the old silk road is also the new silk road. This metaphor is the perfect reference point for the shift that is taking place between the MENA (middle east/north africa) and the east as exemplified by China (and I might add India and the Republics to the West of China as well). What is clear from the essay is that the business of the MENA and China have a lot in common and that there are historical reasons for it. There is also a political context that seems to be always bubbling up to the surface and it is seen not only in trade and business development but also in politics. It is as if two old clans have rediscovered their ancient heritage and feel more comfortable in rediscovering the relationship than the present one with the West. An excellent essay and extremely helpful for investors and historians alike.
ACEMAN