Belt and Road Initiative: Latest Developments and Emerging Opportunities
China’s Belt and Road Initiative (BRI) involves multiple countries and encompasses massive infrastructure development spanning Europe, Asia and Africa to enhance trade routes to and from China.
- The BRI involves the development of a network of infrastructure such as roads, railroads, ports, electricity and energy, as well as trade and finance ties between China and participating countries. The routes include an overland route that links China with South and Southeast Asia, Central Asia, Russia and Europe, and a sea route that passes through the South China Sea to the Indian Ocean and the Mediterranean.
- As the plan progresses, we are seeing progress in policy coordination, facilities connectivity, improved trade, financial integration and people-to-people bonds. While many countries are working with China, some sought to cancel or scale back projects amid concerns over so-called “debt traps” and other concerns.
- These are some of the benefits: Infrastructure improvements should deliver lower transit costs. Enhanced infrastructure will make it easier for companies to tap into Belt and Road countries. The BRI could also boost local economies in participating countries, which could in turn bolster demand for consumer goods.
- The BRI is an ambitious plan to transform the transport landscape connecting Europe, Asia and Africa. Multinational companies stand to benefit from opportunities in BRI markets in the long run.