Belt & Road Initiative

Five years have passed since China’s President Xi Jinping announced the launch of the Belt and Road Initiative (BRI), originally called One Belt One Road. One could argue that the BRI has become China’s most important geopolitical tool to build soft power and implement its plans, and its content and nature are evolving over time.

As possibly the biggest continuous investment of all time, the BRI has the potential to be a major driver of global economic growth in the next 20 to 30 years. By 2025, BRI infrastructure projects worth roughly US$1.16 trillion) are expected to be completed or in progress in about 90 BRI countries. This figure is likely to climb as more and more countries join the initiative. It is estimated that BRI will touch the lives of 70 percent of the global population.

Major Financiers

Opportunity

Analyses have already quantitatively gauged the potential gains for the Belt & Road countries. For example, authors Garcia-Herrero and Xu estimated how trade would be generated thanks to the improvement of transport infrastructure in the Belt and Road geographies. The authors found that gains are 6% for Europe and 3% for Asia, while the rest of the world suffers a 0.04% reduction in trade. A good example is Nepal. Massive Chinese infrastructure investments in Nepal aim to link it with economic activities of China and India, providing new momentum for Nepal’s development. Initially, this initiative made Russia worried because of its effect on the Trans-Siberian Railway. However, two international transport corridors (Primorye-1 and Primorye-2) under the BRI have linked Russia with the Asia-Pacific region, providing a new opportunity for Russia to develop. Similarly, experts shows that the BRI will bring benefits also to Africa through its massive construction scheme.

Pineal Consulting Group has a network of SOEs (State Owned Enterprises) & Private Companies looking to invest under the Belt & Road Initiative. No matter if you have a EPC or PPP project, find out how to secure funding.