The Belt and Road Initiative has brought tremendous trade and investment opportunities that the world cannot afford to ignore.
In the first seven months in 2017, China signed $US78.09 billion ($F158.52 billion) of contracted projects along the Belt and Road, up 32.6 per cent year on year, according to the Ministry of Commerce.
“Its concepts, such as inclusiveness and strategic connection, conform with the common interests of the world, and therefore have attracted global attention. The initiative has become the world’s largest growth initiative, livelihood project and public good so far,” said Wang Yiwei from Renmin University of China.
The Silk Road Economic Belt and the 21st Century Maritime Silk Road initiative, known as the Belt and Road Initiative, was proposed by China in 2013 with the aim of building a trade and infrastructure network connecting Asia with Europe and Africa along the ancient trade routes.
Infrastructure networks
China has been exporting high-speed trains and related technologies to the Belt and Road countries. In 2014, China completed the construction of its first overseas high-speed rail in Turkey. In June 2015, China and Russia inked deals for 770 km of track connecting Moscow and Kazan.
China’s rail services are stretching all the way to the west along the ancient Silk Road. In August, 2017, China and Egypt signed a $US1.24 billion ($F2.51 billion) light rail contract. The 66-km 11-station line will connect Cairo with adjacent cities.
Thanks to the China-Europe rail link in particular, merchandise trade witnessed robust growth between China and European countries including Germany, Spain and Britain.
“The Belt and Road Initiative is key to solving the problem of sluggish recovery and has seized the crucial link of world economic growth — infrastructure,” Wang Yiwei said.
Solid driver
China’s growth will continue to be a key driver for a firming recovery of the world economy, according to the International Monetary Fund chief economist Maurice Obstfeld.
Global investors, including the EU, continue to be optimistic about China’s economic growth prospects. In the first seven months, 17,703 new foreign-funded companies were established in China, up 12 per cent year on year, according to the MOC.
“Strong Chinese growth drives growth particularly in Asian region but also throughout the world,” said Mr Obstfeld.
China’s economy expanded 6.9 per cent for 2017, with consumption and services, as well as new innovation-driven economic sectors, taking up larger roles in the economy.
As China is transforming its economy from traditional manufacturing sector to service and consumption oriented sector, its structural transformation and the rebalancing of its economy should lower the growth rate and put growth on a firmer basis over time, the chief economist said.
Win-win scenario
Claims that the Belt and Road Initiative is a tool by China to expand its economic interests and dominance abroad ignore the key element underpinning the initiative — win-win results.
Since China launched the initiative in 2013, it has invested more than $US50 billion ($F101 billion) in countries involved in the Belt and Road.
Meanwhile, a total of 56 economic and trade cooperation zones have already been built by Chinese businesses in these countries, generating nearly $US1.1 billion ($F2.2 billion) in tax revenue and creating 180,000 local jobs.
