Bridging the gaps between China and Foreign Investments in Belt & Road Initiative (BRI)

Belt and Road Initiative, setting South East Asia region as central Global Value Chain of the future

In 2016, China companies invested  US$14.53 billion in countries along the “Belt and Road”; where the contract value for projects  along the routes amounted to US$126.03 billion, with a turnover of US$75.97 billion (Source:  Ministry of Commerce, China).  A large part of the investment is in South East Asia countries that includes Singapore, Indonesia, Thailand and Malaysia.  From 2013 to 2016, the Belt and Road Initiative has created more than 180,000 local jobs, and paid $1.1 billion in tax to local governments.

The Belt and Road Initiative (BRI) is China’s globalization project introduced by President Xi in 2013.

It encompasses more than 60 countries, 4.4 billion people and up to 40% of the global GDP.  The routes consist of the “21st Century Maritime Silk Road” and the “Silk Road Economic Belt”.  The Belt is a land route from China’s western region through Central Asia, extending up to North of Europe.  The Road consists of shipping lanes from Western Asia, through South East Asia, Africa and Europe.

The plan opens up new market opportunities for companies along the routes, but also comes with complicated risks and challenges.

Leave Comment

Your email address will not be published. Required fields are marked *