One Belt One Road” (OBOR) 一带一路
One Belt, One Road OBOR or the Belt and Road Initiative BRI is a development strategy and framework, proposed by Chinese paramount leader Xi Jinping that focuses on connectivity and cooperation among countries primarily between the People's Republic of China and the rest of Eurasia.
It consists of two main components, the land-based "Silk Road Economic Belt" and the ocean going "Maritime Silk Road".
The strategy underlines China's push to take a bigger role in global affairs, and its need for priority capacity cooperation in areas such as steel manufacturing.
China is celebrating a decade of the Belt and Road Initiative. What is it about?
A railway track at the construction site of a Standard Gauge Railway project in Nairobi, Kenya, a signature project of China's Belt and Road Initiative
China on Tuesday kicked off a summit marking the 10th anniversary of its Belt and Road Initiative – an ambitious yet controversial undertaking to boost connectivity and trade across the world with Chinese money and know-how in infrastructure development. World leaders including Russia’s Vladimir Putin are gathering in Beijing for the high-profile event, which takes place in the shadow of a spiraling war between Israel and Hamas.
Since its launch by Chinese leader Xi Jinping in 2013, the Belt and Road Initiative (BRI) has poured hundreds of billions of dollars to power the construction of bridges, ports, highways, power plants and telecoms projects across Asia, Latin America, Africa and parts of Europe. Hailed by Xi as a “project of the century,” the BRI has emerged as a glaring symbol of China’s rise as a global power. But it has also been viewed with growing skepticism, especially in Western capitals where governments are wary of Beijing’s global ambitions. The massive undertaking has been plagued by criticism. Beijing has been accused of straddling developing countries with crippling debt, while its sprawling projects have often faced concerns – and even protests – over their environmental costs, labor violations and corruption scandals.
A decade on, Xi’s global building spree is at a crossroads. Chinese investment in BRI projects has tapered off as the world’s second-biggest economy slows. Recipient countries are struggling more than ever to repay their debts amid global economic headwinds from the Covid-19 pandemic and the war in Ukraine. Meanwhile, the United States, which sees the BRI as a a tool for Beijing to extend its global influence at the expense of American power, has proposed its own investment program to boost global infrastructure development.
China Invested $1 Trillion to Gain Global Influence. Can That Go On?
China’s top leader, Xi Jinping, founded the Belt and Road Initiative a decade ago to use the country’s economic might to enlarge its geopolitical heft and counter the influence of the United States and other industrialized democracies. China has since disbursed close to $1 trillion to mostly developing countries, largely in loans, to build power plants, roads, airports, telecommunications networks and other infrastructure. Mr. Xi has used China’s cash and infrastructure expertise to tie together countries across Asia, Africa, Latin America and parts of Eastern and Southern Europe.
Belt and Road has established for China a role in global development rivaling that of the United States and the World Bank. But for all the influence it has brought Beijing, the initiative has contributed to unaffordable levels of debt for dozens of poor countries. China also directed contracts to its own companies and in some cases built expensive, subpar projects that have not spurred economic growth.
Now, as representatives from many of the nearly 150 Belt and Road countries assemble in Beijing this week for a summit, the initiative is changing shape. China’s role has shifted from being the world’s largest bilateral lender to also its largest debt collector. The government is now emphasizing smaller grants for projects that are more environmentally sustainable. China in 2021 announced a new financial framework, the Global Development Initiative, to supplement the Belt and Road. These changes underline how China’s mounting debt and economic troubles are limiting its ability to project financial power abroad.
How China's Belt and Road Initiative is changing after a decade of big projects and big debts
An attendee at a conference looks up near a portrait of Chinese President Xi Jinping with the words "Xi Jinping and One Belt One Road" and "One Belt One Road strategy," in Beijing, April 28, 2017
China's Belt and Road Initiative looks to become smaller and greener after a decade of big projects that boosted trade but left big debts and raised environmental concerns.
The shift comes as leaders from across the developing world descend on Beijing this week for a government-organized forum on what is known as BRI for short. The initiative has built power plants, roads, railroads and ports around the world and deepened China’s relations with Africa, Asia, Latin America and the Mideast. It is a major part of Chinese President Xi Jinping's push for China to play a larger role in global affairs.
Called “One Belt, One Road” in Chinese, the Belt and Road Initiative started as a program for Chinese companies to build transportation, energy and other infrastructure overseas funded by Chinese development bank loans. The stated goal was to grow trade and the economy by improving China's connections with the rest of the world in a 21st-century version of the Silk Road trading routes from China to the Middle East and onto Europe.
China marks decade of belt and road with white paper declaring redoubled commitment to help developing countries
A slowing Chinese economy has raised scepticism about Beijing’s willingness and ability to keep advancing the Belt and Road Initiative, its flagship infrastructure programme
China has redoubled its commitment to the Belt and Road Initiative and says it is open to any project that can help developing countries. The initiative, which was unveiled by Chinese President Xi Jinping a decade ago, will continue to be Beijing’s “overarching plan and its top-level design” for opening up and international cooperation, according to a white paper released by the country’s State Council Information Office on Tuesday.
“China is ready to increase its resource input in global cooperation,” the document said. “It will work to achieve a greater say for emerging economies and developing countries in global governance.” “China will support any initiative that can genuinely help developing countries build infrastructure and achieve shared progress,” the white paper read. It said the Belt and Road Initiative provided new solutions for improving global governance when “certain countries” overstretched the concept of national security and sought “decoupling” in the name of “derisking”. The newly published white paper titled “The Belt and Road Initiative: A Key Pillar of the Global Community of Shared Future” came before the third Belt and Road Forum for International Cooperation in Beijing. The forum is scheduled to take place this month to celebrate the 10-year anniversary of the global infrastructure development strategy.
More than 130 countries and 30 international organisations have confirmed they will send representatives to attend the event, according to Li Kexin, an official with the Chinese foreign ministry, who addressed a press conference to introduce the white paper on Tuesday. By June, China had signed more than 200 belt and road cooperation agreements with 152 nations and 32 international institutions across five continents, according to the National Development and Reform Commission (NDRC), the country’s top economic planning agency.
China’s Belt and Road Initiative: A Decade of Global Controversy and Transformation
China’s Belt and Road Initiative: A Decade of Global Controversy and Transformation
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China’s Belt and Road Initiative (BRI), a grand global infrastructure scheme, marks its tenth year this year. The BRI, envisioned as a bridge between Asia, Europe, and Africa, has stirred a whirlwind of reactions worldwide. While China touts the initiative as a global good designed to bridge the infrastructure gap, critics have cast a shadow over the project, decrying predatory lending, debt traps, and environmental destruction.
Launched in 2013, the BRI was conceived as a catalyst to dissolve the East-West divide and rekindle the glory of the ancient Silk Road. Yet, as the years unfolded, the West’s embrace of the BRI proved less than warm. Countries like Britain and Italy, initially interested, expressed disenchantment and anxiety over the economic returns. The United States has been particularly vocal, with President Biden branding the BRI a ‘debt and noose agreement’ that China has with other nations. As its relationship with the West grows frosty, China has turned its charm offensive towards the global South, particularly Africa and Latin America. Through the BRI, China has positioned itself as a champion of economic development, underscoring infrastructure-building and industrialization. It has exploited criticisms of Western development aid – often tied to good governance and human rights conditions – to present itself as a more pragmatic partner.
However, the slowing of China’s economic growth has led to a reduction in the number and size of BRI projects. This comes just as countries like Zambia are grappling with debt restructuring. China, a significant creditor, finds itself under mounting pressure, with over $78 billion worth of loans turning sour in the past three years. Despite the hurdles and controversies, China is showcasing the political significance of the BRI at a two-day gathering in Beijing to commemorate the initiative’s 10th anniversary. The event is expected to draw leaders and representatives from around 130 countries and 30 global organizations. Russian President Vladimir Putin’s participation is seen as a testament to the burgeoning relationship between China and Russia, and their shared aspiration for an alternative global order.
How China's Belt and Road Initiative is changing after a decade of big projects and big debts
People stand next to a signage at China National Convention Center ahead of the Third Belt and Road Forum in Beijing, China on Oct 16, 2023. (Photo: Reuters/Edgar Su)
China's Belt and Road Initiative looks to become smaller and greener after a decade of big projects that boosted trade but left big debts and raised environmental concerns. The shift comes as leaders from across the developing world descend on Beijing this week for a government-organised forum on what is known as BRI for short. The initiative has built power plants, roads, railroads and ports around the world and deepened China’s relations with Africa, Asia, Latin America and the Mideast. It is a major part of Chinese President Xi Jinping's push for China to play a larger role in global affairs.
Called “One Belt, One Road” in Chinese, the Belt and Road Initiative started as a program for Chinese companies to build transportation, energy and other infrastructure overseas funded by Chinese development bank loans. The stated goal was to grow trade and the economy by improving China's connections with the rest of the world in a 21st-century version of the Silk Road trading routes from China to the Middle East and onto Europe. Xi unveiled the concept in broad terms on visits to Kazakhstan and Indonesia in 2013 and it took shape in the ensuing years, driving the construction of major projects from railroads in Kenya and Laos to power plants in Pakistan and Indonesia.
A Decade Down the Belt and Road
When President Xi Jinping launched the Belt and Road Initiative (BRI) in September 2013, he signaled the dawn of a new era in how China engaged with the world. In the decade since, Chinese leaders have used the BRI as a springboard to assume a global leadership role in bankrolling connectivity infrastructure in the Global South.
The ambitious initiative solidified China’s position as a financier of first resort for emerging economies; Beijing surpassed the United States as the largest bilateral funder to the developing world in 2011, and now outstrips U.S. funding by a more than two-to-one basis. As we approach the initiative’s 10th anniversary, the BRI is facing headwinds from a number of different directions that threaten its staying power and prominence.
At home, the BRI must jockey for position in view of other leadership priorities – namely the launch of the more development-centered Global Development Initiative (GDI) and China’s slowing domestic economy. At the same time, the world in 2023 looks far different than it did in 2013, as countries navigate multiple complex crises, alongside growing concerns about the risks of debt-financed development and the resurgence of great power competition. Chinese leaders will necessarily have to adapt their efforts to these new conditions, and there is emerging evidence that they are already starting to do so.
Ports, railways, a naval base: China's Belt and Road in five projects
An aerial view of Ganlanba railway station, one of the stations along the China-Laos railway under construction on Sep 28, 2021, in southwestern China's Yunnan Province. (Hu Chao/Xinhua via AP)
China's landmark Belt and Road Initiative (BRI) has thousands of infrastructure projects in every corner of the globe, generating a staggering US$2 trillion in contracts while courting international controversy. Here AFP looks at five key projects:
- LAOS HIGH-SPEED RAILWAY - Laos took on huge loans from China to partially finance a US$6 billion high-speed railway connecting it with the underdeveloped, landlocked nation. The nearly 1050km line linking the Chinese city of Kunming to the Laotian capital Vientiane opened in 2021 and has served tens of millions of passengers, Beijing says.
- PAKISTAN ECONOMIC CORRIDOR - Plans to develop an "economic corridor" linking China and Pakistan took on new impetus when they were absorbed into the BRI framework a decade ago. The staunch allies have earmarked tens of billions of dollars for a range of transport and energy projects connecting western China with Pakistan's Gwadar Port.
- DJIBOUTI NAVAL BASE - China showered Djibouti with investment after bringing the small African nation into the BRI's orbit - and a sprawling military base is the centrepiece. The reportedly US$590 million facility is Beijing's first permanent naval base outside China and is strategically placed between the Red Sea and the Gulf of Aden.
- GREECE FOOTHOLD IN EUROPE - China raised European eyebrows in 2016 when a state-owned shipping firm bought a majority stake in Greece's ailing Port of Piraeus. Athens formally joined the BRI two years later, and the two countries envision the port as a major transit hub linking the Asian and European continents.
- ITALY POSED TO PULL OUT? - Italy shocked Western allies in 2019 by declaring its participation in the BRI during a state visit from Xi Jinping.Th e announcement made Rome the first member of the Group of Seven advanced economies to sign up for the Chinese president's flagship project. The countries signed a series of commercial deals but they did little to staunch a yawning trade deficit or assuage concerns of Beijing's undue influence.
Belt and Road Initiative boosts China's clout overseas, but concerns like debt-trap diplomacy remain
China’s ambitious Belt and Road Initiative (BRI) may have boosted the country’s global political clout, but doubts remain over the viability of the massive development strategy once hailed by Chinese President Xi Jinping as the “project of the century”. Ten years have passed since China rolled out the infrastructure and investment project aimed at improving regional cooperation through better connectivity among countries lying on the ancient Silk Road and beyond.
The global initiative has helped pave the way for the expansion of China's worldwide reach, while also offering a golden opportunity for lower-income countries. The Belt is a network of overland routes that serve as China's gateway across central and south Asia, the Middle East and into Europe, while the Road is made up of maritime lanes that connect the mainland to Southeast Asia, Africa and Europe.
The BRI was started in 2013, when Mr Xi highlighted the need to establish a new trade route modelled after the original Silk Road, which connected China and the Far East with the Middle East and Europe. It laid the building blocks for his legacy project, a massive infrastructure development network designed to re-route global trade. The project has largely been a strong diplomatic success for China, observers told CNA’s Asia First on Monday (Oct 16).
related:
Is China’s Belt and Road Initiative running out of steam?
A decade after the initiative started, the amount being invested in projects in Africa has dipped to its lowest level. While observers say the strategy will continue, it seems ‘small and beautiful’ is its new catch-cry with developers.
At Kenya’s Miritini Railway Station, near the coastal city of Mombasa, a statue of legendary Chinese explorer Zheng He sits on a plinth greeting passengers, more than 600 years after his voyage to the town of Malindi, further up the coast. The statue’s plaque explains the ties between Kenya and China that began with Zheng’s visit in 1418, saying: “Zheng’s fleet paid four visits to Mombasa, enhancing mutual understanding between China and Kenya and strengthening Kenya-China friendly exchanges.”
Never mind that back then there was no country called Kenya, and China was, in fact, the Ming dynasty. Now, centuries later, China is continuing what Admiral Zheng began, connecting the history with projects such as Kenya’s Standard Gauge Railway (SGR) as Beijing cements relations with this part of Africa. China funded and built the railway line that runs from Miritini for passenger trains and from the port of Mombasa for freight trains to the capital Nairobi, with an extension to Naivasha, a town in the Central Rift Valley. It is part of a mega plan to recreate an ancient Silk Road under Chinese President Xi Jinping’s multibillion-dollar Belt and Road Initiative.
related:
Xi Jinping’s 3rd term - After a decade of building the Belt and Road, where does China go from here?
China’s historic hub of Xi’an revitalised as key trading crossroad under Belt and Road Initiative
China’s former imperial capital of Xi’an has emerged as an important crossroad on the trading route from eastern China to central Asia with the development of the Beijing-led Belt and Road Initiative (BRI).
The city has seen the creation of new jobs and a boost in total imports and exports due to improved connectivity brought about by the multi-billion-dollar project, which marks its 10th anniversary this year.
China marked the occasion by hosting a two-day forum in its capital Beijing attended by Russian President Vladimir Putin, which started on Tuesday (Oct 17). It is the first major multilateral event since the start of the pandemic which China is hosting in relation to the BRI.
related:
Growing doubts over China's Belt and Road projects in Southeast Asia
This photograph taken on Feb 10, 2015 shows a general view of the Hambantota port, which the Sri Lankan government handed over to a Chinese firm in 2017 on a 99-year lease. (Photo: AFP/LAKRUWAN WANNIARACHCHI)
Southeast Asia is seen as the pivot of China’s multi-billion dollar Belt and Road Initiative (BRI). Besides the region’s growing markets, Southeast Asia offers China secure sea routes from its coast to elsewhere, and supply routes overland. Yet, five years since President Xi Jinping launched the world’s most ambitious infrastructure plan in 2013, the development project seems to have hit a few road bumps.
Several joint projects in Southeast Asia have been delayed or put under greater scrutiny, reflecting increasing uncertainty among host countries over the benefits of the BRI, notes political scientist Ian Chong of the National University of Singapore. In Myanmar, the government is reviewing a US$9 billion deepwater port project backed by China, on fears that it could ultimately fall under Beijing’s control if Myanmar were to default on its debt.
Meanwhile in Malaysia, the newly elected government is reviewing US$30 billion worth of infrastructure projects inked between China and the previous Barisan Nasional government, also over concerns of debt sustainability. Prime Minister Mahathir Mohamad has referred to these projects as "unequal treaties" - using the term given by the Chinese to the various treaties signed by China with foreign powers in the 19th and early 20th centuries, in which China handed over both territory and reparations. Those fears are not unfounded. In late 2017, the Sri Lankan government had to hand over a port in Hambantota, in the south of the country, to a Chinese firm on a 99-year lease, after it was unable to service its debt.
related:
Shanghai launches its 50th China-Europe freight train
The 50th "Shanghai Express" of the China-Europe freight train officially departed from Shanghai on Wednesday, one year after it was first launched.
China-Europe freight train from Turkmenistan arrives at China's Xi'an
China-Europe freight train service takes18 days compared to 35 days using marine shipping
A China-Europe freight train arrives at Xi'an international port in Xi'an, northwest China's Shaanxi Province, Aug. 31, 2022. The freight train loaded with raw materials of liquorice, a Chinese medicinal herb, which departed from Turkmenistan, arrived at the Xi'an international port in Shaanxi Province on Wednesday.
Belt and Road Initiative (BRI)
China’s Belt and Road Initiative (BRI) (一带一路) is a strategy initiated by the People’s Republic of China that seeks to connect Asia with Africa and Europe via land and maritime networks with the aim of improving regional integration, increasing trade and stimulating economic growth.
The name was coined in 2013 by China’s President Xi Jinping, who drew inspiration from the concept of the Silk Road established during the Han Dynasty 2,000 years ago – an ancient network of trade routes that connected China to the Mediterranean via Eurasia for centuries. The BRI has also been referred to in the past as 'One Belt One Road'.
The BRI comprises a Silk Road Economic Belt – a trans-continental passage that links China with south east Asia, south Asia, Central Asia, Russia and Europe by land – and a 21st century Maritime Silk Road, a sea route connecting China’s coastal regions with south east and south Asia, the South Pacific, the Middle East and Eastern Africa, all the way to Europe. The initiative defines five major priorities:
- policy coordination;
- infrastructure connectivity;
- unimpeded trade;
- financial integration;
- and connecting people.
Belt and Road Initiative, a boost to global development
In 2013, Chinese President Xi Jinping proposed the Belt and Road Initiative. To date, 149 countries and 32 international organizations have joined the initiative, which is now becoming "a belt of prosperity" and "a road to happiness" benefiting people across the globe.
Ten years of practicing the entrustment "The construction of 'the Belt and Road' is what people want"
"The construction of the 'Belt and Road' is the aspiration of the people, and we will promote the great opening and development under this framework." Carrying out Yin Yin's entrustment, Guangxi seizes development opportunities and jointly builds a new land-sea passage in the west at a high level.
In September 2017, a "new artery" running through western China attracted the world's attention, which is the new channel for China-Singapore interconnection and international land-sea trade. Southwestern provinces such as Chongqing and Guizhou have also achieved interoperability with ASEAN through the coastal ports of Guangxi, and connected Central Asia and Europe to the north through the China-Europe freight train, forming a complete “One Belt, One Road” loop. At present, the provinces covered by the new western land-sea channel sea-rail intermodal trains have expanded from 4 in 2017 to 14, and the annual number of trains has increased from 178 to 6,117, with an average annual increase of 142%.
"In April 2017, General Secretary Xi Jinping inspected and learned about the construction of the China-ASEAN Information Harbor." Lu Dongliang, chairman of China-ASEAN Information Harbor Co., Ltd., introduced that in September of that year, the China-ASEAN "Business Link" digital platform Construction has started, and it has covered 13 mutual market points, 16 port service centers, 9 settlement banks and two third-party payment companies in Chongzuo, Dongxing, and Baise, with a transaction volume of over 100 billion yuan. "We are striving to build an international information and communication hub and computing power center for ASEAN, promote digital interconnection, and build a digital silk road." Lu Dongliang said.
Belt and Road Initiative
As of 23 Mar 2022, 215 cooperation documents have been signed with 149 countries & 32 international organisations
The Belt and Road Initiative (BRI, or B&R[1]), formerly known as One Belt One Road (Chinese: 一带一路) or OBOR for short, is a global infrastructure development strategy adopted by the Chinese government in 2013 to invest in nearly 70 countries and international organizations.[2][3] It is considered a centerpiece of the Chinese leader Xi Jinping's foreign policy.[4] The BRI forms a central component of Xi's "Major Country Diplomacy" (Chinese: 大国外交) strategy, which calls for China to assume a greater leadership role for global affairs in accordance with its rising power and status. As of 23 March 2022, 215 cooperation documents have been signed with 149 countries and 32 international organisations.
Xi originally announced the strategy as the "Silk Road Economic Belt" during an official visit to Kazakhstan in September 2013. "Belt" is short for the "Silk Road Economic Belt," referring to the proposed overland routes for road and rail transportation through landlocked Central Asia along the famed historical trade routes of the Western Regions; whereas "road" is short for the "21st Century Maritime Silk Road", referring to the Indo-Pacific sea routes through Southeast Asia to South Asia, the Middle East and Africa. Examples of Belt and Road Initiative infrastructure investments include ports, skyscrapers, railroads, roads, bridges, airports, dams, coal-fired power stations, and railroad tunnels.
The initiative was incorporated into the Constitution of China in 2017. The Chinese government calls the initiative "a bid to enhance regional connectivity and embrace a brighter future." The project has a target completion date of 2049, which will coincide with the centennial of the People's Republic of China (PRC)'s founding. Supporters praise the BRI for its potential to boost the global GDP, particularly in developing countries. However, there has also been criticism over human rights violations and environmental impact, as well as concerns of debt-trap diplomacy resulting in neocolonialism and economic imperialism.
Countries of the Belt and Road Initiative (BRI)
In March 2022, the number of countries that have joined the Belt and Road Initiative (BRI) by signing a Memorandum of Understanding (MoU) with China is 146*.
The countries of the Belt and Road Initiative (BRI) are spread across all continents:
- 43 countries are in Sub-Saharan Africa
- 34 BRI countries are in Europe & Central Asia (including 18 countries of the European Union (EU) that are part of the BRI)
- 25 BRI countries are in East Asia & pacific
- 20 BRI countries are in Latin America & Caribbean
- 18 BRI countries in Middle East & North Africa
- 6 countries are in South East Asia
*For some countries that are listed as having signed an MoU for the BRI, the availability of independent information is contradictory. For example, the seven countries of Austria, Benin, Comoros, Congo D.R., Dominica, Niger and Russian Federation have not published a confirmation of signing a full MoU or even denied it. These countries are listed as “unclear” in the following map of countries of the Belt and Road Initiative.
China’s Belt and Road Initiative (BRI)
The BRI is an ambitious plan to develop two new trade routes connecting China with the rest of the world. But the initiative is about far more than infrastructure.
It is an effort to develop an expanded, interdependent market for China, grow China’s economic and political power, and create the right conditions for China to build a high technology economy.
Why create the Belt and Road? There are three main motivations for the BRI:
- The first, and most discussed internationally, is China’s rivalry with the US. The vast majority of Chinese international trade passes by sea through the Malacca strait off the coast of Singapore which is a major US ally. The initiative is integral to China’s efforts to create its own more secure trade routes. There is no doubt that China’s intention is also to make participating nations interdependent with the Chinese economy, and thereby build economic and political influence for China. In that respect it has similarities with the Marshall Plan that followed the Second World War – but with the essential difference that China dispenses funding to other nations based purely on shared economic interests.
- The second key reason for the initiative is the legacy of the 2008 financial crisis. China’s government responded to the emergency with a ¥4tn stimulus package, issuing contracts to build railways, bridges, and airports, but saturated the Chinese market in the process. The Belt and Road framework provides an alternative market for China’s vast state-owned companies beyond the borders of China.
- Finally, the Belt and Road is seen as a crucial element in the Chinese government’s efforts to stimulate economies of the country’s central provinces, which historically lag behind richer coastal areas. The government uses the Belt and Road to encourage and support businesses in these central regions, allocating budget generously, and encouraging businesses to compete for Belt and Road contracts.
China’s Belt And Road Initiative: All Participating Countries By Income Group
China’s Belt & Road Initiative has evolved from being purely about infrastructure build projects to about supply chain development. Many of the 2,500 projects that China has assisted with either financing, or building, or both are now coming to fruition. As I explained in the example of Sri Lanka’s Colombo Port City the completed infrastructure asset is now giving rise to new opportunities for global investors. These range from the appreciation of property builds, to new facilities for numerous service industries. In the Colombo Port City example, these range from the daily requirements of office workers and commuters, to businesses themselves – Colombo is highly likely to develop as a lower cost back-office centre to compete with nearby Singapore as an example.
Assessing where appropriate opportunities lie and the relevant domestic consumer strength in each market requires an understanding of the local dynamics. In the chart below we list all countries (as at October 2020) that have signed MoU with China concerning the Belt & Road Initiative. We explained what these MoU typically contain in the article Understanding China’s Belt & Road MoU referencing an example. More recently, data released by China’s State Information Centre shows that China now imports more goods from countries that have signed up to the Belt & Road Initiative than it exports.
Investors looking at supplying China from BRI countries, and investing in them directly may use the following data to assess the regional income levels of each. These have been taken from the World Bank rankings in terms of categorization of each countries field income group, and are globally spread as follows:
- 34 countries are in Europe & Central Asia (including 18 countries of the European Union) - See also: European Union Businesses And The Belt And Road Initiative – A Guide To Changing The Modus Operandi And Getting Involved and The Belt & Road Initiative In Central Asia
- 6 countries are in South East Asia - See also: Investing In Emerging Belt & Road Initiative Stock Markets: South-East Asia
- 25 countries are in East Asia & The Pacific - See also: China’s Belt & Road Initiative In The Pacific Islands
- 38 countries are in Sub-Saharan Africa - See also: Africa Needs China’s Belt & Road Initiative To Assist With Growth & Trade Potential
- 17 countries are in the Middle East & North Africa - See also: Belt & Road Financing & Investment To Expand In Key Middle East Logistics Hubs
- 18 countries are in Latin America & Caribbean - See also: China’s Belt & Road Initiative And South America
Belt and Road Initiative
According to the Asian Development Bank (ADB), Asia faces an infrastructure funding gap of estimated USD 26 trillion through 2030. To address this gap, various regional and sub-regional initiatives aim to develop better transport connectivity within Asia. This includes, among others, the Association of South East Asian Nation (ASEAN) Connectivity initiative, the Central Asia Regional Economic Cooperation (CAREC) Program, the Greater Mekong Sub-Region (GMS) Cooperation Program, the South Asia Sub-regional Economic Cooperation (SASEC) Program, and the Belt and Road Initiative (BRI). BRI is a transcontinental long-term policy and investment program which aims at infrastructure development and acceleration of the economic integration of countries along the route of the historic Silk Road. The Initiative was unveiled in 2013 by China`s president Xi Jinping and until 2016, was known as OBOR – One Belt One Road. On March 28, 2015, the official outline for the Belt and Road Initiative was issued by the National Development and Reform Commission (NDRC), the Ministry of Foreign Affairs (MOFA) and the Ministry of Commerce (MOFCOM) of the People`s Republic of China (PRC), with authorization of the State Council.
Aims of the Belt and Road Initiative - According to the official outline, BRI aims to “promote the connectivity of Asian, European and African continents and their adjacent seas, establish and strengthen partnerships among the countries along the Belt and Road, set up all-dimensional, multi-tiered and composite connectivity networks, and realize diversified, independent, balanced and sustainable development in these countries.” BRI is a global initiative but by its nature of building on the historic Silk Road puts a major focus on countries in Asia, Eastern Africa, Eastern Europe and the Middle East, a region mainly composed of emerging markets. According to the Belt and Road Portal, currently 71 countries are taking part in the Initiative, together representing more than a third of the world`s GDP and two thirds of the world`s population.
The Belt and Road Initiative combines two initiatives:
- The (land based) Silk Road Economic Belt, comprising six development corridors
- The 21st Century Maritime Silk Road
Countries in China’s Belt and Road Initiative: Who’s In And Who’s Out
Workers from China Railway No.2 Engineering Group pose for a group photo after welding the first seamless rails for the China-Laos railway in the northern suburb of Vientiane, Laos, on June 18, 2020. Kaikeo Saiyasane/Xinhua via Getty
In the fall of 2013, shortly after assuming power, Chinese President Xi Jinping proposed building a land-based “Silk Road Economic Belt,” extending from China to Central and South Asia, the Middle East, and Europe, and a sea-based “21st Century Maritime Silk Road,” connecting China to Southeast Asia, the Middle East, Africa, and Europe via major sea lanes.
Together, these came to form the Belt and Road Initiative (BRI), still known officially in Chinese as “One Belt, One Road,” which quickly became Xi’s signature foreign policy undertaking. Under BRI, Chinese banks and companies seek to fund and build roads, power plants, ports, railways, 5G networks, and fiber-optic cables around the world.
BRI has a wide reach, but which countries are participants? The answer is surprisingly hard to determine, since China is opaque about the exact contours of BRI and there are different levels of participation in the initiative. But our CFR Independent Task Force report outlines what we were able to discover about the participating countries in BRI.
Accelerate the construction of a new pattern of youth participation in the joint construction of the "Belt and Road"
On March 23, 2013, at the Moscow Institute of International Relations, President Xi Jinping first proposed the concept of a community with a shared future for mankind. On January 18, 2017, at the United Nations Headquarters in Geneva, President Xi Jinping emphasized in his keynote speech: "Building a community with a shared future for mankind is a beautiful goal, and it is also a goal that needs to be relayed from generation to generation to achieve." August 2018 On the 28th, President Xi Jinping replied to the youth representatives participating in the "Belt and Road" Youth Creativity and Heritage Forum, emphasizing that youth are the future of the country and encouraging them to make their own efforts to build a community with a shared future for mankind.
Since the "Belt and Road" initiative was proposed, dozens of overseas cooperation parks jointly built by my country and countries along the route have created hundreds of thousands of local jobs. People-to-people and cultural exchanges in various fields have been further promoted, building a platform for youth international exchanges and innovation and entrepreneurship, and the role of youth in participating in the joint construction of the "Belt and Road" has gradually emerged.
As General Secretary Xi Jinping pointed out in his important speech at the celebration of the 100th anniversary of the founding of the Communist Youth League of China: "The era always entrusts the youth with historical responsibility. The Chinese youth in the new era are born at the right time and have heavy responsibilities on their shoulders. The stage to display your talents is extremely broad, and the prospects for realizing your dreams are extremely bright." In the context of accelerating the construction of a new development pattern, how to play the active role of youth to promote the joint construction of the "Belt and Road", and how to play the role of the "Belt and Road" platform to promote youth innovation To develop, form positive interaction and policy synergy, it is necessary to further clarify the problems at the two levels of concept and path, and then form a systematic mechanism to ensure the effectiveness of participation.
China's Belt and Road Initiative and ASEAN
China-Indochina Peninsula Economic Corridor
In March 2015, when China issued The Vision and Actions on Jointly Building the Silk Road Economic Belt and the 21st Century Maritime Silk Road policy initiative, it came as no surprise that strong emphasis was placed on orienting the trade routes towards ASEAN countries with a proposed China-Indochina Peninsula Economic Corridor.
ASEAN countries have long been the key trading partners of China. Since the launch of the China-ASEAN Free Trade Area (CAFTA) in 2010, improved institutional co-ordination and increasingly sophisticated intra-regional supply chains have driven China-ASEAN bilateral trade to new heights. Bilateral trade has grown significantly at an average annual rate of 18% between 2009 and 2014. To deepen multilateral co-operation, China and ASEAN began negotiating an upgrade of the existing CAFTA pact in 2014, with a focus on strengthening investment, trade in goods and services, and economic and technology co-operation. The discussion, likely to be concluded by the end of 2015, is expected to further enhance ASEAN's crucial role in the Belt and Road Initiative and to facilitate further regional integration.
Mainland Southeast Asia, or the Indochina peninsula, is connected to China by land. The transnational transport network of the Greater Mekong Sub-region (GMS), of which Guangxi and Yunnan provinces are members, in combination with the proposed maritime silk road that will link major sea ports along the coasts of Vietnam, Cambodia, Thailand and Myanmar, will intensify China-ASEAN trade and industrial co-operation. It will also extend the economic benefits further afield to South Asia and Western Asia when the new multimodal transportation networks are in place.
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Green Light System for the Belt and Road Initiative
The Belt and Road Initiative International Green Development Coalition (BRIGC) (you can find more information on the BRIGC here) was established after the second Belt and Road Forum in April 2019. The BRIGC is supervised by the Chinese Ministry of Ecology and Environment (MEE) with its own secretariat.
The main goal of the BRIGC is “to promote international consensus, understanding, cooperation and concerted actions to realize green development on the Belt and Road, to integrate sustainable development into the BRI through joint efforts and to facilitate BRI participating countries to realize SDGs related to environment and development.” The BRIGC is open to participation to government departments, local and international organizations, think tanks, private sector stakeholders, civil society organizations.
By April 2020, over 130 Chinese and international organizations have joined the initiative. The work of the BRIGC is divided into 10 thematic partnerships:
- Biodiversity and ecosystem management
- Green energy and energy efficiency
- Green finance and investments
- Improvement of environmental quality and green cities
- South-south environmental cooperation and SDG capacity building
- Green technology, innovation and corporate social responsibility
- Sustainable transportation
- Climate change governance and green transformation
- Environmental legislation and standards
- Maritime community with a shared future and marine environment governance
One Belt One Road (OBOR)
One Belt One Road (OBOR), the brainchild of Chinese President Xi Jinping, is an ambitious economic development and commercial project that focuses on improving connectivity and cooperation among multiple countries spread across the continents of Asia, Africa, and Europe. Dubbed as the “Project of the Century” by the Chinese authorities, OBOR spans about 78 countries.
Initially announced in the year 2013 with the purpose of restoring the ancient Silk Route that connected Asia and Europe, the project's scope has been expanded over the years to include new territories and development initiatives. Also called the Belt and Road Initiative (BRI), the project involves building a big network of roadways, railways, maritime ports, power grids, oil and gas pipelines, and associated infrastructure projects. The project covers two parts. The first is called the “Silk Road Economic Belt,” which is primarily land-based and is expected to connect China with Central Asia, Eastern Europe, and Western Europe. The second is called the “21st Century Maritime Silk Road,” which is sea-based and is expected to will China’s southern coast to the Mediterranean, Africa, South-East Asia, and Central Asia. The names are confusing as the ‘Belt’ is actually a network of roads, and the ‘Road’ is a sea route.
They contain the following six economic corridors:
- The New Eurasian Land Bridge, which connects Western China to Western Russia
- The China-Mongolia-Russia Corridor, which connects North China to Eastern Russia via Mongolia
- The China-Central Asia-West Asia Corridor, which connects Western China to Turkey via Central and West Asia
- The China-Indochina Peninsula Corridor, which connects Southern China to Singapore via Indo-China
- The China-Pakistan Corridor, which connects South Western China through Pakistan to Arabia sea routes
- The Bangladesh-China-India-Myanmar Corridor, which connects Southern China to India via Bangladesh and Myanmar
Understanding the Belt and Road Initiative Green Coalition (BRIGC)
The Belt and Road Initiative International Green Development Coalition (BRIGC) was established after the second Belt and Road Forum in April 2019. The BRIGC is supervised by the Chinese Ministry of Ecology and Environment (MEE) with its own secretariat.
The main goal of the BRIGC is “to promote international consensus, understanding, cooperation and concerted actions to realize green development on the Belt and Road, to integrate sustainable development into the BRI through joint efforts and to facilitate BRI participating countries to realize SDGs related to environment and development.”
The Belt and Road Initiative International Green Development Coalition (BRIGC) was established after the second Belt and Road Forum in April 2019. The BRIGC is supervised by the Chinese Ministry of Ecology and Environment (MEE) with its own secretariat.
The Belt and Road Initiative
The Belt and Road Initiative (BRI) is a development strategy adopted by the Chinese government and unveiled by President Xi Jinping in 2013. Also known as the Silk Road Economic Belt and 21st-century Maritime Silk Road initiative, the strategy is focused on Eurasian cooperation:
- The term belt refers to overland infrastructure corridors linked to each other, which constitute the Silk Road Economic Belt (SREB) component of BRI.
- The term road refers to the sea route corridors, which constitute the 21s Century Maritime Silk Road (MRS) component of BRI.
The strategy has received mixed criticism, with some political analysts seeing it as a thinly veiled push for Chinese dominance through a China-centered and largely China-controlled trading network. Others have hailed it as an appropriate and desirable counter-balance in view of major USA-centric trading arrangements such as the Trans-Pacific Partnership and the Transatlantic Trade and Investment Partnership.
The Belt and Road Initiative is multi-branched and includes projects concerning not just transport infrastructure but also fields such as education, investments, real estate, and power grid. The initiative addresses an infrastructure gap, with the aim of accelerating economic growth across Asia Pacific and Central and Eastern Europe. Geographically, the initiative is structured along several land and sea corridors, involving well over 50 different Eurasian countries, and also stretching into parts of Oceania and Eastern Africa.
JSQ freight vehicle leaves Chongqing for first pilot run to Moscow
18 days using the China-Europe freight train service, compared to 35 days using marine shipping
A JSQ freight vehicle of China Railway Special Cargo Logistics Co., Ltd. is about to leave Yuzui Station in southwest China's Chongqing, July 21, 2022.
A JSQ freight vehicle of China Railway Special Cargo Logistics Co., Ltd., loaded with 207 cars manufactured by Changan Automobile, left Yuzui Station in southwest China's Chongqing on Thursday for its first pilot run to Moscow, Russia.
Shipping time from Chongqing to Moscow will be reduced to 18 days using the China-Europe freight train service, compared to 35 days using marine shipping.
From Silk Road to Silk Railroad
The new Silk Road: freight trains have replaced camel caravans, but all roads still lead to Xi’an
Over 2,000 years ago, Zhang Qian, a renowned diplomat of China’s Han Dynasty, ventured out of the prosperous capital city of Chang’an (now Xi’an City in northwest China’s Shaanxi Province) and embarked on a trail-blazing west-bound journey.
With two diplomatic missions, Zhang initiated friendly exchanges between China and its Central Asian peers. The ancient Silk Road, eventually linking the East and the West, Asia and Europe, thus came into being.
Merchants of different races and speaking various languages, fully loaded with goods on camel caravans, traveled the Silk Road, bridging the ancient Eastern and Western civilizations. Today, an open, inclusive and mutually beneficial modern Silk Road is taking shape. The ancient camel caravans have morphed into something stronger and faster.
What remains unchanged is Xi’an’s important role in the historic route of exchanges. Xi’an has transformed from the starting point of the ancient Silk Road to the first station of the China-Europe freight train, named after its ancient moniker of Chang’an, which literally means “eternal stability” in Chinese.
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