Belt & Road Initiative (BRI)
一带一路

WHAT IS IT

Reviving historic overland and maritime silk routes

FINANCE

FOREIGN AFFAIRS

What is Road?

21st-Century Maritime Silk Road, also sometimes called Blue Economic Passages

China-Oceania-South Pacific passage

China-Arctic Ocean-Europe passage

WHY CARE

First by Asian nation

No need to rectify power structure to get money

What is Belt?

Silk Road Economic Belt

Economic balance shift

China-Mongolia-Russia Corridor

China-Central Asia-West Asia Corridor

China-Indochina Peninsula Corridor

China-Myanmar-Bangladesh-India Corridor #

China-Pakistan Corridor

Why?

Forging alliances through economic relationships

BRI countries tend to struggle with infrastructural development and investment

Infrastructural investments can counter cyclical economic pressures

China balancing the world's financial architecture that has long been dominated by IMF, WB, and ADB

Internationalising the Renminbi (RMB) through loans and bonds

Institutions

Multilateral Banks

Shanghai Cooperation Organization

Asian Infrastructure Investment Bank #

New Development Bank #

Regional Investment Funds

BRICS

China-Central and Eastern Europe Investment Cooperation Fund

Founding members

China-ASEAN Investment Cooperation Fund #

China-Eurasian Economic Cooperation Fund #

State-Owned

Fund

China

Silk Road Fund

Policy Banks

China Development Bank

Russia

Kazakhstan

Export-Import (Exim) Bank of China

Kyrgyz

Tajikistan

Uzbekistan

Additional members

India

Pakistan

Members

Brazil

Russia

India

China

South Africa

New Development Bank

TRADE

Issues

Why?

Overcapacity

Opening new markets for construction industry

Reducing reliance on Eastern coastal areas for growth

Territorial Disputes

Power shift

USA

Going inland

Weaning US allies

South China Sea (Maritime Road)

Kashmir (CPEC)

Involved nations

So what?

New markets to diversify economy

Developing Western region as new economic frontier

Improving efficiency and reducing costs

Reduction of trade barriers

Cheaper land and labour

"Declaration, Inspection, Clearance" principle #

56 Member States and 24 Prospective Members

China has 28% voting share = veto power

Capital: US$100 billion

Key instrument of BRI

Key instrument of BRI

Investment fund prioritising Eurasia development

Capital: $US40 billion

So what?

Infrastructure, high-tech, manufacturing, consumer goods

3.5 billion combined population

Capital: US$500 million

Central and Eastern Europe

USD denominated

So what?

40% of world's population

25% of earth's land

Involved nations

Vietnam

Malaysia

Indonesia

India

Pakistan

May hinder BCIM progress

Infrastructure, energy, natural resources

Focus on Shanghai Cooperation Organization

Energy, resources, agriculture, logistics, infrastructure, information technology, manufacturing

Capital: US$5 billion

Capital: ~$US600 million

Focus on infrastructural projects of national priority

World's largest development bank

Development assistance in concessional funding

Promotes foreign trade and investment

Formed by BRICS

Mobilise resources for infrastructural and sustainable development

Member states have equal shares and voting rights

Capital: US$100 billion

New Eurasian Land Bridge

Connecting China, Mongolia, and Russia

Linking China with Mediterranean Sea and Arabian Peninsula

Covers Central Asian countries, Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan, Turkmenistan. Also Iran, Saudi Arabia, and Turkey

China to India via Myanmar, ending in Bangladesh

Goes through disputed area of Kashmir

Connect China with Southeast Asian nations via land border with Indochina

Connect China to Gwador port in Pakistan, next to Arabian Sea

China-Indian Ocean-Africa-Mediterranean Sea passage

Connects China to Europe, Canada and US through the Arctic Ocean

Head south from South China Sea and into the Pacific Ocean

Improving economic security

EU is China's biggest trading bloc

Securing trade with Europe by creating more routes

So what?

Tipping the scales on global financing landscape

Potential to either revitalise economies in BRI, or saddle them with severe debts

Connects China to Africa by South China Sea and Indian Ocean

Developmental initiative

Connecting China with Europe through Kazakhstan, Russia, Belarus, Poland and Germany

Connects 65 countries across 3 continents

"Peace, Harmony, Prosperity"

IMPACT

Creating environments for Chinese foreign investments

Manufacturing & Agriculture

Research & Development, and Education

Environment

University Alliance of the Silk Road #

Energy, Transportation, Communication

REGIONAL DEVELOPMENT

Inland Region #

Southwest

East Coast

Northeast & Northwest

Liberalisation

Lanzhou

Xining

Ningxia

Xi'an

Develop regional transport and economic networks

Heilongjiang - Russia

Xinjiang

Liaoning

Jilin

Economic Liberalisation

Zhenghou

Wuhan

Changsha

Nanchang

Hefei

Chongqing & west

Develop major transport networks

China - Europe

Logistics route connecting China to East, Central and West

Connectivity with ASEAN

Develop and leverage unique locations of

Yunnan

Guangxi

Promote trade, travel, and cultural cooperation

Leveraging on locations for regional connectivity

Special Administrative Regions

Macau

Fujian as core region of The Road

Hong Kong

"proper arrangements" for Taiwan

Scholarships

2500 Chinese students per year to study abroad for 3 years

10,000 inbound students over 5 years

100 scholarships to BRI countries for masters or doctoral studies

132 Universities across 32 countries

Research Centres

City University of Hong Kong Research Centre on One Belt One Road

Center for China & Globalisation One Belt One Road institute

"Lean, clean, and green"

Negative consequences?

China Green Leadership: Belt and Road Green Development

Energy

Solar

Hydropower #

Pakistan

Southeast Asia

Philippines

So what?

May hinder Maritime Road progress

Regional Focus

Central Asia

Europe #

Southeast Asia

Lancang-Mekong Cooperation #

Green bonds

Fossil Fuel

Oil and gas pipelines

Coal-fired plants

Hydropower Development

Disrupting food security and river flow

European Union

China's largest trading bloc

ASEAN

Human capital

Vietnam

Thailand

Laos

Myanmar

Cambodia

China

Shanghai Cooperation Organization #

Thailand

Indonesia

New "world's factory"

Vietnam

Malaysia

Philippines

Singapore

Myanmar

Cambodia

Laos

Brunei

Mighty Five (MITI-V)

Malaysia

India

Thailand

Indonesia

Vietnam

"Make in India" campaign

Cultural

World's fifth largest manufacturing country in the world by 2020 according to Deloitte reports

FDI for manufacturing sector grew by 82% YOY (Apr-Nov 2016)

Increased tourism between countries

Manufacturing = 17% of GDP (World Bank 2016)

Target 25% of GDP by 2025

Possible joint applications on world heritage sites for UNESCO

Manufacturing = 20% of GDP (World Bank 2016)

Spread of languages

Manufacturing = 27% of GDP (World Bank 2016)

Spread of Chinese media

Manufacturing = 21% of GDP (World Bank 2016)

China extending digital television services to Pakistan

Manufacturing = 16% of GDP (World Bank 2016)

Natural resources

More cooperative food export laws = Improved food accessibility

More efficient logistics = less food loss

Concerns

Risk for smallholder farmers

"Dumping" of cheap food

Increased import food dependency = increased foreign affair risk

Concerns

"Dumping" of cheap goods

Improved communications

Expansion of Chinese social media platforms

Big-4 Commercial Banks

Industrial and Commercial Bank of China

China Construction Bank Corporation

Agricultural Bank of China

Bank of China

Combined investment of US$200 billion so far

400 projects worth hundreds of USD millions

Fund raise US$15 billion for BRI investment

Fund raise US$3 billion for BRI investment