China’s Belt and Road Initiative to Open Endless Opportunities
Both China and the United States have been at loggerhead over a good part of the last decade. Considering these relations, it is only intelligent to evaluate which country’s leader has a more sustainable and inclusive foreign policy.
United States might have dominated China in the past. However, the current reality is at stark contrast. Between Trump and Xi Jinping, it is Xi who seems to have a clear and definite foreign policy for infrastructure and trade growth. China has numerous projects on the card, and they are developing their trade relationships to make a statement across the Asia-Pacific region.
Out of their ongoing projects, the most talked about and perhaps revolutionary project coming out of China is the “One Belt One Road” Initiative. Also known as the Belt and Road Initiative or BRI, the project has been hailed as most ambitious in the world today.
This biblical size infrastructure and trade endeavor by China is a 21st Century Silk Road that will redefine the way we see trade in the world. The making of the road, as envisioned by China, would cost 12 times as much as it would cost the United States to rebuild Europe following the devastation of the World War 2 through the Marshall Plan.
The BRI is not going to be limited to China or Asia for that matter. Spreading across a major part of 76 countries across the world, the BRI will have participation from countries in Asia, Europe and Africa. Not only will this initiative reshape the way we trade globally, it will also raise the living standards of over half of the world’s population.
The International Monetary Fund (IMF), believes that the “BRI has great potential for China and participating countries. It could fill large and long-standing infrastructure gaps in partner countries, boosting their growth prospects, strengthening supply chains and trade and increasing employment.”
Besides being prominent across Asia, the BRI will also have a prominent presence across Eastern Europe. Eastern Europe is also the prime location for China FDI, as the countries in the region offer a wide wealth of minerals, metals and agricultural offerings.
Stats from intelligence platform Stratfor suggest that Chinese companies have invested more than $300 billion in East Europe just during the past decade or so. Just last May, Ukraine reached an agreement with China to cooperate on numerous joint projects with a value of over $7 billion. In November, we also found out that the China Railway International will build the $2 billion line for subway in Kiev, the capital of Ukraine. There is also a dredging operation in place with Ukraine’s Yuzhny Sea Port to allow the entry of larger ships for trade and investment purposes.
While there is still some friction between Trump and the Chinese government, experts expect China to win the battle during the coming years, on the back of the Belt and Road Initiative.