Overview: China's Belt and Road Initiative

The Belt Road Initiative started by China in 2013 was adopted by the nation in attempt to position themselves as a central and crucial state in global trade and politics allowing them to grow economically and influentially.

Financing the Belt Road Initiative.

The BRI, with no surprise has required a significant amount of investment since its start in 2013. Between 2013 and 2018, China invested around $575 Billion into BRI projects across the globe which included the involvement of 70 nations. These investments include Highways, Ports, Power Plants etc.

Several institutions took part in these investments including The Asian Infrastructure Investment Bank, the China Development Bank, the Export Import Bank of China. 

Various Estimates suggest these institutions allocate up to $50-$100 billion to BRI initiatives annually.

Nations Participating and their Timelines

Since the BRI’s launch, over 140 countries have joined from all continents. Some Key nations involved include: 

• Kazakhstan – the first nation to join in 2013 which marked the start of the BRI
• Pakistan – Joining in 2015 with the launch of the China-Pakistan Economic Corridor (CPEC), one of the highest funded BRI project totalling at $60 Billion
• Indonesia – Joined the BRI in 2015 with projects such as the Jakarta Bandung high speed railway.

• Kenya – Joined in 2017 and became part of the BRI with the development of the Mombasa-Nairobi Standard Gauge Railway.

  Implications for Chinas Future

• Economic Impacts:
• Increased Investment and Trade. The BRI aims to invest in and improve on a variety of industries including trade routes and reduce transportation costs globally. It is expected to potentially increase global GDP by up to $7.1 Trillion by 2040
• Market expansion. Developing infrastructure in developing nations boosts Chinas exports and also allow them to secure new markets for their goods and services in nations that have significant potential for growth.
• Once completed, the BRI transport projects could reduce travel times along economic corridors by 12% and increase trade by around 2.7% and 9.7%, increase income by up to 3.4% and lift around 7.6 million people from extreme poverty.
• Political Impact:
• The BRI allows for China to extend their geopolitical influence strengthening their global leadership role.
• Strategic Partnerships. The initiative allows for China to develop and build partnerships with nations that will prove to serve a significant purpose for China on the political field.