BRI proved to bring benefits for members involved

The Belt and Road Initiative (BRI) proposed in late 2013 has now entered into its tenth year, during which it has been an integral part of the global economy and regional economic stimulator. It has successfully converted miseries into smiles and adversaries into productive channels in most of the BRI member countries. Actually it has brightened the dreams of the revival of ancient Silk Route.

It has been the biggest source of FDIs, regional connectivity, infrastructure development, socio-economic integration, generation of new jobs and last but not least eradication of poverty by numerous regional as well as international organizations. It has successfully bolstered the economies of developing countries.

Initially, it aimed at developing an integrated network of infrastructural, financial and trade connections between China and Central, South and Southeast Asia, Oceania, the Middle East, East Africa and Europe. Since its inception, the BRI became a gigantic infrastructure, trade, and connectivity project, spreading beyond Eurasia and Southeast Asia to regions such as South Asia, the Middle East, and many parts of Africa.

According to official data (2021-2022), China  has signed MOUs with 149 countries and 32 international organizations, among  which 46 are in Africa, 37 in Asia, 27 in Europe, 11 in North America, 11 in the Pacific and eight in Latin America which confirms its vast acceptability, strategic recognition and socio-economic viability.

Moreover, as per official data, in 2012, China’s outbound foreign direct investment (FDI) was US$82 billion. In 2020, it was US$154 billion, ranked as the world’s number one overseas investor. It is estimated that by 2027, total global BRI spending could reach US$1.3 trillion.

China has heavily invested in the BRI projects through its financial wings such as the Chinese Development Bank (CDB) and the Export-Import Bank of China (EXIM). These banks offered loans on low interest rates.

Beijing pursues the principle of free will/economic choices, mutual respect, collaborative approach, cooperation, coordination, extensive consultation, joint contribution and shared benefits to engage other countries in BRI eternal family. It has been pursuing open, green and clean cooperation and high-standard and sustainable development policies for the benefits the member countries.

Comparative study of the last ten year of BRI reveals that in 2021, China' trade in goods with the BRI countries totaled RMB 11.6 trillion a new high over the past eight years and a year-on-year increase of 23.6 percent, accounting for 29.7 percent of China's total foreign trade.

Additionally, in 2021, China's direct investment in the BRI countries totaled RMB 138.45 billion up 7.9 percent year on year, accounting for 14.8 percent of the total outbound investment. The direct investment from the BRI countries in China reached 11.25 billion U.S. dollars that exceeded the 10-billion record for the first time.

According to Asian Development Bank (ADB 2009) report, Asia needs to invest more than $8 trillion in transportation, power, telecommunication, water supply, and sanitation on average $750 billion per year in more than 32 countries out of 45 countries of Asia during 2010-2020.

BRI is progressing and spreading spirits of prosperity, positivity and participation among all the member countries. According to Consul General of China to Karachi (2022) China's trade with BRI countries has increased by 20.2 percent year-on-year to RMB 8.77 trillion.

According to him China-Europe freight train trips soared 5 percent year-on-year to 10,575 and the trains transported a total of 1.02 million TEU of goods, an increase of 6 percent from a year ago.

As per China’s BRI Investment Report H1 2022, Chinese engagement through financial investments and contractual cooperation for the first half of 2022 in the 147/149 BRI countries was about US$28.4 billion. It is an increase of 47 percent compared to the originally reported deals of the first half of 2021. In this regard, US$11.8 billion was through investments, and US$16.5 billion through construction contracts.

Even during the COVID-19 darkness, China remained close to all the BRI member countries and initiated meaningful projects like Health Silk Route to eradicate this deadly virus.

BRI’s journey in the last ten years represents Beijing's constant and continued political commitment and economic priority to promote holistic spirits of shared prosperity and global development.

It consists of further promotion of economic growth through dissemination of China’s development experience, linking up with other national economies; enhancing the long-term foundation for world development. It also initiates rebalancing maritime and land globalization oriented projects. It rebuilds a more inclusive and equitable global economy.

 

The author is Executive Director of the Center for South Asia & International Studies (CSAIS) Islamabad and Regional Expert on China, BRI & CPEC.