4. The inclusive initiative will provide opportunities for other developing countries.
This month, China holds a high-level international cooperation forum on the Belt and Road Initiative
that focuses on global recovery, rebalancing, renovation and reconnection in response to rising
concerns about global governance. Proposed in 2013 and unlike traditional globalization backed by
tariff reductions, the initiative is aimed at improving connectivity between regions and boosting
global growth through infrastructure construction, among other things. The initiative, which focuses
on Eurasian infrastructure and better land and sea connectivity, is expected to elevate 3 billion
people to middle class status by 2050 and help increase global trade by $2.5 trillion in the next
decade. There is good reason to believe that the initiative can hit its targets, because every $1
increase in infrastructure investment in developing economies can raise their imports by $7 US
cents, half of which comes from developed countries, as Justin Yifu Lin, former vice-president of
the World Bank, has said. In other words, the West, too, can benefit from an increase in exports as
the initiative stimulates global infrastructure investment.
5. The early harvests of the initiative are of great significance.
More than 100 countries and international organizations have become part of the China-led Belt and
Road Initiative, and more than 30 countries along the two routes have signed cooperative agreements
with China. The initiative has also won the approval of important economic blocs, such as the
European Union and the Association of Southeast Asian Nations, while a number of member nations of
the two blocs have signed trade and investment agreements with China. Moreover, a United Nations
resolution on Afghanistan, passed three months ago, voiced vocal support for the initiative,
encouraging all UN members to participate to revive the war-stricken country's economy.
Last year alone, Chinese enterprises invested at least $14.5 billion in markets that make up the
network that connects Asia, Europe and Africa, and covers more than 60 countries and regions with a
total population of about 4.4 billion. It has also set up 65 trade cooperation zones along the way.
These achievements would not have been possible without the support of local governments and
enterprises, which is evidence that the Belt and Road projects can live up to their inclusive and
reciprocal nature. Although most of the projects are related to infrastructure connectivity, meaning
considerable funds are often needed to start them and making profits can take some years,
participating enterprises, particularly those in the West, can grab a decent share of the profits,
if they play along.
6. The initiative will help China better address the new normal in economic development.
The Belt and Road Initiative is in line with efforts to facilitate China's economic transformation.
Chinese enterprises are seeking to leave the lower end of global value chains and manufacture more
high-value-added products. A rise in labor costs and excessive capacity will inevitably drive
Chinese companies to explore markets in neighboring countries, which also welcome China's
assistance, for instance, in infrastructure. It can be challenging to persuade labor-intensive
private enterprises to venture across borders, as their founders, who are often aging but still in
charge, find it less appealing to explore overseas markets. But it is a step that has to be made
considering the economic transitions, and the initiative could present game-changing opportunities.
By placing underdeveloped western Chinese provinces and regions at the forefront of the process of
opening-up, the initiative also has great potential to narrow the development gap between
China's east and west.
7. The initiative will help boost international energy cooperation.
The Belt and Road Initiative will generate mutual benefits for China and its partners. However,
the economic, social and environmental costs and benefits vary across borders, depending on the
terrain,stage of development, production capacities and traffic flows. With nearly two-thirds
of Belt and Road countries facing energy deficits, the initiative needs to complement and supplement
subregional energy connectivity initiatives. There is huge scope to develop power grids; promote
smart, green and integrated power and gas markets; and extend cross-border gas and oil pipelines
from resource-rich Central Asia to South and East Asia. Drawing on the initiatives of China's State
Grid and the Global Energy Interconnection Development Cooperation Organization to promote global
energy interconnections will help to enhance the region's energy security and improve access to
sustainable energy.