China’s Belt and Road Initiative will add US$117 billion to global trade this year, a new study shows
- Euler Hermes says nations targeted by the initiative will see higher trade volumes, even if they are yet to receive any direct investment from China
- The trade insurer estimates that the Belt and Road Initiative resulted in US$460 billion worth of investments in the five years since its inception in 2013
Merchandise trade between China and the countries targeted by its “Belt and Road Initiative” is predicted to grow by US$117 billion this year, according to new analysis.
The report estimates that this will add 0.3 per cent to global trade and 0.1 per cent to global growth, at a time when fears are mounting about a slowdown across the world economy, but most notably in China.
The belt and road strategy is Chinese President Xi Jinping’s flagship investment programme that was launched in 2013, and aimed at building infrastructure in countries accounting for 68 per cent of the world’s population and 36 per cent of its gross domestic product (GDP).
Not all of the countries targeted have welcomed Beijing’s overtures; some have rejected investment, notably India and latterly Malaysia.
Others have yet to agree to any China-funded projects, such as South Korea, but have expressed interest in receiving investment through the belt and road plan.