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Belt and Road's purposes differ in different regions

Thursday, January 10, 2019

China's Belt and Road uses foreign investment as an instrument to achieve diverse region-specific goals

Source: Oxford Analytica

Outlook

The Belt and Road Initiative (BRI) suggests that China believes it can no longer achieve rapid economic development using reforms and investments within its borders alone, and must now also shape the outside world to create conditions favourable to its continued development.

This includes developing new foreign markets where none exist and improving connectivity across land borders so China’s inland regions can develop like the coastal trading cities already have. The BRI's security dimension lies foremost in diversification -- reducing dependence on particular markets, suppliers and trade routes.

Impacts

Beijing prefers to exploit vacant niches and gradually undermine the established international order rather than challenging it head-on.

China’s leadership believes that economics determines politics: establish the right economic conditions and politics develop favourably.

However, the ability to implement BRI plans in the first place will depend on favourable host-country and international politics.

See also

Prospects for the Belt and Road Initiative in 2019-23 - Dec 7, 2018More graphic analysis

https://dailybrief.oxan.com/Analysis/GA241080/Belt-and-Roads-purposes-differ-in-different-regions

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