Belt and Road Advisory
Our BRI Briefing summarizes and analyzes key news related to the Belt and Road Initiative (BRI) over the last week.
Italy is aiming to sign a BRI MOU with China: It would then become the first G7 economy to join the Belt and Road. The announcement precedes President Xi Jinping's visit to Italy planned for March 22-23
Saudi Arabia’s Crown Prince Shaikh Hamdan Bin Mohammad approves Dubai Silk Road Strategy: The Strategy involves 9 initiatives and 33 projects.
Huawei accuses the US: According to Huawei US agents hacked and stole the company’s emails and source code
China’s GDP target for 2019: Was set to 6% to 6.5% by Premier Li Keqiang. It is another signal of an economic slowdown in #China. The goal for 2018 was set at “around 6.5%”
China’s GDP of China is around 12% smaller than official figures suggest: This is the result of research by Washington-based think-tank Brookings Institution
And all other Belt and Road news
Trade and Investment
Chinese exports in Feb 2019 21% lower than in 2018: China ’s exports went down by 20.7% in February 2019 in comparison to a year before. It is the steepest year-on-year decline in #exports in 3 years.
China offers the US to lower tariffs on selected goods: China is offering lower tariffs on US auto, chemical, and farm products in the course of the trade talks.
China and the US are close to closing a currency deal: China and the US are reported to be close to closing a currency deal. Beijing is not to devaluate yuan in order to help exports
BRICS bank issues 3 billion CNY of yuan-denominated bonds: BRICS New Development Bank issued 3 billion yuan worth of yuan-denominated bonds in China. It’s the second issuance following one in 2016.
Leaked memo reveals China’s BRI plan for Italy: The document outlines China’s plan for cooperation with Italy under the Belt and Road Initiative.
Debt deal between China and Congo possible: The debt deal could be signed within 3 months. China owns 35% of Congo’s debt.
$298bn tax cuts unveiled during the Two Sessions: China unveiled a plan to cut $298bn of taxes in order to boost economic growth. VAT for transportation and construction sectors will be decreased from 10% to 9% and VAT for manufacturers from 16% to 13%.
Czech politicians divided over Chinese influence: Czech politicians debate Huawei and China influence in the Czech Republic. Central and Eastern Europe become a field of competition between China and the US.
Turkey will join the Second Belt and Road Forum: Turkey confirmed that it will attend the Second Belt and Road Forum for International Cooperation.
New comprehensive bonded zone on China-Russia-DRPK border: China established a new comprehensive bonded zone in Hunchun, in Jilin Province, which borders Russia and North Korea.
Nepal chooses China rail-gauge standards over India: Nepal will use China standard of a railway-track gauge in the construction of Raxaul-Kathmandu railway. It is a setback for #India that wanted Nepal to use its broad-gauge standard and shows the competition of the two powers in South Asia.
Georgian BRI port project threatened by domestic politics: Anaklia Sea Deep Water Port, an important BRI project and the largest economic project in Georgia, is threatened as Georgian government enters a conflict with a leading Georgian bank TBC involved in the project.