It is all about infrastructure investment
While infrastructure investment is a key cooperation area of the BRI, there are many other business opportunities, including trade, financial cooperation, cultural exchange, tourism and policy coordination.
There is little opportunity for non-BRI countries
Firstly, the BRI is an open-ended initiative and China has welcomed all countries to participate. Secondly, unlike free trade pacts, the BRI does not have any binding responsibilities and rules (but likely less clear benefits) for participants.
Countries yet to be involved can participate via investment into projects as joint-ventures, providing various services/expertise (including technology, intellectual inputs, financial services and consultancy services) and even benefit from integration into the whole supply chain.
China is using the BRI to export excess capacity
While China can use this opportunity to export its production capacity, it also fulfils the demand gap from BRI countries.
More importantly, we believe it carries China’s longer-term development vision and willingness to promote globalisation as its global influence is rising.
It is designed to challenge some regional trade pacts
The BRI complements regional free trade pacts. A successful BRI will benefit local infrastructure conditions and facilitate regional trade flows, FDI and local job markets, which are also promoted by free trade pacts.