The Belt and Road Initiative: Implications for China and East Asian Economies

2018 ◽  
Vol 35 (2) ◽  
pp. 52-78 ◽  
Author(s):  
SARAH CHAN
Keyword(s):  
East Asia ◽  
Trade Flows ◽  
Belt And Road Initiative ◽  
Development Bank ◽  
Belt And Road ◽  
Funding Support ◽  
To Come ◽  
East Asian Economies ◽  
China Development ◽  
The Belt And Road

The China-led Belt and Road Initiative (BRI) is set to become a formidabledevelopment programme and its implications will be far reaching for East Asia, including ASEAN and China. It will provide further momentum for intra-Asian investment and trade flows and the implementation of such a strategy will also help to accelerate China's mergers and acquisitions activities in infrastructure, logistics and tourism. The BRI is expected to raise the Renminbi's international use in trade settlement and financing. A considerable amount of financing is estimated to come from Chinese institutions, particularly policy banks such as China Development Bank and a range of government-linked institutions. This article discusses China's funding support and investment to improve regional connectivity and analyses the repercussions of China's financial commitments under the Belt and Road Initiative for East Asia as well as its own economy.

scholarly journals Trade and Infrastructure in the Belt and Road Initiative: A Gravity Analysis Based on Revealed Trade Preferences

2021 ◽  
Vol 14 (2) ◽  
pp. 52
Author(s):  
Cristina Di Stefano ◽  
P. Lelio Iapadre ◽  
Ilaria Salvati
Keyword(s):  
Gravity Model ◽  
Bilateral Trade ◽  
Trade Flows ◽  
Belt And Road Initiative ◽  
Total Trade ◽  
Multilateral Trade ◽  
Belt And Road ◽  
Trade Preferences ◽  
Entire Network ◽  
The Belt And Road

This paper aims at investigating whether and how the intensity of trade between a pair of countries changes when they experience improvements in their infrastructural systems. We carry out our analysis considering countries participating in the Belt and Road Initiative (BRI), a project specifically designed to promote infrastructural connectivity and therefore boost trade among the countries involved. Our empirical strategy relies on a particular specification of the gravity model, in which the dependent variable consists in an index of revealed trade preferences, calculated by comparing the actual value of trade flows between two countries with their expected value, proportional to the two countries’ total trade. Such methodology allows us to estimate bilateral trade intensity without resorting to the traditional “size” variables of the gravity model, taking the entire network of multilateral trade into account. We then study the possible impact of an improvement in infrastructure on a ‘gravity-adjusted’ measure of trade preferences, given by the residuals of our first estimations. Our results indicate that bilateral preferences among BRI countries will intensify inasmuch as they succeed in coordinating their infrastructural projects.

Zur Rolle der chinesischen Entwicklungsbanken beim Bau der Neuen Seidenstraße

2020 ◽  
Vol 89 (3) ◽  
pp. 79-97
Author(s):  
Dirk Linowski ◽  
Andrew D. Johansson ◽  
Haifeng Zendeh Zartoshti
Keyword(s):  
Belt And Road Initiative ◽  
Development Bank ◽  
Belt And Road ◽  
China Development

Zusammenfassung: Die Involviertheit einer der beiden großen international tätigen chinesischen Entwicklungsbanken Exim und China Development Bank in ein bilaterales Memorandum of Understanding (MoU) sowie in spezifische Belt and Road Initiative (BRI)-Projekte stellt primär ein qualitatives Signal nach innen für chinesische Großunternehmen, Banken, kleinere Unternehmen sowie Privatpersonen dar. Dieses signalisiert, dass der chinesische Staat hinter einem Engagement in einem BRI-Partnerstaat steht. Chinesische Akteure im Ausland sind mehr Projektausführende als Direktinvestoren, sie akzeptieren höhere Cluster-Risiken und sie engagieren sich geografisch zumeist dort, wo der Westen nicht oder nur geringfügig präsent ist. Effizienzbetrachtungen gewinnen mit zunehmendem Fortgang des Megaprojektes BRI zwar an Bedeutung, sind aber nicht dominant. Die Reduktion der Auslandinvestitionen Chinas im ersten Halbjahr 2019 sollte nicht als Rückzug Chinas interpretiert werden, sondern als „Luftholen“, um chinesische Ressourcen im Ausland in Zukunft effizienter und passgenauer einzusetzen. Während sich die Literatur zu (möglichen) ökonomischen und politischen Konsequenzen der BRI wie zu technischen Fragen der Realisierung als sehr umfangreich darstellt, findet man wenig Substanzielles zur Finanzierung von BRI-Projekten. Wir verfolgen hier nicht das Ziel, diese Lücke zu schließen, dafür aber, sie besser zu verstehen.

scholarly journals Brazilian engagement to Asia and the Belt and Road Initiative in 2017: less politics, more trade and investments

2018 ◽  
Vol 6 (1) ◽  
pp. 26-43
Author(s):  
João Paulo Nicolini Gabriel ◽  
Desirée Almeida Pires ◽  
Carlos Eduardo Carvalho
Keyword(s):  
Balance Of Power ◽  
The United States ◽  
Terms Of Trade ◽  
Trade Flows ◽  
Strategic Partnership ◽  
Belt And Road Initiative ◽  
Belt And Road ◽  
The Belt And Road ◽  
Official Data

The paper aims to understand Brazilian position in relation to Asia and Belt and Road Initiative (BRI), based on a review of the bibliography and journalistic articles on Brazil-Asia subject and an observance of official data of the Brazilian economy. Since Dilma Rousseff until Michel Temer’s government, Brazil has facing a troubled political and economic scenario, which negatively impacts on its diplomacy. Although Brazil reaffirmed its commitment with global strategic partnership with China in terms of trade flows, the lack of Brazilian participation on issues of global political nature directly impacts on the way in which Brasilia moved its attention to the BRI and to the Asian affairs. The ambitious proportions and objectives of the BRI summed to the rise of a nationalist economic policy of the United States indicate a deepening of several movements that have been changing the international balance of power, which can offer opportunities for Brazil, by means of a cohesive long-term policy for Asia and in a multifaceted way beyond trade. 

scholarly journals A Comparative Study of Humanistic Exchange and Cooperation between China and Southeast Asian in the Perspective of "the Belt and Road" Initiative

2021 ◽  
Vol 3 (1) ◽  
Author(s):  
智宏 温
Keyword(s):  
East Asia ◽  
Silk Road ◽  
Strategic Partnership ◽  
South East Asia ◽  
Belt And Road Initiative ◽  
Republic Of China ◽  
Maritime Silk Road ◽  
History Of ◽  
Belt And Road ◽  
The Belt And Road

In the exchanges between different countries, apart from enhancing political mutual trust and strengthening pragmatic cooperation, it is of great importance to forging humanistic exchange. With a long history of exchanges between China and all the countries in South-east Asia, the humanistic exchange between China and South-east Asia has been continuing since the founding of the People's Republic of China. After the establishment of China-ASEAN dialogue relations, the strategic position of humanistic exchange has been rapidly improved. By means of the case study of Confucius Institute, sister cities, and tourism cooperation, the author has found that humanistic exchange between China and South-east Asia has enjoyed a long history and embodied profound and extensive meaning. It is the ancient Maritime Silk Road that helped to form the exchanges between China and South-east Asia. In the meantime, it is the 21st-Century Maritime Silk Road that has deepened this friendship. The successful experience of humanistic exchange and cooperation between China and South-east Asia has not only consolidated the China-ASEAN strategic partnership but also provided a conducive reference for people-to-people ties in the implementation of the Belt and Road Initiative. In addition, it has added dynamics and confidence to the building of a community with a shared future for mankind which is propelled by China's humanistic diplomacy.

scholarly journals Assessment and influencing factors analysis of economic system vulnerability of the Belt and Road Initiative countries

PLoS ONE ◽  
2022 ◽  
Vol 17 (1) ◽  
pp. e0262611
Author(s):  
Zhihui Li ◽  
Jia Wu ◽  
Xiaolin Cui ◽  
Zhaojuan Mi ◽  
Lu Peng
Keyword(s):  
Spatial Distribution ◽  
East Asia ◽  
South Asia ◽  
Economic System ◽  
Central Asia ◽  
Financial System ◽  
Belt And Road Initiative ◽  
System Vulnerability ◽  
Belt And Road ◽  
The Belt And Road

Economic vulnerability is an important indicator to measure regional coordination, health and stability. Despite the importance of vulnerabilities, this is the first study that presents 26 indicators selected from the dimensions of the domestic economic system, external economic system and financial system in the Belt and Road Initiative (BRI) countries. A quantitative analysis is conducted to analyze the characteristics of spatial heterogeneity of vulnerability of the economic subsystems and the comprehensive economic system of the BRI countries and the main influencing factors of the comprehensive economic system vulnerability (CESV) are identified based on obstacle degree model. The results show that the CESV of the East Asia, South Asia and ASEAN countries are lower than that of the Middle Eastern Europe, Central Asia and West Asia countries. The CESV of the BRI countries are generally in the middle level and the average vulnerability index of highly vulnerable countries is twice as much as that of lowly vulnerable countries. In addition, in terms of the vulnerability of the three subsystems, the spatial distribution of vulnerability of the domestic economic system (DESV) and financial system (FSV) is basically consistent with the spatial distribution pattern of CESV, both of which are low in East Asia and South Asia and high in West Asia and Central Asia. While, the vulnerability of external economic system (EESV) shows a different spatial pattern, with vulnerability of West Asia, Central Asia and ASEAN higher than that of East Asia and South Asia. The main obstacle factors influencing the CESV of BRI countries include GDP growth rate, saving ratio, ratio of bank capital to assets, service industry level, industrialization level and loan rate. Therefore, the key way to maintain the stability and mitigate the vulnerability of the economic system of BRI countries is to focus on the macroeconomic development and operation, stimulate the economy and market vitality, promote the development of industries, especially the service and secondary industries, and optimize the economic structure, banking system and financial system.

The Road and Belt Initiative in Malaysia: Challenges and Recommendations

Akademika ◽  
2022 ◽  
Vol 91 (3) ◽  
pp. 79-91
Author(s):  
Ku Boon Dar ◽  
◽  
Tan Chee Seng ◽  
Keyword(s):  
Empirical Studies ◽  
Silk Road ◽  
Belt And Road Initiative ◽  
The Road ◽  
Maritime Silk Road ◽  
Silk Road Economic Belt ◽  
Belt And Road ◽  
To Come ◽  
The Belt And Road ◽  
The Silk Road

ABSTRACT In recent years, China has expanded its relations with other nations through the Belt and Road Initiative. This initiative was formally introduced after it was launched in 2013 by President Xi Jinping. It comprises two components, namely, the Silk Road Economic Belt and the 21st Century Maritime Silk Road Initiative, both of which aim to stimulate the acceleration of economic growth in Asia, Africa and Europe. This research attempts to provide a detailed review of the execution of this initiative through empirical studies based on qualitative analysis, which are closely related to BRI implementation in Malaysia. The focus of this research, however, is not limited to studying the viewpoints of leaders and scholars on the initiative; rather, it will also attempt to discuss theBRI’s progress and the obstacles encountered to date from the political aspects of both China and Malaysia. By identifying the potential challenges to come, this research will prove to be significant, as it proposes some comprehensive measures to address and forestall any setbacks that may arise, which may affect the implementation of the BRI between the two nations. Keywords: Belt and Road Initiative (BRI); Malaysia–China relations; Silk Road; China–ASEAN relations; Maritime Silk Road A

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