Initiative set for bigger development role

After making significant headway in the past four years, the Belt and Road Initiative has entered the implementation stage and was even cited as a priority for further opening up the Chinese economy at the recent 19th National Congress of the Communist Party of China. We (Standard Chartered China) identify five reasons to be positive about the initiative.

To begin with, policy connectivity has been enhanced. Belt and Road projects are being coordinated with initiatives across economies and include the Eurasian Economic Union, the Master Plan on ASEAN Connectivity, the Investment Plan for Europe, Turkey's Middle Corridor initiative, Kazakhstan's Bright Road and Vietnam's Two Corridors, One Economic Circle. Supported by more than 100 countries and international organizations, the Belt and Road Initiative is expanding its coverage to more countries in Europe, Africa, Latin America and Oceania. And the Belt and Road Forum for International Cooperation held in Beijing in May has consolidated policy coordination on cross-regional cooperation for the initiative.

Trade between China and the economies involved in the Belt and Road Initiative has been robust, exceeding $3 trillion between 2014 and 2016. The momentum has continued this year, with China's total trade with 64 economies involved in the initiative in the first half reaching $512.2 billion, up 13 percent year-on-year.