China's 'Belt and Road' Strategy Shows Results
The "Belt and Road" development initiative recorded impressive achievements in 2017, exceeding even some of the more optimistic expectations. These included the hosting of the pivotal Belt and Road Forum for International Cooperation in Beijing and progress on a number of landmark projects including the China-Laos Railway, Pakistan’s Karakoram Highway Phase II, the Karachi Expressway, the Mombasa-Nairobi Railway in Kenya as well as the China-Russia, China-Kazakhstan and China-Myanmar oil and gas pipelines. In line with the rapid development of the digital economy, the 21st Century Digital Silk Road project was launched with a number of participating countries to develop cross-border e-commerce and eliminate the digital divide.
The "Belt and Road" initiative, which is designed to boost infrastructure development and trade across a wide range of countries, is expected to have a significant impact over the longer term. In 2017, the average growth in trade with "Belt and Road" participating countries topped 10%, exceeding the growth in China's trade overall. In the first three quarters of the year, trade between China and countries participating in the "Belt and Road" program increased by 15% over the same period of last year. The value of new contracts signed by Chinese enterprises for construction projects in these countries increased 29.7% and investment was up 34.4% over a year earlier. This shows how China's "Belt and Road" initiative contributes to globalization and can help make the case for greater economic cooperation in the court of public opinion. It also has successfully demonstrated a new form of global cooperation.
In 2013, President Xi Jinping proposed the "Belt and Road" initiative, with an eye to domestic and global economic conditions. The program sought to make use of China’s development experience in an effort to achieve sustainable growth through greater globalization. In the past four years, China has adhered to the principle of achieving shared growth while upholding a process of discussion and collaboration. This has been vigorously promoted by creating infrastructure connectivity, facilitating trade, boosting financial integration and expanding ties at the grass roots level. The results have vastly exceeded expectations.
China has signed more than 90 cooperation agreements with over 70 countries and international organizations under the "Belt and Road" initiative. It is also working with more than 30 development agencies while Chinese enterprises have helped in the construction of 75 economic and trade cooperation zones in 24 countries. These companies have paid taxes and fees to the host countries totaling US$2.21 billion, creating more than 209,000 jobs. In addition, the "Belt and Road" initiative has brought in global capital by means of international cooperation and the use of innovative financing methods. According to preliminary data, international financial institutions have provided more than US$400 billion for construction linked to the "Belt and Road" initiative, and this has made a substantial contribution to economic growth in the region.
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