China plans to spend more than $100 billion to finance projects from the „One Belt, One Road” strategy, aiming to strenghten the world’s second larget economy’s global influence and boost the trade between China and its partners.
China’s president, Xi Jinping talked about the strategy during his opening speech at the two-day forum.
“China will endeavor to build a win-win business partnership with other countries participating in the Belt and Road Initiative. These efforts are designed to promote growth both in our respective regions and globally.” – said Xi Jiping
Officials and business leaders were discussing the initiative during a two-day meeting which took place this weekend in Beijing. The plan aims to connect 65 countries in Asia, Europe, Middle East and Africa with a transport and logistics network. According to Oxford Economics, the countries involved in the initiative account for about one-third of global GDP and 60 percent of the world’s population.
According to some analysts, the Chinese program may help boost global trade, investment and financial cooperation. The investments would also make the growth more stable and durable. World Bank is also eyeing the program, seeking an opportunity for a good investment. The bank’s president, Jim Yong Kim was also speaking at the forum, pointing other investments earning less than one percent in returns.
Implementing the strategy would increase China’s global influence, bring access to energy resources and seek growth abroad, as the country’s economy Is beginning to slow down. The initiative and the meeting has been highly promoted by the government, and backed by a strong advertising campaign.
Total trade between China and other countries involved in „One Belt, One Road” has already passed $3 trillion from 2014 to 2016. According to Xi Jinping, Chinese investments in those countries have surpassed $50 billion. China has also created 56 economic cooperation zones in 20 countries and 180,000 jobs in these countries.
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