Belt, Road projects expand, fuel development; researcher warns of challenges

Acquisitions and investments related to the “One Belt, One Road” initiative are expanding, promoting social and economic development in the target countries and regions, a report from a think tank said on Tuesday.

Since 2015, Chinese investment in the area covered by the initiative has grown consistent- ly, according to a report released Monday by the Chinese Academy of Social Sciences ( CASS) and China Bond Rating.

Most of the investment has gone to members of the Association of Southeast Asian Nations, the Middle East and South Asia.

The energy, transportation and information technology sectors received most of the investment, it said.

Despite an increase in absolute volume, the share of China’s investment along the route of the Belt and Road in the nation’s overall outbound investment remains tiny, highlighting multiple risks that are faced by Chinese investors, the report said.

Zhang Ming, a researcher with CASS, said that ethnic and religious factors, a changing geopolitical landscape, as well as weak and unbalanced global economic growth pose big challenges for Chinese investors.

“China has invested more than $ 50 billion in [ markets] along the Belt and Road since proposing the initiative in 2013,” He Lifeng, head of the National Development and Reform Commission, said in early March.

The initiative was proposed by China to create a trade and infrastructure network connecting Asia with Europe and Africa.