achieved through joint efforts in market development, financing and operation, Duan said.
According to David Wijeratne, growth markets center leader of PricewaterhouseCoopers, one of the global Big Four professional services firms, those partnerships can prove to be beneficial for both Chinese and foreign companies in many ways.
“Gaining knowledge through foreign partnerships can help Chinese enterprises further develop expertise, and enable them to enhance global credibility in the infrastructure sector,” Wijeratne said in an article published on the World Economic Forum website.
“For foreign companies, a collaboration with Chinese companies in infrastructure projects in third-party countries can help open up access to its large domestic market. Furthermore, foreign companies can partake as a private investor in projects that are risk-guaranteed by Chinese institutions, with an improved risk-return ratio,” Wijeratne wrote.
Wijeratne cited successful partnership examples, wherein foreign multinationals have become established equipment suppliers to Chinese engineering, procurement and construction companies and have thereby benefited from a boost in orders both in thirdparty markets as well as in China.
“Many of these foreign companies also possess previous experience in large-scale projects in developing countries that are more complex. This is typical to B&R projects, with value of trade between China and the Belt and Road economies last year foreign companies able to contribute by establishing connections with local stakeholders, as well as having prior knowledge of managing an infrastructure project in developing countries,” Wijeratne wrote.
This can help reduce operational risks, which may be otherwise further enhanced especially when operating in less familiar business environments, he wrote.
Ever since the country proposed the Belt and Road Initiative, trade and investment relations between China and its partners have been strengthening, official data showed.
Trade volume between China and other Belt and Road economies expanded 17.8 percent year-on-year to 7.4 trillion yuan ($1.14 trillion) last year, according to the Ministry of Commerce.
China’s exports to countries and regions involved in the initiative increased by 12.1 percent in 2017 from one year earlier, while imports from the economies rose 26.8 percent year-on-year, according to the commerce ministry.