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The Belt and Road Initiative: What is in it for China?

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  • Lauren A. Johnston

Abstract

China's outbound investment exceeded inbound investment for the first time in 2015. In years leading up this transition, a maturing demographic transition alongside slowing internal migration and diminishing returns to physical capital investment, all had a role in China's diminished competitiveness in low‐wage manufactured exports and the fading of the related growth model. In that context, the 2013 launch of the Belt and Road Initiative (BRI) took place in two stages in two developing countries, Kazakhstan and Indonesia. These launch choices, and the BRI in general are herein elaborated in terms of economic history, geography, and demography. The BRI in turn is considered to be aiming to foster the ongoing development of China, and in doing so also seeks to instigate new era development opportunity for other developing countries. One facilitation channel for the latter is China's concept of “patient capital,” essentially concessional capital, or foreign aid. For China that offers a means via which to internationalise the financial sector and also the Renminbi. Lessons from China's own use of foreign aid and economic development hence serve as an important reference for ongoing scoping of the shape and trajectory of the BRI. To that end, this article sheds light on what is in the BRI for China.

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  • Lauren A. Johnston, 2019. "The Belt and Road Initiative: What is in it for China?," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 6(1), pages 40-58, January.
    • Handle: RePEc:bla:asiaps:v:6:y:2019:i:1:p:40-58
    DOI: 10.1002/app5.265
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    2. Lingduo Jiang & Guofeng Zhang & Hang Zhang, 2023. "The role of the Belt and Road Initiative: New opportunity for Chinese exporters?," The World Economy, Wiley Blackwell, vol. 46(6), pages 1609-1647, June.
    3. Yuxin Lu & Joanna Wolszczak‐Derlacz, 2024. "The Belt and Road Initiative and export variety: 1996–2019," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 38(1), pages 171-203, May.
    4. Linda Calabrese, 2024. "Diversifying Away from Extractives: The Belt and Road Initiative, Chinese Capital and Industrialisation in the Kyrgyz Republic," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 36(3), pages 601-638, June.
    5. Elnur Mekhdiev & Irina Pashkovskaya & Elena Takmakova & Olga Smirnova & Khadiya Sadykova & Svetlana Poltorykhina, 2019. "Conjugation of the Belt and Road Initiative and Eurasian Economic Union: Problems and Development Prospects," Economies, MDPI, vol. 7(4), pages 1-15, December.
    6. Alice Nicole Sindzingre, 2021. "Economic Relationships Between Sub-Saharan Africa and China: An Alternative Theoretical and Policy Paradigm?," Post-Print halshs-03625159, HAL.
    7. Zhao Shurong & Koffi Dumor & Victor Curtis Lartey & Onesmus Mbaabu Mutiiria & Edem Koffi Amouzou & Komlan Gbongli, 2024. "Assessing the macroeconomic effects of China–Eastern African BRI transport infrastructure on Eastern African countries," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 29(1), pages 996-1011, January.
    8. Linda Calabrese & Rhys Jenkins & Lorena Lombardozzi, 2024. "The Belt and Road Initiative and Dynamics of Structural Transformation," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 36(3), pages 515-547, June.
    9. Panpan Liu & Guanghui Han & Haichao Yang & Xiaobo Li, 2024. "A Sustainable Development Study on Innovation Factor Allocation Efficiency and Spatial Correlation Based on Regions along the Belt and Road in China," Sustainability, MDPI, vol. 16(7), pages 1-22, April.
    10. Liguo Zhang & Cuiting Jiang & Xiang Cai & Jun Wu, 2023. "Dynamic linkages between China’s OFDI, transport, and green economic growth: Empirical evidence from the B&R countries," Energy & Environment, , vol. 34(7), pages 2642-2667, November.
    11. Koffi Dumor & Li Yao, 2019. "Estimating China’s Trade with Its Partner Countries within the Belt and Road Initiative Using Neural Network Analysis," Sustainability, MDPI, vol. 11(5), pages 1-22, March.
    12. Arie Y. Lewin & Michael A. Witt, 2022. "China’s Belt and Road Initiative and international business: The overlooked centrality of politics," Journal of International Business Policy, Palgrave Macmillan, vol. 5(2), pages 266-275, June.
    13. Witt, Michael A. & Lewin, Arie Y. & Li, Peter Ping & Gaur, Ajai, 2023. "Decoupling in international business: Evidence, drivers, impact, and implications for IB research," Journal of World Business, Elsevier, vol. 58(1).

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