One Belt, One Road
Since the grand vision for China was unveiled in 2013 by President Xi Jinping, the Belt and Road Initiative (BRI) is believed to be a global transformative project that will bring unprecedented growth to global trade.
Reshaping the 21st century global economy
Belt and Road Initiative: Implications for ASEAN
As the world's youngest economic region, ASEAN is likely to be one of the biggest beneficiaries of the BRI.
The region offers alluring investment opportunities with its healthy rates of economic and population growth. HSBC estimates that the six biggest ASEAN economies – Indonesia, Thailand, Malaysia, Singapore, the Philippines and Vietnam – require USD2.1 trillion in infrastructure investment up to 2030. However, budgets will cover only USD910 million of the required amount. This offers opportunities for foreign businesses to step in and help fill the gap.
As China takes on a more active role in shaping global trade through the BRI, Chinese businesses have an opportunity to expand across related economic corridors, such as that between China and Singapore. ASEAN is particularly appealing as it is a primary beneficiary of BRI infrastructure investments. HSBC estimates that BRI-related commitments in Malaysia, Indonesia and the Philippines alone will total more than USD77 billion. Clearly, the region offers excellent prospects for Chinese corporates to expand and grow their businesses.
Over the last five years, trade volumes between China and the countries along the BRI routes reached RMB5trn3
Annual trade with countries along the BRI routes is expected to hit USD2.5trn in the next decade4
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