An error occured. Details Hide
You have unsaved pages. Restore Cancel

Last year the government of China formally adopted the One Belt One Road Initiative to improve the transport and trading links between China and Eurasian and African countries. A modern day version of the Silk Road network of trade routes between East and West circa 207 BCE, One Belt One Road (aka Belt and Road Initiative or just BRI) will be the largest investment initiative in history. BRI will span more than 68 countries and including an estimated $8 trillion of investment in transportation networks, energy production, and telecommunications infrastructure.

The majority of the investment will be financed by Chinese-issued debt. Given the diverse composition of countries, the effects of new debt-financed infrastructure investment will vary. Participating countries range from rich Qatar to poor Afghanistan, high population India to small Timor-Leste, debt-dependent Lebanon to debt-free Brunei, growing Ethiopia to stagnating Yemen, and export-oriented Singapore to mostly import-oriented Bhutan.

  • Large and growing countries for which the value of expected investment is insignificant compared to the economy's size and growth rate—making these countries better able to cope with the additional debt service—stand to benefit the most. Such countries include India, Indonesia, Russia, Singapore, and South Korea.
  • Analysis by the Center for Global Development indicates that none of 68 economies will face systemic debt problems as a result of the BRI. According to the Center, among those countries for which debt sustainability concerns may arise are: Montenegro, Jordan, the Kyrgyz Republic, Djibouti, and Armenia.

Related Data Insights

World Steel Production and Prices

During the last 10 years, a small group of emerging economies in Asia have supported the growth in total global steel production. While India and South Korea have contributed, production from China overwhelmingly leads globally. Accounting for half of global steel production, analysts worldwide monitor China's monthly production figures closely for signs of economic strength but also to gauge forward pricing expectations based on global demand and the production response of competing mills overseas.Between 2004 and 2014, China increased its annual steel production almost three times to about 823 million tons. At that volume, China's steel...

Oil Consumer's Profile of China

Trade Policy Review Body - China

Surveillance of national trade policies is a fundamentally important activity running throughout the work of the WTO. At the centre of this work is the Trade Policy Review Mechanism (TPRM). All WTO members are reviewed, the frequency of each country’s review varying according to its share of world trade. Event Holder: World Trade Organization Source of data: WTO, the World Bank, UN

Chinese Economy is Like a Bubble

Nowadays China is the fast-growing developing country, which GDP increases by an average 10 percent a year. According to World Bank, China is "the fastest sustained expansion by a major economy in history". By United Nations (UN) classification China belongs to developing countries, but Quartz reports, that UN doesn’t have an official definition of developing/developed countries. Usually, two main indicators used to distinguish developed countries from developing countries: GDP per Capita and sometimes Human Developing Index. Some economists determine the average level of GDP countries are developed: $25 Thousand. There is no level of HDI...