Economics of the Belt and Road Initiative

Chen Yongjun

Economics of the Belt and Road Initiative

by Chen Yongjun (Author)
©2023, Monographs, 24, 344 Pages
Law, Economics & Management

Series: The Belt and Road Initiative, Volume 2

2023 is the tenth anniversary of China’s proposal to jointly build the "the Belt and Road Initiative’’(BRI). This academic monograph provides a theoretical analysis of China’s "Belt and Road Initiative" (BRI) from the perspective of economics and not only describes the status of the BRI construction, but also formulates development proposals. First, it provides a theoretical explanation of why the Belt and Road is feasible and how it can be applied in practice. Second, it introduces the overall situation and landmark projects from the past eight years of the "Belt and Road" construction using the method of case studies. Finally, it puts forward policy suggestions and measures to promote quality development of the "Belt and Road" in the future.

This book provides an encyclopedic understanding of the "Belt and Road" project to the international community, especially after the G7 summit proposed "Build Back Better for the World" (B3W) in 2021 and the "global infrastructure and investment partnership" plan in 2022. This book is an indispensable textbook to understand and study the situation and experience of the "Belt and Road" construction that has been going on for eight years.

Cover
Title
Copyright
About the author
About the book
This eBook can be cited
Contents
List of Figures
List of Tables
Preface
Acknowledgments
Introduction
1. The historical meaning of the BRI and its new contemporary connotations
(i) The historical Silk Road
(ii) Historical implications of the BRI
(iii) The BRI as the New Silk Road of the present
2. The basic connotation of the BRI
3. The effect of co-constructing the BRI
4. Analysis of the theoretical model of win-win cooperation in co-constructing the BRI
5. Concrete paths for co-constructing a high-quality BRI in the 14th Five-Year Plan
Chapter I Necessary and Sufficient Conditions for the Actualization of the BRI
1. Objective matching of supply and demand is a necessary condition for achieving win-win cooperation
2. Building a virtuous interaction model and policy guarantee system is a sufficient condition for constructing the BRI
3. Conclusions and policy recommendations
Chapter II Analysis of the Investment Scale Boundary of the BRI: A Benefit Creation and Sharing Mechanism Perspective
1. A three-state interactive decision model
(i) Model environment
(ii) Baseline model setting
(iii) Analysis of decision-making issues
(iv) Discussion of balanced results
2. Numerical analysis of the baseline model and its application in the BRI framework
3. Extended model
4. Conclusions and policy recommendations
Chapter III Basic Information on the Eight Years of the Construction of the BRI
1. Eight years of practice in co-constructing the BRI: Policy communication
(i) Positive developments in bilateral cooperation
(ii) Important progress in the area of multilateral cooperation
(iii) Steady progress in the construction of economic corridors
(iv) Summary
2. Eight years of practice in co-constructing the BRI: Facility connectivity
(i) Transport infrastructure
(ii) Energy infrastructure
(iii) Information network facilities
(iv) Summary
3. Eight years of practice in co-constructing the BRI: Smooth trade
(i) Increasingly prosperous trade in goods and services with countries along the route
(ii) Continuous breakthroughs in the construction of trade cooperation platforms
(iii) Steady improvement in the level of trade facilitation
(iv) Continued improvement in the level of trade openness
(v) Summary
4. Eight years of practice in co-constructing the BRI: Financial inclusion
(i) Setting up relevant financial institutions to provide ongoing support
(ii) Continued increase in financial security and diversification of forms of investment cooperation
(iii) Steady increase in the internationalization of the CNY
(iv) Summary
5. Eight years of practice in co-constructing BRI: Interpersonal Contacts
(i) Deepening humanistic exchanges
(ii) Fruitful cooperation in science, technology and innovation
(iii) Continued enhancement of foreign assistance
(iv) Increasing awareness and action on ecological protection
(v) Summary
Chapter IV Analysis of the Emblematic Projects in the Construction of the BRI
1. China-European Train
(i) History of development
(ii) Status of the project
2. Qassim Coal-Fired Power Station Project
(i) History of development
(ii) Status of the project
(iii) Significance of the project
3. Mombasa-Nairobi Standard Gauge Railway in Kenya
(i) History of development
(ii) Status of the project
(iii) Significance of the project
4. The Russian-Chinese Yamal Project
(i) History of development
(ii) Status of the project
(iii) Significance of the project
5. China-Singapore (Chongqing) Strategic Connectivity Demonstration Project
(i) History of development
(ii) Status of the project
(iii) Significance of the project
6. China and Belarus Industrial Park
(i) History of development
(ii) Status of the project
(iii) Significance of the project
7. Xiamen University Malaysia
(i) History of development
(ii) Status of the project
(iii) Significance of the project
Chapter V Analysis of the Stabilization Mechanism of the Co-construction of the BRI for China and the World Economy in the Year of the Pandemic
1. Overview of the impact of the covid-19 pandemic on the global economy
(i) Impact on the Chinese economy
(ii) Shocks to the global economy
2. Annual growth against the trend in the co-construction of the BRI in the year of the pandemic
(i) Fruitful policy communication
(ii) Steady progress in facility connectivity
(iii) Trade flows grow against the trend
(iv) Deepening of financial integration
(v) Reaching consensus on interpersonal contacts
3. The stabilization mechanism of the co-construction of the BRI for the Chinese economy
(i) Import and export trade with the BRI countries stabilizes China’s foreign trade
(ii) Investment in the BRI countries by China stabilizes China’s attraction of foreign investment
4. Stabilization mechanisms for the economies along the BRI route
(i) The growth of China’s direct investment against the trend in the BRI countries
(ii) China-European Liner to help smooth trade flows in the BRI countries
5. Co-constructing the BRI stabilization mechanism for the world economy
(i) Contributing to the global fight against the pandemic and helping the global economy to “come alive”
(ii) Cross-border e-commerce to drive global trade
(iii) Providing global financial security
(iv) Promoting the building of a human community of a shared future
Chapter VI Basic Ideas and Requirements for the Co-construction of the BRI Quality Development
1. The basic idea of co-constructing the BRI quality development
2. Basic requirements for the co-construction of the BRI quality development
(i) Strengthening development strategies and policy alignment
(ii) Deepening the interconnection of facilities
(iii) Sustained expansion of two-way trade and investment
(iv) Adherence to market-oriented financing
(v) Deepening exchanges and cooperation in key areas
Chapter VII Institutional and Mechanism Innovations for Co-constructing the BRI
1. Building a new system for a higher level of open economy
2. Building strategic planning docking systems and policy- standard linkage platforms
3. Building a 4-in-1 “land-sea-sky-internet” network system
4. Improving the construction of domestic supply chain and international industrial chains
5. Improve diversified standardized investment and financing system
6. Building a coordination mechanism for green humanities exchanges
Chapter VIII Investment Planning and Financing for Co-constructing the BRI
1. Investment planning for the BRI countries in the 14th Five-Year Plan period
(i) Scale and structure of investment
(ii) Industrial pattern
2. Financing for high-quality co-production of the BRI in the 14th Five-Year Plan
(i) Subjects of investment and financing
(ii) Investment and financing modalities
(iii) Investment and financing cooperation
(iv) Rules for investment and financing
Chapter IX Risk Control and Project Management of Co-constructing the BRI
1. Strengthening risk control in the BRI
(i) Potential risk factors for co-constructing the BRI
(ii) Measures to prevent the risk of co-constructing the BRI
2. Optimizing project management in the BRI
(i) Preparation of project planning and action programmes
(ii) Optimizing project team coordination mechanisms
(iii) Developing a dynamic system of project evaluation
(iv) Building a platform for project information dissemination
Chapter X Legal System and Implementation Mechanisms for the Co-construction of the BRI
1. Perspectives on the legal environment of the BRI
(i) Greater conflict of laws and legal risks in the BRI domain
(ii) The complex system of bilateral and multilateral rules relating to the BRI
(iii) The international dispute settlement mechanism of the BRI needs to be improved
(iv) Apparent lack of capacity in foreign-related legal services related to the BRI
2. Building the legal system of the BRI
(i) Improving domestic supporting foreign-related economic and trade legislation
(ii) Emphasis on the role of international soft law in promoting the uniformity of rules in the territory
(iii) Making full use of the existing international legal system for trade and commerce
(iv) Active construction of bilateral and multilateral international rules along the BRI route
3. Improving the legal enforcement mechanism of the BRI
(i) Active use of existing international trade and economic dispute settlement mechanisms
(ii) Establishment of a diversified BRI international commercial dispute settlement mechanism
(iii) Improving the BRI foreign-related commercial legal service system
Chapter XI Cultural Communication and Green Development for the Co-construction of the BRI
1. Multi-party participation in the cultural dissemination of the BRI
(i) Government-led promotion
(ii) Concerted efforts by all sectors
(iii) Broad participation of all staffs
2. Deepening the implementation of the BRI green development
(i) Clarifying green requirements and refining development standards
(ii) Optimize energy structure and carry out green innovation
(iii) Systematic protection and governance, and integration of industrial structures
References
Index

Pages:

24, 344

Year:

2023

ISBN (HARDBACK):

9781433192951 (Active)

ISBN (EPUB):

9781636671482 (Active)

ISBN (PDF):

9781636671475 (Active)

DOI:

10.3726/b20617

Language:

English

Keywords:

Chen, Economics, Road, Belt, Initiative, Contemporary China, Wenshan, Build Back Better for the World (B3W), Global Infrastructure and Investment Partnership plan, new infrastructure construction, The Belt and Road Initiative (BRI), the New Silk Road, win-win, world economy, Yongjun

Published:

New York, Bern, Berlin, Bruxelles, Oxford, Wien, 2023. XXIV, 344 pp., 16 b/w ill., 10 tables.

Chen Yongjun received his Ph.D. in economics in 1992 and taught at Xiamen University and Renmin University of China. After working at these two universities for nearly 30 years, he is currently a special-term professor at Guangdong University of Finance and Economics and the Director of the Institute of Double-Cycle Development in the Greater Bay Area at this university.

Chen is a senior Fulbright visiting scholar (2004). His research areas are focused on market economy theory and reform practice, industrial economy and regional development theory, enterprise strategic management practice, and so on. He has presided over more than twenty research projects either funded by the Chinese government or entrusted by corporations. He has also won several major awards.

Since 2015, he has been studying the "Belt and Road" initiative and has given more than 300 lectures at home and abroad introducing the innovative ideas and the theoretical system proposed in his research. His contributions have been widely welcomed by audiences worldwide and highly valued by the relevant departments of the Chinese central government. The "Belt and Road" Economic Reader was published in China in 2017 and was translated into six languages, including English, Russian, French, and Arabic.

In 2019, he was appointed as the chief expert of the "Belt and Road" special research project of the National Social Science Foundation of China, titled "The Path to Actualization of a High-Quality Development of the ‘Belt and Road’".

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