This is how China’s New Silk Road initiative could impact European trade

This is how China's New Silk Road initiative could impact European trade

Much has been written about the Belt and Road initiative since Xi Jinping made it Beijing’s flagship initiative in September 2013. There are many interpretations of the initiative’s ultimate objectives, but one objective is clear. The belt and road scheme will bring huge improvements in regional and international connectivity through infrastructure upgrades and trade facilitation across a massive geographic area.

Indeed, the regional potentially affected covers as many as 63 countries (even if vaguely defined), sixty percent of the world’s population and thirty percent of global GDP.

This massive project is centered in two main routes, along which connectivity is to be fostered: land and sea. On land the focus is on transportation infrastructure and energy. For the sea, investment in ports and new trade routes are the main pillars. Both routes will have a major impact on Europe. In fact, the land route ends up in Europe, while the sea route is currently the most heavily used for trade between Europe and China. Undoubtedly, the belt and road initiative will affect Europe and the European Union (EU).

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