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

Lauren A. Johnston

doi:10.1002/app5.265

journal article Open Access Oct 31, 2018

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

Lauren A. Johnston

Asia & the Pacific Policy Studies Vol. 6 No. 1 pp. 40-58 · Wiley

View at Publisher Save 10.1002/app5.265

Abstract

AbstractChina'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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Published: Oct 31, 2018
Vol/Issue: 6(1)
Pages: 40-58
License: View

Authors

L

Lauren A. Johnston

Melbourne Institute of Applied Economic and Social Research, Faculty of Business and Economics University of Melbourne Melbourne Vistoria Australia

Cite This Article

Lauren A. Johnston (2018). The Belt and Road Initiative: What is in it for China?. Asia & the Pacific Policy Studies, 6(1), 40-58. https://doi.org/10.1002/app5.265

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

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