The arrival of China as an increasingly significant setter of global standards may be uncomfortable for India but is near-inevitable and needs to be planned for.
Some instant takeaways from the EU-China Summit. A timely show of unity, but little real change in interests.
The Belt and Road initiative, recently embarked on by China, aims to improve cross-border infrastructure in order to reduce transportation costs across a massive geographical area between China and Europe.
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.
The Belt and Road aims to ease bottlenecks for cross-border trade in Asia, Europe and Africa. This paper measures empirically whether the reduction in transportation costs will have a positive impact on trade flows for Belt and Road countries and for EU countries. The authors also explore the possibility that the Belt and Road may eventually go beyond its current objectives towards the creation of a free trade area.
China has recently started to express interest in the Juncker plan. There have been rumours that China would like to initially invest between €5 and €10 billion. However no clarity exists yet as to how China will invest.