Reading Notes: China’s Spending $500 Billion to Reshape the World in Its Image
Time: 7 mins
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Summary: The rising protectionism in the U.S. and Europe give China a big chance to initiate its risky ambition — the Belt and Road Initiative.
China aims to deal with the domestic industrial overcapacity through the initiative, however, the initiative still faces some concerns and blasts either from domestic and external. On one hand, China has to defend its international reserves, considering that RMB has kept flowing out from the country. Large governmental investment on these developing countries with poor credits would give much pressure on Bank of China for both controlling the huge capital flight from government and the risky nonperforming loan.
$500billion has been poured in the Road and Belt countries by three China’s development banks, its Silk Road Fund and the China-led Asian Infrastructure Investment Bank since 2013. Several specialists and analysts still hold positive thinking on this project, regarding that China is taking place of the U.S. and it can boost the markets in many countries. Railways, highways, pipelines and ports are the concrete vision for China’s globalisation.
China's President Xi Jinping wants to revive China's ancient Silk Road by spurring trade via a network of new railways…www.bloomberg.com