Belt and Road to Generate $1.6 Trillion in Annual Revenue by 2030, Official Says
The Belt and Road Initiative (BRI), China’s ambitious overseas infrastructure development program, is expected to generate $1.6 trillion in annual revenue by 2030, a Chinese official said at the Summer Davos Forum in Tianjin on Tuesday.
Zhou Haibing, a vice minister of the National Development and Reform Commission, China’s top economic planner, said that the BRI has bolstered the social and economic development of its member states by building economic corridors and enhancing connectivity, with the construction of highways, railways, airports and seaports.
Zhou cited the China-Laos Railway as an example: the link has transported more than 60 million tons of goods since it opened in December 2021. Another flagship project developed under the BRI is the China-Europe Railway Express, which connects China with 229 cities across 26 European countries.
The initiative has been a catalyst for global economic growth by promoting the liberalization of trade and investments, Zhou said. It has also helped improve livelihoods in the participating states, with projects related to job creation and poverty relief, he added.
A World Bank report released on June 20 predicted that BRI infrastructure projects will increase trade among participants by between 4.1% and 7.2% and increase world trade by between 1.7% and 6.2%. This growth is expected to boost global real income by between 0.7% and 2.9%, according to the report.
However, the world is entering a new era of turbulence and transformation, Zhou said. Last week, the World Bank lowered its global economic growth forecast for 2025 to 2.3% from an earlier estimate of 2.7%. The supranational institution also cut its forecasts for nearly 70% of all economies, including the U.S., China and Europe.
Despite the economic tumult, Zhou said that he saw opportunities for the BRI, citing the rising demand in emerging countries for infrastructure development, advanced manufacturing and digital economy.
Since it was first put forward by President Xi Jinping in 2013, the BRI has grown into China’s major foreign policy framework, under which Beijing has signed cooperation agreements with 25 countries and become the top trading partner of 18 nations.
Contact reporter Ding Yi (yiding@caixin.com) and editor Jonathan Breen (jonathanbreen@caixin.com)
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