Initiative results in new growth models

The China-Belarus Industrial Park is an example of projects spawned by the Silk Road Economic Belt. [Photo/Xinhua]

Clusters, park-based operations and PPPs are now all the rage

The Belt and Road Initiative will play a key role in reshaping industrial chains and infrastructure in many developing markets through new models, including cluster development, industrial park-based operations and public-private partnerships, said senior commerce ministry officials.

Chinese companies have established 56 overseas trade and economic cooperation zones in 20 countries and regions related to the two 21st century trading routes, with a cumulative investment exceeding $18.5 billion, creating more than $1.1 billion in various taxes paid to local governments and 180,000 jobs in the host economies.

"The China-Belarus Industrial Park has become a typical example on the Silk Road Economic Belt," said Vice-Minister of Commerce Qian Keming. "The Egypt-Suez Economic and Trade Cooperation Zone, the China-Thailand Rayong Industrial Zone, the Cambodia Sihanoukville Special Economic Zone and other parks are also making satisfactory progress."

The initiative is warmly welcomed by over 100 countries, regions and international organizations related to the initiative, as it meets their desire for industrialization, urbanization, regional connectivity and other new market growth points.

Qian said the Belt and Road Initiative is a practical tool to tackle narrow-minded protectionism and isolationism, as investments and technologies from China are able to shape a global value chain gradually, further stimulating new trade activities.

Chinese companies made outbound direct investment worth $50 billion in non-financial sectors and also signed project contracts worth $304.9 billion in countries and regions related to the initiative between 2014 and 2016, according to commerce ministry data.

In terms of major projects, Chinese companies such as China National Machinery Industry Corp, China Railway Rolling Stock Corp, China Communications Construction Co and Huawei Technologies Co Ltd have all worked with relevant parties in launching a series of energy, manufacturing, infrastructure and telecommunication projects related to the initiative.

"The construction of China-Laos railway, the second phase of Karakoram Highway and Karachi Highway in Pakistan has already started. The development and operation of the China-Russia, China-Kazakhstan and China-Myanmar oil and gas pipelines have also progressed smoothly," said Qian.

"While local economies have benefited from projects resulting from the initiative, Chinese businesses have enriched their experience in overseas expansion in areas such as management, personnel training, building of sales networks and contributing Chinese wisdom to overseas markets," said Zhang Xingfu, deputy director-general of the Department of International Trade and Economic Affairs at the Ministry of Commerce.