Chain Risks and Solutions for Infrastructure Investment of BRI
BRI has achieved remarkable success; however, chain risks also come along and should not be neglected. Low ROI (Rate of Investment) and high risk of basic infrastructures lead to inactive participation of private capitals and high ratio of government fund
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The BRI has entered a new development phase. President Xi Jinping pointed out on the 5th anniversary of the BRI, “We have completed the overall layout of the BRI in the past 5 years, and we will be focusing on the implementation details in the following years. On the key milestone of the 5th anniversary of the BRI, it is necessary for us to look back on the past and into the future. We have achieved remarkably in BRI. China has greatly reduced its trade investment restriction and remarkably improved its trade investment convenience. We have not only opened our markets in coastline and river-line areas but also in border and inland areas. A new era of Open-up has come with interactions between inland and coastline areas and mutual benefit between east and west China. By 2018, goods trade volume between nations of the BRI and China has accumulated to over 5000 million USD, direct outbound investment over 60 million USD, and China has created over 200 thousand jobs locally for those countries. China outbound investment has become an important engine for increasing international outbound direct investment.1 For China and the world, the successful implementation of the BRI displays its indisputable value of the initiatives. However, BRI is still faced with chain risks. BRI is under impact of complex situations both domestic and international, and they actively re-shape the world pattern as well. The double dynamic feature of BRI makes the implementation path highly dynamic, resilient and uncertain. However, many researches fail to take heed of 1 Xinhua
Press: President Xi Jiping Attended the 5th Anniversary Seminar for Promoting “the Belt and Road” and Delivered Key Note Speech, https://www.yidaiyilu.gov.cn/xwzx/xgcdt/63963.htm, logon time: August 29, 2018. G. E. Tianren (B) School of Political Science and International Relations, Tongji University, Shanghai, China e-mail: [email protected] M. Zhang Institute of World Economics and Politics, Chinese Academy of Social Science, Beijing, China © The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2021 H. Men and X. Xiao (eds.), Report of Strategic Studies in China (2019), https://doi.org/10.1007/978-981-15-7732-1_8
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this and they still regard potential risks of implementing the initiatives as statistic. They fail to notice especially the interactions and interconnections between chains of risks. Chain effects of those risks have not been properly discussed and no systematic thinking about measures to deal with chain risks have been done. From the long run, BRI will be going through a continuous test and adjustment process from the top design to the accurate implementation. Rome is not built in a day. BRI will be implemented in a steady way in the long run, therefore we need work on how to effectively identify and mitigate the possibility of micro risks evolving into macro risks and to prevent risks chain conduction triggered by emergent events. Chain Mechanism of BRI In
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