Belt and Road speeds up infrastructure investment

Investment in infrastructure, an engine for economic growth, is expected to grow 20 percent in the first half year in China and about 17 percent for the whole year, China Securities Journal reports.

The construction of the Belt and Road Initiative increases the demand for infrastructure investment. According to a notice recently issued by the State Council, China will encourage investment of foreign capital in infrastructure.

The first International Cooperation Summit Forum on the Belt and Road Initiative will be held in Beijing in May. The forum will help build a cooperation platform and promote construction of the Belt and Road Initiative, said Han Qicheng, an analyst from Guotai Junan Securities. The Central Economic Work Conference has mentioned the Belt and Road Initiative for two consecutive years, and the initiative will enjoy more policy impetus in the future.

Statistics from the Ministry of Commerce show that China’s outbound direct investment (ODI) in countries along the Belt and Road routes amounted to US$14.53 billion in 2016.

Jin Jiaxin, analyst of Ping An Securities, said that more investment projects related to the initiative will be rolled out this year, and cooperation featuring Public-Private Partnership (PPP) model will be a highlight.