Xi promises open markets and billions in new investments for ‘Belt and Road’ projects

Chinese President Xi Jinping promised foreign companies greater access to China’s huge market and more than $100 billion in new financing for other developing economies as he opened the third forum yesterday on his signature Belt and Road infrastructure initiative.

Xi’s initiative has built power plants, roads, railroads and ports around the world and deepened China’s ties with Africa, Asia, Latin America and the Mideast.

At the forum’s opening ceremony at the Great Hall of the People, Xi promised that two Chinese-backed development banks – the China Development Bank and the Export–Import Bank of China – will each set up 350 billion yuan ($47.9 billion) financing windows.

An additional 80 billion yuan ($11 billion) will be invested in Beijing’s Silk Road Fund to support BRI projects.

“We will comprehensively remove restrictions on foreign investment access in the manufacturing sector,” Xi said. He said China would further open up “cross-border trade and investment in services and expand market access for digital products” and carry out reforms of state-owned enterprises and in sectors such as the digital economy, intellectual property rights and government procurement.

The pledges of hefty support from Beijing come at a time when China’s economy has slowed and foreign investment has plunged.

Xi alluded to efforts by the United States and its allies to reduce their reliance on Chinese manufacturing and supply chains amid heightened competition and diplomatic frictions and reiterated promises that Beijing would create a fairer environment for foreign firms.

“We do not engage in ideological confrontation, geopolitical games nor clique political confrontation,” Xi said. “We oppose unilateral sanctions, economic coercion and the decoupling and severance of chains,” a reference to moves elsewhere to diversify industrial supply chains.

Reiterating Chinese complaints that such moves are meant to limit China’s growth, Xi said that “viewing others’ development as a threat or taking economic interdependence as a risk will not make one’s own life better or speed up one’s development.”

“China can only do well when the world is doing well,” he said. “When China does well, the world will get even better.”

Representatives from more than 130 mostly developing countries are attending the forum, including at least 20 heads of state and government. Russian President Vladimir Putin is attending, reflecting China’s economic and diplomatic support for Moscow amid the isolation brought by its war in Ukraine.

Also in attendance are the presidents of Indonesia, Argentina, Kazakstan, Sri Lanka, Kenya among other countries, as well as U.N. Secretary-General António Guterres. Most Western European countries and U.S. allies sent lower level or former officials to the forum.

Guterres highlighted the BRI’s potential to bring development to neglected areas while stressing the need for projects to be environmentally sustainable. He said the initiative could help drive the transition away from reliance on fossil fuels.

“Developing countries will need massive support for a fair, equitable and just energy transition toward renewables while providing affordable electricity to all,” Guterres said.

He also called for an “immediate, humanitarian” ceasefire in the Israel-Palestine war.

With the BRI, China has become a major financer of development projects on a par with the World Bank. The Chinese government says the initiative has launched more than 3,000 projects and “galvanized” nearly $1 trillion in investment.

People-centered projects

According to Xi, the initiative now aims to become smaller and greener after a decade of big projects that boosted trade but left big debts and raised environmental concerns.

During his keynote address, President Xi emphasized that Belt and Road cooperation has evolved from mere outlines to tangible projects, including numerous signature initiatives and innovative people-centered programs.

He laid out essential guiding principles for high-quality Belt and Road cooperation, emphasizing the ideals of collaborative planning, construction, and mutual benefit, as well as the values of openness, environmental responsibility, and sustainability.

The Belt and Road Initiative, which spans across land, sea, sky, and the digital realm, has revitalized the ancient Silk Road in the modern era.

Notably, when the COVID-19 pandemic struck, the Belt and Road became a crucial lifeline. President Xi underscored that the Belt and Road Initiative represents a collective effort for global development.

“It transcends differences in civilizations, cultures, social systems, and development stages, forging new paths for international exchange and cooperation,” Xi concluded. MDT/Agencies