The signing of an MoU during a March 22-24 by Chinese president Xi Jinping has made Italy the first G7 nation to join China’s sprawling Belt and Road Initiative, but Rome will be wise to devote sustained long-term resources to the negotiation, implementation, and follow-up of whatever comes out of these memoranda to avoid the mistakes of other BRI partners.
Cross-border infrastructure is the next frontier for the economic integration of the Indo-Pacific. As liberalization has driven down regulatory barriers to trade and investment, today it is physical linkages-the road, rail, shipping, energy, and telecommunications connection between economies–which are the principal challenge for regional integration. Indeed, the Indo-Pacific is plagued by a range of ‘infrastructure gaps’, which have arisen as governments have struggled to supply infrastructure at the pace and quality required by their high-speed growth. Estimates suggest that $1.5 trillion of new investment per year, every year, will be required to unlock the region’s developmental potential. Building better infrastructure within and between economies is a top priority for all governments in the Indo-Pacific.
Launched in 2013, China’s Belt and Road Initiative (BRI) strives to improve infrastructure, trade, financial integration, and people-to-people bonds across more than 80 countries. Its digital dimensions are far-reaching, including fiber optic cables, 5G networks, satellites, and devices that connect to these systems. On February 5th, the CSIS Reconnecting Asia Project hosted a discussion about these developments and their implications for U.S. economic and strategic interests.
In 2017, China surpassed South Korea to become the world’s second-largest liquefied natural gas (LNG) importer. In a few years, it might overtake Japan. But how is China securing its LNG needs?
A milestone agreement on trade and economic cooperation signed in May 2018 represents an important step forward for the relationship between the Eurasian Economic Union (EEU) and China’s Belt and Road Initiative (BRI).