THE Chinese government is putting in massive efforts into its going-global strategy under its “one-belt one-road” regional economic expansion initiative.
According to a PwC report released in February, about US$250bil (RM1 trillion) in projects have been built, recently started or have been agreed on and signed in relation to the belt and road initiative.
PwC predicts that the three-year-old belt and road initiative will mobilise up to US$1 trillion (RM4 trillion) of state financing from the Chinese government in the next 10 years.
The belt-road initiative was first announced in 2013 by Chinese President Xi Jinping. It aims at reviving the ancient silk trade route and maritime trade route, and increase connectivity between Asian, European and African continents.
This strategy will see Chinese corporations building roads, railway lines, ports and infrastructure badly needed in many parts of Asia, Africa and the Middle East. It will also facilitate its own industries to invest in these countries, and vise versa.
Together, the belt and road covers 65 countries populated by 4.4 billion people.
Alongside the initiative is the establishment of China-sponsored Asian Infrastructure Investment Bank and Silk Road Fund, to finance belt-road linked projects.
In Malaysia, projects that appear to come under the belt and road initiative include:
1) Malacca Gateway (RM40bil).
2) Edra Global Energy Bhd (US$2.3bil or RM9.2bil).
3) US$1.7bil (RM6.8bil) investment in Bandar Malaysia.
4) US$2bil (RM8bil) regional headquarters of China CREC in Bandar Malaysia.
5) Deepening of Kuantan Port (US$2bil or RM8bil).
6) China Railway Rolling Stock Corp (US$105mil or RM420mil).
7) Future investments linked to Ports Alliance and railways.