One Belt, One Road, One Puzzle for Foreign Businesses in China
November 20, 2015 Leave a comment
Graham Norris, the communications director at AmCham China, takes the time to walk us through the new “One Belt, One Road” initiative. He looks at the past history as well as the current prospects. Bottom line: will take some time to find out if there is any there there.
So far, looks like there is potential for Chinese state-owned-enterprise to scoop up Chinese government money to clear their inventory and keep their engines humming. As for foreign business in China? Be careful about getting yourself too caught up in slogans.
As Graham writes:
It seems therefore that the biggest winners from this grandiose project will be state-owned enterprises, especially those with provincial backgrounds. According to the Economist, two-thirds of provinces have made One Belt, One Road a development priority this year, including Qinghai in the west and Guangdong on the coast. Cement maker Anhui Conch is building cement plants in several nearby countries, and steel exports from Shijiazhuang, the biggest steel-producing area in China, rose by half in the first seven months of the year, according to Reuters.
So is there anything for foreign companies to be excited about?
Anything that can arrest the slowdown in the economy, which in the third quarter expanded at its slowest rate since the global financial crisis, would be beneficial for all companies operating in China. But when it comes to specific opportunities, they could be harder to come by.
Here is the link to the full article: AmCham China.
This post originally appeared on LinkedIn.