China’s ambitious plan to connect Asia, Africa and Europe could change the world.
Find out how it affects your region.
Estimates put the overall cost of the mammoth project at more than US$1 trillion within the next decade.
Financing comes from the US$40b Silk Road Fund, Asian Infrastructure Investment Bank (AIIB) and the New Development Bank (NDB) - a Shanghai-based bank for the BRICS (Brazil, Russia, India, China, South Africa) countries.
The total cost of the BRI is equivalent to 39 Apollo space missions.
Debt to China/GDP
The large-scale projects are costly and some of the poorer BRI countries are in danger of being unable to repay their loans.
Critics worry China will exchange debt relief for strategic purposes such as gaining leverage in the settlement of territorial disputes.
The transcontinental project to boost connectivity will shorten transport times and open up opportunities for trade expansion, foreign investment, international cooperation, cultural exchange and could reduce poverty.
If completed, BRI transport projects could reduce travel times along economic corridors by 12%, increase trade between 2.7% and 9.7%, increase income by up to 3.4% and lift 7.6 million people from extreme poverty.
Infrastructure improvements are projected to increase growth in BRI corridor economies
The BRI could plug an estimated US$21 trillion gap in available financial support for infrastructure development in many of the developing countries along the economic corridors.
For China, the transcontinental project would boost economic growth in its less developed regions to the West.
As the global demand for low-end manufacturing weakens, the country could find new export markets through the BRI. Obtaining long-term energy security with supplies from Central Asia and the Middle East is another boon, as is increasing the use of the Chinese yuan.
