One Belt, One Road and Future Directions for Chinese Outbound Investment

Abstract

As China makes the transition from being a recipient to a source of foreign direct investment, its role in global economic governance will inevitably grow. The current Chinese leaders are quite aware of this coming sea change and are putting forward measures aimed at increasing China’s leadership role in the world economy, including in overseas investment. Thus, in September-October 2013, during visits to Central and Southeast Asia, President Xi Jinping proposed building a new maritime and overland “silk road.” That scheme, the so-called “One Belt, One Road,” initiative — the belt referring to the maritime “silk road” and the road being its overland component — aims to revitalize the premodern Eurasian trade routes that linked China to Europe. Under this new grand design, One Belt, One Road will connect China more closely not just to Europe, but Southeast Asia, Central Asia, the Middle East, and eastern Africa as well.