Are you curious about the most dynamic market in the world right now? Are you familiar with the newest Chinese policies, opportunities, and risks of the Belt and Road Initiative (BRI)? As we are stepping into a new decade, here are some information and changes I sorted out that can help you make a wiser decision when considering entering the Chinese market.
- Higher Credibility: In March 2019, Italy joined the One Belt One Road project, marking the first ever supporting nation of the initiative from the Group of Seven. BRI no longer equals to “developing countries.” Because of the newly gain higher credibility, more and more advanced economies are eyeing on the project.
- Promoting High-Quality Projects: Moving towards the new era, the Chinese government published a new document in November 2019, aiming to promote the high-quality development of trade. The new emphasis on quality requires smarter strategies for foreign businesses to enter the market.
- Expanding Geographic Scope: Since the original initiative in 2013, the geographic scope has expanded from Europe, Asia, Africa to Latin America. Now, there are already 19 countries/regions signed up to the project. New opportunities also opened up for Latin American businesses in China.
- Cross-Boarder E-Commerce (CBEC): CBEC is and will continue to be one of the fastest growing industry under the influence of BRI. The market for CBEC is maturing with the increasing variety of products, higher frequency of transaction, and expanding geographic scope. Transaction volume between China and One Belt One Road cooperating countries is increasing at a rate of 20%.
- Alternative Destinations for Investment: If Chinese economy’s slowdown or the rapid growth of CBEC, media, and technology industries are signs of risk to you, try thinking of other potential alternative destination for investment. There might be surprising opportunities in the One Belt One Road cooperating countries in Europe, Africa, Asia, and Latin America.
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Please contact me with any questions.
Bucknell University 2022, Mathematical Economics + Linguistics Major
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