April, 2025
China is looking to make a significant dent in the global supply chain landscape with the proliferation of investment in one of its biggest ongoing infrastructure initiatives. The Belt and Road Initiative (BRI) was launched by President Xi Jinping in 2013 for China to build economic and political influence with East Asia and Europe. The project has expanded to Africa, Latin America, and Oceania in the last few years. 2018 was particularly robust for Chinese investments in the Southeast Asian transport and logistics sector. The initiative is also pushing for the growing adoption of new technologies such as the Intelligent Transport System (ITS) to modernize construction and management.
Beijing’s ongoing efforts to develop strong international relationships come in the wake of companies seeking to diversify their production away from China. The global pandemic has highlighted the risks of relying heavily on a single country for goods and services. Southeast Asian countries are now emerging as a new hub for manufacturing due to relatively lower production costs and established manufacturing clusters in the region. China is looking to capitalize on this shift towards SEA with major investments directed toward acquiring stakes in Brunei, Myanmar, Singapore, Thailand, Indonesia, and the Philippines and investing in building massive bridge and railway connections across the region. Chinese state-owned companies want to develop critical nodes in the country’s Belt and Road Initiative.
The Belt and Road Initiative is going a long way in establishing China’s strategy to integrate these countries into its maritime network. China is more willing to invest in emerging economies compared to Western countries. Beijing’s investments in low-GDP economies enable them to build state-of-the-art transport and logistics infrastructure.
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