Unraveling the Belt and Road Initiative: China’s “Building Out” Strategy

Abstract

Scholars and analysts have sought to clarify the Chinese Communist Party’s motives for carrying out the Belt and Road Initiative (BRI), a series of infrastructure investments in countries across the globe. While many emphasize Beijing’s geopolitical interests, this paper argues that the BRI should also be understood as a large-scale effort to create business activities for Chinese companies and workers outside of China. We define the contours of this “building out” strategy by analyzing the stages that typify BRI projects: project selection, project financing, project construction, and post-construction operation and management. Our analysis draws, in large part, on data that we have compiled from a sample of BRI projects. After showing macro-level trends in the data, we offer three in-depth case studies to clarify the underlying mechanisms at work. Our findings suggest that BRI projects are engineered to direct finance and construction bids to Chinese companies, which are typically state-owned.