China’s Maritime Silk Road project is to receive more than US$100 billion in state-funding, which will allow 300 projects spanning from Singapore to Turkmenistan to begin that include maritime links, roads and railways, and oil and gas pipelines, according to the Journal of Commerce.
In a previous article by PTI, it was reported that the Bank of China and China Shipping Group had signed a strategic co-operation agreement for more than $14 billion in order to enhance co-operation around direct financing for the Silk Road initiative.
Barclays Research said in a report: “We believe that the development of this trade route could significantly improve the longer-term trade outlook for China. We expect increasing exports of the ‘One belt, One Road’ countries will create positive feedback loops to sustain the growth of Chinese exports.
“There exists a virtuous cycle between growth of Chinese exports and the countries that lie along the One Belt, One Road, which are generally resource rich. The countries accounted for 21.9 percent of Chinese exports in 2014, with this figure growing at an 11.7 percent compound annual growth rate in the last three years.”
The Silk Road project, which aims to connect countries in Europe, Africa and Asia, is expected to attract trillions of dollars of trade once it is completed.
Chinese president Xi Jinping has recently made an offer to the Suez Canal as part of the Silk Road project, following a trade union was established between Egypt and China.