Could ‘Belt and Road’ be the Last Step in China’s Asian Economic Integration?

Abstract

ABSTRACTThis article assesses the role of China’s ‘Belt and Road’ initiative (BRI) in the country’s intended global economic integration. Particular attention is paid to China’s capital penetration of Asian markets, with an empirical assessment of the structure of Asian markets from the perspective of foreign trade, foreign direct investment (FDI) and intergovernmental aid. The success of China’s new opening-up initiative will be largely contingent on Asian markets’ recognition of Chinese products and capital: its trade with potential cooperative countries and its FDI and intergovernmental aid to them fall behind those of the developed countries that are China’s major cooperative partners in/outside Asia. China’s ongoing Asian economic strategy thus faces competition and will need to integrate the BRI into the current framework of international economic cooperation.