(Bloomberg) — China’s investment into Belt and Road countries rose last year to the highest since 2018, a new report says, with companies putting almost $50 billion into overseas projects.
Total investment was almost 80% higher than in 2022 and helped take total engagement with the 150 countries that have signed up to the infrastructure initiative to more than $1 trillion since 2013, according to a new report from Griffith University in Australia and Fudan University in Shanghai.
Investment into high-technology projects, including electric-vehicle manufacturing, expanded substantially. The battery sector saw about $8 billion in engagement, the report said, driven by plans for a battery factory in South Korea and car plants in countries such as Thailand, Vietnam, Brazil and Hungary.
The report confirms recent data that showed China’s outbound investment last year rose to the highest since 2016, despite the domestic slowdown and concern in some nations about the nation’s influence and lending practices. The drop-off in BRI construction may reflect those worries, and a number of countries have restructured their debt in recent years, including money they borrowed to pay for Chinese-led infrastructure projects.
The average size of building projects announced last year was less than $400 million, the second lowest figure since the BRI began in 2013, according to the report, which said that this was likely due to China’s shift to “small and beautiful” projects.
The report classifies projects as part of the BRI if they occur after 2013 in countries that have signed a memorandum to join the initiative, even if they signed on much later than 2013. For example, in the case of Argentina which joined in 2022, any Chinese investment after 2013 is included.
The value of construction contracts should roughly track the value of overseas projects that are funded with loans from Chinese banks, while the investment figure follows overseas projects where Chinese companies have an equity stake, according to the report.
Read More: China’s Belt and Road Eyes Smaller Projects, More Use of Yuan
Because there is a possible overlap between the two and some Chinese construction contracts will be for projects funded by other countries, the report tracks engagement in the BRI, not the total Chinese financing of projects in the initiative.
Chinese President Xi Jinping launched the BRI a decade ago to boost economic ties and the influence of the world’s second-largest economy. It has always been loosely defined, with the label often applied to any projects in nations with friendly ties to China.
Italy announced it was pulling out of the agreement late last year, with Foreign Minister Antonio Tajani saying it had “not produced the desired effects.”
China will pursue BRI engagement this year to at least the level of 2023, wrote report author Christoph Nedopil, an economics professor. This would come “with a strong focus on BRI country partnerships in renewable energy, mining and related technologies.”
“Part of this expectation is driven by challenges in China’s domestic economic development, where Chinese companies seek opportunities in other countries,” he said.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
