Business Environment Project China 2022

Running head: Business Environment
Business Environment
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Business Environment
The Belt and Road Initiative (BRI) of China is one of the progressive projects that are made
to strengthen the regional synergy and improvise the interconnection on a multi-national
platform and is an effort to widen the commercial undertaking to leverage modern
infrastructure and advantage to underdeveloped sections of the world. While the outlook of
the BRI is taking shape it includes mainly the Silk Road Economic Belt that will connect
China to Central and South Asia and further to Europe and the New Maritime Sil Road that
will link China to countries of South East Asia, the Gulf nations, North Africa and to Europe.
Moreover six other economic routes has been established to connect other nations to the Belt
and the Road1. There have been constant debate on China’s intentions behind the initiative
and some experts establish that China is utilizing the commercial bridgeheads as corridor to
give their warships and military more power by acquiring more ports across Indian Ocean
which is a purposeful effort to reinforce China’s political power and expand their military
reach so The Belt and Road Initiative is a questionable deal.
Analysis of Opportunities
The economics of BRI on analysis is a layout that can stimulate three major opportunities
linked with the deal:
Enormous size and reach: BRI economies hold for 1/3rd of world GDP and commerce and are
close to 2/3rd of global population. For few BRI nations, poverty ratio and percent of
population living below poverty line (1.90 $/day) is large such as 25% in Kenya, 23% in
1 Keith Johnson and Dan De Luce, ‘One Belt, One Road, One Happy Chinese Navy’, FP
REPORT [Online], 17 April 2018 < https://foreignpolicy.com/2018/04/17/one-belt-one-road-
one-happy-chinese-navy/>
2

Business Environment
Uzbekistan and Djibouti, 21% in Laos. So the scope of BRI projects is rewarding for these
nations as it will outstand to advantage a huge amount of underprivileged population and
huge swaths of global economies through better worthwhile surplus impact over universal
wellbeing.
Huge unexplored prospective: BRI projects are largely unified with other nations and with
one another. Currently, BRI nations increase in world exports has largely doubled since past
two decade though particularly China is open for biggest stake of such exports.2 Commerce
across several BRI economies like Afghanistan, Nepal, Tajikistan and Laos is underexplored
because of poor infrastructure, unsteady policies and other gaps, so the BRI project is
rewarding for such countries to fix these gaps and will improve global economies, trade
specifically for nations that had been incapable to completely unite in the global economy.
Boost in interconnections: currently in 30 days consignments can be shipped between China
to Central Europe with materials being shipped through sea. Though transporting materials
through rail can lower shipping duration to half but it would cost more. As such there is a
disposition amid saving time and money as every day’s wait in getting goods from production
place to customer is approximated to lower business by 1%. Hence improvising scope and
network of rail and other transportation infrastructure can result to extensive cross border
commerce, rise in investments and better development through support of the Belt and the
Road Initiative3. Also coordination’s between regions on infrastructure development is
2 Anja Manuel, , ‘China is quietly reshaping the world’, The Atlantic, Aspen Strategy Group
Publication. [Online], 17 Oct 2017 <
https://www.theatlantic.com/international/archive/2017/10/china-belt-and-road/542667/
3 Xiamen, ‘China has vastly ambitious plan to connect the world’, The Economist [Online], 26
July 2018 < https://www.economist.com/briefing/2018/07/26/china-has-a-vastly-ambitious-
3