Just what is China’s BRI? Can global companies, investors, and people around the world truly benefit from such an initiative?
Much has been said about the ‘One Belt One Road’ - China’s immense infrastructure program, which was recently enshrined in the Chinese party constitution as the ‘Belt and Road Initiative’ (BRI).
While reactions have been mixed - with some commentators claiming that this is part of China’s grand strategy to dominate the world - the BRI has been popping up on earnings calls in the last few quarters.
From Paris to Massachusetts, and from New Jersey to Japan, CEOs of some of the world’s largest technology, telecommunications, engineering, logistics, and financial companies are eager to jump on the Belt and Road.
Cornering the globe is a publication of PwC’s Geopolitical Investing practice, and is intended to highlight key issues our clients should be considering as they think about expanding into global markets. At the Macro level, long-term economic and demographic trends indicate an abundance of opportunities to profit and expand in emerging markets. However, the risks of doing business in these regions - such as exchange rate volatility, political uncertainty, meeting the skills gap, and shifts in tax and regulation - often hamper decision-making, forcing companies to react to events, rather than prepare for change, and capitalize on potential dislocations. By critically assessing key geopolitical issues that impact our clients, we provide insight into the ways in which companies can build capabilities to weather political and economic change in their foreign operations. Our Geopolitical Investing team combines rigorous insight into the key macroeconomic and geopolitical issues facing business leaders today, with deep industry and sector expertise, helping companies to strategically allocate capital to grow specific business units or assets in markets around the world.