‘One Belt, One Road’ infrastructure seen as catalyst for new trade growth

Private equity investors are keen on projects in many of the 60 countries along the “One Belt, One Road” route as they believe the infrastructure built up over future years will create a huge network that will promote trade, manufacturing, services and e-commerce in the countries, according a panel of speakers on Friday.

Speaking at the South China Morning Post’s annual China Conference, Fred Hu, founder and partner of Primavera Capital Group, said trade, manufacturing and consumer services would develop in the 60 belt and road countries after the many infrastructure projects were built.

Beijing launched the initiative in 2013 with the goal of building railways, roads, airports and ports to link up 60 countries including China and India, and other Asian, Middle East and European countries.

“These infrastructure [projects] will create a giant network to promote trade flow among these countries. After the airports and ports are built, manufacturers will come to these markets. Then consumers and other services sectors will follow,” Hu said.

However, Hu added that the one belt, one road initiative wasn’t just about infrastructure. “It will provide a lot of investment opportunities in companies conducting trade, manufacturing and consumer businesses,” he said.

Another panel speaker, Frank Tang, chief executive officer and managing partner of FountainVest Partners, said the next 20 years would see a lot of manufacturing migration between the many belt and road countries from China to Europe.