China’s tech ‘not state-of-the-art’, but it is what emerging markets can afford, and China is already there
- Ambitious and far-reaching Belt and Road Initiative has China well-placed to take advantage in emerging markets, leaving the West scrambling to catch up
- Multibillion-dollar plan is frequently criticised by the United States and others who point to soaring debt, environmental concerns and national security risks
Increasing hostility and challenges by developed countries will not deter China from boosting hi-tech investment under its grand infrastructure-connectivity plan known as the Belt and Road Initiative, according to analysts.
Their comments came after European Union foreign ministers agreed this week to launch a global infrastructure plan linking Europe with the world. This followed deals involving India and Japan, and a similar plan by the Group of 7 (G7) nations to rival China’s ambitious multibillion-dollar undertaking.
President Xi Jinping’s Belt and Road Initiative, launched in 2013, aims to enhance China’s economic and political influence by connecting more than 70 countries on the continents of Asia, Europe and Africa via a series of rail, road and sea infrastructure projects.
“China will try to move fast in new technologies such as electric vehicles and 5G in Belt and Road Initiative geographies for a very simple reason: it allows China to expand its technology and to set standards in the future,” said Alicia Garcia Herrero, chief economist for the Asia-Pacific region at Natixis.