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Belt and Road Initiative
China

China’s US$1.4 trillion ‘One Belt, One Road’ set to make bigger impact than US’ Marshall Plan to rebuild post-war Europe

Project is set to leave economic legacy bigger and extend Beijing’s might across the globe

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A container port in Beihai, Guangxi province. The city is the starting point of China’s ancient maritime Silk Road. Photo: Xinhua
Bloomberg

China’s ambition to revive an ancient trading route stretching from Asia to Europe could leave an economic legacy bigger than the Marshall Plan or the European Union’s enlargement, according to a new analysis.

Dubbed “One Belt, One Road”, the plan to build rail, highways and ports will embolden China’s soft-power status by spreading economic prosperity during a time of heightened  political uncertainty in both the United States and European Union, according to Stephen L. Jen, chief executive officer at Eurizon SLJ Capital, who estimates a value of US$1.4 trillion for the project. 

It will also boost trading links and help internationalise the yuan as banks open branches along the route, according to Jen.

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“This is a quintessential example of a geopolitical event that will likely be consequential for the global economy and the balance of political power in the long run,” said Jen, a former International Monetary Fund economist.

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Reaching from east to west, the Silk Road Economic Belt will extend to Europe through Central Asia and the Maritime Silk Road will link sea lanes to Southeast Asia, the Middle East and Africa.

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