First proposed by President Xi Jinping in 2013, the initiative would develop and construct a vast network of railroads and shipping lanes between China and 65 countries in Asia, North Africa, the Middle East and Europe. The result would be enhanced trade routes and investment links between China and participating nations.

While the initiative had gotten off to a slow start, Morgan Stanley Research believes it will accelerate in 2018. “We’re seeing improved economics in Belt and Road countries, alongside supportive government policies in China,” says Robin Xing, Morgan Stanley’s Chief China Economist. “These factors reinforce our view that China’s investment in B&R countries will increase by 14% annually over the next two years, and the total investment amount could double to $1.2-1.3 trillion by 2027.”



In the near-term, this massive uptick in investment and construction activity bodes well for Chinese companies and countries with an economic link to the China. Long term, the initiative could accelerate China's transformation into a high-income economy and cement the country's position as a global economic power.