Second Summit on the Belt and Road Initiative (BRI) started in China
by David Fleschen
In China, the second Summit on the Belt and Road Initiative (BRI) has started. Around 5,000 participants from over 150 countries, including 37 heads of state and government, will travel to Beijing. The Belt-and-Road initiative was launched by China in September 2013, with the first summit taking place about two years ago. It refers to the geographical area of the historic Silk Road and serves to build an intercontinental infrastructure network between Europe, Africa and Asia, starting from China. China has meanwhile signed cooperation agreements with 125 countries and 29 international organizations, according to state news agency Xinhua. According to official figures, Chinese companies invested more than $ 90 billion in the BRI countries between 2013 and 2018, while the latter spent $ 40 billion in China. Trade between China and the BRI countries therefore has the mark of 6 trillion. USD exceeded. Although the Belt-and-Road initiative has also come under criticism, China is taking a series of steps to increase its control over the program. The current Summit is expected to conclude further infrastructure projects. According to Commerzbank Research, these should contribute to a long-term high demand for industrial raw materials such as steel and metals. However, they are unlikely to affect short-term price developments.
Source: Commerzbank Research, Photo: Fotolia