The initiative was unveiled by Chinese 

paramount leader Xi Jinping in September and October 2013

during visits to Kazakhstan and Indonesia.[7] and was thereafter promoted by Premier Li
Keqiang during state visits to Asia and Europe. The initiative was given intensive coverage
by Chinese state media, and by 2016 had become often featured in the People's Daily.[16][citation needed]
The stated objectives are "to construct a unified large market and make full use of both international
and domestic markets, through cultural exchange and integration, to enhance mutual understanding
and trust of member nations, resulting in an innovative pattern of capital inflows, talent pools, and
technology databases."[17] The Belt and Road Initiative addresses an "infrastructure gap" and thus
has the potential to accelerate economic growth across the Asia Pacific, Africa and Central and
Eastern Europe. A report from the World Pensions Council (WPC) estimates that Asia, excluding
China, requires up to US$900 billion of infrastructure investments per year over the next decade,
mostly in debt instruments, 50% above current infrastructure spending rates. [18] The gaping need for
long term capital explains why many Asian and Eastern European heads of state "gladly expressed
their interest to join this new international financial institution focusing solely on 'real assets' and
infrastructure-driven economic growth". [19]
The initial focus has been infrastructure investment, education, construction materials, railway and
highway, automobile, real estate, power grid, and iron and steel. [20] Already, some estimates list the
Belt and Road Initiative as one of the largest infrastructure and investment projects in history,
covering more than 68 countries, including 65% of the world's population and 40% of the global
gross domestic product as of 2017. [21][22] The project builds on the old trade routes that once
connected China to the west, Marco Polo and Ibn Battuta's routes in the north and the maritime
expedition routes of Ming dynasty admiral Zheng He in the south. The Belt and Road Initiative now
refers to the entire geographical area of the historic "Silk Road" trade route, which has been
continuously used in antiquity.[23] Development of the Renminbi as a currency of international
transactions, development of the infrastructures of Asian countries, strengthening diplomatic
relations whilst reducing dependency on the US and creating new markets for Chinese products,
exporting surplus industrial capacity, and integrating commodities-rich countries more closely into
the Chinese economy are all objectives of the BRI. [24]
While some countries, especially in the West, view the project critically because of possible Chinese
influence, others point to the creation of a new global growth engine by connecting and moving Asia,
Europe and Africa closer together.
The G7 industrial country Italy has been a partner in the development of the project since March
2019. According to estimates, the entire project today affects more than 60% of the world's
population and approximately 35% of the global economy. Trade along the Silk Road could soon
account for almost 40% of total world trade, with a large part being by sea. The land route of the Silk
Road also appears to remain a niche project in terms of transport volume in the future. [25]
In the maritime silk road, which is already the route for more than half of all containers in the world,
deepwater ports are being expanded, logistical hubs are being built and new traffic routes are being
created in the hinterland. The maritime silk road runs with its connections from the Chinese coast to
the south via Hanoi to Jakarta, Singapore and Kuala Lumpur through the Strait of Malacca via the
Sri Lankan Colombo towards the southern tip of India via Malé, the capital of the Maldives, to the
East African Mombasa, from there to Djibouti, then through the Red Sea via the Suez Canal to the
Mediterranean, there via Haifa, Istanbul and Athens to the Upper Adriatic region to the northern
Italian hub of Trieste with its international free port and its rail connections to Central Europe and
the North Sea.[26][27][28][29]
As a result, Poland, the Baltic States, Northern Europe and Central Europe are also connected to
the maritime silk road and logistically linked to East Africa, India and China via the Adriatic ports
and Piraeus. All in all, the ship connections for container transports between Asia and Europe will be
reorganized. In contrast to the longer East Asian traffic via north-west Europe, the southern sea
route through the Suez Canal towards the junction Trieste shortens the goods transport by at least
four days.[30][31][32]
In connection with the Silk Road project, China is also trying to network worldwide research
activities.[33]

Project name[edit]
The official name for the initiative is the Silk Road Economic Belt and 21st-Century Maritime Silk
Road Development Strategy (丝绸之路经济带和 21 世纪海上丝绸之路发展战略).,[34] which was
initially abbreviated as the One Belt One Road (Chinese: 一带一路) or the OBOR strategy. The
English translation has been changed to the Belt and Road Initiative (BRI) since 2016, when the
Chinese government considered the emphasis on the words "one" and "strategy" were prone to
misinterpretation so they opted for the more inclusive term "initiative" in its translation. [35][36] However,
"One Belt One Road" is still the reference term in Chinese-language media. [37]

International relations[edit]
The Belt and Road Initiative is believed by some analysts to be a way to extend Chinese economic
and political influence.[22][38] Some geopolitical analysts have couched the Belt and Road Initiative in
the context of Halford Mackinder's heartland theory.[39][40][41] Scholars have noted that official PRC
media attempts to mask any strategic dimensions of the Belt and Road Initiative as a motivation.
[42]
 China has already invested billions of dollars in several South Asian countries
like Pakistan, Nepal, Sri Lanka, Bangladesh and Afghanistan to improve their basic infrastructure,
with implications for China's trade regime as well as its military influence. China has emerged as one
of the fastest-growing sources of Foreign Direct Investment (FDI) into India – it was the 17th largest
in 2016, up from the 28th rank in 2014 and 35th in 2011, according to India's official ranking of FDI
inflows.

Western regions[edit]
BRI's goals include internal state-building and stabilisation of ethnic unrest for its vast inland western
regions such as Xinjiang and Yunnan, linking these less developed regions, with increased flows of
international trade facilitating closer economic integration with China's inland core. [43]

Leadership[edit]
A leading group was formed sometime in late 2014, and its leadership line-up publicized on 1
February 2015. This steering committee reports directly into the State Council of the People's
Republic of China and is composed of several political heavyweights, evidence of the importance of
the program to the government. Then Vice-Premier Zhang Gaoli, who was also a member of the 7-
man Politburo Standing Committee, was named leader of the group, and Wang Huning, Wang
Yang, Yang Jing, and Yang Jiechi named deputy leaders.[44]
On 28 March 2015, China's State Council outlined the principles, framework, key areas of
cooperation and cooperation mechanisms with regard to the initiative. [45] The BRI is considered a
strategic element within the foreign policy of the People's Republic of China, and was incorporated
into its constitution in 2017.[4]

Financing[edit]
Asian Infrastructure Investment Bank (AIIB)[edit]

Asian Infrastructure Investment Bank

   Prospective members (regional)
  Members (regional)
  Prospective members (non-regional)
  Members (non-regional)
Main article: Asian Infrastructure Investment Bank
The Asian Infrastructure Investment Bank, first proposed in October 2013, is a development bank
dedicated to lending for infrastructure projects. As of 2015, China announced that over one trillion
yuan (US$160 billion) of infrastructure related projects were in planning or construction. [46]
The primary goals of AIIB are to address the expanding infrastructure needs across Asia, enhance
regional integration, promote economic development and improve public access to social services. [47]
The Articles of Agreement (the legal framework) of the Asian Infrastructure Investment Bank (AIIB)
were signed in Beijing on 29 June 2015. The proposed bank has an authorized capital of
$100 billion, 75% of which will come from Asia and Oceania. China will be the single largest
stakeholder, holding 26.63% of voting rights. The board of governors is AIIB's highest decision-
making body.[48] The bank began operation on 16 January 2016, and approved its first four loans in
June.[49]

Silk Road Fund[edit]

For the main article, see Silk Road Fund.
In November 2014, Xi Jinping announced a US$40 billion development fund, which would be
separate from the banks and not part of the CPEC investment. The Silk Road Fund would invest in
businesses rather than lend money to the projects. The Karot Hydropower Project, 50 km (31 mi)
from Islamabad, Pakistan is the first project.[50] The Chinese government has promised to provide
Pakistan with at least US$350 million by 2030 to finance this station. The Sanxia Construction
Corporation commenced work in January 2016.[citation needed]