Belt and Road Initiative - 1H 2021
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The key takeaways in this Belt & Road Intitiative (BRI) update include:
- By the end of June 2021, the value of newly-signed Chinese outward project contracts (OPCs) with BRI countries totaled USD 59.3 billion, down 1.7% year-on-year (yoy). During the same period, the completed value of OPCs was USD 39.4 billion, up 10.6% yoy.
- In the first half of 2021, China's direct investment in countries along the BRI route reached USD 10 billion, while USD 6 billion from BRI countries flowed into China.
Special topic: Bringing the Silk Road back to life – the China Railway Express
Under the BRI, the China Railway Express (CR Express) has become a major channel for trade between China and Europe. Growing cargo volumes reflect stronger trade ties between China and Europe, this against the backdrop of ongoing trade tensions with the US, rising demand for medical supplies and other goods, and less disruption to rail freight relative to other modes of transport during the COVID-19 crisis.
The fast development of CR Express has also benefited from the drive to open up China's inland provinces. Growth in China-Europe rail freight will bring insurance growth opportunities in cargo and export credit lines, while related infrastructure will likely boost growth in engineering and liability lines. Many personal life and health businesses will also benefit.
Read our latest update for more details.