01 February 2018

ACCA: The Belt and Road Initiative (BRI) - reshaping the global value chain

The Belt and Road Initiative (BRI), is China’s grand scheme to link Asia and Europe together via new massive infrastructure projects in Central Asia, the Middle East, Africa and the Balkans.

To shed more light on this important initiative, ACCA (the Association of Chartered Certified Accountants), the EU-Asia Centre, the European Movement International (EMI) and UEAPME organised a multistakeholder conference called The Belt and Road Initiative (BRI): Reshaping the Global Value Chain,to discuss its implications with leading policy makers and business operators from Europe and China. The lively debate provided an insight into the economic and policy implications of the BRI, as well as BRI’s opportunities and challenges for European business.

Maggie McGhee, director of Professional Insights at ACCA opened the debate, saying: ‘BRI could well be the physical embodiment of a globalised world, introducing trade and services that cut across borders and continents. Trade, technology and talent do not recognise borders. Such an ambitious initiative also brings an opportunity to promote and advance sustainability.’

The debate revealed that BRI brings important opportunities for the countries on its route, and could help bridging the infrastructure financing gap, increase connectivity, link local markets to regional and global value chains, thereby increasing trade and investment in these countries. But speakers also highlighted several geopolitical, developmental and regulatory challenges.

‘The Belt and Road Initiative is a demonstration of China’s financial muscle and will be a real challenge for the unity of the EU,’ said Fraser Cameron, Director of the EU-Asia Centre, who moderated the first panel on policy and economic implications.  

BRI’s success and its ability to foster connections between the EU and China will require more than just building physical infrastructure, and any kind of infrastructure - whether land, sea, air or digital - should not be designed in isolation. Soft infrastructure is critical, as well as structural reforms and improvements in investment climate, including the challenge of identifying environmentally sustainable and financially viable projects or of minimising the risk of their failure.

At the session, it was stressed that BRI needs to adhere to principle such as market rules and international standards, and should complement existing network and policies in place, like the EU-China Connectivity platform.

Full press release

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