The rush for a share of OBOR's global pie begins?

Arctic link reveals the full scope of China’s belt and road ambitions
Tristan Kenderdine says the world should take note of China’s vision of integrating an Arctic route for trade with Europe into its massive Belt and Road Initiative - but its ambitions need not be seen as a threat
PUBLISHED : Friday, 20 October, 2017, 4:45pm
UPDATED : Friday, 20 October, 2017, 7:04pm
The Arctic route complements the belt and road strategy perfectly. The belt and road is actually five “belts” and two “roads”. The belts run through Russia, Mongolia, Georgia, Kyrgyzstan and Turkey, with two maritime terminals in Piraeus, Greece and Djibouti, Africa. All channels feed imports back into China in an attempt to diversify inroads to feed consumption markets. Rail links to Moscow and sea routes through the Malacca Strait are fully capable of carrying the volumes China needs, but Beijing seeks to shift risk away from the Suez Canal, the Malacca Strait and Russia … for more, go to 

The rush for a share of OBOR's global pie begins?

KUALA LUMPUR (December 2017): The rush to get a bite of China’s multi-billion-dollar One Belt One Road (OBOR) initiative pie has apparently begun.

On Nov 9, 2017, President Donald Trump visited China and encouraged US financial masters to accept OBOR (some prefer to call it Belt Road Initiative or BRI).

This was followed by Japan announcing that it wanted to help finance China's OBOR after much criticising the initiative and the AIIB (which Japan refused to join).

Read these two previous postings for context: (US-ally Japan finally realises it cannot continue to ignore OBOR’s marketplace) (Now, even the US does not want to be left out of OBOR!)

And, on Dec 17, Hong Kong’s South China Morning Post (SCMP) reported that Standard Chartered will offer at least US$20 billion (RM80 billion) in financing by 2020 to facilitate parts of OBOR projects.

I Love Malaysia-China Silk Road opines that China had already invested significantly on completed OBOR projects thus far, thereby winning the confidence of foreign investors.

As written by Doug Young in ‘Doing Business In China”, foreigners have most certainly started to try to hitch ride on OBOR.

The investors can come in the form of foreign governments, foreign financial institutions, multi-national corporations or individual financial barons.

Whatever form, they have realised that the spin-offs from the global OBOR pie are too lucrative to be ignored or left out. In short, they want in, they want a piece of the action!

To benefit optimally from investing in OBOR projects and businesses, investors need to be highly innovative and be able to think out of the box.

In any investment, there’s always the risk factor.

Read this SCMP report for the details:

"Mind the gap – Standard Chartered steps up with US$20 billion pledge for Belt and Road projects

Sunday, 17 Dec 2017
5:58 PM MYT
by maggie zhang

Standard Chartered will offer at least US$20 billion in financing by 2020 to facilitate projects part of China’s Belt and Road Initiative, the bank said on Friday.

The announcement is the latest step by a major foreign bank to help close the funding gap for the initiative, which represents President Xi Jinping’s vision for infrastructure-led trade.

China has pledged to invest at least 780 billion yuan (US$113 billion) through its state funds and banks to finance projects part of the initiative, which hopes to deliver hundreds of infrastructure projects to grow trade by rail, road and sea in more than 60 countries. But market watchers said more capital from other multilateral lenders and the private sector was needed for the plan.

Standard Chartered said it was “one of very few truly global banks” that could facilitate trade, capital and investment flows across Belt and Road markets.

The bank will support its Chinese clients along the Belt and Road routes and help its destination market clients seize opportunities resulting from the initiative.

Standard Chartered will provide financial services including lending, transaction banking, capital markets and project finance activities as part of its commitment. This year, it has already been involved in more than 50 deals related to the initiative.

Analysts said foreign banks – niche players in China’s banking market – can leverage their advantage in overseas networks and experience when teaming up with Chinese companies or banking counterparts to back China’s “go abroad” ambition.

“While China has pledged further financing opening, we expect more foreign banks to have stronger confidence to join in major economic cooperation plans like the Belt and Road Initiative,” said Zhang Xingrong, the managing director at the Bank of China’s Institute of International Finance in Beijing.

In return, overseas business could facilitate deeper involvement with China’s domestic businesses by forging close relationships with Chinese companies through overseas projects, he said.

Standard Chartered made the pledge during the two-day 9th UK-China Economic and Financial Dialogue, which started in Beijing on Friday. The dialogue focuses on a range of partnership targets such as trade, infrastructure and financial services cooperation between the two countries."

China's steady economic growth creates room for policy maneuver
December 15, 2017
BEIJING, Dec. 14 (Xinhua) -- China's economy has held steady in the first 11 months of 2017, on track to reach this year's growth target and creating room for policy makers to step up efforts on risk control, poverty relief and pollution next year. Data released Thursday showed fixed-asset investment (FAI) climbed 7.2 percent for January-November period, down from 7.3 percent in the first 10 months. The pace of growth has declined for eight consecutive months. Investment in property development rose 7.5 percent from a year earlier, edging down from 7.8 percent in the first 10 months, according to the National Bureau of Statistics (NBS) … for more, go to