New slik road8/31/2023 The defence of the strategic and commercial interests of the EU, whose bilateral deficit has continuously widened since China's accession to the WTO in 2002 (see Chart 1), must therefore be based on reciprocity with its Chinese partner. In 2016, 11 million containers were sent from China to Europe and 5 million in the other direction, according to the above-mentioned European Parliament study. Improved communication corridors could favour Chinese exports in that trade flows of industrial and manufactured goods are already structurally biased in favour of China. For the EU, the NSR initiative offers a wealth of opportunities but also entails risks This type of relationship puts China in a strong position vis-à-vis the countries that are seeking foreign investment and that have to negotiate an agreement in a context of very unbalanced economic weights. No official figures on the amounts are available today, but a study by the European Parliament estimated the sums injected at the end of 2016 at USD 292 billion and future financing at USD 130 billion, mainly in the form of long-term loans to local players or equity investments.Ī key point is that these investments are being carried out through bilateral negotiations between China and the countries concerned. The NSR project is financed by a very large programme, led essentially by major Chinese public banks and the "Silk Road Fund" (SRF), launched in 2014, whose capital mainly stems from China's foreign exchange reserves. Behind this key objective, China has several converging interests: increasing the volume of Chinese exports to Europe controlling export supply chains securing energy supply routes promoting the international use of the Renminbi and Chinese procurement practices. The "New Silk Road" (NSR) project, also known as the Belt and Road Initiative (BRI), aims to improve transport (by sea, land and air) between Asia and Europe, as well as Africa, by developing a vast infrastructure network on six inland trade corridors (Silk Road Economic Belt) and a maritime corridor (Maritime Silk Road). A unilateral initiative from China to connect Asia and Europe
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