The China-proposed Belt and Road Initiative is a "grand strategy" that brings fresh impetus to global trade and economic growth, analysts said at a forum on Saturday. They also urged British companies' to capitalize on their engineering and financing expertise to land new contracts.
The experts were taking part in an event at the London School of Economics' student-led China Development Society, which was attended by around 400 students, academics, and industry practitioners.
The Belt and Road Initiative, which was proposed by President Xi Jinping in 2013 as a way to grow connectivity between Asia and Europe, was a hot topic at the forum, with experts stressing its significance for international trade, environmental sustainability, and economic development.
"The initiative is not just a collection of engineering projects, but a grand strategy. It's the backbone of the world economy and world trade," said Danny Quah, a professor of economics at the National University of Singapore.
Gordon Orr, a senior advisor at management consultants McKinsey, said the initiative is "an enabler" for new business contracts and trade efficiency, adding that some early Belt and Road infrastructure projects have already proven to be beneficial to trading companies and consumers in the form of cost reductions.
Although some critics have questioned the initiative's inclusiveness, pointing out that many of the contracts issued so far have been awarded to Chinese companies, Orr said that is not inappropriate.
He said Chinese companies' construction strength accumulated during China's past decades of infrastructure growth gives them an edge when bidding for Belt and Road projects.
"It's not surprising, given the expertise at scale (in China)," he said
Jeffrey Yu, head of the UK investment office at UBS Wealth Management, said British companies' participation will grow with time, supported by their increased familiarity and confidence with the initiative.
Some British companies have already secured Belt and Road contracts, such as the engineering consultancies Arup and Mott MacDonald, the banks HSBC and Standard Chartered, and law firms Linklaters and Herbert Smith Freehills.
The latest example of China-UK private-sector collaboration came just this week when Standard Chartered and China Development Bank agreed to jointly make available 10 billion yuan ($1.6 billion) to facilitate Belt and Road deals during the coming five years.
During her visit to China last week, British Prime Minister Theresa May said the UK and China will continue to work together "to identify how best we can cooperate on Belt and Road across the region and ensure it meets international standards".
Xi, in his meeting with May, said that the initiative is public, transparent, open, inclusive, and mutually beneficial, and invited further British collaboration.
Isabel Hilton, CEO and founder of ChinaDialogue, a London-based environment-focused online media organization, said the China-UK partnership is key to ensuring Belt and Road projects satisfy high environmental standards. In particular, more green bonds can be issued in both China and the UK to finance sustainable Belt and Road projects, Hilton said.
Hilton said some public-sector efforts are encouraging. The China-led Asian Infrastructure Investment Bank, which invests in some Belt and Road projects, has a commitment to fund environmentally friendly projects.
Last September, the City of London launched in Beijing a Belt and Road Investor Alliance. Supported by both governments, the alliance is a platform to help participating banks discuss how to invest into environmentally friendly projects.
