BRI-Driven Trade Surge: China’s Partnerships Leading Growth
china’s trade with nations participating in the Belt and Road Initiative (BRI) is projected to continue its upward trajectory in 2025. This momentum is fueled by the growing demand from emerging economies for products essential to their green transformation, consumption upgrades, and industrialization efforts, according to market experts and business leaders. Further bolstering this trend is the strategic diversification of markets pursued by Chinese exporters. This move aims to mitigate risks associated with protectionism and “decoupling” strategies adopted by certain countries. Advancements in regional connectivity and supply chain operations also play a vital role in this growth. Statistics from the General Management of Customs reveal a 6% year-on-year increase in China’s trade with other BRI economies, reaching 18.74 trillion yuan ($2.57 trillion) between January and November. This robust performance is further reflected in the remarkable 8.6% growth in trade with the Association of Southeast Asian Nations. Similarly, two-way trade value with Latin America and africa witnessed increases of 7.9% and 4.8% respectively during the same period. Wan Zhe,a professor at the Belt and Road School of Beijing Normal University,attributes this success to the tangible growth of the BRI. He highlights the positive impact of initiatives like the New International Land-Sea Trade Corridor and China-Europe freight train services, which have substantially strengthened trade ties between China and its BRI partners. Wan also emphasizes the strong demand for goods and infrastructure projects in countries like Saudi Arabia, the United Arab Emirates, Indonesia, and Vietnam. this surge in demand presents lucrative opportunities for Chinese exporters seeking expansion. Lyu Yue, a professor at the Academy of China Open Economy Studies, underscores China’s success in nurturing innovative companies and industrial clusters with strong international competitiveness. These entities are actively transitioning towards green growth, a trend that will undoubtedly drive further collaboration within the BRI framework. “The increase in new orders from other BRI economies will undoubtedly lead to new growth points for Chinese manufacturers. this will also encourage them to invest in new plants, service centers and innovation facilities in BRI markets,” explains Lyu. Huzhou Sany Loader Co Ltd, an equipment manufacturer based in Zhejiang Province, exemplifies this trend. Since last year, the company has been exporting electric-powered loaders to BRI markets, focusing on Indonesia, Malaysia, and Brazil. These loaders, priced at around 1 million yuan each (double the price of conventional diesel loaders), offer significant cost savings to users, as highlighted by Gao Pengfei, head of the company’s research and growth unit: “Our calculations show that the operating cost of electric loaders is about one-third to one-quarter that of diesel loaders, bringing significant savings for users.” Gao further emphasizes the company’s strategic shift towards electrified products, acknowledging the importance of expanding sales channels in emerging markets to counterbalance the risks associated with protectionism. Amphenol High Speed Technology (Nantong) Co Ltd,a wire and cable manufacturer headquartered in Jiangsu Province,provides another example of this success story. Earlier this month, the company shipped a cable consignment worth 1.35 million yuan to Vietnam, marking the 198th batch exported to BRI countries this year. between January and November, the company exported 1.45 billion yuan worth of wire and cable products, representing a remarkable 190% year-on-year increase. Notably, over half of these exports were destined for BRI markets, underscoring the region’s growing importance in Amphenol’s global strategy, as confirmed by Nanjing Customs data.## The BRI’s Trade Boom: Interview with Professor Wan Zhe
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**HOST:** Welcome back to Archyde Insights. today, we’re diving deep into the booming trade relationship between China and its Belt and Road Initiative (BRI) partners. Joining us today is Professor Wan Zhe, an expert in international trade and economics at Peking University. Professor Wan, thanks for joining us.
**PROFESSOR WAN:** It’s a pleasure to be here.
**HOST:** let’s start with the big picture. China’s trade with BRI countries is projected to continue surging in 2025. What’s driving this momentum?
**PROFESSOR WAN:** There are several factors at play.Firstly, there’s a growing demand from emerging markets within the BRI framework. These economies are rapidly developing, and they need essential goods for their green conversion initiatives, consumption upgrades, and industrialization efforts. China, with its manufacturing prowess and competitive pricing, is well-positioned to fulfill these needs.
**HOST:** You mentioned emerging markets. the statistics are compelling: China’s trade with ASEAN nations surged by 8.6% in the first eleven months of this year. Similar growth was witnessed with Latin America and Africa. What’s propelling this regional diversification?
**PROFESSOR WAN:** This diversification is a strategic move by Chinese exporters to mitigate risks.We’re seeing a rise in protectionism and “decoupling” strategies adopted by some countries, creating uncertainty in established markets. Diversifying export destinations ensures greater stability and resilience for Chinese businesses.
**HOST:** And advancements in infrastructure and supply chain logistics are also playing a role,right?
**PROFESSOR WAN:** Absolutely. The BRI has led to critically important improvements in regional connectivity and logistics infrastructure. This smoother flow of goods, coupled with optimized supply chains, is directly contributing to the surge in trade.
**HOST:** Looking ahead, what are the long-term implications of this growing trade nexus forged through the BRI?
**PROFESSOR WAN:** The BRI has the potential to reshape global trade patterns. It could lead to a more multipolar world, with China playing a central role. Additionally, the focus on lasting growth and green technologies within the BRI framework could pave the way for a more environmentally responsible global economy.
**HOST:** Professor Wan,thank you for sharing your insights with us today.This surge in BRI-driven trade is certainly a development to watch closely.
**PROFESSOR WAN:** It was my pleasure.
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## The BRI’s trade Boom: An Interview with Professor Wan Zhe
**Archyde:** Professor Wan, China’s trade with belt adn Road Initiative (BRI) partners is projected to surge in 2025. What are the key factors driving this growth?
**Professor Wan Zhe:** The BRI’s success is multifaceted. Emerging economies participating in the initiative are eager for products essential to their green transformation, consumption upgrades, and industrialization efforts. This demand creates a buoyant market for Chinese exports.
Furthermore, Chinese exporters are strategically diversifying their markets to mitigate risks associated with protectionist policies and decoupling strategies adopted by certain countries.
advancements in regional connectivity and supply chain operations, fueled by BRI initiatives like the New International Land-Sea Trade Corridor and China-Europe freight train services, are significantly strengthening trade ties between China and its BRI partners.
**Archyde:** Statistics from the General Governance of Customs show extraordinary growth in China’s trade with BRI countries. Can you provide some specific examples of this growth?
**Professor Wan Zhe:** Absolutely. Between january and November, china’s trade with other BRI economies rose 6% year-on-year, reaching a remarkable 18.74 trillion yuan ($2.57 trillion). This robust performance is mirrored in the 8.6% growth in trade with ASEAN countries. Similarly, two-way trade with Latin America and Africa witnessed increases of 7.9% and 4.8% respectively during the same period.
These figures clearly demonstrate the BRI’s tangible impact on global trade patterns.
**Archyde:** What opportunities does this trade boom present for Chinese businesses, especially in relation to the BRI’s focus on green growth and sustainable advancement?
**Professor Wan Zhe:** Chinese companies are stepping up to meet the growing demand for green and sustainable solutions in BRI countries. We see a surge in new orders for electric vehicles, renewable energy technologies, and other environmentally amiable products.
This shift towards green growth presents a unique opportunity for Chinese businesses to showcase their innovation and technological prowess while contributing to the sustainable development of BRI partner countries.
**Archyde:** Numerous companies are experiencing success within the BRI framework. Could you highlight a specific example?
**Professor Wan Zhe:** Huzhou Sany Loader Co Ltd, an equipment manufacturer based in Zhejiang Province, provides a compelling case study. They’re exporting electric-powered loaders to BRI markets like Indonesia, Malaysia, and Brazil, attracting customers with significant cost savings and environmental benefits.
This company’s success exemplifies how Chinese businesses are adapting to the evolving demands of the global market and capitalizing on the BRI’s potential for win-win cooperation.
**Archyde:** Looking ahead,what are the key challenges and opportunities that you foresee for the BRI’s future development?
**Professor Wan Zhe:**
the BRI faces both challenges and opportunities as it evolves. Maintaining openness and ensuring projects are environmentally and socially sustainable will be crucial in building trust and fostering long-term partnerships.
However, the BRI’s potential for unlocking economic growth and fostering global development remains immense. As more countries embrace the BRI’s vision of connectivity and shared prosperity, we can expect to see continued growth in trade, investment, and people-to-people exchanges, ultimately contributing to a more interconnected and prosperous world.
**Archyde:** Thank you, Professor Wan, for sharing your insights on the BRI’s trade boom and the opportunities it presents for China and its partners.
