On June 25, 2019 – Ministry of Foreign Affairs organized Seminar on“Six Years of the Belt and Road Initiatives: Progress, Contributions and prospects” by Professor Liu Qiao and Professor Shen Qiaowei, Professor of Beijing University and experts in Belt Road Initiative (BRI), presented the progress of BRI after initiated in 2013, including share and exchange knowledge and information that may benefit to SMEs.
SUMMARY
Over the past 40 years, China’s economy has grown exponentially, its GDP has increased 34 times – China ‘s manufacturing has accounted for 25% of the global products.
– China owns infrastructure of technologies both transportation and other constructions such as high-speed trains, high-rise buildings with modern technology. China is ready to invest technologies in all 152 strategic BRI countries.
– Contributing factors to China’s economic growth
– Balanced management system between the public and private sectors.
– Emphasis on economic growth with export goal focusing on the world’s value chain
– The government sector has low administrative costs.
China predicted China’s growth by 2030
– GDP will reach 160,000 million Yuan
– China’s working age population (who born after 1990) will increase to 430 million. They are driving forces of economic growth, high purchasing power, complex taste of consumption.
– The global production will change from ‘Made in China’ to ‘Made for China’ due to the huge population with high purchasing power.
– China’s highest market growth are Health Service, Culture, Education. It is much more than regular product and service.
Challenges of China’s Investors in BRI
– Lack of essential data and information about foreign investment
– Lack of data, knowledge and understanding of local market
– Lack of knowledge in law and regulation of the target countries
– Uncertainty of policy and law in the target countries
– Solution of the challenges is Joint-venture with local company
Premium Market has grown rapidly
Due to higher income of Chinese consumers causing the taste of goods and services be more elevated. BRI not only helps China exporting goods but also importing more premium products to China market.
China-Thailand Railway Route
BRI and Thailand
The Bangkok – Nongkhai High-Speed Railway connect to the China-Laos High-Speed Railway (Vientiane – Kunming), opened officially in December 3, 2021.
– The Bangkok – Nongkhai High-Speed Railway is a part of China – Singapore High-Speed Railway (Kunming-Singapore)
– Total distance 617 Kilometres. There are 9 stations of the Bangkok – Nongkhai High-Speed Railway
– The highest speed is 250 Kilometers / Hour. It takes about 3 hours 45 minutes from Bangkok to NongKhai
– Thailand government is the sole investor of 179,000 million baht and be the developer of commercial areas along the Bangkok – Nongkhai High-Speed Railway.
What we should learn from China and BRI
– Xi Jinping VS Trump –> China VS U.S.A.
– China’s Expansion in Trade and Investment
– Export planning starting from marketing launch in China to the destination countries
– China’s strategic planning in the integrated development
– Ready to the high growth and trendy markets; Elderly Health (Aging Society), Digital Economy, Electric Vehicle (EV), Greener World, etc.
– Sufficiency VS Wealth???
Credit: Ministry of Foreign Affairs