The One Belt, One Road policy is a primary focus of Chinese President Xi Jinping and will be an extensive infrastructure initiative in an long-term modernization of the original Silk Road -based trading routes. The project will connect China b land through Central Asia, West Asia, the Middle East and Europe, or so-called One Belt, and by sea to western coast of Africa, the Red Sea and the Mediterranean, or so-called One Road. All-in-all, the initiative will connect 69 countries with an aggregate population of 4.5 billion and a nominal GDP of $23 trillion, or 62% of the world’s population and 30% of global GDP.
The comprehensive infrastructure project will help solve the growing need for development across the region. Asian Development Bank calculated that Asia and the Pacific will require $1.7 trillion in annual infrastructure spending to total as much as $26 trillion by 2030.
“We believe the OBOR initiative is creating a new paradigm in global investing,” Jonathan Krane, Chief Executive Officer at KraneShares, said in a note. “The OBOR initiative will receive trillions of dollars of investment over the next decade and should increase the economies and trade of both China and the participating nations.”
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