Sin Lu Tan
As the Belt and Road Initiative (BRI) enters its second decade, Beijing seems focused on filling in the fine details of the project’s ambitious outline, first announced by President Xi Jinping in 2013. It appears that the next iteration of the BRI will shift away from grand mega-projects to prioritise ‘small and beautiful’ high-quality projects. The green economy seems to be a particular focus, with Foreign Minister Wang Yi noting during a press conference in early March that China will ‘redouble efforts to build a green Silk Road’.
Indeed, 2023 marked the ‘greenest’ year for the BRI, with green-energy investments reaching US$9.5 billion. Investments in critical minerals and mining, green technology (such as electric vehicles and batteries) and green energy (production and transmission) are now key elements of China’s strategic engagement framework for pursuing small, beautiful and green projects.
China is likely seeking to lead in green industries where it has achieved dominance, such as critical minerals, solar cells, batteries and electric vehicles (EVs). Moreover, in light of increasing pressure from the United States and its allies and partners – which seek to limit China’s market access to their domestic green industries – Beijing is ramping up green investments in Southeast Asia to redirect exports, nearshore supply chains and consolidate regional influence.
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