The Rationale and Effects of China's Belt and Road Initiative: Reducing Vulnerabilities in Domestic Political Economy

Open Access

Abstract

The existing literature suggests that China launched the belt and road initiative (BRI) in order to stimulate economic growth through infrastructural investment abroad, foster closer economic ties with Eurasia, and counter the US pivot to Asia. In this article, the BRI is interpreted in a deeper context through an analysis of its role in sustaining the economic and political regime in China and in reducing vulnerabilities in domestic political economy. These vulnerabilities include surplus industrial capacity, heavy reliance on energy imports, and under-development of the western region. Post-2012 data suggest that the BRI has partially instead of fully enabled China to ease surplus industrial capacity, secure energy importing routes (especially imports through pipelines), and enhance the economic profile of China's western region.