The growing hype around China's massive global infrastructure push may
be due to a fear of missing out, according to a research chief at real estate
agency Knight Frank.
That is, more countries are expressing interest in China's so-called Belt and Road Initiative
because of just how big it is growing, Nicholas Holt, the firm's Asia Pacific
head of research, told CNBC.
"A lot of markets outside the initial sort of program are now
trying to get a piece of the action," Holt said. "We're seeing that
the Belt and Road, which is a very inclusive and very large initiative, is
starting to talk about countries in South America and even in Western Europe."
The Belt and Road Initiative aims to connect Asia, Europe, the Middle
East and Africa with a vast logistics and transport network, using roads,
ports, railway tracks, pipelines, airports, transnational electric grids and
even fiber optic lines. The plan, which continues to evolve, at one point
included 65 countries, which together accounted for one-third of global GDP and
60 percent of the world's population, or 4.5 billion people, according to
Oxford Economics.
It's all part of Beijing's push to increase global clout — building
modern infrastructure can attract more investment and trade along the route.
The policy could also boost the domestic economy with demand abroad, and might
soak up some of the overcapacity
in China's industrial sector.
Holt predicted that more countries would join the Belt and Road in the
near future.
"If you remember when it was first announced in 2013, people were
very confused with what it is," Holt said. "I don't even think the
Chinese knew what it was back then. But, it's taken more form over the last
four years."
The initiative, he added, has "really gained a lot of
momentum."
"So yes, the initiative is growing and we do expect more
countries to get on board as it builds up steam."
Holt also said he believes the trade relations between the U.K. and China remains strong,
predicting that trade relations between the two countries would improve.
"We're still really in the golden era or golden age that was
announced a couple of years ago," Holt said of the bilateral relationship.
"Trade has grown significantly between the U.K. and China. The bilateral
trade now accounts for $60 billion."
The researcher also said he hopes U.K. Prime Minister Theresa May's upcoming visit to
China will help open up dialogue and increase access into the Chinese market.
Source: cnbc