BRI success spurs investment optimism

More than 60 percent of Chinese corporations indicated that they plan to increase overseas investment by more than 10 percent in the next two years, and that the Belt and Road Initiative is key to that enthusiasm, according to a recent survey by global law firm Baker McKenzie.

Despite a complicated global trade outlook and tougher rules, 63 percent of corporations based in China were keen to invest further, said the report “the age of hypercomplexity" based on a survey of 600 C-suite and director-level executives in Australia, China, India, Japan, Malaysia and Singapore.

The survey collected their views on key complexities and challenges facing their businesses, as well as their investment strategy going forward.

According to the survey, 81 percent expected the influence of China to increase most in the next five years. In last year’s survey, only 21 percent thought the same. Most respondents then thought India would see the greatest increase in influence.

More than 80 percent of 200 respondents in the Chinese mainland and Hong Kong see projects related to the Belt and Road Initiative as either fundamental or hugely important to their business.

That is partly a result of Chinese investment abroad having multiplied rapidly in the past five years, driven in part by the BRI.

“Chinese companies are still very active in making BRI investments,” said Baker McKenzie M&A partner Bee Chun Boo. She said that Southeast Asia remained a key region for BRI investment, with infrastructure leading the way, followed by manufacturing, financial services and e-commerce.

Ai Ai Wong, Asia Pacific chair of Baker McKenzie, said that macro policies  such as the BRI, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and other cooperation between governments and corporations, meant that investors see more potential benefit in dealing with consortia of nations with shared interests.

As for the destination of investment, the survey showed a strong focus on Southeast Asia, the Indian Subcontinent and North America.