The China-led Belt and Road initiative (BRI) is a development strategy announced by Chinese President Xi Jinping in 2013. It refers to the New Silk Road Economic Belt, which will link China with Europe through Central and Western Asia, and the 21st Century Maritime Silk Road, which will connect China with Southeast Asian countries, Africa and Europe. The UK has a long history of working with many economies on the Belt and Road, including Kazakhstan, and those in Central Asia, the Middle East and Africa.
Touching 65 countries, 64% of the world’s population and 29% of the world’s GDP, the BRI stands to transform global connectivity and trade, but still requires widespread international support and innovation to ensure it is a long-term success, particularly in relation to financing. The estimated financing gap in Asia of around $1.7 trillion per year until 2030- a total of £26 trillion- cannot be met through government and/or multilateral organisation funding alone and will require private investment. The UK has been a strong advocate of the BRI since its announcement and joined the Asia Infrastructure Investment Bank (AIIB) as a founding member.
London is the natural Western end of the BRI and can support the initiative as a hub for international infrastructure investment, and providing innovative financing products to ensure financial sustainability. Globally, nearly 8% of global infrastructure financing was generated through the UK in 2016- this amounted to over $18 billion in 72 deals, including more than $1.2 billion of lending to emerging markets. In 2016 the UK issued over $4 billion of global project finance bonds in 15 deals. The London Stock Exchange lists bonds from 1/3 of all BRI countries, and is home to equities from 8 BRI countries (source: LSE October 2017 data) London is the natural Western end of the BRI and can support the initiative as a hub for international infrastructure investment and provide innovative financing products to ensure financial sustainability. Globally, nearly 8% of global infrastructure financing was generated through the UK in 2016- this amounted to over $18 billion in 72 deals, including more than $1.2 billion of lending to emerging markets. In 2016 the UK issued over $4 billion of global project finance bonds in 15 deals. The London Stock Exchange lists bonds from 1/3 of all BRI countries, and is home to equities from 8 BRI countries (source: LSE October 2017 data)
The City of London is committed to supporting BRI activity that promotes London as the world’s leading global financial centre. With our longstanding representative offices in China, we are in a unique position to support BRI activity at both ends of the map. We have participated in high-level events in the UK and China, including the Belt and Road Forum for International Cooperation hosted by President Xi Jinping in Beijing in May 2017, which the then City of London the Rt. Hon. the Lord Mayor Alderman Charles Bowman spoke at, and the Special Adviser for Asia Sherry Madera attended.
The City of London Corporation has launched a Belt and Road: London on the Map marketing piece to showcase London's strengths on BRI. Download Belt and Road: London on the Map (1MB).