China’s Belt and Road Initiative (BRI), also known as the New Silk Road, is one of the most ambitious infrastructure projects in history. Inspired by the historic Silk Road, which under the Han Dynasty already connected China to the Mediterranean and Europe, the BRI was launched in 2013 in the context of China’s economic transformation. This vast development and investment strategy launched by Xi Jinping initially aimed to connect East Asia to Europe through trade corridors and physical infrastructure. Over the years, the project has expanded to Africa, Oceania and Latin America, strengthening China’s economic and political influence globally. Today, 147 countries, representing about two-thirds of the world’s population and 40% of global GDP, have signed agreements or expressed interest in joining the initiative.
The Belt and Road Initiative (BRI), one of the largest logistics and transportation infrastructures to date, has attracted a great deal of work in economics and political science. However, little research has been conducted on how the BRI may affect supply chain management as a whole. As the BRI is a large-scale logistics infrastructure construction project, it is clear that it will have several implications for supply chains. This is what we will explore in this article.
Project presentation
The infrastructure projects planned under the BRI are of unprecedented scale. Many countries along these routes have committed to supporting these ambitious initiatives, recognizing their potential to transform local and regional economies.
The BRI is based on five key priorities:
Coordinating policies among participating countries to align their development strategies.
Infrastructure connectivity to modernize transport, energy, and communications networks.
Promoting free trade to strengthen cross-border exchanges and eliminate trade barriers.
Financial integration to facilitate investment and capital flows.
Connecting people, to promote cultural and human exchanges.
Two major initiatives are closely linked to the Belt and Road Initiative (BRI):
The Silk Road Economic Belt (SREB).
The Maritime Silk Road (MSR).
The "Belt" refers to an interregional network of land routes, railways, oil and gas pipelines and electricity grids linking China to Central Asia, Europe and beyond, via key cities such as Xi'an, Moscow, Rotterdam and Venice.
The "Road", meanwhile, aims to connect China to South Asia, Southeast Asia, East Africa and the Mediterranean through a strategic network of seaports.
The Silk Road Economic Belt (SREB)
The SREB is made up of three main land corridors:
The Northern Corridor: Running from northeastern and northwestern China, through Central Asia and Russia, to Europe and the Baltic Sea.
The Central Corridor: Running from northwestern China, through Central and Western Asia, to the Persian Gulf and the Mediterranean Sea.
The Southern Corridor: Running from southwestern China, via the Indochinese Peninsula, to the Indian Ocean.
These three routes are subdivided into six strategic economic corridors:
The China-Pakistan Corridor
The China-Pakistan Corridor has been described by Beijing as the “fastest and most efficient” of the BRI projects. It is a major project of the BRI, aimed at strengthening economic ties between China and Pakistan. The corridor connects the Gwadar port on the Pakistani coast to China’s Xinjiang province. Key CPEC infrastructure includes highways, railways, and energy facilities. The development of the Gwadar-Kashgar road provides direct access to Chinese markets for Pakistani products and vice versa. In addition, energy infrastructure projects help address Pakistan’s electricity supply challenges while supporting China’s energy needs.
The New Eurasian Land Bridge (NECBEC)
The NECBEC is a major component of the BRI. Designed to boost land trade between China and Europe, this corridor, sometimes called the Second Eurasian Continental Route, offers a fast and efficient alternative to traditional maritime routes.
Stretching from the Chinese coast to Western Europe, the NECBEC passes through countries such as Kazakhstan, Russia, Belarus and Poland, forming a strategic land trade route. It relies on the modernization of rail and road infrastructure, as well as the creation of logistics centers. A key feature is the development of high-speed transcontinental rail links, significantly reducing the time it takes to transport goods between China and Europe.
Infrastructure such as the Khorgos dry port on the China-Kazakhstan border facilitates the passage of goods between railway systems of different gauges. Projects have also been carried out in Europe such as the modernization of the port of Piraeus in Greece and the Budapest-Belgrade railway line in Hungary.
The China - Mongolia - Russia Corridor
It aims to improve trade and logistics connectivity between China, Mongolia, and Russia.
Key infrastructure includes the railway that connects Mongolia to Russia and China, facilitating the transportation of natural resources such as coal, and the Altanbulag - Ulaanbaatar - Zamiin - Uud highway that improves connectivity between Mongolia and China, speeding up the exchange of goods.
The China - Indochinese peninsula Corridor
The development of the BRI in Southeast Asia has been at the heart of China’s efforts to strengthen regional connectivity and boost economic cooperation. Southeast Asia’s strategic location as a crossroads of maritime and land routes has made it a central hub for BRI projects. The initiative has led to significant investments in infrastructure, including transport, energy, and digital connectivity.
Examples of projects that have been carried out as part of the development of the China-Indochina Peninsula corridor include:
China-Laos Railway: A flagship project of the BRI, this railway connects China’s Yunnan province to the Laotian capital, Vientiane, traversing rugged terrain and more closely linking Laos to the Chinese economy and, by extension, to global markets.
Port Development in Myanmar: The Kyaukphyu Deep Sea Port is part of the China-Myanmar Economic Corridor, providing China with a direct route to the Indian Ocean, bypassing the congested Strait of Malacca.
Sihanoukville Port in Cambodia: This project aims to increase the capacity of Cambodia’s main port to boost maritime trade with China and other regions.
The China - Myanmar - Bangladesh - India Corridor
One of the most important projects on this route is the construction of oil and gas pipelines through Burma, which offers China another alternative to transport its oil through the Strait of Malacca.
However, this corridor is one of the least active because India and China cannot agree on several points.
The Chine - Central Asia - Western Asia Corridor
By linking China’s rail networks to the Mediterranean Sea, the economic corridor strengthens connectivity between China, Kazakhstan, Kyrgyzstan, Uzbekistan, Tajikistan, Turkmenistan, Iran and Turkey. In addition to investing in rail, China is also developing roads and other infrastructure projects that could transform Central Asian economies, which currently have limited trade relations.
The Maritime Silk Road (MSR)
The Maritime Silk Road focuses on developing a network of seaports stretching from Southeast Asia to East Africa, through parts of Europe. These investments aim to develop port infrastructure to facilitate and secure the growing flow of maritime trade, which is a central pillar of the Chinese economy. Indeed, around 90% of China’s foreign trade, in terms of volume, and 60% in terms of value, depends on this maritime trade.
The Maritime Silk Road extends from Chinese ports, across the South China Sea, the Indian Ocean, and the Suez Canal, to reach key ports in Europe, such as Rotterdam or Piraeus in Greece, one of the flagship projects of the BRI. In Southeast and South Asia, countries like Indonesia, Sri Lanka and Pakistan are playing a crucial role in this route, with projects like the Colombo Port or the Gwadar Port, being expanded to strengthen trade links between China, Central Asia and the Middle East.
The main objective of this Maritime Route is to facilitate the flow of goods between China and global markets, while reducing transport costs and improving logistics efficiency.
See the full map at the end of the article
Obstacles to the development of the BRI
Since its launch in 2013, the Belt and Road Initiative (BRI) has grown dramatically. By 2015, 17 countries had already joined the initiative, and in 2017, it expanded to Latin America via the Maritime Silk Road (MSR). On the occasion of the tenth anniversary of the BRI in 2023, the Chinese government announced that more than 150 countries and 30 international organizations had adopted the initiative, with 3,000 projects underway, representing a total investment of $1 trillion. However, this project faces several major obstacles.
The first is related to the indebtedness of the participating countries. Many projects financed by Chinese loans place partner states in a difficult economic situation. The case of Sri Lanka illustrates this risk: unable to repay the debts incurred for the construction of the port of Hambantota, the country had to cede control of this infrastructure to a Chinese company for 99 years. This type of situation fuels accusations of "debt diplomacy".
The second obstacle is geopolitical. India is a central example: the China-Pakistan Economic Corridor linking China to the Pakistani port of Gwadar crosses Kashmir, a region disputed between India and Pakistan. This passage is perceived by New Delhi as an attack on its territorial sovereignty, pushing India to systematically boycott BRI summits.
In the European Union, we have the example of Italy, which had initially joined the initiative in 2019, and which finally decided to withdraw in December 2023, fearing that the BRI would foster economic imbalances and dependence on Beijing.
Finally, local challenges jeopardize the implementation of projects. In Indonesia, the construction of the Jakarta-Bandung high-speed rail line, an emblematic project, has suffered numerous delays due to financing problems, land disputes and environmental concerns. Similar situations are repeated in other countries, where local communities question the impact of projects on their daily lives.
In conclusion, the Belt and Road Initiative embodies China’s desire to shape a new global economic order by connecting continents through modern infrastructure and strategic corridors. This colossal project has the potential to transform trade dynamics, strengthen ties between nations, and boost economic development in many underserved regions. However, for the BRI to fully achieve its goals, China will need to address criticisms about project transparency, environmental impacts, financing conditions, and the equitable distribution of benefits. A more inclusive and respectful approach to local interests could allay concerns and ensure that this global initiative becomes a lever for growth and cooperation rather than a source of tensions. The future of the BRI rests on a delicate balance between strategic ambition and shared responsibility.
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