China has been actively buying crude oil, gas, and stakes in key global companies within the framework of the Belt and Road Initiative.
The lion’s share of investments is earmarked for the transport infrastructure. So, Beijing purchases stakes in leading European companies, first and foremost, those managing ports. The bottom line of the project is to ensure steady logistics between Chinese manufacturers and the European market.
China’s authorities reckon that the project implementation will set the stage for the country’s geopolitical advantage. Eventually, China will act with more confidence as the US's powerful rival in the struggle for global leadership. Besides, the successful implementation of China’s blueprint will provide the country with its own global transport infrastructure beyond Washington’s control.
In response to Beijing’s initiative, the White House stated that it would take measures to derail China’s ambitious brainchild and would confront Beijing’s attempts to enable control over European ports.
China’s project also represents a handicap to the Baltic countries and South Europe as they had to suspend their intended deals. This state of affairs forces Chinese companies to buy European transport infrastructure via third parties.
Due to the buzz surrounding the project, Beijing is voicing concern that Washington might come up with tough sanctions. For instance, the US administration might curb energy supplies to China and put the lid on Chinese manufacturers of the high-tech sector.
Nevertheless, China is not going to give up and has been stepping up its pressure on the global economy. Nowadays, Beijing aims to ensure its dominance in mining rare metals and sapphires essential in manufacturing hardware.
What is the source of such humongous investments? The thing is that alongside the US, investors from around the world acknowledge China’s reliability. Such recognition allows Beijing to obtain as many funds as needed at its first request. Investors are well aware that they will gain generous returns from the thriving economy of their borrower.
Last but not least, the People’s Republic of China is the key global exporter that actively spends dollars earned on the supply of goods to purchase a resource base and companies operating it. Today, Beijing is allocating funds from surplus trading into tangible assets around the world, from Africa to Latin America.
