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Business / Economy

China's Belt and Road Initiative to give new impetus to world economic growth

(Xinhua) Updated: 2015-11-16 10:48

Shagrir shared his observation, expressing confidence that the Belt and Road Initiative would be a big contributor to greater stability in the region because all parties will eventually be connected by this vision, which features a lot of common economic interest and a wish for greater regional peace and stability.

They are also very optimistic about the prospect of China's economy and confident that China will remain an engine of world economic growth in the future.

The Chinese economy is currently undergoing a transition from growth that is dependent on exports and manufacturing to an economic model that emphasizes more sustainable development, clean energy, the growth of the consumer class, and urbanization, Pezvner said, adding that the 6.5-percent growth target set in its 13th five-year development plan is "reachable."

China's industry capacity to benefit world

Professor Gadi Ariav of Tel Aviv University Business School cited Israel as an example of a country that is benefiting from the Belt and Road Initiative as Chinese companies dig highways, railways and tunnels in Israel.

"We enjoy the Chinese know-how and capacity," he said.

"It is very common in international geopolitical policy to offer your excess capacity to friendly benefiters, so in that sense it solves the short-term problem of over-capacity which has been building up in China; in the longer term it provides markets and roads in the surrounding belt around China," he said.

Describing the Belt and Road Initiative as "an excellent vision" by President Xi, Shagrir said it is "a far-sighted vision to develop infrastructure throughout Asia, Eurasia, the Middle East all the way to Europe" in order to eventually ensure the goods that are coming from China reach Europe.

"It is known that there is a huge infrastructure gap in Asia in general -- some estimate something between a $4 trillion - $8 trillion infrastructure gap. So definitely there is a need for such a financial tool as the Asian Infrastructure Investment Bank (AIIB) to take care and make sure that the infrastructure will be developed in the coming years," Shagrir said.

The AIIB, aiming to improve infrastructure in Asian countries, including those covered by the Belt and Road Initiative, is due to be formally launched at the end of this year. The bank, which has 57 prospective founding members, is an important vehicle for the implementation of the Belt and Road Initiative.

Shagrir believed that Israel, a prospective AIIB founding member, will benefit from being part of the bank.

"We believe that it will provide opportunities for Israeli companies to take part in the bids (issued by the bank)," he said, adding that Israel considers itself to be part of the 21st Century Maritime Silk Road which goes all the way from the South China Sea to the Mediterranean Sea.

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